►
From YouTube: Community Collateral Onboarding Call: August 12, 2020
Description
This video is a bi-weekly collateral onboarding call to discuss potential assets for MCD, open for anyone to join and present.
Introduction: @_LS and @spin
Presentation 1 (0:02:30): New Silver
Presentation 2 (0:31:51): @mrabino1 on building a Credit Tenant Lease Marketplace for MakerDAO
Agenda and Discussions:
https://forum.makerdao.com/c/risk/collateral-meetings/23
Governance Forum:
https://forum.makerdao.com/
Disclaimer: The videos in this playlist are produced by MakerDAO community members. Content produced by the community may not be representative of the views held by the Maker Foundation.
A
Each
should
be
around
10
minutes
and
then
a
20-minute
discussion
on
on
the
topic
and
so
for
today.
Actually,
it's
kind
of
cool.
We
have
real
estate,
so
maybe
if
it
has
a
bigger
theme
where
we'll
have
matt
and
kirill
introducing
two
different
kinds
of
collateral
types
or
ideas
for
collateral
that
they've
been
individually
working
on,
are
you
ready
kyriel
to
start
with
the
presentation?
A
B
B
B
B
The
fix
and
flip
industry,
essentially
for
those
folks
that
don't
know,
is
essentially
driven
by
small
businesses,
real
estate
investors,
where
they
look
for
opportunities
to
purchase
real
estate,
assets,
renovate
and
then
resell
them
for
a
profit.
It's
a
fairly
straightforward
business,
but
obviously
there's
a
lot
to
it
beneath
the
surface.
So
we
were
founded
in
2018,
went
to
market
in
january
of
2019.
B
We
spent
a
couple
months.
2018
writing
some
technology.
I
started
2019.
I
did
about
130
plus
loans
without
any
defaults.
Thus
far,
we
have
proprietary
tech
for
automated
underwriting
and
then
some
other
proprietary
tech
for
value-add
tools,
which
I
hope
to
show
you
after
this
we're
partnered
with
a
number
of
different
data
providers
in
the
industry
and
the
team
is
experienced
with
technology
and
real
estate.
Both
I
mean
as
far
as
maker,
specifically
we've
gone
through
a
pilot
with
central
fusion
maker,
and
we
did
a.
B
A
new
going
right
now
as
well
so
as
far
just
talk
a
little
bit
about
the
industry
so,
depending
on
what
you
read,
there's
about
seven
or
ten
percent
of
all
real
estate
transactions
are
for
investment
purposes,
so
fix
and
flip
being
a
big
one
there.
So
the
the
construction
financing
market
is
about
60
to
100
billion
dollars
per
year.
In
the
united
states
it
has
been
a
highly
competitive
sector
with
you
know,
a
number
of
very
small
lenders.
B
They're
not
lending
or
or
have
permanently
folded,
and
as
far
as
the
maker
cdp,
we
propose
a
junior
and
senior
charge
structure
to
reduce
network
risk.
I
can
talk.
You
know
specifically
on
that,
if,
if
we
would
like
afterwards
so
as
far
as
what
what
has
new
silver
has
built,
our
proprietary
technology,
somebody
in
the
waiting
room
here,
our
proprietary
technology
speeds
up
the
origination
process,
it
decreases
underwriting
risk
and
it
decreases
cost
and
time
for
underwriting
significantly.
B
Where
and
as
I
mentioned,
we
have
some
other
value-add
technology.
That
kind
of
the
idea
is
to
bring
our
borrowers
and
potential
borrowers
in
and
have
them.
You
know,
build
some
loyalty
to
new
silver
and
the
goal
is
to
help
them
be
more
successful
right,
so
the
borrowers
and
the
potential
borrowers
are
all
looking
for
the
best
possible
deal
where
they
can
earn
the
most
amount
of
money.
These
are
all
small
businesses.
B
You
know
one
two,
three
partners
along
those
lines,
and
so
we
want
to
help
them
do
that
we
want
to
help
them
be
as
successful
as
possible.
At
the
same
time,
we
hope
that
they'll
remain
loyal
to
us.
So
we,
you
know,
we've
done,
as
I
said,
about
130
loans.
We
have
about
70
million
plus,
I
think
it's
up
to
80
million
right
now.
Loan
requests
in
the
pipeline
right
now.
We
use
a
bunch
of
different
parameters
for
automated
loan
underwriting
fico
score.
B
So
so
our
underwriting
is
based
on
the
collateral
and
the
borrower.
