167 countries have at least one law on the books that restricts women’s economic opportunity. Women still need their husband’s permission to get a job in 18 countries. Women are prevented from working the same night hours as men in 29 countries, including India, which prohibits them from working in factories between 7 p.m. and 6 a.m. link to report pdf
Even in a mostly developed country like the US, a bank or a credit union can close your account without cause. And minorities are statistically given worse rates. In China, this discrimination can be implemented on a much more granular lever, with your social credit score getting dinged if you happen to buy the wrong thing (like a book on witchcraft or a Practical Magic box set).
We thought if DAO's like Moloch and MetaCartel DAO's can be used to pool funds and direct them to grants, why not create a Moloch like structure where deposits earn interest, and the membership can loan it out. Creating an economic benefit for members and allowing the system to grow.
What it does
- Sally deploys a COVEN
- Member Sally deposits 10K DAI into the COVEN
- She now has 100% of the COVEN shares
- The COVEN deposits the DAI into a lending protocol like AAVE to earn interest
- Sally invites Alice, John,
- Alice is now a Member but owns 0 shares.
- Alice deposits 5k DAI and gets COVEN shares minted pro-rata to the current balance.
- As a COVEN you can now decide who gets to borrow and at what rate.
- For the grant use case, you charge nothing, just let member borrow or permissioned via the normal moloch style governance.
- If a member wants to build a business fighting ghosts(liquidating negative positions), you could charge a fair rate, collateralizing it at 0%-100%. Each profitable liquidation benefits the COVEN and the member has a business.
How we built it
We built a smart contract & UI that:
- tracks a list of whitelisted members addresses
- mints & burns Coven Shares(CVN) based on deposit & current supply
- Deposits and withdraws Coven funds into an interest earning protocol (AAVE)
- let's members borrow from the Coven at an interest rate
Challenges we ran into
Mostly the time constraint of building a smart contract from scratch, and integrating with a protocol we're unfamiliar with.
Accomplishments that we're proud of
What's next for COVEN
- Clean up the codebase so others can easily launch Covens
- Finish the AAVE liquidator python notebook