The encrypted credit protocol Debt DAO has launched on the mainnet, offering "income-based financing" without the need to sell equity or provide collateral

ChainCatcher message, the encrypted credit protocol [Debt DAO](https://www.rootdata.com/zh/Projects/detail/Debt DAO?k=Mjk4Ng==) announced the launch of its mainnet. Before the mainnet launch, Debt DAO underwent 3 months of Beta testing, with a total trading volume of approximately $150,000.

It is reported that Debt DAO provides "revenue-based financing" for crypto entities such as DAOs and protocols, meaning that borrowers do not need to sell equity or provide collateral, but instead pay a certain percentage of their revenue to lenders. Once the debt is repaid, borrowers will receive 100% of their income and all the value created through the loan. Debt DAO claims this model is implemented through a smart contract called "Spigot," which "ensures that the borrower's on-chain cash flow automatically repays the lenders."

According to the crypto data platform RootData, in August 2022, Debt DAO completed a $3.5 million seed round financing led by Dragonfly Capital. (Source link)