Silo fam, Happy New Year.
02 Jan 2023, 16:52
Silo fam, Happy New Year!
We begin 2023 with sharing a proposal to establish a risk framework to extend XAI credit lines to silos.
The proposers, Lavi and dabar90, are DeFi analysts, builders, and freelance writers, previously worked for PrimeDAO, Index Coop, Curve Risk Team, and other DAOs. They will be the team implementing the framework and operating it in the best interest of SiloDAO.
The proposal suggests a framework to evaluate token assets and track ongoing risk. Evaluating an asset will determine the following:
- Do we accept a token asset to mint XAI: Yes / No -> Why
- How much credit line does the DAO extend? 100K XAI, 1M XAI, etc.
The proposal also suggests a method to measure the risk of extended credit lines and recommend actions like reducing them under certain events.
Last but not least, the proposal suggests a reward system to compensate the authors.
Why do we need a risk framework?
Today, you can borrow XAI into existence in two silos: XAI-ETH and USDC. This is possible because the SiloDAO has already made 15M mintable XAI in those two silos (credit lines). The DAO can extend credit lines to any silo. For example, it can extend 1M XAI to gOHM via a governance proposal. As such, XAI does NOT enter circulation until users over-collateralize gOHM to borrow XAI.
That brings up the need to establish a risk framework to evaluate assets that can borrow XAI into existence and monitor the risk of ongoing credit lines.
Please read the proposal and post your thoughts in the governance forum or in our discord server (#proposal-discussion)
Gov forum:
Discord server: