Fat Cats

Pine Loans have come up with a fantastic loan liquidity provider solution.

Simply put Pine Loans creates liquidity pools much like Sushiswap but instead of their focus being token exchange they allow people who hold specific NFTs to take collateralized loans.

It is proposed that Fat Cats sets up a liquidity pool that would allow our holders to take loans against their Fat Cats. The Council will be granted the discretion to decide on how big the liquidity pool should be. We will start it at 5 ETH and if there is significant demand increase it. We will make the collateralization a modest 30% ie if a Fat Cat is worth 0.1 ETH one could borrow 0.03 ETH. The loan period would be two weeks with the ability to extend the loan period. The earnings to the DAO Will be in the 10-20% range APY.

Downside risk here is minimal as in the worst case scenario the DAO will end up with Fat Cats NFTs that we can sell or hold if the market is down. And we can explore a buy back option for people that defaulted (possibly a further week grace).

We can also explore creating liquidity pools for projects we are investors in as this will allow us to further show our strength in the market and connect us more closely to the communities and projects we believe in.

Please read the following to learn more: https://docs.pine.loans/technical-documentations/core/erc721lendingpool02