Hey Vesta community!
My name is Ethan, and I am one of the core contributors at CitaDAO - we are bringing real world real estate on-chain in a truly DeFi way. I think there is an opportunity for Vesta and CitaDAO to collaborate.
I would like to suggest adding CitaDAO Real Estate Tokens (RET) and RET-USDC LP tokens as eligible collateral on Vesta to mint $VST stablecoins. This would present both an opportunity for CitaDAO LPs to leverage their LP position and increase their returns and for Vesta to increase the circulating supply of $VST without taking on much risk due to the high quality of CitaDAO Real Estate LP tokens as collateral.
Intro to CitaDAO
CitaDAO is a seasoned team of Real Estate and Web3 veterans building a global Real Estate powered DeFi ecosystem, featuring two-way real estate tokenization bridge, ample liquidity, composability, and bearer asset tokens that are redeemable for a property’s title deed. We believe real estate backed tokens will enable the DeFi community to generate sustainable yield through real world productive assets, hedge against inflation and diversify their portfolio on-chain, and serve the long unmet demand for sustainable on-chain yield.
While the concept of real estate tokenization has been around for years, we believe the time for mass adoption is now. Unlike past attempts, we are taking a 100% DeFi approach that leverages composability with other projects in DeFi, allowing scaling of users and use cases (e.g., collaboration with Chainlink to create price feeds for real estate based on real world prices which enables real estate backed stablecoins, among other primitives Announcement)
Most recently CitaDAO has successfully tokenized an industrial property in Singapore: Tech in Asia - Connecting Asia's startup ecosystem, and it is now freely trading on Uniswap with ample liquidity and low slippage. This property is high quality, has many comparables, and is not only highly liquid on-chain, but in the real world as well, property details here. Many more such high quality properties are in the pipeline being prepared to come on-chain.
Properties brought on-chain via CitaDAO are characterized by strong liquidity that allow Real Estate tokens to serve as high quality collateral in stablecoin mechanisms such as that of Vesta.
Our Progress in building liquidity
Each property introduced on-chain features incentivized AMM pools where liquidity providers earn KNIGHT, the CitaDAO governance token. For example, the current property is valued at around $630k and has over $300k of liquidity provisioned in a ~15% range on the Uniswap v3 pool: Uniswap Info
This ensures high liquidity and low slippage even when trading up to 18.3% of the token’s market cap. We are currently deployed on the Ethereum mainnet and we are working with Vesta to explore enabling the utility of them on Arbitrum.
In addition, there is a mechanism which allows the redemption of on-chain tokens for real world title deed. This involves a buyout contract which enables anyone with at least 30% of the RET market float to buyout all other token holders at a fixed price while enabling everyone else to buyout the initiator 30% at the same offered price. This ensures that in the event prices move irrationally on-chain, any token holder is able to trigger a buyout of the entire property. If a token holder is successful in completing the on-chain buyout process, they can proceed to claim the NFT and use that to redeem the title deed in real life after clearing standard conveyancing KYC/AML checks which are conducted between the SPV lawyers and the successful buyout initiator. Thereafter, legal representatives are required by law to transfer the title deed to the buyout initiator’s name, giving them the ability to take control in the real world, and do as they wish with the property at that time (hold, sell, etc.). This creates a potential floor to the token price.
Collaboration between Vesta and CitaDAO
Given the above, we think there is a great collaboration opportunity. Usage of real world assets as collateral to mint $VST has a set of unique advantages: stability of the collateral, diversification of collateral type, future scalability leveraging the world’s largest asset class, diversification in jurisdiction
We propose that Vesta allow real estate tokens brought on-chain via CitaDAO to be used to mint VST, this would be feasible as rails with Chainlink have been built to provide price feed data on the real estate’s value in the real world.
Smart contract risk
What is the link to the main project Github repo?
Our repo isn’t public currently but we are working to release a public repo
Please provide an Etherscan link with verified contracts.
Etherscan 20SML0253SG (20SML025) Token Tracker | Etherscan
What is the age of the token in days?
What is the number of transactions in token contract to date?
How many holders of the token are there?
58 total holder
~30 for SML20-USDC LP token
~15 for SML20-FRAX LP token
How would you describe the decentralization level of the governance of the protocol that issues this token?
High, as the SML20 and all future real estate tokens are fixed supply and non-upgradeable.
What is the setup of the main protocol multisig governing this token?
There is no multisig governing the real estate tokens.
How upgradeable is the token contract?
Please provide some numbers describing the depth of liquidity on this token across some different markets.
$450k TVL for SML20-USDC and SML20-FRAX
How accurate are oracles for this token? Do they exist? If so, for how long?
The on-chain methods to calculate the price of the LP tokens are very difficult to manipulate and the chainlink oracle is currently undergoing testnet trials with another stablecoin project.
Please provide the token volatility, defined as the Standard Deviation of log-returns for specific time frames
Has fluctuated between 0.98 - 1.00 from May 2022 to present
What is the future emission schedule of the token?
Zero emission, there is a regular buy and burn of the SML20 token using rental income.
What is the current total and circulating supply of the token?