WOO DAO and WOO X are seeking to partner with TrueFi to enable institutional clients to borrow WOO for the staking program.
We see this as a way to increase our collaboration with TrueFi (which has historically been a lender to our partner company, Kronos Research).
WOO DAO will help facilitate institutional clients’ onboarding to WOO X. WOO DAO will earn interest on idle WOO in its treasury and increase awareness by partnering with TrueFi, a top borrow & lending protocol.
TrueFi’s solution acts as a transparent way for WOO DAO to manage our funds on-chain so that our token holders can be sure of how the funds are being used.
The portfolio will be managed by WOO X, the centralized exchange which manages the staking program for institutional clients.
To start, WOO DAO will deposit 6,050,000 WOO tokens into the portfolio for clients to borrow, as well as cover fees. WOO DAO will be the sole lender in this portfolio.
WOO DAO will handle repayments and issuance on behalf of clients. 600K WOO tokens will be issued into the portfolio manager’s wallet to support renewing loans without clients’ unstaking.
The lending portfolio on TrueFi will last for 1 year, after which WOO DAO will receive the tokens and interest earned. The interest rate per loan is expected to be around 13% annualized and each loan is expected to have a 90-day term.
Since this portfolio will only hold funds from the WOO DAO, all of the interest earned will be burned when the portfolio expires. If there is significant client demand, WOO DAO will launch another WIP to expand this initiative.
To start, this portfolio will not seek any TRU incentives, given that it is just the PM’s money lending into the portfolio. In the future, we will explore other methods of collaboration (for example, token swaps).