/biz/ - Business & Finance

Regarding new real world assets being introduced to the DMMDAO

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Users deposit Ethereum, DAI, or USDC into the DMMDAO protocol and earn 6.25% APY (users receive mAssets in return which earn interest, similar to Compound cTokens). The money deposited into the protocol can be used for real world loans to small-medium sized enterprises and they pay a certain amount of interest for these loans The enterprises put up automobiles for collateral (thinks businesses who need capital and have a lot of automobiles...and soon aviation, real estate.etc). The loan amount to the borrower is a lot lower than the collateral they put up just in case the borrower defaults. The interest received from the loans goes back to the users who deposited ETH, DAI or USDC (6.25% APY) and the rest goes to the DMMDAO (currently 5.5% APY).

There's more to it if you interested in doing some reading. There's a google doc that keeps getting posted around here with a lot more information on the DMG token and the project over.