Disclaimer: Ideas presented here are strictly my own and constitute a simple temperature check for the community. Apart from a simple experiment described at the end of this pos, no decisions or course of action here
Almost two years ago @tchairman.eth had an idea to build a truly permissionless peer to peer, uncollateralized lending protocol that would eliminate all middle man, managers, underwriters etc. This protocol had been put on the roadmap and was implemented (both smart contracts and ui) and audited. It exists right now, laying low inside our documentation, it is called “Lines of Credit”.
The idea was that certain parties are reputable enough for lenders to make their own decision to lend to. During last months I held two conversation with neofi companies that were interested in launching an ALOC, I also tried exploring a “DAO” avenue, seeing if other DAOs would be interested in opening Line of Credit. Here is how the proposal for Purple DAO looked like:
I also tried posting on NounsDAO forum but received no response.
For all parties that I talked to, asking to be whitelisted by TrueFi governance seemed like too much of a hassle for being a pioneer of such experiment. There also arises a question, how or why TrueFi DAO would whitelist these parties. One of the solution would be launch Lines of Credit in a permissionless manner,.
The core issue of launching a protocol like this in the permissionless way is similar to ERC-20 token permissionless nature. Anyone can launch a token, rug people, scam them etc. Same goes for uncollateralized instruments without proper tradfi underwriters.
I believe TrueFi SHOULD NOT launch smth like this alongside our new “Adapt3r Treasury Bill Fund” which is our reputable foray into a world of RWA. Hence if we would like to release permisionless ALOCs (with all the implied risks), it would be important to completely separate two protocols while remaining loyal to TRU holders that funded the protocol implementation.
Before we do anything, or decide on anything, I am willing to become a first person to open their own personal Line of Credit onchain (OP Mainnet, very limited in size, seperate website etc) to show off to the world the “production” demo of how the product works. Please do treat this strictly as a product / engineering experiment to open conversations about onchain Lines of Credit.