Hi Centrifuge Community,
This post aims to provide further color on the proposed usage of the Credit Group’s quarterly budget (previously voted on here: Poll: Formation of Credit Group) and also invites new credit experts to be a part of the expanding group. The group will be constituted by experienced credit professionals (typically 5+ years of work experience at top-tier institutions) that will act as a decentralized group of unbiased analysts, who can leverage their credit and sector expertise to analyze newly proposed credit opportunities via the Centrifuge protocol.
How work is performed: After performing a pre-screen, the Credit Group Facilitator will assign an appropriate credit expert to analyze issuers and create a credit review report. The reports will typically be 3-10 pages in length and are expected to take ~5-15 hours to complete. Following the review, the report will be posted to the Centrifuge forum, as well as other community forums if the proposed pools are relevant to them. The credit report process is expected to take ~2-4 weeks to complete, but the timeline can vary based on the due diligence process and support of required information by the issuer.
Year to date commentary: In 2023, the Credit Group formally established its Charter and grew in membership to eight credit experts. After formalizing the group’s strategy and governance, the team helped to draft a credit report template that aims to provide key credit strengths and concerns in a digestible format. The team started pre-screening new Centrifuge pool proposals and is actively working on its first credit report as a proof of concept. The team aims to iterate on report content depending on community feedback and looks forward to evaluating future pools as broader capital markets regain momentum.
How to become a part of the Credit Group: The team is actively looking to expand in size and diversify in expertise. We generally seek credit experts with at least 5+ yrs of experience at reputable traditional finance institutions who have experience in short duration structured credit products (both publics and privates) but welcome a broad range of backgrounds. To propose your involvement, please respond to this forum post with 1) a history of your credit background and relevant industry qualifications, 2) a list of asset classes, industries and credit products you are most experienced in, and 3) a brief commentary on your motivation for joining the Credit Group.
- Monthly compensation in either CFG or USD denominated stablecoin (USDC, DAI) for
- Facilitator of $5k
- Advisers of $500
- POP review compensation in either CFG or USD denominated stablecoin (USDC, DAI) per report (further details in the table below)
Quarterly Budget Proposal and Estimate:
- $24k estimated quarterly costs
- $18k fixed costs for 1 Facilitator and 2 Advisors
- $6k estimated variable cost (avg 3 reviews per quarter) with flexibility to increase subject to demand - funds not used in a given quarter will be rolled over to the following quarter
- Roles and responsibilities of members are further outlined in the Credit Group Charter
How funding is requested: Formal revised funding request will come roughly 30 days before the previous quarter’s treasury of $12,500 is expected to be depleted. Funding requests will be in accordance with the CP2 Proposal Framework: https://github.com/centrifuge/cps/blob/main/cps/CP2/CP2.md