So
the
on
the
borrower
side,
we
look
at
their
experience
and
we
look
at
their
fico
score
and
then
on
the
collateral
side.
We
look
at
a
lot
of
data
points,
census
data
we
get
an
automated
valuation
model.
We
get
the
value
from
a
number
of
different
providers.
B
B
On
the
technology
side
again,
just
on
you
know
what
what
we've
built.
You
know
right
now
in
the
us,
I
think
in
europe
and
maybe
other
places
as
well.
If
one
is
looking
for
a
consumer
mortgage
like
if
you're
buying
a
place
to
live
for
yourself,
you
can
go
online.
I
know
in
the
u.s
there's
like
you
know,
rocket
mortgage
quicker
loans
and
other
providers.
C
B
There's
companies
that
enabled
us
for
banks,
but
basically
you
can
go
on
to
a
bank's
website
or
or
one
of
these
fintech
loan
originators
apply
for
a
loan
and
get
decisioning
within.
You
know
a
few
minutes
in
this
private
lending
space
that
has
not
been
available
so
we're
we're
actually
innovating
and
making
this
process
available
for
for
our
potential
borrowers.
So
today
someone
to
go
to
our
website
put
in
some
information
go
through
the
process.
We
pull
the
the
data
we
pull.
You
know
publicly
available
data
on
the
property.
B
B
So
as
far
as
as
the
loan
process,
I
know
there
may
be
a
lot
there
and
this
charge
is
also
available
in
the
on
the
maker
forum.
But
you
know,
essentially
you
know
somebody
can
somebody
will
go
through
the
process
they
pass.
The
pre-qualification
then
there's
an
automated
underwriting
that
takes
place.
Then
we
are
playing
an
independent
appraisal.
This
is
a
manual
process.
B
If
the
loan
is
approved,
the
borrower
receives
the
funds.
The
rehab
and
construction
begins
and
then
essentially
at
maturity,
it's
repaid
and
then
the
loan
would
be,
and
then
so
so
somewhere
in
this
at
this
point
here
after
the
loan
approval,
the
the
maker
process
would
be,
you
know
the
maker
cdp
would
be
involved
and,
and
then
the
funds
you
know
from
both
the
senior
and
the
junior
tranche
would
be.
B
That's
at
a
very
high
level.
I
guess
I
want
to
also
show
I
don't
know
if
you
know
I'm
happy
to
go
through
the
actual
application
process,
but
I
can
I
can
show
this
is
a
new
tool-
that's
not
actually
out
yet,
but
it
will
be
out
this
weekend
in
the
live
environment.
It
is
kind
of
described
on
our
website,
but
it's
essentially
what
I
mentioned
earlier.
This
is
like
a
value-add,
complementary
tool
for
our
borrowers.
That
will
help
them
find
new
deals
that
they
can.
B
Hopefully
you
know,
use
to
make
their
purchase
decisions
and-
and
then
hopefully,
they'll
go
to
us
if
they
have
lending
needs.
But
what
it
is
is
I
already
actually
put
in
the
name
of
a
town,
but
people
can
search
for
any
locality
in
the
us
and
we
we
look
at
any
mls
and
publicly
available
publicly
listed
properties
out
there,
whether
they're
for
sale
by
owner
or
a
you
know
traditional
mls
list
of
property.
Then
we
take
that
data.
We
look
at
what
the
potential
you
know.
B
What's
the
what
the
listing
price
is
and
we
look
at
what
we
think
the
potential
you
know:
potential
valuation
is
and
then
we
we
help.
You
know
we
kind
of
bring
that
to
the
forefront
and
then
we
help
them
figure
out
what
the
return
on
investment
could
be.
From
this
specific
property,
we
figure
out
what
the
you
know,
what
the
you
know,
there's
different
levels
of
rehab,
but
we
figure
out
the
average
rehab
amount
that
most
times
it's
a
light
rehab,
but
sometimes
it
could
be
a
heavy
rehab.
B
B
We
also
help
them
figure
out
cost
of
financing,
and
you
know
so
if
they're,
this
is
something
that
they
could
get
through
through
new
silver
as
far
as
a
loan,
but
they're
obviously
free
to
go
anywhere
or
not
use
external
financing
at
all.
We
look
at
properties.
So
if
you
see,
if
you
notice
here,
they're
tagged
with
different
tags,
so
we
look
at
different.
You
know
different
models
and
different
criteria,
so
we
scan
the
the
text.
B
B
The
property
is
already
here.
My
information
is
already
here
as
I'm
logged
in
and
they
can
go
through
and
put
in
some
values.
