An over collateral loan that has nap token incentive

scenario…
You need $500 usdT/Dai etc but dont want to sell your zzz.

  1. you give $1000 of zzz for collateral in exchange for $500 stable coin.
  2. You have 6 months to pay back as you wish or loan amount taken from collateral.
  3. Interest is charged at 8% APR.
  4. However, collateral is staked in new pool which earns nap tokens. 50% of nap tokens are used to offset interest rate for user. Other 50% earned gets put into dev fund.
  5. if collateral reaches 90% loan gets liquidated.
    Obviously the amounts/interest rate/collateral etc needs to be tailored but you get the jist.
    Collateral may even need to be 3x to purchase stable coin plus volatility of current asset.
4 Likes

:thinking:…Can you please explain how your proposal adds value to the community?

*The attached is poor quality flow chart of value, but I am sure you will understand the point it makes?

If we can flip this to burning NAPs, then I think it will be a proposal worth further evaluation by the Community, IMO :peace_symbol:

@Leoss

Additionally Leoss has suggested something similar but via crypto.com - see ‘Make Zzz great again’.

Naps generated by staking the collateral could also be burned. I see a lot of new proposals being put forward which are all good ideas. However, I guess we are ahead of ourselves as we really need to get the governance aspect pinned down within zzz in order to vote for said proposals. Will be good to also get the final thumbs up on a successful 1st tier audit.

THANK YOU :pray: I know DeFi is really starting to take off, news of bull markets, ETH skyrocketing to $1,000, $SUSHI to take down Uniswap - the market is going nuts and I just really want to make sure we get the fundamentals right after being faced with the challenge of having to rewrite those fundamental protocols recently - community longevity is the key to our individual success and sovereignty; we sink and swim together. And in a market which is paying dividends to communities 5 steps ahead, strongly feel that our next 5 steps are still relevant to market conditions and our project fundamentals following protocol changes