Lending Vault for Nouns-Backed Loans

tl;dr Backed is working NFT-loan lending vaults: pool capital to lend to NFT-backed loans. We would like to make a Nouns-lending vault one of our first, and are seeking community feedback and indication of Nouns treasury support.

What is Backed?

Backed is a protocol that facilitates peer-to-peer NFT-backed loans. It allows NFT holders to get liquidity on their NFTs without selling them. Lenders get a return on capital or the collateral NFT, if the loan is not paid back on time. Check it out at https://www.withbacked.xyz. Protocol has been live for just over a week, see Dune here, Github here.

What are lending vaults?

Lending vaults will allow lenders to pool capital and lend to loans on terms the LPs agree on. You can read all about them in this doc.

What does this have to do with Nouns?

Hi! I’m Wilson, one of the core contributors to Backed, an NFT creator, and a mega Nouns fan :grinning:. In developing the lending vaults, we are trying to partner with a few NFT communities. We want to learn exactly how people would want a vault for them to work, so as to make sure we build it right and can launch with some exciting projects! There are a lot of nuances, especially around (1) how to set lending terms and (2) how to sell seized NFTs and at what terms. These are enumerated in the doc linked above, but to mention a few options

  • Would the vault lend at some fixed max loan value, or some percentage of recent sale prices? Would you use an oracle or require admin calls to update?
  • Would you want parameter changes governed by all Nouns holders or would you want to elect like an “investment committee”?
  • How would you want to auction seized NFTs?

We are creating this post to get feedback on these questions and gauge interest. If there is interest, we will write the code to support what the Nouns community wants to do and come back when it is ready. Ideally the Nouns treasury might provide liquidity to the vault.