The Green Knight (GK) has sent an emissary to The Church of Her to request a flexible loan of 10 ETH from the Conclave.
Loan Terms:
- Amount: The Conclave will send 10 ETH to The Green Knight.
- Repayment: The Green Knight will return any amount at any time to the conclave address upon any request from credible representatives (e.g. if asked to do so by any renowned artist, magician, king, or thief in the public-square).
Use of the loan:
GK plans to use the loan to generate returns from low risk strategies. The specific use is wholly at GK’s discretion, but some examples include:
On-chain
- GK may use the loan in rewards programs. There are currently many rewards being offered for low risk activities, such as holding ETH on a specific blockchain or protocol. A good summary can be found here.
Off-chain
- GK may also use hedged basis trades like those used by Ethena for USDe yield, but structured for yield in relative to ETH instead of Ethena’s goal of yield with a USD peg.
Risks:
GK will personally cover any losses. GK will honor any request from the conclave to return any amount at any time regardless of GK’s personal PnL or losses. This proposal is clear in requesting a loan with the expectation that the 10 ETH amount will be repaid to the conclave address. It is not proposing any kind of joint venture that exposes the Conclave to GK’s PnL or to risks from GK’s use of the loan.
GK plans to minimize personal risks of loss by sticking to low risk strategies like the examples above. However, nothing is completely safe in these lands (e.g. ETH in a protocol can be lost due to a smart contract exploit). But again, any losses will be covered by GK.
Benefits to the community:
No reward, no gain. This proposal prioritizes full repayment flexibly upon any request from the conclave. The tradeoff for full and flexible repayment is that there is no binding comment for payments in excess of the original 10 ETH lent. At GK’s discretion, profits from the use of the loan may be used to grow the farm. GK has a history of taking floor wagdies to the farm. If GK uses profits to grow the farm, the use of the derivate WAGDIE ERC-20 tokens is also at GK’s discretion. GK has a history of hoarding these WAGDIE ERC-20 tokens to prevent wagdies from leaving the farm, but has occasionally gifted a them to exceptional community members.