Summary:
Propose integrating WLFI staking for USD1 lending pools, allowing holders to earn yields (target 6-8% APY) by funding low-fee credit cards. This adds credit functionality to the debit card rollout, turning WLFI into a full lending ecosystem.
Rationale:
- User Growth: Builds on the upcoming debit card by offering credit lines collateralized by staked WLFI, attracting unbanked/remittance users with 0.5% APR and instant approvals.
- Yield Flywheel: Stakers lend USD1 to card borrowers; interest (4-6%) flows back as rewards, boosting token utility and retention.
- RWA Synergy: Ties into tokenization (e.g., Ondo Treasuries) for secure collateral, aligning with WLFI’s DeFi-TradFi bridge.
- Risks Mitigated: Over-collateralization (150% min), oracle feeds for LTV, and governance pauses on defaults. No new token emissions—funds from protocol fees.
Implementation:
- Smart contract upgrade: Add staking vault for WLFI → USD1 loans.
- Partner with card issuer (e.g., extend Apple Pay integration) for credit issuance.
- Timeline: Testnet Q4 2025; mainnet Q1 2026. Budget: $500k from treasury (0.1% of cap).
Vote Options:
- For: Proceed with development.
- Against: Reject.
- Abstain.
Discussion: Let’s make WLFI the people’s bank—thoughts on yield splits or credit limits?