Bootstrapping lending pool liquidity

Now that the proposal to reduce the costs for Initial Liquidity Loans (Reduce Loan Retention Premium on X7 Initial Liquidity Loan 002 and Loan 003) has passed, we need to work to ensure there is sufficient lending pool liquidity on each chain to fund any loans requested.

As I write this proposal, the lending pool balances (/pool command on Telegram) are as follows:

ETH: 91.04 ETH ($148,332) ARB: 5.36 ETH ($8,731) OPTI: 3.28 ETH ($5,335) BSC: 6.6 BNB ($1,395) POLY: 5701.76 MATIC ($3,202) BASE: 0.02 ETH ($30)

It appears we have plenty of liquidity in the ETH lending pool to meet any likely near term demand, but the same cannot be said of the other 5 chains.

So what happens if an Initial Liquidity Loan is requested and there is not sufficient liquidity to fund it?

The X7 Whitepaper says:

"When a leveraged pair loan is requested that cannot be serviced due to insufficient liquidity within the Lending Pool, the request will cause an NFT to be minted. This NFT can be claimed by funding the loan, and results in an instantaneous return to the claimer of part of the loan origination fee. Possession of the NFT grants the holder a portion of the premium returns in the future as well as rights to claim the initial lent principal.

This mechanism will allow for a more effective bootstrapping period during which the Lending Pool may not have the proper liquidity to meet loan demand."

If the community wallet had sufficient funds that were not committed elsewhere, it could claim the X7 Loan NFTs and thereby help bootstrap the loan liquidity when needed. For it's trouble, the community wallet would earn a share of the Loan Origination Fees for each X7 Loan NFT it claimed.

The current balances (/treasury command on Telegram) held by the community wallet are:

4.1 ETH ($6,671) 0 X7D ($0) 81,700 X7R ($1,721) 793 X7DAO ($7) $1,510 USDT/C Total: ($9,908)

Proposal: To instruct the community wallet to claim any X7 Loan NFTs minted in the following circumstances:

• if the community wallet has sufficient funds that are not already committed for another purpose
• for chains that the airdrop to X7 ETH tokenholders has not taken place. After an airdrop, the chain will have its own DAO and community wallet that can address this issue if it so wishes
• to maximize velocity, if there is more then one X7 Loan NFT available for claim - the X7 Loan NFT with the shortest duration should be claimed first. This claim process should continue from shortest duration to longest duration till either all available NFT loan tokens are claimed or the community wallet no longer has sufficient uncommitted funds.

Each X7 Loan NFT so purchased would help bootstrap the lending pool liquidity for that chain:

• because a share of the Origination Fee is added to the Lending Pool (Whitepaper - "A portion of the origination fee will feed back into the Lending Pool to grow the capital available for automatic lending.")
• Part of the trading fees generated by the liquidity pair are added to the Lending Pool via the Ecosystem Splitter

Whitepaper references can be found at https://www.x7finance.org/docs/whitepaper/lending-functionality