Overview

Introduction

RealEx, operated by the RealEx DAO, is the first real estate-backed cryptocurrency.
RealEx DAO (decentralized autonomous organization) aims to democratize real asset ownership and empower billions of people to participate in wealth creation through decentralized finance.
To accomplish this, RealEx is designed as a “steadycoin.” A steadycoin is a new category of cryptocurrency that is backed by something real: a portfolio of global real estate assets. The RealEx steadycoin is built for credibility, stability, and longevity due to the fact that it is backed by inflation-resistant hard assets (rather than fiat currency) and it offers the potential of yield to the RealEx holders. The RealEx steadycoin will be launched on the Ethereum blockchain, and will ultimately operate on other Layer 1 and Layer 2 blockchains, as appropriate, to support the growth and success of RealEx.
RealEx is community-managed by RealEx DAO through its core technology platform the RealEx Protocol (the “Protocol”). The RealEx Protocol is an open source asset management, transaction coordination, and data layer built on Ethereum that will issue RealEx steadycoins in exchange for the deposit of stablecoins and liquidity provider (“LP”) tokens into the RealEx treasury (the “Treasury”). The Treasury is a protocol-owned treasury under the governance control of RealEx DAO. The Treasury assets will be used to acquire real estate assets, effectively swapping deposited stablecoins for real assets. Represented as NFTs in the Treasury, these real assets and their potential for income dictates the asset value of their digital counterpart, thereby providing a floor value for the RealEx steadycoin. A portion of the profits earned by the Protocol will be used to support the DAO community’s ongoing development of the Protocol as well as other DAO operational functions.
RealEx DAO will share any proceeds from real estate and related crypto-staking transactions with the community of RealEx steadycoin owners. The yield and growth parameters will be governed by the RealEx DAO through coordination and consensus from the DAO community and will never be decided upon by a single person or group.
The initial RealEx Protocol implementation is based on Olympus DAO, a preeminent implementation of a protocol-owned treasury and stablecoin that has associated incentive mechanisms to help grow the Treasury.
One day, the RealEx Protocol will ultimately empower anyone to integrate their own real estate assets or software into RealEx. Imagine a community-owned mechanism that becomes the app store for tokenizing all real assets owned and/or used by the community.

Motivation

The big banks that traditionally exist to service our needs are heavily invested in new schemes to sell us products related to housing. With mortgage interest rates at all time lows, big banks are heavily investing in real estate, with the goal of becoming landlords so they can establish a monthly revenue stream that is not tied to interest rates. Banks of all kinds are buying up real estate properties and removing properties from the market, which reduces selection for buyers, creates artificial demand for housing, and pushes the cost of real estate up in any particular area, further excluding people from buying real estate. This is not limited to the traditionally “most popular” cities, but also extends into markets where the cost of property is still affordable for many.
RealEx DAO’s intends to intervene in this motion by the banks and has created a solution that utilizes a monumental people-powered tidal wave enabled through the application of the RealEx steadycoin. RealEx DAO endeavors to become the world’s largest holder of real estate, competing against the big banks and ultimately socializing the ownership of housing through a shared ownership structure and a very simple financial product: the RealEx steadycoin.
Owning property as a collective group with a shared treasury enables RealEx to accomplish goals that could never be accomplished by an individual or by a single big bank, yet are reasonably achievable through the global collective action of hundreds of thousands of people who have a shared intention of making a significant impact. This business model of the collective enables RealEx to:
  • Offer anyone, anywhere, access to a global stable pool of yield-producing real estate assets,which has been the primary driver of generational wealth creation throughout history;
  • Leverage the underlying real estate assets for utility in borrowing and/or lending across a decentralized financial ecosystem;
  • Standardize the tracking of the social and environmental impact of the life of real estate assets;
  • Create derivative assets to enable additional functionality and utility of real estate assets, make them more transparent and standardized, and enable the creation of new markets;
  • and Allocate a significant portion of the value creation to relieve major housing issues such as homelessness. Starting at 10% of all tokens minted allocated to social causes, this is a rate that is impossible for any commercial bank to take on because of their organizational structure.

Differentiation

At the heart of the RealEx’s system is the RealEx “steadycoin”. A steadycoin is a digital asset backed by a basket of inflation-resistant assets, such as real estate. With the coin value represented by the underlying assets, this helps maintain the steadycoin’s purchasing power regardless of market volatility or inflation. In addition, steadycoins can offer yield to tokenholders. A steadycoin provides:
  • Diversified risk across a very wide variety of real assets
  • Liquidity for token holders
  • Leverage across the DeFi ecosystem as a medium of leverage and exchange
  • Integrated access to the utility of all or a subset of assets
  • Open access through public blockchain networks
By applying the concept of a steadycoin to real estate, RealEx is pioneering digital asset technology representing an evolution in the ownership of real assets such as real estate. It provides a platform to make it possible for anyone to benefit from real asset ownership, while making the most of the utility and growth of the decentralized finance markets.
Further the overall volatility of cryptocurrencies means digital asset managers are looking to diversify portfolios across a mix of assets. One such class of assets are fiat currency-pegged stablecoins, which are popular due to their lack of volatility as compared to tokens like Bitcoin and Ethereum. However, the comfort that many users have associated with stablecoins is based on the misconception that stablecoins will provide them with the same purchasing power tomorrow as they have today. Stablecoins are backed by centralized bank-controlled currencies, which leaves them as equally vulnerable to depreciation as the currency itself. Depreciating is not a possibility, but a fact, with inflation rates at historic highs across the world.
In this light, RealEx becomes a viable alternative to stablecoins while at the same time offering an alternative to volatile cryptocurrencies with a safer crypto investment.
RealEx will provide a protocol level composition and integration layer that enables many different participants to plug into the system, offering a utility that enhances the use and optimization of assets managed by the protocol; all powered through the RealEx steadycoin.
Last modified 8mo ago