New Silver has been working with MakerDAO for close to 2 years to bring what we believe are high quality, real estate collateralized short term bridge loans to the community. In partnership with Centrifuge, we brought the first real world asset loan on-chain in April of this year, and are coming close to using up the 5mm DAI debt ceiling initially set by the community. The initial 5M from Maker in combination with additional external DROP and TIN investors allowed us to finance 39 assets with an average financing fee of 6.8%, average loan amount of 216642 DAI and average maturity of 12.2 months. 1 asset has been repaid and no defaults occured to date.
It has been a learning experience for us and we worked hard to improve and ensure the community of our intention to make this a lasting and worthy partnership. We brought on an independent manager (https://citadelspv.com) and strengthened the SPV operating agreement to provide bankruptcy remoteness and strong protection for the DAO (see relevant links  and ).
At this time, we would like to ask the community to approve an increase in debt ceiling and to bring some of the underwriting metrics in-line with current process and market conditions. This will enable further diversification across more borrowers and loans, and provide the DAO with a stable, high-yielding asset collateral that can continue to grow.
Therefore, New Silver is asking to increase the debt ceiling from 5M to 20M
- This allows New Silver to sustainably grow its Tinlake pool and with that increase diversification across the pool
- It also allows New Silver to offer a competitive product and attract top-tier borrowers
- It allows Maker to increase exposure to uncorrelated collateral assets through a vetted partner with limited governance overhead
- It will send a strong message to RWA in DeFi and underpin Maker’s position in the market
- Increased exposure to real estate asset class
The poll will run until July 8, 4:00 PM UTC ; this will result in on-chain-polls assuming the outcome of the poll is affirmative