Summary

Delegation Dynamics for Decentralised Lending

Concepts

• Credit Delegration through RANDAOs
• Credit Delegattion through Quadratic DAOs

Workflow

• Owner deposits collateral in Aave via its LendingPool
• Owner uses the data provider contract to retrieve the associated DebtToken for the borrower's desired asset to borrow
• Owner interacts with the DebtToken contract to approve the borrower to take out a given amount of credit on the asset
• Borrower borrows in Aave via its LendingPool increasing the Owner's totalDebtETH
• Eventually, Borrower repays loan, decreasing the Owner's totalDebtETH
• Eventually, Owner withdraws collateral from Aave