The Idea: By automating key steps like underwriting and loan origination we can reduce manual work and potentially cut intermediary costs. This would also speed up KYC/AML processes, making the entire loan process faster, more transparent, and cost-effective for Credit Unions (CUs) and their members.
What’s In It for CUs?
Lower Costs: CUs could save money by reducing their loan origination fees when they process loans through the SLP.
New Revenue Streams: By offering loans through the SLP, CUs could share a portion of the interest with the DAO, benefitting both sides.
How We Can Engage CU Members:
Staking $BSL for Better Terms: CU members could get better loan terms (like lower interest rates or quicker approvals) by staking $BSL tokens.
Additional Perks: CUs could offer rewards like cashback or improved loan conditions for members who participate by staking $BSL tokens.
Why It Matters to the DAO: In 2023, Credit Unions issued over $100 billion in loans to businesses. Imagine if we could incentivize these CUs to offer a portion of those loans through the Social Lending Pool (SLP). Not only would this bring liquidity into the DAO, but it would also strengthen the connection between the DAO and CUs, aligning everyone’s goals.