The New Silver AO pool on Tinlake has been live for ~10 months and approved as the first RWA with MakerDAO for ~6 months. Total pool value is ~17mm DAI and MakerDAO’s debt is ~9.3mm DAI at the time of writing. Maker currently holds ~72% of the DROP share. There have not been any defaults or re-payment issues since the start of the pool, and this is currently the largest RWA pool.
Our current covenants call for a 105% overcollateralization and a minimum of 15% TIN (junior) tranche.
The AO is using technology and improved process to become a market leader in the short-term real estate lending space in the U.S. ($50-100b per year market), and is 100% focused on its’ partnerships with Centrifuge and MakerDAO to continue to originate high-quality debt, while adhering to strict underwriting guidelines. The AO is also putting additional efforts into bringing in various institutional and HNWI investors into the pool, educating the wider community and spreading the word about MakerDAO.
Therefore, given the seniority of the MakerDAO debt and many other protections, including borrowers’ equity on every loan, we hope the community would consider adjusting the maximum share of DROP tokens that the DAO is holding. We would like to propose increasing the maximum share from 75% to 85%, with the covenant that the AO will have 50% or more capital exposure in the TIN (junior) tranche. Currently, the AO has ~2mm out of ~3.2mm total TIN. If the exposure falls below 50% in the future, the covenant will revert to a maximum 75% DROP share.
- Ability to add additional loans to the pool
- Decreases risk impact of potential individual loan defaults with larger vault size
- Increase MakerDAO revenue
- Remove constraints while the outside investor base is being built up
- Potential increased risk in case multiple loans defaults
This signal request poll will run for the next 2 weeks, until Thursday, November 4th. If a majority of forum voters (excluding abstain votes) are in favor, the proposed changes will be submitted for an on-chain governance poll the following week.