You
know
as
far
as
what
they're
purchasing
it
for
and
as
this
value
and
other
stuff
and
and
then
you
know
at
the
end
of
this,
I
can
go
through
and
show
you
I'm
just
going
to
use
random
numbers.
B
Here
so
here,
this
is
sort
of
a
conditional
approval
for
this
loan
amount
right.
So
I
you
know,
I
kind
of
made
it
easy,
so
the
loan
amount
that
I
put
in
is
is
would
be
a
good
fit
for
for
this
specific
valuation.
So
they
can
see
here
what
the
you
know,
what
the
loan
amount
they
could
potentially
get.
What
the
interest
and
the
origination
fee
is.
If
they
wanted
to
continue
this,
they
can
click
the
continue.
The
application
button
check
off
some.
You
know
some
disclosures.
B
A
D
B
Yeah,
I
mean,
I
think,
because
I
I
we
we
deal
with
with
fiat.
As
far
as
you
know,
lending
in
fiat
and
getting
paid
back
and
fiat
and
interest
is
in
fiat.
So
I
think
it's
a
short-term
risk,
but
yeah
there
could
be.
You
know,
because
if
we
are
just
to
use
an
example,
if
we're
getting
a
million
dollars
out
of
the
cdp
or
a
million
die
out
of
the
cdp,
we'd
wanted
to
to
be.
You
know
a
million
dollars
or
very
very
close
to
it.
B
B
Yeah,
so
I
think
so
so
in
that
case,
then
you
know
yeah
I
mean
it
could
be
some
short-term
risk
you're
right,
but
I
also
think
that
the
fiat
on
and
off
rams
from
what
I
know
and
again
I
I
may
not
be
100
correct.
There
may
be
a
way
to
kind
of
hedge
and
build
in
some
one-to-one
conversion
security,
but
yeah
it's
something
to
be
thought
through.
I
guess
a
little
bit
more
closely.
D
Yeah,
thank
you
for
your
answer.
I
was
I've
been
partially
thinking
the
same
as
long
as
you
you
well,
you
have
die
and
you
exit
into
fiat,
and
then
you
pay
back
in
fiat
it's
as
long
as
it
stays
within
a
couple
of
percent.
So
there's
a
two
three
percent.
It
should
be
okay,
but
at
some
point
it
of
course
it
will
be.
It
will
be
a
disadvantage,
but
it
should
work
as
long
as
the
pegasus
is
within
a
couple
of
percent.
B
Yeah
I
mean
I,
I
think,
if
it's
off
by
a
lot,
then
then
yeah
there
could
be.
There
could
be
some
some
risk,
depending
on
which
way
it
goes,
but
either
way
it's
not
it's
not
a
great
situation,
but
I
think
that
would
probably
affect
you
know
everything
else.
I
think
from
what
I
for
what
I
know
I
mean
the
community
has
gotten
fairly
good
at
kind
of
keeping
it.
You
know,
keeping
it
close
to
parity.
C
B
C
B
C
Okay,
awesome.
Thank
you.
You're
welcome,
hi,
so
hi
krill,
my
name
is
vitaly.
Also
very
nice
presentation.
I
I'm
interested
in
the
liquidation
process
part
so
so
the
lending
through
maker,
dow
and
assumingly,
with
the
drop
tokens
and
everything
they
there
there
assumed
to
be
some
liquidation
process.
Can
you
give
the
quick
overview
of
that.
B
Yes,
I
think
that's
you
know.
That
is
a
very
good
question
and
we've
been.
We
spent
some
time
with
the
centrifuge
team
thinking
about
this
as
well.
So
so
what
we
have
now
I
mean
as
far
as
real
estate.
Obviously
the
nice
thing
about
it
is
that
is
very
common
right.
Real
estate
has
been
around
forever
and
a
lot
of
processes
have
developed
around
it
and
distressed
real
estate
loans
that
are
in
default,
etc,
have
existed.
You
know
for
for
a
long,
long
time
and
there's
people
that
buy
these
loans.
B
You
know
very
large
funds
and
organizations
are
in
the
business
or
you
know,
part
of
their
business
is
buying,
and
I
know
some
of
them.
We
work
with
some
of
them.
We
are
we've
been
lucky
that
we
haven't
had
any
distressed
loans,
but
we
know
people
that
are
in
the
business
of
buying
these
distressed
loans.
So
one
one
option
is,
you
know,
is
to
essentially
have
a
connection
with
one
of
these
funds
or
or
entities,
and
they
will
be
buying
loans
that
go
bad.
