Title: Add Chromie Squiggles as collateral
Date Created: March 7th, 2023
This is a proposal to add Chromie Squiggles as collateral on Bend DAO. The initial draft idea has already received the necessary votes (10+) on the Discord post and is ready for discussion on this forum.
Chromie Squiggles is the genesis project at Art Blocks and considered by many to be a landmark collection for generative art as a whole. The collection was created by Snowfro, a generative artist and founder of Art Blocks. Squiggles are one of the most well-known and well-regarded digital art collections on Ethereum.
OpenSea Page: https://opensea.io/collection/chromie-squiggle-by-snowfro
Dune Analytics (Unofficial): https://dune.com/cat/chromie-squiggle
Chromie Squiggles meet all of the blue-chip elegibility criteria set forth by Bend DAO:
- Current and 30-day average floor price over 10 ETH: YES – has been over 10 ETH since July 2022
- Number of items is greater than 5,000: YES – 10k collection
- Number of owners is greater than 1,000: YES – currently at 2.8k owners
- All-time trading volume on OpenSea is greater than 50k ETH: YES – currently at 62k ETH
- Collection has been deployed for more than 30 days: YES – has been deployed since 2020
In addition to meeting all of the blue-chip criteria, it’s worth mentioning that this would be a very strategic addition for Bend DAO. It would introduce Bend’s first ever digital art collateral, allowing the protocol to further diversify and expand into a new demographic of consumers. Gaining a foothold with the digital art community would be very beneficial for the DAO, especially if it expands into peer-to-peer lending in the future.
Furthermore, it’s worth highlighting that the existence of the Squiggle DAO presents some additional comfort that there are very engaged and enthusiastic buyers ready to participate in any potential liquidation events in the future. The Squiggle DAO is a community-run DAO dedicated to collecting Squiggles and amplifying Squiggles across cultural and art circles. The DAO has a sizeable treasury of over $3.7M which it has been putting to work on NFT lending platforms (primarily NFTfi).
If this proposal is passed by the community, Squiggles are to be used as NFT collateral for BendDAO and the relevant parameters are set as follows:
- LTV / Collateral Ratio: 30%.
- Liquidation Threshold: 80%.
- Auction & Redeem Duration: 24 hours.
- Redeem Fine: maximum (5% of the debt, 0.2 ETH).
- Redeem Threshold: 50%.
- Not for now