Great initiative. Look forward to the report. 1754 factory pools were one of the earliest and largest pools that were onboarded by Centrifuge. How we will handle this will be very important for the current & future trust in the protocol.
Davoa and Fabien Dureuil @Fab @Fabien seem to have gone quiet after closing this thread. No contact by mail either.
I checked out the rest of the team that was presented as the Davoa Capital key principal team in their shared Factory 1754 Bling Series 1 PPM document. To see if I might be able to reach other people on the Davoa side.
Faisal Bhatti
https://www.linkedin.com/in/faisalbhatti1990/
and
Mehdi Legroune
https://www.linkedin.com/in/mehdi-legroune-40b22032/
They don’t seem to work for Davoa anymore. In fact, according to Linkedin, Faisal worked there for 3 months, and Mehdi doesn’t even mention it as an experience, so that would indicate a short stay as well. That begs the question, who was vetting the originator and the loan book on behalf of Davoa? I can’t find any other names in relation to Davoa, except for Fabien.
Is anyone from the Centrifuge team still in contact with Fabien? Is he cooperating with this review?
Other important questions:
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What due diligence does the Centrifuge team do on the issuers?
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What protective measures does the protocol take to avoid rogue or incompetent issuers? Contracts? KYC/AML? Collateral?
Not implying Fabien or Davoa is rogue or incompetent - raising the question more generally around the safety mechanisms around issuer selection and controls. Always assumed the main risks would lie with the originators and the smart contracts / protocol. If those two factors were relatively good, the senior tranche would mitigate most of the remaining risk. So I am curious about what damage an issuer could do in a bad-case scenario and how (if) this is mitigated. -
Why is the series 1 thread closed?
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Should we be worried about Branch Series 3 as well?
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Does the issue here lie with the issuer (Davoa Capital) or the originator(s)? (Sherwood/Bling and Branch) Or both?
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Has the Centrifuge team, community or @christiancdpetersen been in contact with Sherwood and Branch themselves since the early distress signals? Are they still in contact?
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Can Sherwood (Bling) and Branch respond to the Centrifuge community / their creditors as well?
It would be great if some of these questions could be answered here on in the report.
How is the legal review progressing? We are nearing the end of the 6 weeks period. Is it still expected to be completed within that timeframe? @christiancdpetersen