CitaDAO is using Chainlink to help put real estate data on the chain to create a DeFi ecosystem driven by real-world assets. The host Andy Boyan interviewed Joel Lin of CitaDAO. Golden Finance compiled the content of the interview, and the teacher understood what CitaDAO was doing and how Chainlink helped to achieve it.
What is CitaDAO
A project that is building a sustainable DeFi income farm driven by global real estate
Real estate is a $280 trillion market, but most of it is locked in without any gains
DeFi will be used to drive demand and release the capital efficiency of real estate
I believe that real estate will have two values in the future: the value of real estate on the chain and the value of real estate off the chain
Believe that real estate on the chain will be more valuable than real estate off the chain because it has more use cases
For example, the iPhone App Store increases the value of the iPhone because the number of use cases created by apps on the App Store increases
Joel Lin: “As a result, real estate today is a very traditional asset class, and the time for subversion is ripe. We believe that it is time for subversion. All assets will eventually be tokenized in the new world, just like everything now They are all securitized.”
Real estate is like the iPhone, and CitaDAO is like the App Store. It enables real estate in the real world to use use cases generated by other DeFi projects to increase the value of real estate on the chain.
Real estate tokens complement a typical crypto-native investment portfolio: native tokens are very unstable and essentially inflationary stablecoins, real estate tokens are in the middle, providing low volatility and hedging inflation
Changing the perception of real estate
Seeing that more and more people are looking for real estate tokens to promote the liquidity and capital efficiency of real estate
Currently, stablecoins are supported by fiat currencies or different types of algorithms. It is speculated that future stablecoins can be reserved through real estate
CitaDAO found a way to legalize real estate tokens. Holders can now redeem the underlying title deed from real estate tokens
This also introduces a reserve price for real estate tokens. If the valuation of the real estate on the chain is lower than the value off the chain, the holder can buy real estate tokens, redeem the title certificate, and sell the real estate in the real world for profit
Recent integration with Chainlink
For the real estate token lending pool to be established, CitaDAO needs Chainlink to provide reliable real estate valuation data feeds to the DeFi ecosystem
One of their community projects, PropMarketCap, proposed an idea to conduct regular on-chain valuations in the real world
The team will hire an appraisal company to conduct a monthly appraisal of the property to ensure that the price is accurate and up-to-date
The average price will be provided to the on-chain lending agreement through the Chainlink price
How CitaDAO works
CitaDAO will provide a two-way tokenization bridge for real estate without permission
The platform will allow landlords to independently list their real estate on the chain after KYC/AML checks and ownership verification
Potential participants will be invited to pledge their interest in some real estate through a process called Real Estate On-Chain (IRO)
If the IRO is successful, the NFT representing the ownership contract will be minted and stored in the smart contract
Part of the ERC-20 tokens will be deposited in the buyer’s wallet. This is a real estate token, which can be traded on AMM
CitaDAO is seeking to launch AMM in Uniswap V3
Each IRO will be an independent project on the listing platform
CitaDAO will establish a one-to-one ratio, where the initial IRO price will be equal to 1 USD per 1 ERC-20 token
What type of real estate does CitaDAO focus on?
Focus on commercial real estate in Commonwealth countries
CitaDAO Version 2 will connect to non-Commonwealth countries through special purpose vehicles (SPV) established in Commonwealth countries
How to know that real estate is real?
Prior to the IRO, an ownership verification inspection will be carried out and the documents will be signed by the law firm
If there is sufficient commitment to the IRO, a transaction will be made to transfer the title deed to the new SPV
The new SPV will hold a title deed
Holders of real estate tokens can access SPV and its title deeds
Do real estate token holders have the right to claim income/rent?
It gives the holder the right to claim against the basic property right contract
The holder will not receive the rent. If the holder receives rent, the real estate token will be classified as a security token
CitaDAO has constructed its real estate token and has received legal advice that it is not a security token. Not being a security token will unlock more opportunities in terms of liquidity/listing on more platforms
The rent of the tenant will be paid to the SPV account. SPV will be connected to a cryptocurrency exchange where it will buy and destroy real estate tokens
How to deal with regulations?
Real estate is unique. Each country, state, and city has its own regulations
Initially, it will only focus on commercial real estate and expand CitaDAO
There are different sets of land laws and development laws for other types of real estate. Avoid residential real estate because it is very complex
What does the road map look like?
On January 7, 2022, CitaDAO will bring 20 million real estate on the chain
The real estate will be located in Cardiff, England, on Queen Street
Currently leased to a global blue chip bank
Will be integrated with Abracadabra Money and Cream Finance
The second project is Hacker House in central London, which is planned to be a space for a crypto community
In the second quarter of 2022, they will expand the scale and allow the platform to be used by any landlord in the public space
Hope to expand the platform’s AUM scale to at least 4 billion by the third quarter of 2023
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/citadao-defi-ecosystem-driven-by-real-estate-chains/
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