Debt DAO is a permissionless marketplace for crypto-native credit. It aims to become the one stop shop for DAOs and individuals to source loans and related services.
The main feature of Debt DAO is its smart contract called Spigot, which, according to the project, will allow lenders to have trustless assurances that a borrower will repay a loan by securing a portion of a borrower's onchain cashflows to automatically repay interest and principal.
In addition, Debt DAO employs a peer-to-peer lending model in the core protocol instead of pool-to-pool or pool-to-peer, in order to provide more customizable terms and interest rate for borrowers and lenders. Debt DAO builds their debt marketplace in a smart contract named Line of Credit, in which lenders can compete on interest rates.
$DEBT is the governance token of Debt DAO, and also used to pay for fees in the marketplace and staking rewards.
