Ribbon DAO Credit Analysis
The first ever collateral and credit analysis report created for a DAO
Today we are excited to release the first ever collateral and credit analysis report created for a DAO! Credit analysis is the process of determining the ability of an entity to repay their debt obligations. It incorporates both qualitative and quantitative factors such as team history, historical finances, and collateral provided. This report provides lenders necessary data they can use for their own underwriting when considering participating in the Ribbon Bond Issuance.
The report shows that Porter Finance has found Ribbon DAO to be creditworthy. Ribbon DAO has no current debts and has never suffered from security vulnerabilities or loss of users funds. They have a strong team who has delivered impressive results since launching in April 2021. A large treasury and consistent revenues along with a foothold in the current market make us confident in their ability to repay the proposed debt issuance. Due to these factors, we recommend Ribbon DAO offer the debt issued at 0.9667 USD per bond for a 7% APY.
The collateral offered by Ribbon DAO, RBN, is highly volatile and subject to pausing and further inflation (however unlikely). Due to these factors, we recommend a low loan to value ratio of 20%.
About Ribbon Finance
Ribbon Finance is a protocol that helps users access crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio’s risk-return profile.
About Porter Finance
Porter Finance is building an on-chain credit marketplace for DAOs to borrow at fixed rates with no liquidation risk. Using their project tokens and social capital as collateral, DAOs can mint zero-coupon bonds and sell them to fixed income investors. This provides a liquidation-free loan to DAOs while generating sustainable yield for lenders.
If your DAO is interested in raising funds without selling tokens and without liquidation risk, get in touch with us through this borrower form. If you’re interested in providing liquidity for bond issuances, please fill out this lender form.