I
mean
that's
one
of
the
options.
B
There's
other
options
that
sort
of
been
proposed
in
the
forum
is
to
bring
your
own
keeper
kind
of
deal
where
potentially-
and
we
haven't.
You
know
this
is
something
we
need
to,
I
think
think
through
further.
But
you
know
I
do
think
that
the
option
is
the
the
easiest
option
is
is
to
rely
on
the
third
party.
C
B
E
C
B
Yeah,
no,
no
you're,
absolutely
correct,
so
we
proposed
a
junior
senior
tranche,
the
junior
tranche
would
be
so
yeah,
so
I
mean
we
would
have
a
number
of
loans
put
into
a
structure
that
would
that
would
then
be
locked
into
a
cdp.
It
wouldn't
be
one
individual
loan
and
then
junior
trash
would
would
be
taken
by
outside
investors,
including
us.
So
we,
you
know
include
us,
they
originated.
We
would
have
some
quote
unquote
skin
in
the
game,
and
then
we
we,
you
know
we
plan
on.
G
A
So
maybe
I
can
so
the
technology
that
or
the
the
sort
of
contracts
where
you
that
kirill
new
silver
is
planning
on
using
for
sort
of
to
bring
the
this
portfolio
of
loans
to
to
makers
based
on
on
the
contracts
that
we've
been
developing
and
the
way
they
work
is
that
both
tranches
have
an
erc20
token
that
in
theory,
any
anyone
could
hold
as
as
both
like
a
maker,
vault
or
or
individuals.
And
so
the
junior
tranche
is
clearly
not
in
focus
work.
A
A
F
A
D
D
B
D
A
They
can.
They
they
acquire
the
legal
recourse
on
these
on
these
assets
in
against
the
spv
that
holds
these
real-world
assets.
And
so
it's
it's
very
much
the
goal.
That,
of
course,
like
you,
can
you
can
sort
of
offer
them
to
whoever
you're
legally
allowed
to
offer
these
tokens
as
collateral
and
that
those
those
entities
can
be
the
keepers
in
the
system,
and
they
would
would
be.
G
B
Do
you
mean,
as
far
as
what
you
know
so
I
mean
I
think
we
our
pipeline
just
in
the
traditional
sense
our
pipeline
is,
I
think,
around
80
million
right
now
I
mean.
Obviously
we
don't.
We
don't
expect
to
approve
all
of
it.
If
we
approve
a
small
percentage.
We
approve
around
historically
around
10
percent
of
loans,
but
our
pipeline
is
constantly
growing
and
evolving.
So
you
know
how
much
can
we
find?
Are
you
asking
in
general
how
much
volume
we
could
generate
or.
G
A
A
A
G
H
H
Fundamentally,
if
we
think
about
makers
being
a
central
bank,
so
I'm
giving
a
little
bit
of
context.
A
lot
of
us
already
know
this,
but
just
humor
it
because
there's
an
important
piece
and
long
you
just
kind
of
tapped
in
on
part
of
it.
The
real
solution
here
is
to
have
pre-approved
collateral
and
then
have
off-chain
centralized
lenders
that
are
economically
incentivized
growing
the
dye
ecosystem.
H
E
H
So,
basically,
if
you
think
about
dye
in
this
crypto
world,
only
it's
just
a
gigantic
pool
with
whatever
it
is.
That's
moving
things
around
now,
you
tell
me
if
you
can
see
where
the
dye
yield
farming
is
on
this.
Now
I
want
you
to
imagine
what
you
see
right
now,
but
if
there
was
only
an
edge,
a
place
where
all
the
energy
would
be
reflected
back
to
the
center,
that's
what
we
have.
We
have
to
find
a
way
to
do
the
exact
same
exercise
mentally,
but
with
basically
the
equivalent
of
a
negative
edge
pool.
H
What
does
a
negative
edge
pool?
Look
like
we
end
up
dampening
the
harmonics.
It
pulls
the
excess
dye
off
and
the
goal
is
to
let
it
stay
off
or
slowly
come
back
on
as
necessary
as
market
driven.
What's
important
is
that
the
collateral
that
falls
off
be
safe,
secure
with
recourse
and
in
an
economic
environment
that
we
feel
comfortable
that
had
to
stay
there
for
an
extra
year.
H
It
would
be
okay,
okay,
so
what's
really
important,
we've
got
to
make
sure
that
whatever
has
the
excess
overflow
valve
that
it's
in
effect
a
capital
sink,
and
we
have
to
do
it
with
recourse
and
legal
enforceability
in
place
and
economic
incentives
to
perform
for
whoever
took
that
capital
off.
