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Tweet 1
@0xRealFi
🏰 Crypto journey since 2017
🏰 Previously, with CBRE, Capitaland, and UBS
🏰 Was with an institutional landlord, many projects approached them to tokenize their real estate
@EthNowEth
🏰 Community growth at CitaDAO
🏰 Active member in BanklessDAO marketing guild
1/.
Joel's experience with past real estate tokenization project
🚫 NO clear path as to how token holders can enforce their rights to redeem the tokens for the underlying real estate
🚫 NO way for real estate token holder to exit their position without a viable secondary market.
2/.
💡 In Oct 2020, they had a breakthrough on legal structure that will legitimately confer the right to redeem the real estate with the real estate token
⚖️ Prestigious law firm willing to officially issue a legal opinion validating the legitimacy of the legal structure
3/.
🎯 CitaDAO vision is aligned with @banklessDAO - to onboard one billion users to the DeFi ecosystem
CitaDAO is building an ecosystem of sustainable yield farm powered by real estate (RE). Believes that real estate tokens will be an important theme for 2022.
4/.
🖨️ Inflation due to excessive money printing by central banks around the world. RE is a good hedge against inflation that's out of reach for most people, especially crypto natives who do not want to off-ramp to fiat currency.
5/.
🧺 Portfolio of typical crypto natives:
Protocol native tokens that are highly volatile OR
Fiat-pegged stablecoins that's subjected to the same inflationary policy
6/.
🔹 RE tokens sit right in the middle, offering lower volatility with a hedge against inflation by an asset class that is not found in the current ecosystem.
7/.
During 2021 DeFi Summer, the $250B of TVL chasing high yields in various protocols was unsustainable and yield started to revert to mean. With more capital chasing a sparse supply of quality yield, RE with its off-chain yield could meet the demand.
8/.
Increasing regulatory scrutiny over stablecoins, CitaDAO believes that the true supporter of decentralization will find RE tokens offer a stronger alignment in ethos.
RE is decentralized, not centralized at bank account that could be seized by any single regulator.
9/.
RE tokens also offer better transparency compared to the audits on the reserve of fiat-pegged stablecoins. Audits are conducted at a point in time and reserve could be moved between audits. Compared with RE, which is immutable and offers far greater transparency.
10/.
Capital inefficiencies in the RE ecosystem
🏰Real estate is a $280 trillion market
🏰However, a large proportion of capital is locked up and not earning any yield
🏰CitaDAO plans to use #DeFi to unlock that capital, improving accessibility, liquidity, and composability
11/.
Believes that value of on-chain RE > off-chain RE due to composability with other DeFi protocols to increase the use case of RE
E.g. the iPhone App Store increases the value of an iPhone because of the increase in the number of use cases created by the apps on the App Store
12/.
CitaDAO introduces a two-way permissionless bridge to allow landlord to independently list their RE and allow the community to commit their interest to the RE, a process called Introducing Real Estate On-chain (IRO).
13/.
If the RE gets sufficient commitment from the community, the IRO will be successful and a NFT representing the economic legal benefits of the RE will be minted and custodied in a smart contract. The fractions of the smart contract ERC-20 tokens will be deposited into the IRO participants' wallets and will be tradable on the AMM that operates 24/7, 365. This means the RE token holder gets instant liquidity for the RE.
14/.
CitaDAO also allows the process to be reversed in order for the RE to be detokenize and believes that they're the ONLY protocol to introduce this crucial process to allow the redemption of the title. This also create a floor price for the on-chain value of the RE token.
15/.
Received legal opinion from reputable law firm that the structure is legally enforceable and both the RE token & CitaDAO governance token do not constitute a security token which allows for token to be listed on exchanges.
✅ Solved both the legitimacy and liquidity issue
16/.
IRO process is unique but has a familiar yield farming structure that provides high APY for early movers. Reward for IRO participants comes from the fees that the landlord would have otherwise paid to middleman.
✨ IRO Reward is paid in USDC rather than native token!
17/.
Utilizing the RE Token:
1️⃣ Sell immediately and earn USDC reward from IRO
2️⃣ Provide liquidity for the RE Token/USDC pair to earn more rewards
3️⃣ WIP - Use RE Token as collateral to mint other tokens. E.g. Rari Capital, Abracadabra etc -> possible thru Chainlink integration
18/.
