The Diamond BirbBank
- $50,000
- Trademark requested
The Diamond BirbBank will become an essential piece to the Ascension of MoonBirds. We are aiming to build & run a Lending/Borrowing platform for nested MoonBirds & Proof Assets. Liquidity options for NFT communities have shown direct correlation & outperform both in floor prices as well as overall sentiment in the community. A win/win for MoonBirds/Lunar Society & Proof.
About the project
The Diamond BirbBank will become an essential piece to the Ascension of MoonBirds. We are aiming to build & run a Lending/Borrowing platform for nested MoonBirds & Proof Assets. Liquidity options for NFT communities have shown direct correlation & outperform both in floor prices as well as overall sentiment in the community. A win/win for MoonBirds/Lunar Society & Proof.
Mission alignment
- Create experiences or products which directly benefit holders
- Promote the Moonbirds and Mythics brand beyond web3
- Elevate Moonbirds and Mythics within the web3 community
Community backers
Cashtro#0001, WarDaddy#1849, Lakoz.eth#4792, CaptainCK.eth#9066, bonglo#0001, Inaros#0806, derk0015#6674, Vinc3nt.eth#8888
What is it?
We plan to build a lending/borrowing platform where Nested MoonBirds, Mythics, & Proof Assets will have liquidity options available.
Giving the community the ability to borrow against assets in the ecosystem while still earning rewards/talons/etc...All without having to unnest or feel handcuffed by nesting.
"Grails" or other Proof curated drops, will be case by case basis.
This not only allows access to liquidity for the community, but will also earn revenue for The Lunar Society from day 1.
Access to liquidity at reasonable prices is directly correlated to both community sentiment as well as "Floor Price go up".
This also solves the "buy back floor birbs" everlasting conversation. We can have both a lend to earn & lend to own approach. On the lend to own approach, the DAO will still earn yield, while accruing birbs for a % of the Floor Price.
With Art being the focus & many of the curated Proof drops being low liquidity collections, we have an opportunity to seize a gap in the market as the DeFi side of NFT's is booming, while lending on most digital art is still in its' infancy stage.
The NFT world has seen trends towards concentration of capital & financial services in the top collections, which creates a feedback loop of positive sentiment, increased eyes on the project, and yield earning activities that make it much easier to grow our ecosystem through happy holders (which tend to buy from the same ecosystem) & new customer acquisition/excitement for joining MoonBirds/Mythics. All while earning revenue for The Lunar Society.
We propose funding of $50,000 for development costs & initial liquidity (if anything is leftover). A 2nd round of funding may be requested in order to have sufficient capital for liquidity pools & yield earning activities around lending/borrowing.
(Media & Design work will be made once approved by the DAO in order to match Lunar Society/Proof assets)
How does it benefit the Moonbirds and Mythics holder community?
- Access to liquidity for the community
- Positive sentiment
- Revenue generating back to Lunar Society
- New customer acquisition
- Rather than buying up floor birbs, accumulate birbs on loan defaults (lend to own)
- Eliminate fud around treasury buy backs & not believing in MoonBirds (accumulate birbs much cheaper than FP)
- As other mechanics change or are introduced, we can also pivot.
- Earn Talons while remaining nested, don't lose nesting streak.
- Bolster our North Star
About the team
I am working with 2 MB holders & PC members who will act as advisors (WarDaddy & Cashtro). We all have significant experience in the DeFi space, specifically in the lending/borrowing space.
We will be partnering with Arcade.xyz to provide back-end support.
We have the expertise & network with other Dao's, its' members & projects in the space. Most recently, speaking with NiftyFifty from SquiggleDao who has been running a similar initiative for Squiggles for over a year, and recently (February) passed a 100E add on after a highly successful first year (250E deployed, 57 loans issued, all being profitable i.e either repaid or defaulted in the money). Relationships with outside funds/whales who would also be interested in lending to MB.
We aim to remain lean, hiring a front-end dev & also build bots that will assist in general, smaller sized collection offers, while also being programmed to toggle offers based on intraday trading & variance. Potentially contract a Graphic Designer (will need to speak about trademarks/assets with Proof team to see whether or not we will need this).
We have several backers who I could not fit on the list who are also here to assist if asked & support this initiative.
Product strategy
We would like to pass this approval ASAP. If expediting is possible, would be a big plus, as we are ready to go.
Once passed, we build out the front end & tie in the back end with Arcade.xyz.
We will setup a new wallet that we will manage with funds from the treasury.
Team will have discretion over loan terms.
Loan offers can begin to be made.
Performance of the program will be tracked and periodically reported to the DAO.
Can be up and running within a few weeks from funding.
What are the risks?
- Smart contract risk: the most important risk we see, however, it is limited as Arcade has cemented itself as a legitimate player in the space. 50MM+ in loan volume with collaterals such as AB Curated, CryptoPunks, Autoglyphs, etc..with no significant issues.
- Market risk: If the floor drops below our loan value and the loan defaults we would be acquiring a piece at a price above market. We would record this loss and keep track of the overall performance of the program, which as mentioned previously, don't all need to be profitable for tge strategy as a whole to be considered a success.
- Concentration risk: We will monitor concentration in terms of counter-parties & maturities. Being the latter especially relevant as if there is a sudden drop in prices, most loans maturing around that date could default.
- Credit risk: Obviously limited by the collateral.
It is important to mention that, in addition to the above risks, there is an opportunity cost as we will be earning yield constantly, rather than funds sitting in an account dormant.
What will the money actually be spent on? Do you expect any other money to come in related to this project, e.g. revenues?
The money will be spent on hiring for building & running the project. The rest of the funds will be used as liquidity.
Front end development/Design & bot creation - $5,000-$10,000
Back end integration - Arcade.xyz through Cashtro - $0
Salaries - 4-5K/Month
Liquidity pool - Remaining balance
As mentioned previously, there may be a second round of funding requested in order to ensure the liquidity pool has sufficient funds in order to generate an optimal, recurring revenue stream.
Current budget will be to get the project up & running and begin funding some MVP loans, prove out concept, and if all works well, we can discuss an increased budget (however now with a small but proven track record).
Revenue streams will also come through referral program plugged into front end for community to earn.
I am also in conversations w/ other Sub Parliament's, Dao's w/ interest in the Proof/MB ecosystem, & small investment groups that have interest in providing liquidity but also in accumulating birbs on a similar lend to own model. We want to our entire ecosystem to grow through this initiative. More traffic = More eyes on MB/Mythics/Proof.