So
what
are
the
documents
and
how
does
maker
community
enforce
that
loan?
H
So
centralized
lender
of
community
pre-approved
collateral
types,
so
we
were
just
talking
before
about
real
estate
renovation.
My
piece
of
this
for
right
now
is
credit.
Tenant
leases
for
commercial
real
estate.
I'm
going
to
go
through
the
structure
for
a
moment
and
then
I'll
go
through
more
specifics
on
the
real
estate,
but
the
structure
I'm
about
to
present
could
be
used
for
renewable
energy.
It
can
be
used
for
a
variety
of
asset
types
and
the
two
fundamental
pieces
here
is
that
an
off
chain
lender
and
the
maker
community
as
a
whole.
H
The
engagement
is
embodied
in
a
revolving
credit
facility
agreement
and
a
trust
agreement
in
its
most
generic
form.
So
what
does
that
mean?
So
it
means
that
we
have
a
legal
entity,
that's
approved
by
the
community.
In
effect
me,
that's
applying
for
the
equivalent
of
a
lender
license
to
provide
these
private
loans
with
credit
quality
behind
it.
In
my
case,
you
know
for
credit
tenants
so
tenants
that
have
b
rated
double
b,
rated
or
investment
grade
behind
it,
banks
they're,
basically
lending
structures.
We
just
don't
need
to
have
the
depository
side
behind
it.
H
So
we're
going
to
follow
a
lot
of
what
banks
have
done
in
the
past,
but
we're
not
going
to
be
driven
by
it.
We're
just
going
to
be
guided
so
fundamentally
the
space
that
I'm
targeting
right
now
initially
and
we'll
be
expanding
into
other
areas,
including
renewable
energy.
Later
in
fast
forward,
two
three
years
will
be
the
space
of
credit
tenants
where
there's
a
full
there's,
a
location
that
is
shovel
ready.
That
has
a
credit
rated
party,
that's
on
the
hook,
to
make
rental
payments
upon
completion
of
construction.
H
Average
loan
size
is
between
two
to
five
million
dollars.
Each
the
lifespan
of
the
loan
is
usually
12
to
14
16
18
months
to
24
months,
and
there
may
be
extensions
if
there
is
a
market
reason
to
extend
and
bring
through
the
loan
requirements
that
they
all
it's
all
new
york,
enforceability
all
with
legal
opinions
related
to
the
loan
agreement,
so
who
we're
competing
against
in
this
space
would
be
commercial
lenders.
H
So
what
are
some
of
the
fundamental
starting
requirements?
Blend
codes?
We're
going
to
call
it?
You
know
it
has
to
be
in
good
standing,
and
it
must
give
good
liens
in
favor
of
the
trust
that
I
was
outlining
I'll
go
through
in
a
second,
and
it
also
must
receive
clear,
first
position,
liens
on
all
commercial
real
estate,
that
it
touches
the
assignments
of
rents
and
profits,
etc.
So
where
can
the
capital
go
well?
H
So
fundamentally-
and
this
is-
I
mean,
I'm
going
to
jump
to
the
very
bottom
part
of
it,
which
is
all
off
chain
lenders.
All
of
them
should
be
a
bit
uncomfortable
borrowing
die.
If
someone
isn't
uncomfortable,
then
something
doesn't
make
sense.
Everybody
who's
doing
an
off
chain
lender
needs
to
feel
like
there's,
in
effect
a
gun
to
the
head
and,
as
a
result,
they're
well
motivated
to
act
in
accordance.
H
H
It's
like
a
it's
a
mixture
between
how
asset-backed
securities
handle
and
their
security
agreements
mixed
with
how
banks
provide
credit
facility
agreements,
in
effect
we're
marrying
a
bank
structure
and
an
asset
bath
trust
structure
such
that
the
trust
and
a
trustee
represent
and
embody
the
benefits
and
the
the
rights
of
maker
holders
and
the
credit
facility
agreements
outline
all
of
the
covenants
and
promises
positive
and
negative
commit
covenants.
That
lendco
can
engage
in
external
commerce.
H
More
specifically
and
again,
we
don't
have
enough
time-
and
I
haven't
even
got
to
my
company
specifics
here,
but
in
effect
you
have
a
maker
representative
that
engages
with
a
trust,
a
trust
company
which
engages
with
lenco
and
lenco,
then
engages
with
multiple
borrow
codes.
