DAOs sell tokens when they need funds. Holders lose out from dilution, The DAO loses out on the upside of the tokens. The solution is accessible debt for DAOs of all sizes. In the current DAO ecosystem, debt is very rarely utilized. Only when there is a protocol hack (Pickle Finance, Rari Capital, many more) do DAOs begin to explore these financing options. This is surprising considering selling debt is a less expensive source of capital than equity, and the DeFi community has experienced participants for whom this is not a new realization. For growth stage DAOs with product market fit, onchain revenue, and dedicated communities, debt is a far superior option to fund operations and acquisitions. The scarcity of the use of debt is a clear signal that there is a need in DeFi that is not being met. As an example, SushiSwap recently attempted to raise a $60M round. Instead of diluting existing token holders, the protocol could have taken a loan backed by the nearly $56M in annualized revenue they are currently generating. When protocols do explore debt financing not after a hack, it’s very few and far between, largely because their options aren’t clear. Iron Bank’s loan to PleasrDAO for instance was only able to be facilitated thanks to the close relationship between CREAM and PleasrDAO. We’re looking to hook DAOs on debt. Allowing DAOs to take on debt opens up many more avenues for innovation to be built upon new DeFi debt primitives. Creating less expensive capital flows can allow more protocols to grow, and current protocols to fund operations with little to no dilution. Additionally, DAOs should be lenders as well,generating stable revenue and positive externalities as they are able to diversify their treasuries while at the same time funding potentially complementary DAOs that enhance the growth of their own protocol.