Liquidity for owning RE in meatspace is inefficient and highly discriminatory. Unlocking permissionless collateralization on-chain using RE is how we can truly go #bankless
DeFi is built for everyone and creates accessibility for all unlike TradFi
19/.
❓ Why on Ethereum rather than L2/alt-L1s?
1️⃣ Most developed ecosystem with mature AML solutions
2️⃣ Deeper liquidity to support the growth of RE coming on-chain
3️⃣ Large developer pool
4️⃣ Maximize composability with other DeFi protocols
20/.
Active proposal with @MIM_Spell to mint Magic Internet Money by providing RE token as a collateral
https://forum.abracadabra.money/t/proposal-to-collaborate-with-citadao-to-incorporate-real-world-assets-into-abracadabras-portfolio/2082
21/.
❓ Why only Commonwealth country? What about US?
Current structure is well defined in the commonwealth law and there's no similar legal instrument in US. Actively exploring strategy to expand to more jurisdiction in the future. Applies the same standard with any DeFi protocol that excludes US users.
22/.
❓ Upcoming milestones?
Testnet launch in the upcoming to allow the community to test out the platform. First building leased out to a TradFi institution to be launched after mainnet deployment.
23/.
Lastly, community #airdrop for wallets with more than 10k $BANK tokens. #bankless. Snapshot will be taken within 24 hrs and claim details will be released soon. Follow their twitter and discord for updates. discord.gg/citadao
Tweet 2
What is CitaDAO doing to bring real estate into web3 and into the 21st century? A thread …The knights of CitaDAO are building a Real Estate powered DeFi ecosystem, featuring a two-way asset tokenization bridge, ample liquidity, and bearer asset tokens that are composable with the broader DeFi applications and primitives.
Real estate tokens will enable the DeFi community generate sustainable yield through real world productive assets, diversify their portfolio on-chain, AND serve the growing demand for on-chain yield.
Unlike past real estate tokenization attempts, they are taking a 100% DeFi approach that leverages composability with other projects, allowing the platform to scale users/ usecases rapidly (see collab with XToken to provide concentrated liquidity on UniV3
Through the platform, crypto natives can soon be taking over meatspace real world assets and the physical world shall be re-made in the likeness of our own Crypto community activities such as tokenized real estate used as collateral for permission-less loans on-chain will be a reality, powered by Chainlink on price feeds for real estate
The first property to be tokenized will be a prime heritage real estate building located in Cardiff, Wales, UK in January 2022. This will be the world's first prime multi-million usd property to be introduced on-chain via a decentralized two-way tokenization bridge where users can freely convert tokens into the physical title and deed
follow @citadao_io as more details coming soon in the next days and weeks...
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Tweet 3
Well, it’s happening. Check out what the knights of @citadao are building
1/ Commercial real estate is largely monopolized by TradFi funds like Blackrock. So, we can sit back and allow BlackRock, large real estate funds, the Fed & the government to continue hogging everything, or we can fight back.
How? With a protocol that levels the playing field for the crypto natives.
2/ CitaDAO takes a truly DeFi approach that leverages composability with other projects, allowing the platform to scale rapidly. Unlike the past real estate tokenization attempts,
4/ IRO process is community voting mechanism to determine if the building gets tokenized. During the IRO process, DeFi community locks up their stablecoin to indicate their interest in back the tokenization process. In return for locking up their liquidity, the user will earn a daily reward from the reward pool.
It will consist high quality commercial real estate in major cities.
Why? Because they provide the most confidence and stability during all economic conditions.
8/ With the Real Estate Tokens, holders will be able to take collateralized loans on-chain, with the composability from the existing lending protocol.
Why is this such a game-changer?
Token holders gets the benefit of low volatility of real world asset and the efficiency of defi borrowing.
6/ For the first time in the history, crypto anons will be able to collect rents from rent seekers. The first IRO for CitaDAO will be a building leased to TradFi in Wales
7/ Is that enough to convince you, anon?
How about 'one more thing...' Imagine we have the back of the entire frog nation moving in on this!
8/ If we want to bring legitimacy to web3, this is our opportunity and real estate will play a crucial role. This is the way.
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