Hi Centrifuge Community,
I’m Mike, the Founder of DeFi Capital Markets (“DCM”), an entity focused on building the future of decentralized capital markets by onboarding institutional investors, assets and infrastructure to the DeFi ecosystem. Previously I was a core member of the Centrifuge team and we at DCM are currently contributing to the Centrifuge, RWA Market (Aave) and MakerDAO ecosystems. The current, and future, employees are largely from institutional investment and credit backgrounds.
I am proposing a CFG token holder vote on the formation of a Credit Group to analyze and risk assess Centrifuge real-world asset pools. The purpose of this group is to provide risk analysis for the onboarding of Centrifuge pools, playing a key role in the proposed POP process (Centrifuge pool onboarding proposal). The intention of this group is to provide the Centrifuge community with critical knowledge and guidance they need to make decisions around onboarding new real-world asset collateral. Ultimately the group would aim to give a view on various financial and business aspects of a proposed pool that would culminate in a reproducible risk assessment report provided to the community. This group will also act to enhance the decentralization of the Centrifuge protocol.
Real-world assets are an emerging asset class in the Web3 space that is not familiar or intuitive to many current DeFi participants. To that end, the establishment of a Credit Group would aim to build trust in the quality of Centrifuge asset pools through education, knowledge sharing and thorough risk assessing, both for our community and externally with our DeFi partners. We at DCM want all involved to feel empowered and comfortable when onboarding real-world asset pools, providing guidance they need to make informed decisions.
The Credit Group would function to perform credit work and seek to support the community through:
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Providing independent analysis and research to provide thorough risk assessment on the underlying collateral of proposed pools
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Providing a view on the structure and pricing of real-world asset pools
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Highlighting potential risks
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Discussing market trends for the underlying asset class
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Presenting information in a digestible and actionable manner
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The relevant members will provide this guidance, along with their relevant qualifications, to the community to facilitate decisions
Credit Group formation
I would suggest that members of the Credit Group work on an ad-hoc basis for a minimum term of 6 months, with the ability for membership positions to be renewed subject to approval via governance. Applications are open and can be submitted as set out below.
Given the levels of expertise required, I would propose members receive $100-500/hr in the form of a treasury grant subject to governance approval. Payment could be based on success metrics (level of participation, number of reviews completed, etc).
I would estimate that the starting budget could initially be roughly $12,500 per quarter - this covers 5 members (to start) working 40 hours at an average of $250 per hour, along with a small contingency budget for additional expenses. Member compensation could be based on the specific skills provided so individual members may earn more or less than $250 per hour.
Do you agree on the formation of the Credit Group?
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Yes
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No (please comment on what you’d like to see instead)
0 voters
Do you agree on a starting budget of roughly $12,500 for 3 months - this covers 5 members (to start) working 40 hours at an average of $250 per hour?
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Yes
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No (please comment on what you’d like to see instead)
0 voters
Participating in the Credit Group
I propose that through this vote we elect a leader for forming the Credit Group, organizing its efforts, and creating a reproducible framework that can be recycled and easily understood. That end, I propose that DeFi Capital Markets (led by myself) occupy that role for 6 months. I am intimately familiar with the Centrifuge protocol, pools, community etc and really believe I can help drive this forward!
Do you agree with DeFi Capital Markets being elected the first leader of the group for forming the Credit Group, organizing its efforts, and creating a reproducible framework for 6 months
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Yes
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No (please comment on what you’d like to see instead)
0 voters
Ideally the remainder of the Credit Group would be composed of experts from various professional institutional investors, credit analysts as well as experts with knowledge of specific asset classes. The focus at the moment is on SME structured credit. If you are interested in being a Member of the Credit Group or would like to nominate someone to be, please reply to this thread with basic info, including:
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Describe your/the expert’s interest in the Centrifuge ecosystem?
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Describe your/the expert’s involvement in credit?
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What skills/experience do you/they bring?
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Can you commit a couple hours a week?
These polls run for 3 days until 2022-05-02T00:00:00.000Z. Should the voting turnout be a clear result the council should proceed to propose a motion for a democracy vote.
