GGP 2
Goldilend changes and deployment
Summary
Goldilend is a fixed-term, fixed-rate NFT lending protocol developed by Goldilocks DAO, designed to drive sustainable revenue for the DAO while expanding DeFi utility for ecosystem NFTs. It allows holders of asset-backed NFTs to borrow against the NFTs’ underlying value.
Loans are issued based on the value of the underlying assets and use a time-based liquidation model: if a loan is not repaid by expiry, the collateral is liquidated via auction.
This proposal seeks DAO approval to deploy Goldilend with initial support for Bong Bear NFTs and the official rebase collections (Bond Bears, Boo Bears, Baby Bears, Band Bears, and Bit Bears).
Abstract
Goldilend introduces a novel NFT lending primitive purpose-built for asset-backed NFTs within the Berachain ecosystem. Instead of relying on floor prices, Goldilend issues loans based on quantifiable underlying value, specifically, the vesting BERA airdrop allocations tied to Bong Bears and rebase NFTs.
Borrowers receive fixed-term, fixed-rate loans in HONEY, and must repay by expiry. If unpaid, collateral is liquidated via auction using a time-based enforcement model, avoiding price-triggered liquidations entirely.
HONEY liquidity is incentivized through a Berachain Reward Vault, using Goldilocks’ Berachain RFA allocation. Over time, these incentives are recouped from borrower interest payments, forming a sustainable incentive loop.
The resulting net interest income flows to the Goldilocks DAO treasury, contributing to the backing of LOCKS tokens and reinforcing long-term protocol sustainability.
Specification
Core Mechanics
Goldilend enables fixed-term, fixed-rate loans issued against the underlying asset value of supported NFTs.
Supported collateral: Bong Bear NFTs and official rebase collections (Bond Bears, Boo Bears, Baby Bears, Band Bears, and Bit Bears).
Borrow currency: HONEY
Time-based liquidations only - there are no price-based triggers.
Maximum loan duration is 1 month, extendable by the borrower via a renew function.
Interest rates adjust according to utilisation and other variables.
Loan-to-Value (LTV) is calculated based on the USD value of unclaimed BERA at the time of loan origination:
Bit Bears: 30% LTV
All other collections: 20% LTV
When pool utilization exceeds 90%, new loans are temporarily disabled to preserve redeemable Honey for liquidity providers.
Revenue, Income & Incentives
HONEY liquidity providers are incentivized through the Goldilend Reward Vault, funded via Goldilocks DAO’s Berachain RFA allocation.
The Berachain RFA Allocation is used to bootstrap liquidity and the incentives paid out are recouped over time from interest paid by borrowers, forming a self-sustaining incentive loop
Net Interest Income is split as follows:
If the LOCKS market price is less than 30% above the floor price:
All net interest income is used to purchase LOCKS tokens through the Goldilocks AMM. These LOCKS tokens are then used as collateral to borrow HONEY at the floor price. From the borrowed HONEY, 10% is deposited into the Insurance Fund, and the remaining 90% is sent to the DAO Treasury held in line with treasury strategy driving value to LOCKS holders and supporting LOCKS token backing.
If the LOCKS market price is more than 30% above the floor price: Net interest income is split directly: 10% goes to the Insurance Fund, and 90% is deposited into the DAO Treasury held in line with treasury strategy driving value to LOCKS holders and supporting LOCKS token backing.
Liquidation & Risk Management
If a loan is unpaid at expiry, the collateral NFT is automatically auctioned to recover the loan value.
If the auction fails, the NFT is transferred to the DAO multisig, to manually liquidate and the proceeds are used towards the unpaid debt, topped up from the Insurance Fund if required.
All users will be clearly informed of risks via appropriate disclaimers.
Interest owed is included in LTV calculations and deducted upfront to reduce the risk of under-collateralization.
Goldilocks Governance & Oversight
Any changes to key lending parameters (LTVs, durations, utilization caps) require DAO governance approval.
Changes to Goldilend or the approval of additional NFT collections must also be approved by governance.
During early stages, interest rate strategy will be actively managed by the team multisig for responsiveness and control.
Rationale
Goldilend supports Goldilocks DAO’s mission to build custom DeFi infrastructure for Berachain while delivering sustainable value to LOCKS holders. The initial focus on Bong Bears and official rebase NFTs ensures alignment with the core ecosystem, leveraging NFTs with clearly defined, on-chain asset backing in the form of vesting BERA airdrop allocations.
Liquidity incentives are bootstrapped using the DAO’s Berachain RFA allocation, and are recouped from borrower interest over time creating a sustainable incentive mechanism. All net interest income flows back to the DAO treasury, directly contributing to the economic backing of LOCKS tokens and reinforcing long-term protocol sustainability.
Request for Comment
In line with the Goldilocks DAO Governance Charter, the purpose of the Request for Comment is to allow the community time to digest this proposal, provide feedback, and ask questions. The Request for Comment phase will last for a minimum of 7 days, after which, subject to the finalisation of the audit, the Governance Proposal will go to a vote and, if successful, initialise the Goldilend contracts.
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