Onboarding Ambassadors
onboard new members and collect data on the ground of which an underwriting algorithm calculates a credit score and the amount of AIR that needs to be staked.
Underwriter auction
Underwriter auction Underwriters analyze the members data + credit score and price the credit line’s risk in form of transaction fees the new member will have to pay (high fees for risky members, low fees for trusted members). The underwriter that has offered the lowest transaction fee gets to underwrite the credit line, and thus collect a share of the member’s future transaction fees
Skin in the game” staking
To activate the member’s account, the winning underwriter will now have to stake AIR in accordance with the size of the credit line and its risk. (Around 20% of the credit line’s size)
Assumption: the AO has to provide the TIN – junior tranche at the LLC level (secured promissory note).
NB:This memo has been prepared using knowledge and material Davoa acquired over time by being involved with various portfolio companies.
Protocol roles – Agents
Borrower - A.O.
Access credit lines
Ambassador
Onboard borrowers
Support
Deal brokerage
Underwriter
Assess risk
Price risk (set tx fees)
Front staking collateral
Repackaging risk
Share risk with delegating stakers
Delegating Stakers
Assume packaged risk
Provide liquidity to underwriters
Process
Onboarding
Ambassadors onboard new AO and collect data on the ground of which an underwriting algo calculates a “credit score” and the amount of AIR that needs to be staked.
Broadcast to underwriters
The credit soccer and essential data (social media - underlying assets) regarding the AO are then broadcasted to a distributed network of underwriters.
Underwriter auction
Underwriters analyze the AO data, credit score and price the credit line risk in form of transaction the new AO will have to pay (high fees for risky AO, low for trusted…)
The underwriter that has the lowest transaction fee gets to underwrite the credit line,and thus collect a share of the AO future transaction fees.
Alignment of interest
To activate the AO’s pool – asset back loan, the winning underwriter will now have to stake AIR in accordance with the size of the credit line and its risk. (around 20% of the value of the pool – loan size).
Debt repackaging
The underwriter can then package the new AO’s line of credit with other AOs to create a diversify portfolio.
Which allows the underwriter to offer delegating stakers as a staking pool.
Delegated staking and refinance
Once the delegating stakers deposited AIR the underwriter can extract a portion of the staked AIR, refinance and underwrite additional AO/emphasized text
