Advisory Resource Board for Maker Representatives

TL;DR

With Real-World Assets and an oversight role of a Maker Representative hopefully coming soon later this month, Maker Representatives may need additional resources to ensure independence from an reviewed LendCo

As outlined in Calling community members to be a Maker Representative, Real world assets are coming as collateral to the MakerDAO protocol.

An initial list of individual Maker Representatives has already been put to a forum poll and is going for an on-chain poll as early as next week.

Maker Representatives are being tasked with an oversight role. In many cases, some of the individuals will be new to a given business line and may have operational questions related to content. While LendCo’s like 6s Capital will be happy to answer any questions, another level of independence is needed.

With the above, I will be setting up an “Advisory Resource Board” for the Real World Assets that 6s’ LendCo will be bringing on as collateral. This Board will initially be used such that Maker Representatives that have never seen a commercial real estate transaction will have an educational resource to use as a sounding board.

Initially, 6s Capital will be paying a regional law-firm in the United States to be responsive to Maker Representatives that have transactional questions. While that firm cannot provide legal advice, they can be responsive and provide non-advice educational responses. The objective of this is an interim step until this Advisory Resource Board can be fully “staffed” with industry experts.

IMPORTANT: This is not intended to insert any additional layers of bureaucracy or approval. Rather, it is intended to be an independent educational resource for Maker Representatives to use at their discretion.

Examples of where I see this being useful.

  1. Is this legal enforceability opinion legitimate? How can I go confirm the veracity of this enforceability opinion?
  2. Is the attorney that issued this opinion a licensed attorney?
  3. How do I know if this closing statement is legitimate?
  4. Is this what a promissory note typically looks like?

All of the above questions are ones that I also expect to receive from Maker Representatives, but I also want an independent Board that Maker Representatives can confirm (e.g. trust but verify).

Of course, a Maker Representative may hire his / her own attorney. The above does not constrain any party from using his / her own counsel, rather 6s Capital will be paying for a certain number of hours monthly to ensure that folks can get independent answers. Hopefully, the DAO may decide to pick-up and expand this initiative in the future as other LendCOs get approved. While a resource for Maker Representatives, it is a scarce one as 6s has constrained resources. While those resources are there for questions, extended questions may consume the pre-allocated hours for all representatives.

I will be working with

to get the initial contact information shared and setup. My hope is that in collaboration with @LongForWisdom and others at MakerDAO, we can set up a portion of the Forum that can be customized for Maker Representatives and those on the Advisory Resource Board where non-confidential information can be shared to help build up the next round of Maker Representatives.

While the community may have hundreds of questions, the objective is to have Maker Representatives be the “filter” for those questions and be the trust interface between the community and the LendCOs and the Advisory Resource Board.

8 Likes

“The objective of this is an interim step until this Advisory Resource Board can be fully “staffed” with industry experts.” Fantastic idea and look forward to it.

2 Likes

We can definitely setup a separate group and/or category for Maker Representative stuff. Message me whenever and we can discuss the details.

4 Likes

Three things worry me. First, if an attorney is not giving actual advice, how can she says be relied on? Secondly, I am in England and the law here will be different from that in the state of your attorney. Thirdly, will the law of that state be the same as in other states in the US?

It is an educational resource “sounding board”. Nothing constrains anyone from seeking independent counsel to get legal advice should he / she want it.

Correct. The transactions contemplated by 6s Capital are United States specific.

Each State within the United States has it own laws. They do however follow quite closely together, (emphasis on uniform commercial code). Loan documents will be governed by one set of laws while a purchase and sale agreement for example may be governed by another.

The point of the advisory board is not to give legal advice per se… but rather guidance… That logical guidance based on experience is the objective.

Thank you for the responses. One more question, if I may. I understand that the UCC may govern a contractual transaction but borrowing DAI using ETH as collateral does not involve a legal contract, does it? It seems to me that it is a transaction governed by a smart contract that has no legal significance while carried out on-chain; there is no other counter-party and there is no instrument.

Not an attorney. I can make a valid argument both for and against stating that the smart contract could be pulled under a legal framework.

Could easily be. Part of the reason why inserting a legal structure that has standing in a Court of Law is important. A smart contract may not have standing to enforce a legal contract, but a Trust most certainly does.

1 Like