Hi Centrifuge Community,
I’m Mike, the Founder of DeFi Capital Markets (“DCM”), an entity focused on building the decentralized future of capital markets through bringing 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.
I would like to ask CFG token holders and the community for feedback on a proposed formation of a cross protocol credit group to analyze Centrifuge real-world asset pools. The purpose of this being to provide risk-reducing analysis for the onboarding of Centrifuge pools to DeFi protocols. The intention of this group is not to replace individual protocol governance processes, but instead to provide communities with critical knowledge and information they need to make decisions around onboarding new real-world asset collateral. Ultimately giving a view on whether the asset pool is safe or not. This group will also act to accelerate the decentralization of the Centrifuge network bringing further impartiality to decision making.
We are well aware that 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, we aim to build community trust through education and knowledge sharing. Ultimately, we want communities to feel empowered and comfortable when onboarding real-world asset pools, giving them the tools they need to make the right decision. In our view real-world assets are a truly massive opportunity and we want to help bring this to life!
The Credit Group would function to validate credit work and seek support from the community through:
- Providing independent information and research to aid in liquidity provision decisions to pools of real-world assets
- Focusing on providing a thorough risk analysis on the underlying collateral
- Providing a view on the structure of the real-world asset pools
- Highlighting potential risks
- Discussing market trends for the underlying asset class
- Presenting information in a digestible and actionable manner
- The relevant members will provide this information, along with their relevant qualifications, to communities to facilitate decisions
Members of the Credit Group could work on an ad-hoc basis for a minimum term of one calendar quarter, 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, amount of reviews completed, etc).
I would estimate that the starting budget could initially be roughly $12,500 per quarter - this covers 5 members 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.
The Credit Group in the first instance will look to work with the Centrifuge, Aave and MakerDAO communities.
Participating in the Credit Group
Ideally the Credit Group would be composed of experts from various DeFi protocols, professional institutional investors as well as experts from the wider Ethereum ecosystem. The focus at the moment is on 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:
- Describe your/the expert’s interest in the Centrifuge/ MakerDAO/RWA Market (Aave) ecosystems?
- Describe your/the expert’s involvement in structured credit?
- What skills/experience do you/they bring?
- Can you commit a couple hours a week?
I would suggest that token holders ultimately vote on new members inclusion and membership can be reviewed once a quarter should opinion in community change.
In summary, I would like to gauge support for this proposal from the community.