LobsterDAO 🦞

02 Dec 2024 23:05

InterPoL (the THJ ecosystem dapp) launches the $25K worth audit competition.
You have 72 hours.
Hack it and claim your honey.

https://x.com/INTERPOL_FI/status/1863678281721282734

Wtf is InterPoL:
https://docs.notinterpol.com

LobsterDAO 🦞

02 Dec 2024 21:39

Man everyone is better at succinctly expressing this than me and I made it

LobsterDAO 🦞

02 Dec 2024 21:38

Pretty much! Alongside template loan agreements in case the borrower doesn’t have one to hand and/or the lender wants one to define their rights

LobsterDAO 🦞

02 Dec 2024 21:33

Dunk the GNO and wstETH into a collateral contract, and it’s just one of many rather than something requiring a brand new AV3 instance

LobsterDAO 🦞

02 Dec 2024 21:31

One thing I’ll say is that most credit score formulations that rely purely on on-chain data are bunkum for the purposes of evaluating risk in an unsecured setting, for reasons that are probably obvious - you’re comparing apples to oranges in terms of the risk vectors

LobsterDAO 🦞

02 Dec 2024 21:29

Awesome, I'm looking forward to it ser 🙏️️

LobsterDAO 🦞

02 Dec 2024 21:28

As to comparison: I’d think of it more as a liquid bond structure than a CDP, given that you can undercollateralise or completely unsecure these if you don’t want an auxiliary collateral contract on top

LobsterDAO 🦞

02 Dec 2024 21:26

Funny you mention it Tex

LobsterDAO 🦞

02 Dec 2024 21:25

Do you see a market for lines of credit to DAOs? How would you compare this to stucturing loans via convertible CDPs?

LobsterDAO 🦞

02 Dec 2024 21:25

We can take some educated guesses though: family offices, some whales with entities they keep their assets in

LobsterDAO 🦞

02 Dec 2024 21:24

If you don’t mind me asking, who are the kind of users lending on wildcat? And what do you think motivates them to use it?

LobsterDAO 🦞

02 Dec 2024 21:23

Where can you get Sepolia ETH ?

LobsterDAO 🦞

02 Dec 2024 21:21

There’s danger in there: people would lend to 3AC/Alameda basically sight unseen

LobsterDAO 🦞

02 Dec 2024 21:20

To the best of my knowledge - speaking to several folk that have large outstanding credit lines to them - lenders generally don’t seem to care too much about any kind of native credit score that we currently have the facilities to provide

LobsterDAO 🦞

02 Dec 2024 21:18

It might be needed and even possible, but maybe not 'in DeFi'. While it could unlock new capital efficiencies, someone has to take on the risk, which is far less deterministic than the risks typically underwritten in DeFi. Without enough counterparts—essentially, liquidity—can it truly unlock efficiency? Maybe not. Developing a reliable credit system that evaluates, builds, and uses trust at a level comparable to overcollateralized loans could be messy. It might not even resemble DeFi as we know it, tho that depends on how we define DeFi.

LobsterDAO 🦞

02 Dec 2024 21:44

Awesome, dmed to save lobsters from spam

LobsterDAO 🦞

02 Dec 2024 21:38

It’s funny to see low-code given I know what the protocol looks like under the surface (a market is a web of contracts) but that’s accurate

LobsterDAO 🦞

02 Dec 2024 21:37

Is wildcat more like a builder tool say Lego for creating private credit facilities? I specify credit terms, manage my own risks, wildcat just provides me with the low-code tool to formalize that in the smart contract and execute?

LobsterDAO 🦞

02 Dec 2024 21:32

See: this is an amazing example - I’d love to see this exist as a Wildcat market

LobsterDAO 🦞

02 Dec 2024 21:31

https://governance.aave.com/t/temp-check-deploy-a-gnosis-dao-credit-line-aave-v3-instance/19126

LobsterDAO 🦞

02 Dec 2024 21:28

Here perhaps isn’t the place for me to sperg about it, but I’ll write some more soon

LobsterDAO 🦞

02 Dec 2024 21:27

The answer is yes: I posted this earlier

https://x.com/functi0nzer0/status/1863549444110561500?s=46&t=hQKbHzHvgiA-QxBc9Wfs1Q

And then received a storm of DMs

LobsterDAO 🦞

02 Dec 2024 21:26

We’ll have a better idea of the TAM in terms of sector of lenders once our V2 is out for a bit, but I see the numbers that Celsius et al hit and go “there’s clearly a desire to yield chase”

LobsterDAO 🦞

02 Dec 2024 21:25

V1 is VERY clunky though

LobsterDAO 🦞

02 Dec 2024 21:25

We actually don’t know who’s lending on Wildcat, because it’s Wintermute (the V1 power user) that’s onboarding them to markets that they’ve deployed

LobsterDAO 🦞

02 Dec 2024 21:23

We’d like to see Wildcat get used to start bootstrapping reputation signals, but sometimes folk just melt for exogenous reasons heh

LobsterDAO 🦞

02 Dec 2024 21:23

We’re very simply sidestepping this by saying “we aren’t underwriting your risks here” to anyone that uses us to deploy capital - we have courts for this, but then someone lending a relatively small amount should be aware that if there’s a default, they’re probably going to be sunk costing anything going after folk through court unless they’re part of a class action

LobsterDAO 🦞

02 Dec 2024 21:21

If they’re going to get credit, it’s based on showing some financial statements and their rep

LobsterDAO 🦞

02 Dec 2024 21:19

Pinging @laurence_e_day for his wildcat shill for credit settlement onchain which is kind of a superset of this

LobsterDAO 🦞

02 Dec 2024 21:09

Do you think undercollateralized loans are possible or even required in DeFi in the future?

Let's say it's possible, how much of impact do you think these credit scores have on them?

Given that overcollateralized loans have their own set of limitations, do you see any potential for hybrid models in DeFi that combine aspects of both overcollateralized and undercollateralized loans?