Credit is extremely important to the growth and normal operations of guilds. This was exemplified by the recent Cream hack. Cream’s Iron Bank had provided Yearn with a line of credit – despite Cream being hacked, the Iron Bank’s capital was secure and no money was withdrawn or lost. Demand for DAO-to-DAO loans have therefore been proven remarkably robust.
Kyoko’s credit bank is governed by a multi-signature address that includes the Kyoko DAO, well-known VCs, and top DAOs and/or guilds.
We will also employ a strict screening model for evaluating emerging guilds and DAOs. This data will be fed by BlockchainSpace and other considerations from the investors. The loan quota will be relatively smaller at the beginning, and this amount will be calculated by our risk model.