Building a community finance platform for DAO members to invest and borrow together
We created our own Loan DAO where members are able to borrow and lend without requiring collateral. The idea is to bring back community finance and social capital - in the past villagers borrowed from their neighbours and worked together towards a collective goal. Today, this very same ideology is taking place in the form of DAOs; local communities are working together on the premises of trust and reputation to work collectively towards something bigger. We wanted to give these organizations a mechanism to easily allow their members to borrow/lend from the DAO treasury. In our demo, we created our own DAO where members can do so. In the future, we would turn this into a platform where any DAO can use the same mechanism with their own members. We created LoanDAO to demo our functionality: 1) members must apply to gain entrance (in the form of a community voted proposal) 2) members are given an NFT if accepted which represents their participation rights 3) members can create a proposal to borrow funds from the community chest 4) community (other members) votes to accept loan applications 5) funds are transferred and interest is streamed back into the community chest 6) members can also deposit funds into the community chest and earn interest 7) depositors are given a tradeable cashflow in the form of an nft, which represents their deposits and are streamed interest yield in real-time The DAO treasury can make loans to any incoming requests based on the eligibility of the idea and their social credibility. Social credibility is a sort of creditworthiness and this is an abstract idea as of now. This can be tailored to include other metrics that can be used to initiate loans.
How it's made
This project uses the following core technologies: Superfluid ACL for streaming interest on deposits and loans ERC721 for membership tokens into the DAO - holding NFT gives access to the borrowing functionality Scaffoldeth for back-end Web 3 modal for login - metamask - coinbase wallet - unstoppable domains IPFS for storage of membership applications and our logo Polygon Mumbai for deploying our smart contracts Spheron for hosting our front-end