I have had contact with CrescoFin on Discord about onboarding wCRES tokens to MakerDAO and also proposed whole life insurance since they are a regulated firm that sells securities on-chain. He is very much interested in collaboration in this space. @SebVentures @mrabino1 rather than looking at them as competition I think we could create a symbiotic relationship with them like YFi is doing in DeFi but MakerDAO can do so with the first Bloomberg Terminal listed securities that could facilitate onboarding of RWA. For example, they start a captive insurance agency, invest in RWA (e.g. whole life insurance), tokenize/wrap the loans, and onboard them to MakerDAO creating a positive feedback loop that benefits all parties.
From Robert Sharrat: Hi @ejbarraza this new whole life collateral proposal that you wrote for MakerDAO is interesting. You asked me how much I knew about life insurance, which I read on my phone. I answered that I knew about insurance and didn’t focus on “life” but rather our insurance, which is credit insurance. Our model is that if some major company in the real world doesn’t pay, then the insurance company pays. Our focus is credit insurance, not life. But, that is why crypto is so interesting: the opportunity to do new things. We are focused on our simple core strategy at the moment, but then interested in whatever can deliver extremely low risk, higher returns (by cutting out the center) to our user community. Do you want to have a chat with me and Simon (Head of Insurance and Risk Management) about this, sometime? Probably something that we could have a good look into after our listing (which will probably be at the end of next week; will announce soon).
We operate in the traditional space as well and want to be a bridge to crypto for traditional institutions (money managers, family offices, funds). These are looking for the development of a yield curve, so they can push out the duration of their placements, to get higher yield (e.g. lock-in for x months, get higher interest). We offer insured interest rates, so it is kind of like the risk-free rate in traditional markets. All of the assets we will bring to DeFi will be real-world assets: financing of productive use in the economy, repayment via future cashflows. I’d be happy to talk about insurance and Maker. Super passionate about the potential in DeFi for institutions and individuals. As a regulated firm, we hope to provide a way for money managers to get into the space. We are working on moving the payout mechanism on-chain by putting it in a smart contract. We may create our own insurance captive to do this. This will take some time, but investors in CrescoFin will have the benefit of this. Also, we expect our institutional investors to come into the DeFi space and, like many, they will want some very safe collateral to be part of their portfolios.