Types of Loans

Revolving Line of Credit

Revolving credit is the first type of debt being targeted since it's the most flexible for DAOs. Similar to a credit card, this allows DAOs to access extra cash when they need it most and then pay it back over time.
Currently, this is set up through a Rari Fuse pool managed by Debt DAO using a special whitelisted token called $CREDIT that Debt DAO lenders issue to borrowers to allow them to withdraw from the pool, without adding collateral directly into the fuse pool.
Using a pool naturally means that the interest rate is variable. Debt DAO's smart contracts will later enable lines of credit to have fixed interest rates customized for each borrower.

Term Loans

These will follow later and will be directly between lender(s) and borrower(s) with predefined variable or fixed interest rates. These term loans will be uniquely enabled by Debt DAOs smart contracts and don't exist elsewhere in DeFi.
Term Loans would be for forecasted 'permanent' working capital probably whereas the revolving line of credit above would be to manage peaks and troughs.
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