Each
of
those
has
assets.
They
each
have
primary
loan
agreements
and
there
is
a
fundamental
revolving
revolving
credit
facility
agreement
that
governs
the
entire
relationship.
H
H
So,
what's
really
needed
here
to
be
able
to
pull
this
off,
is
we
need
top
talent,
securities
council
that
can
draft
and
ensure
the
enforceability
of
trust
agreements,
credit
facility
agreements,
trust
company
relationships
and
all
the
audit
that
goes
along
with
this?
So
fundamentally,
my
business
success
capital
is
about
building
commercial
real
estate,
where
we
put
the
risk
on
the
other
guy,
always
its
execution
risk
goes
on
the
developer
across
the
board.
We
never
do
anything,
that's
not
shovel
ready.
It
has
to
have
a
credit
tenant
lease.
That's
in
force,
there's
no
speculation.
H
We
don't
do
any
type
of.
We
hope
that
the
project
is
going
to
have
a
permit.
Everything
has
to
be
teed
up
so
that
the
only
risk
engaged
is
execution
risk
related
to
construction
and
the
underlying
credit
quality
of
the
underlying
tenant.
We
are
building
it
such
that
if
we
have
to
hold
on
to
the
project
and
foreclose
out
the
underlying
borrower
that
we
wouldn't
mind
holding
it,
my
equity
investors
don't
mind
holding
the
project
and
makers
shouldn't
care
either.
In
that
regard,
it
just
needs
to
be
priced
accordingly.
H
Fundamentally,
this
is
the
general
organization
structure
of
having
a
manager,
an
issuer,
preferred
equity,
common
and
a
senior
debt
facility.
In
this
case
maker.
This
is
the
general
sequence
of
the
project
that
goes
from.
Construction
to
divestiture
is
anywhere
between
zero
12
to
24
months
to
completion
of
divestiture,
and
the
revolving
facility
only
comes
in
at
the
very
end.
None
of
the
research,
none
of
the
development,
no
speculation
risk
again.
This
is
the
same
similar
economic
30,
equity,
70
percent
debt
and
how
it
goes
to
multiple
projects.
H
The
ideal
here
is
that,
from
a
maker
perspective
you
want
to
have
maker.
Governance
should
want
to
have
a
singular
body
to
have
compliance,
audit
and
control
over,
and
then
let
that
fiduciary
and
that
structure
decide
to
have
one
borrow
co,
two
borrow
codes
or
two
hundred
or
two
thousand
the
underlying
reporting.
That
goes
back
to
maker
is
all
just
consolidated,
embodied
in
whatever
is
in
that
credit
facility
agreement.
If
everything
is
kosher,
everything
has
been
all
the
equity
requirements
have
been
met.
All
audits
have
been
met,
all
financial
statement
requirements
are
met.
H
Very,
very
quick,
so
fundamentally,
the
the
key
piece
to
understand
here
is
that
the
trust
company,
which
is
the
trustee
for
the
trust,
has
an
unconditional,
irrevocable
assignment
of
all
assets.
That
lendco
has
which
includes
the
senior
lien
to
the
underlying
real
estate
of
borrowco,
an
assignment
of
all
the
rents
and
leases,
the
gc
completion
guarantees
from
the
borrower
and
the
ability
to
step
in
the
shoes
of
the
developer
in
the
event
of
a
material
default
underneath
the
borrower's
agreement.
H
In
effect,
we
don't
take
development
risks,
et
cetera,
there's
divestiture
risk
in
a
context,
and
there
is
tenant
default
risk.
But
that's
why
we
ensure
and
do
our
underwriting
requirement
as
to
know
which
tenants
we
were
going
to
do
in
the
first
place.
In
effect,
it's
hard
money
lender
that
isn't
really
that
hard
and
it's
just
critical
that
we
have
good
tenants
in
this
equation
that
are
amazon,
resistant
and
recession
resistant.
I
think
it's
more
than
three
slides,
so
I'll
go
ahead
and
stop
leave
time
for
questions.
A
H
H
H
G
H
And
this
is
exactly,
and
this
is
in
the
same
way
we
have
a
dark
fix
scenario
where
we
have
a
few.
I
don't
know
how
many
there
are
folks
that
the
community
in
effects
trusts
with
that
same
type
of
context.
This
is
an
expansion
of
the
risk
team
or
it's
an
expansion
of
a
new
revolver
team.
It's
not
that
the
person
would
be
executing
some
agreement
that
the
community
hadn't
previously
approved,
but
there
needs
to
be
a
human
body
that
signs
the
signature,
not
a
not
a
private
key
signature.
