Yhouse token strategy

Simple Summary

The strategy provides liquidity to tokenized real estate that can be used in aave to borrow stablecoins and buy more houses.

Abstract

Users deposit eth with the expectation of generating a yield backed by real world assets. Further inceptions could allow users to deposit stablecoins or yfi so the psychology around crypto changes, if yfi has vaults backed by real assets that generate a real yield, that could change people’s opinion drastically about crypto being something just printed out of thin air and that solely exists in people’s mind.

Motivation

The motivation of this strategy is the current lack of trust in the crypto ecosystem due to the complexity and lack of real world usage, if someone from Uganda can provide liquidity to a vault backed by tokenized us real estate assets and yinsure his/her investment, that would make a real difference in the current world.

Specification

Buying the tokens directly from the market is complicated because there’s still a lot of kyc procedures in the ecosystem. My approach to this problem is to buy the LP tokens in the Uniswap exchange so the vault can harvest the fees of traders willing to buy RealT tokens. This is one approach to the problem but if a professional dev could figure something out to buy real estate tokens directly and the vault could actually hold the tokenized real estate, and then use that tokenized real estate as collateral in aave to borrow stablecoins to buy more houses the inception layers could get deep.
Aave is currently bonded just with RealT infrastructure but there’s a lot of other tokenizing real estate projects.

Overview

This is just a proposal so don’t try to understand this as a fixed strategy as it’s not something deployed and approved rather an idea that is flexible, this idea can be molded and morphed into what the devs can provide and also what is currently possible. I’m talking about the asset that you deposit in the vault, how is the liquidity then managed, if it includes yinsurance directly or not, and of course what the devs make out of the strategy, performance fees, withdrawal fees… The main idea is to have a vault backed by real world assets so people can trust the yfi ecosystem in a much deeper level.

Rationale:

People in the blockchain seas trust code because they’ve already taken that leap of faith but lots of people are still very skeptical about value and trust being digital.
It’s a very hard process for someone to trust something that is just code, and that code is law, ( altough they trust politicians very much blindly), so if the yfi community could merge the digital world with the blockchain, that’s where retail adoption could come in a big way.

Risks:

As everything in life it has some kind of risk, ( not taking risks is also risky ), the real estate market could plunge and also the crypto market, that’s why I thought using yinsurance on the vault could make people feel safer investing in this vault.

For:

The strategy is implemented.

Against:

The strategy is not implemented.

Copyright

Copyright and related rights waived via CC0 .

Linked documentation



https://cocoricos.io/tokenized-real-estate
2 Likes

Btw I just copy/pasted @aliatiia yETH-yfi bullrun strategy proposal and changed the content because I’m lazy, so I have no fucking idea about the copyright link, but it looks legit.
I wanted to profit from this idea, I started learning how to code but I realized that if it’s a genuinely good idea I don’t have to keep it for me, I rather let other people that are smarter than me consider if it’s a good idea. I’m not stupid, I think, but it’s going to take much more time for me to learn programming than submit my idea and let others decide if it’s actually worth investing resources to develop this.
Anyways, I hope you can see my vision and we can bring value to everyone.
SuttonBrothers.

1 Like

What do you mean buy the LP tokens? Like the RealT/ETH Uni LP token? Or are you referring to just buying the RealT tokens?

Either way, I’m not sure how this would work. You need a KYC whitelisted address to buy RealT tokens (even on Uniswap) and I don’t think there’s a market for the LP tokens.

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The usual real estate investment trusts and stock equities do require some form of KYC, which links the identity to the tokenized asset.
Same goes for other mutuals and bonds (when extending loans to money markets)

I like the concept of providing ERC 721 tokenized insurance to a tokenized real estate market more than getting directly involved in that market (for now).

Even though KYC is to me a problem in the short term, I like the idea of allowing vaults to include investment strategies for synthetically mirroring the housing market. Maybe Synthetix can create instruments that YFI can partake of.

In other words, YFI becomes a place where you can either insure housing investments or diversify your vaulted holdings into real estate markets without having to own specific tokenized investments.

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That’s a very good idea.

If this strategy gets somehow implemented it would be much easier to use synthetic tokneised real estate.