Brief Authors: Arkaydeus, NiftyFifty
Project lead: NiftyFifty
Squad: Acquisitions
Creative approval: N/A
Abstract
We propose funding the lending bot built by Arkaydeus (See “Motivation” for more details) with 10 ETH to start making automated loan offers (exclusively against Squiggles) on NFTfi.
This authorization shall be valid until the first 30-day loan matures at which time we will send all funds (and NFTs if applicable) back to the Treasury and report based on the performance of the program. Arkaydeus and NiftyFifty will have discretion to set the bot specific loan terms and adjust them based on market conditions (all specifications and changes will be automatically recorded and timestamped).
Motivation
There are two reasons for authorizing this activity:
1) Increase our loan offers reaction speed. This bot allows us to be active 24/7 and owners will be receiving an offer within seconds of the Squiggle being listed on NFTfi. We have observed that many borrowers are time sensitive and tend to accept the first reasonable offer, hence this bot is a significant competitive advantage for SquiggleDAO.
2) As Squiggle lending demand increases, automating this activity will allow us to scale our operation (putting manual offers is time consuming, manageable now that there are a few Squiggles on NFTfi, but will not be if the number of Squiggles grows substantially).
Additionally, NFTfi has confirmed a token airdrop. This activity will increase the probability of us being included in any potential airdrop.
The bot has been tested extensively on testnet and mainnet (using NiftyFifty’s Squiggles to avoid putting any DAO’s assets at risk) and it is ready for deployment. We are requesting a small amount of ETH to start and will increase the budget (with subsequent proposals) if the activity is satisfactory and the DAO approves.
This SDIP is in addition to the manual lending activity the DAO is already pursuing. Please see the following SDIPs for further details:
Success Conditions
- Issue multiple loan offers on Squiggles, automatically and with the specified terms
- Issue 1 loan successfully (note that success is based on making the loan with the specified terms and everything going according to plan, not based on repayment or default)
- Gain DAO experience using the lending bot
- Identify and record risks, issues or limitations with our ability to run the bot
- Produce & share a report after the trial period, detailing our performance and any key insights
Specification
- Bot wallet (controlled by Arkaydeus) will be funded with ETH from the Treasury
- NiftyFifty and Arkaydeus (both SquiggleDAO core contributors) can specify and make changes to the loan terms. All changes are automatically recorded and timestamped
- Once the loan matures all funds (and Squiggles if any) in the bot wallet will be returned to the Treasury wallet
- If an NFTfi airdrop does occur, a vote will be held in the "Ongoing Votes" channel in Discord to determine what to do with the tokens (sell, keep, etc)
Launch Details
Project will be launched according to the specifications above, at the timing and discretion of the operators.
Costs
10 ETH (though some or all of this could return back to the treasury depending on the outcome of the lending activity).
Rewards
N/A
