Ribbon DAO to issue debt through Porter Finance platform
On June 6, Ribbon DAO will issue $3M of convertible bonds through the Porter Finance platform. This is following a successful testnet issuance that occurred last week where 56 participants contributed over 12M USDC (testnet) of volume.
Porter Finance has performed a credit analysis and deemed Ribbon DAO to be creditworthy due to their lack of debt, strong market positioning, and consistent revenues. Ribbon DAO currently has over $170M in assets under management making them the DOV market leader. Friktion is the next largest DOV provider with only $66M in assets under management. Ribbon DAO’s revenues are driven by management and performance fees the Ribbon Finance protocol collects on assets under management. Since October 2021, the protocol has generated over $4M in revenues with an average monthly revenue of ~$524k.
Ribbon DAO commented on the issuance, “Excited to be the first DAO/protocol to issue debt on-chain. This is a great way for protocols who have strong cash flows to raise money in a bear market without selling tokens”.
Jordan Meyer, the founder of Porter Finance, remarked, “This is a huge step forward for DAOs. A successful debt issuance from Ribbon DAO will speak volumes about how the market expects them to perform over the next six months. It also opens up a completely new fundraising option for DAOs and a novel lending opportunity for investors.”
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.