A
So
it
could
be,
could
this
be
structured
in,
like
you
have
the
community
can
elect
20
20
entities
to
be
part
of
this
trust
and
then
in
case
and
provided
that
one
of
them
is
sort
of
acting
in
maker
now's
best
interest
that
this
entire
agreement
holds
up
or
like
what
is
sort
of
the?
If
I
think,
if
I
put
on
my
crypto
hat,
and
I
think
of
like
how
many
honest
participants
would
you
need,
would
it
would
it
be
possible
to
do
it
in
in
such
a
way.
H
H
A
H
I
say
money,
I'm
not
referencing
anybody
else
other
than
me
as
as
the
principle
behind
this.
Whenever
I
take
on
the
fiduciary
risk
to
to
borrow
money
there
is
you
know
that
there
is
exposure
and
if
the
structure
is
sound,
the
real
question
is
there
still
is
recourse
that
you
still
have.
There's
still
somebody
on
the
hook
to
make
sure
that
you
have
to
do
the
right
thing,
I'm
building
a
business
and
if
I
screw
up
the
business
there,
you're
borrowing
money
you
have
to
repay
it
period.
H
No,
no,
no,
no,
no!
The
other
way
around.
It
just
took
the
common
that
just
the
common
statement
that
anybody
that
takes
out
a
die
loan
for
anything
external
to
the
system,
there's
you're,
just
taking
on
risk
it's
no
different
than
taking
on
a
very
large
mortgage.
You
just
should
be
mindful
before
we
borrow
money
and
this
project
has
very
large
ambitions.
Very
large
dollar
amounts.
H
H
H
H
F
Matthew,
I've
got
a
question
as
well
in
terms
of
the
you're
talking
about
the
credit
quality
right.
So
of
course,
because
it's
a
revolving
loan
facility
that
we're
talking
about
here.
We
these
it's
very
important,
like
the
the
notion
of
like
monitoring
that
credit
quality
because
might
be
changing,
depending
on
like
changing
of
circumstances
of
situations
of
like
the
underlying
loans.
So
how?
How
would
make
a
sure
that
they're,
actually
monitoring
like
base
trust
in
the
monitoring
that
is
actually
happening
to
the
credit
quality
of
the
underlying
facilities?.
H
Excellent
question
two
points:
a
lenco
does
its
own
loan
underwriting.
We
only.
We
only
want
to
make
sure
we
don't
have
any
defaults.
We
have
a
30
buffer
to
make
sure
on
any
loan
that
we
get
hit
first
before
the
senior
debt
would
ever
get
touched.
That
part
being
said
maker.
The
money
that's
being
borrowed
in
effect
from
a
loan
facility,
has
a
price
there's
an
economic
cost
of
capital,
and
it's
both
a
combination
of
the
risk
team
to
price
that
money
in
accordance
with
the
tenants
that
we
must
get
pre-approved.
H
So
we're
not
doing
commercial
real
estate,
saying
let's
go
build
a
movie
theater
during
covid.
We
think
it's
a
good
idea
and
it's
cheap.
We
have
to
request
permission
of
that.
Tenant
is
acceptable
to
the
risk
team
and
the
credit
team
within
maker.
If
that's
acceptable,
we
would
expect
that
the
pricing,
the
cost
of
capital
that
that
dialogue
would
be
provide,
would
be,
would
encapsulate
that
risk
premium.
H
F
Yeah
yeah,
but
I'm
I'm
thinking
in
terms
of
like
the
truth
in
the
traditional
world,
we
you
would
normally
take
either,
like
you
know,
for
revolving
facility.
In
most
cases
that
is
set
and
then
any
and
it's
in
revolving
facilities,
type
of
like
you
know,
credit
cards
and
sometimes
like
personal
or
because
consideration
type
alarms
you
you
would
have
to
that's
usually
set
quite
high
because
of
the
relatively
high
risk.
In
this
case.
F
Here
is
a
little
bit
different
because
we
kind
of
like
you're
talking
about
like
commercial
landing,
which
is,
in
theory
a
little
bit
less
risky
right
so
yeah.
So
that's
why
I
think
the
question
around
the
monitoring
is
very,
I
think,
is
very
important
so
that
actually,
that
pricing
mechanism
can
also
be
set
right.
Every
time
and
we
have
like,
I
guess
all
the
information
is
available
to
be
able
to
set
that
continuously.
