Profit / Risk Sharing Loans
Profit sharing loans have proven to be an effective tool to balance companies equity while at the same time allowing for the possibility to deduct variable interest based on the evolution of borrower’s business.
Required criteria include the borrower’s pro fi t, its turnover, its net equity or any other agreed by the parties through a fully decentralized manner. Besides, the parties can agree to a fixed interest rate, regardless of the borrower’s activity evolution.
Debts generated through smart contracts like Aave or Compound are easily trackable on your EGG dashboard. However, lending becomes problematic when the lender's gain is assumed to be the borrower's loss, we therefore focus the attention on loans where pro fi t and risks are shared between both parts.
DAO Lending The solution is a borrow / lend bidirectional platform where the borrower has to post a business plan in order to convince lenders through smart contract voting.
When the amount to be raised reaches 100%, the funds are released for the project leader, who can release more funds by posting proof of success of the next milestones, which must once again be validated by the community through voting.
We synchronize 4 smart contacts to enable such an experience, willing to take place on AirDAO , a project built by EGG teams.
Last modified 4mo ago
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