Difference between revisions of "Fiat DAO"
(Created page with "Fiat DAO Fiat DAO is a leveraging protocol for DeFI native fixed income assets that was implemented on the Ethereum blockchain. The goal of Fiat DAO is to be the first on chain repo market for fixed income assets. $FIAT itself stands for Fixed Income Asset Token which was developed as an over collateralized claim against collateral. History Fiat DAO is the brainchild of a team of core contributors Nils, Johannes, Max and Daniel. Many of whom had been contributors of...") |
m |
||
| Line 5: | Line 5: | ||
History | History | ||
Fiat DAO is the brainchild of a team of core contributors Nils, Johannes, Max and Daniel. Many of whom had been contributors of Barnbridge DAO and were intimately familar with the Smart Yield product utilizing senior and junior tranches that represent fixed and variable yield products. It was clear to the creators that the problem with fixed income assets lies in the illiquid nature of the asset itself. | Fiat DAO is the brainchild of a team of core contributors Nils, Johannes, Max and Daniel. Many of whom had been contributors of Barnbridge DAO and were intimately familar with the Smart Yield product utilizing senior and junior tranches that represent fixed and variable yield products. It was clear to the creators that the problem with fixed income assets lies in the illiquid nature of the asset itself. Essentially there was no secondary market available in which the user could bring this class of asset to the lending market as collateral and develop leverage for fixed income. The lack of an available secondary market represents a lost opportunity cost until maturity of the asset. The founders recognized the problem of poor capital efficiency was not just an issue of Barnbridge but a problem that exists across all of DeFI but one that traditional finance has addressed already. In 4th quarter 2021 seed investors and the core team had begun work to bridge this gap in DeFI and develop a repo market that would allow fixed income to become superfluid collateral at high LTV ratios. | ||
Revision as of 13:17, 23 April 2022
Fiat DAO
Fiat DAO is a leveraging protocol for DeFI native fixed income assets that was implemented on the Ethereum blockchain. The goal of Fiat DAO is to be the first on chain repo market for fixed income assets. $FIAT itself stands for Fixed Income Asset Token which was developed as an over collateralized claim against collateral.
History
Fiat DAO is the brainchild of a team of core contributors Nils, Johannes, Max and Daniel. Many of whom had been contributors of Barnbridge DAO and were intimately familar with the Smart Yield product utilizing senior and junior tranches that represent fixed and variable yield products. It was clear to the creators that the problem with fixed income assets lies in the illiquid nature of the asset itself. Essentially there was no secondary market available in which the user could bring this class of asset to the lending market as collateral and develop leverage for fixed income. The lack of an available secondary market represents a lost opportunity cost until maturity of the asset. The founders recognized the problem of poor capital efficiency was not just an issue of Barnbridge but a problem that exists across all of DeFI but one that traditional finance has addressed already. In 4th quarter 2021 seed investors and the core team had begun work to bridge this gap in DeFI and develop a repo market that would allow fixed income to become superfluid collateral at high LTV ratios.