This proposal seeks to allocate a $125,000 USD investment into Bunker Finance (“Bunker”) by The LAO (“LAO” or the “DAO”).

Bunker Finance is a pooled lending protocol featuring instant access to loans, AMMs used to price collateral, and an MEV-compatible liquidation mechanism. Their collection-specific lending polls allow borrowers to take out loans instantly and enable lenders to immediately start earning interest. Borrowers no longer need to wait to be matched manually to a lender and vice versa.

The team is led by AJ, an ex Microsoft ML engineer and the founder of Agua AI, an AI powered smart contract security solution acquired by Verisol (a subsidiary of Microsoft). AJ’s cofounder Yash was engineer #4 at Yield Protocol and head of quantitative strategy at Cryzen, in addition to founding 2 separate DeFi protocols (a token DEX and $1B staking provider).

To date they’ve seen $2.4M in cumulative loan volume on v1, and recently completed an audit with Code4rena. The Bunker team is currently focussed on introducing new collections to the platform, as well as rolling out v2 of the product, which will include support for NFT Mortgages, as well as a chrome extension allowing users to “buy with bunker” from just about any major marketplace interface. Sometime in Q4 the BUNK token will be distributed, with airdops expected shortly thereafter. Bunker is raising up to $4.5M at a $35M valuation.

Bunker has presented an opportunity for The LAO to participate in their current round of funding. Initial polling showed interest in allocating between $100,000 and $150,000 to the opportunity. Given DAO member conversations in recent member calls and the results of the aforementioned poll, various DAO members have expressed interest in allocating $125,000. Passage of this proposal would confirm the interest of The LAO’s members and authorize the investment of $125,000 into Bunker by the DAO.

Links to the Bunker website, slide deck, as well as to The LAO’s member polling have been provided below for reference.

Passage of this proposal by more affirmative (“Yes”) votes than dissenting (“No”) votes of the the LAO members on the Dapp, per Section V of the DAO’s operating agreement, would expressly authorize the DAO’s investment of $125,000 into Bunker Finance.

Further, passage of this proposal would empower the DAO and its service provider to take any actions or institute any further changes or procedures contemplated herein with respect to the funding of the DAO’s investment in Bunker, including, but not limited to, exchanging ETH from the DAO’s Treasury for USDC and remitting such USDC to the Bunker team by and on behalf of the DAO for investment into Bunker.

The LAO discord poll on interest in funding Bunker: https://discord.com/channels/706911368506507355/991748373008879717/999017813127733308

Bunker deck: https://docsend.com/view/xj653mybvdxr649p

Bunker website: https://bunker.finance/