Inspiration

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.

Join our Coven

What it does

  1. Sally deploys a COVEN
  2. Member Sally deposits 10K DAI into the COVEN
    1. She now has 100% of the COVEN shares
    2. The COVEN deposits the DAI into a lending protocol like AAVE to earn interest
  3. Sally invites Alice, John,
  4. Alice is now a Member but owns 0 shares.
  5. Alice deposits 5k DAI and gets COVEN shares minted pro-rata to the current balance.
  6. As a COVEN you can now decide who gets to borrow and at what rate.
    1. For the grant use case, you charge nothing, just let member borrow or permissioned via the normal moloch style governance.
    2. 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

It works!

What's next for COVEN

  1. Clean up the codebase so others can easily launch Covens
  2. Finish the AAVE liquidator python notebook
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