C
H
Yeah
my
my
stated
objective,
however,
fundamentally,
is
that
this
credit
facility
agreement
normally
with
a
bank
they're
120
pages
long.
This
construct
is
going
to
need
that
to
be
modified
heavily
one
where
we're
going
to,
in
effect,
bifurcate
the
agreement.
Fundamentally,
where
maker
governance
will
have
control
levers
over
a
which
tenants,
we
have
what
the
reporting
requirements
are,
what
the
scope
is,
and
we
can
lenco
can
request
those
to
be
changed
and
they
can
only
be
affirmed
or
once
maker
governance
basically
ratifies
that
request.
H
But
those
levers
would
not
only
include
you
know
our
cost
of
capital,
but
would
also
later
down.
The
road
include
our
equity
component.
One
could
imagine
that
if
it's
30
and
70
and
if
there's
a
scenario
where
die
goes
higher
as
an
example
and
it's
incr
want
to
encourage
len
co
to
advance
its
lending
and
expand
its
lending
operations
that
if
it
lowered
that
equity
requirement,
lendco
would
be
more
motivated
because
raising
equity
is
always
an
is
a
time-consuming
endeavor,
and
if
we
can
do
two
deals
with
the
same
equity.
H
H
We've
just
kind
of
reverse
engineered
flipped
it
around
put
the
collateral
in
the
control
of,
in
effect,
the
federal
reserve,
in
this
case
maker
governance
where
well
we're
not
a
bank
we're
not
creating
a
bank
we're
creating
a
finance
company,
a
lending
company,
but
it's
we're
I'm
trying
to
mimic
all
of
the
structures
around
how
the
federal
reserve
can
encourage
a
bank
to
provide
more
loans.
This
is
no
different.
The
the
pricing
of
the
cost
of
capital,
the
tenants
get
decided
by
maker
governance.
The
legal
structure
just
needs
to
be
approved
and
made
bulletproof.
H
H
H
A
I
think
that
what
you're
talking
about
here
right
is
like
just
servicing
backup
servicing
companies
that
do
this
as
well.
In,
like
the
traditional
like
credit
world,
where,
like
you,
can
have
a
third
party
servicer
that
can
take
over
portfolio
of
loans
if
the
operating
company
that
is
servicing
these
loans
at
the
moment,
is
going
going
bankrupt
or
is.
H
Well,
so
the
anal,
the
analog
to
that
would
be
it's
not
so
much
loan
servicing
companies
per
se,
as
it
is
the
trust
structures
that
house
them.
So
you
know
back
the
part
of
the
reason
it's
essential
for
that
credit
reporting
agreement
to
have
a
a
robust
reporting
requirement
that
lendco
has
to
give
to
the
maker
governance
on
a
reoccurring
basis.
H
Why
it's
so
important
is
to
make
sure
that
lenco
never
engages
in
collateral-
that's
not
approved
by
maker
to
avoid
what
happened
in
2008,
okay.
But
let's
rewind
what
happened
in
2008,
all
these
assets
got
put
into
mortgage-backed
securities.
Those
securities
were
held
in
trust
companies.
Those
are
trust,
structures,
they're
statutory
trusts
in
delaware,
so
that
their
bankruptcy
remote,
those
trust
companies
when
they,
ultimately
the
loans
were
going
through
the
foreclosure
process.
Those
trustees
were
empowered
to
liquidate
and
foreclose
on
those
assets.
Independent
of
anybody
who
wanted
to
stop
them
no
different
here.
A
A
C
H
H
Some
limits,
I
mean
the
limits
are
that
I
just
won't
do
it
if
the
economics
don't
make
sense,
it
has
to
be
priced
market
compared
to
the
market,
and
I
fully
expect
that
maker,
a
given
the
current
environment
of
the
die
will
be
able
to
be
more
aggressive
than
the
market
price,
but
even
b.
You
know
this
stuff
is
investment
grade
credit
quality?
If
it's
not
market
competitive,
I
will
be
forced
to
repay
back
all
the
loans
and
go
back
to
a
traditional
bank.
Okay,.
A
A
A
That
is
actually,
I
think,
in
the
governance
cycle
right
now,
so
so
getting
on
chain
voting
for
for
this
and
other
collateral
types
and
matt,
you
posted
a
forum
thread
called
how
to
make
how
maker
can
be
a
competitive
lender
in
the
credit
tenant
marketplace.
It's
been
a
good
start
of
this
discussion,
so
yeah,
let's
keep
going
there
and
I
hope
to
see
a
lot
of
you
again
in
in
two
weeks.