[Request] Precession - Super Senior Funding Request

Summary Proposal

Precession has submitted a forum proposal describing our Small Business Receivables Pool 1 . We are hereby requesting the TrueFi DAO consider directly funding a ‘super senior’ tranche in the pool. We believe the risk profile of the super senior tranche is sufficiently low, providing a high level of stability for the TrueFi DAO treasury. Such a structure may also be used as a template for future transactions and allow the DAO to capture the benefits of subordination to enhance the collateralization of TUSD using real world assets.

Structure

With the TrueFi DAO as a super senior lender, other TrueFi community lenders may also participate and earn an enhanced yield. Subordinate or First-Loss capital will be provided by Precession, which will enhance both the Super Senior and Senior lenders from the TrueFi community. (see diagram below)

Economics

We request a loan in the amount of $7,000,000 at a 5% fixed rate.

TrueFi SSNR Structure May2022

2 Likes
  • Yes, the DAO should seed this portfolio.
  • No, the DAO should decline this opportunity.

0 voters

Voting yes, but with the hopes that this is the first step in a broader vision for TrueFi as a DAO participating in its pools.

Perhaps the broader vision for this concept could be a super senior pool that provides this sort of leverage to all TrueFi pools, with the proceeds going back towards the Treasury, externally managed by an elected third party (perhaps TrueTrading to start) to provide high level risk assessments/reporting and voted in (or replaced) on a 12 month cycle.