Gluwa Invest (Investor DAO) FAQ
A list of frequently asked question about how our Investor DAO operates
What is Investor DAO?
Investor DAO is a decentralized autonomous organization (DAO) protocol designed to democratize the investment process by allowing an investment offeror (hereafter: “Offeror”) to propose high-yield, real-world, investment opportunities to DAO members. Please check out the official whitepaper here.
What am I investing in?
Our real-world assets (RWAs) are specifically debt investments to fintech companies. Please check out details of each investment opportunity on Gluwa App.
How are you able to offer up to 20% APR?
The yields you receive come from lending your USDC to real businesses worldwide. As those businesses create value within their communities and repay back their loans, you’re rewarded for funding their loans.
Can US citizens or US residents invest?
We apologize, but US citizens and US residents are currently restricted from investing via the Gluwa app.
Is there a minimum investment?
You can get started for as little as $1! However, it is not economically recommended due to the gas fees you will incur while interacting with the blockchain networks.
Once you’re comfortable with our investment products, you can always choose to contribute more and diversify your holdings across several offerings.
For reference, our most active investors average approximately $3,000 USD per investment made.
Is my principal protected when earning yields?
No, you are investing in alternative investments in the form of RWAs that are debt investments. It can default.
How liquid are my investments?
Investing through the Investor DAO locks up your principal until the repayment date and interest earned will also be released on the repayment date. However, we are working on improving your investor experience by releasing earned interest monthly - stay tuned!
Why do I have to provide documents for the KYC/AML compliance and what’s the process?
Our RWAs operate under strict compliance and regulations. Traditionally, debt investments have not been available to the everyday investor, however, Gluwa is able to provide the gateway to these exclusive investment opportunities. The KYC process is completed in two steps: 1) Upload your government-issued ID 2) Upload your proof of address
What documents are acceptable for proof of address?
The below document types are acceptable forms of proof of address.
Acceptable Form of Proof of Address (must be issued/dated within last 3 months)
Utility bill/invoice (water, gas or electric)
Phone/Cell Phone bill
Bank statement
Credit card statement
Letter/Certificate/Statement from a Tax Authority or other government agencies
Housing/Apartment lease agreement
All documents must show your official name and a residential address.
If you're not sure about this step, please reach out to us at investorDAO@gluwa.com.
What is the Minimum Investment Threshold?
It is the minimum amount of USDC required to pass an Investment Opportunity. In the event that the DAO is unable to raise at least the minimum investment threshold amount, the Investment Opportunity will be ‘rejected’ and the DAO will inform its members that they are allowed to withdraw, at any time, the amount they committed to the Investment Opportunity.
What does 'Available to Drawdown' mean?
The 'Available to Drawdown' balance is the amount you are able to draw down at that time. In other words, it is the total of your deposits that have matured, plus any interest you’ve earned.
How is 'Total Expected Interest' calculated?
The ‘Total Expected Interest’ displays your total expected interest earned when all of your active investment opportunities mature. It is calculated by aggregating your expected returns across all of your active investment opportunities. Please note that this figure only measures your active investment opportunities that haven’t matured yet.
For example, if a user had three active investments with the following interest rates:
$10,000 USD - 12.5% APR
$10,000 USD - 20% APR
$20,000 USD - 15% APR
Their ‘Total Expected Interest’ would be calculated as such:
($10,000 * 12.5%) + ($10,000 * 20%) + ($20,000 * 15%) = $6,250 USD
How is 'Average Yield’ calculated?
The ‘Average Yield’ displays the average expected yield of all of the active investment opportunities that you participated within Investor DAO. It is an investment-weighted average expected return. Please note that it only measures your active investment opportunities that haven’t matured yet.
For example, if a user had three active investments with the following interest rates:
$10,000 USD - 12.5% APR
$10,000 USD - 20% APR
$20,000 USD - 15% APR
Their ‘Average Yield’ would be calculated as such:
{($10,000 * 12.5%) + ($10,000 * 20%) + ($20,000 * 15%)} / ($10,000 + $10,000 + $20,000) = 15.625%
What is Remaining Capacity?
It is the difference between the maximum investment amount (fundraising target) and current committed investment by the DAO members.
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