[INVESTMENT] SOL deployment - Sharky lending

Hi guys,

Following from the previous Sharky proposal. After successfully lending 100 SOL to the Solana Monkey Business pool in return for a 200% APY and with the possibility of being compensated with an SMB in the event the loan was not repaid, I would like to propose that we allocate another 1000 SOL spread across three different blue-chip NFT lending pools.

  1. Catalina Whale Mixer

  2. Degods

  3. Blocksmith Labs

Both Catalina Whale Mixer and Blocksmith Labs lending pools offer APYs of 180% whilst Degods lending pool offers an APY of 140%. More importantly, there is the potential of being compensated with the collateralised NFTs in case the borrower defaults after 14 days. Catalina Whale Mixer, Degods, and Blocksmith Labs’ LTVs (loan to value ratios) are 58 percent, 52 percent, and 58 percent, respectively (based on the most recent loan to the pool and the floor price of each collection). In the event of a default, the Collective can subsequently acquire an NFT for an amount considerably lower than its floor price.

I suggest that the bidding price for the Collective should be

• Catalina Whale Mixer – 27 Sol (Max 30)

• Degods – 183 Sol (Max 185)

• Blocksmith Labs – 35 Sol

I suggest the collective allocates the 1000 SOL by lending 7x CWM, 7x BL and 3x Degods. Those pools with higher APYs should be allocated more bids. All of this can be done at the same time given the size of the treasury.

2 Likes

Very supportive of this proposal!

I think that floor prices are relatively stable despite the base asset (SOL) volatility, therefore it’s a good way to get exposure to some alternatives high yields opportunity

Having some time to sit on this and think about it. I’m also supportive of the proposal. We have some capital to deploy, and after the market downturn, valuations are more attractive to start lending on to get some yield.

3 Likes

Agree, one thing that we need to monitor is how much demand we have for our bids and check that the invested amount of 1000 SOL is not to much for that order book (or too concentrated in some collections, which otherwise turn the capital to be idle because no offer is taken) @Sol_Seeker

With Sharky lending pools being fairly illiquid, I suggest the DAO provides SOL loans to more than just three NFT Collections. By comparing APYs and LTVs of other blue chip NFT collections, I suggest deploying SOL to the following lending pools:

  • Trippin ape Tribe (330% APR)
  • Solana Money Boys (220% APR)
  • Boroyoku Dragonz (180% APR)
  • The Chimpions (180% APR)
  • Degenerate Ape Academy (180% APR)
  • Taiyo Robotics (180% APR)
  • Okay bears (180% APR)
  • Portals (140% APR)
  • Famous fox federation (140% APR)

The lending pools above fall under one of the following categories

  • Blue chip NFT - low risk of default, in the unlikely case the borrower does default the DAO can acquire a cheap Blue Chip NFT
  • Good LTV - Cheap NFT
  • APR that accurately represents LTV vs ability to pay back loan
1 Like

totally agree

do u have any idea about the bid price? Or should we bid a given % LTV for all?

Following up on this one. I would focus on a few collections with relatively high volume and floor value to make sure it’s worth it. For now we can go with:

  • DeGods
  • SMB
  • Okay bears
  • Blocksmith labs
  • Taiyo robotics

Also in case there is a default I would keep a DeGod and SMB but would probably sell if from the other collections (unless someone has an opinion on them). Would bid something like 60-70% LTF, to be determined at bid time. Max 1000 SOL deployed across all of them

1 Like

Yes i agree, one experiment we can also do with like SMB and deGods (both are premium collections) is to bid at max for that order book, so that we are always the top bid and we see how the default rate goes