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5 Reasons Why CitaDAO Real Estate NFTs are Superior to “Actual” Real Estate
November 16, 2021
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CitaDAO

Just like how every kind of media has gone online, every type of asset will eventually be put on the blockchain. As a result, by 2030–2040, your portfolio may be entirely tokenized.

The question is how long it will take for people to notice. Digital gold, art, loans, derivatives, equities, and other forms of digital currency are already in the works. Every day, the distinctions between reality and virtual reality blur further.

Just like how every kind of media has gone online, every type of asset will eventually be put on the blockchain. As a result, by 2030–2040, your portfolio may be entirely tokenized.

The question is how long it will take for people to notice. Digital gold, art, loans, derivatives, equities, and other forms of digital currency are already in the works. Every day, the distinctions between reality and virtual reality blur further.

This raises the questions:

  • When will Real Estate tap the Blockchain?
  • Are there possibilities of combining digital land with real-world land?
  • How much value will real estate assets bring to the new virtual world?
  • Should you invest in real estate or non-traditional real estate?

CitaDAO enables real estate to be tokenized and used in DeFi as a revolutionary solution, establishing a two-way tokenization bridge where meatspace meets the metaverse. This opens up a new spectrum of possibilities for generating value beyond traditional real estate.

1. Everyone in the globe has access, even with a tiny initial investment

Traditional real estate is known for having a high barrier to entry due to minimum transaction quantities and exorbitant costs. Moreover, the importance of location cannot be overstated.

Blockchain technology enables CitaDAO to offer 100% on-chain diversification via fractional ownership. As a result, the CitaDAO crypto community gains permissionless access to real estate globally without having to deal with cumbersome local land laws and middleman fees..

2. Maximize derivatives to the best extent possible

Today’s real estate market is akin to an iPhone without the App Store. A house might be worth $250,000, but imagine if you could access an “App Store” for that real estate.

Suddenly, the use casesfor the house expand dramatically: you can get a mortgage without having to worry about your credit history, you can lend out the real estate to people who want to get a mortgage, you can lend out the real estate to people who want to redevelop, you can create trading products based on the real estate, and so on….

With the CitaDAO ecosystem, there are suddenly a lot more things you can do with your real estate, hence improving the valuation of the real estate on-chain relative to the traditional offchain value.

3. Extremely high liquidity 24/7 backed by real-world asset value

When you sell real estate, how long does it take you? Between legal work, locating purchasers, selling on exchanges ,advertising, engaging real estate brokers, and leading prospects to view the real estate and completing the transfer processes, the entire ordeal may often take months if not years.

Getting a mortgage is the quickest way to receiving money when you need it. However, you cannot obtain a significant sum of money equal to the house’s value and simultaneously sell the house with a mortgage.

CitaDAO is a fully automated market maker with 24-hour liquidity and a floor price based on real-world intrinsic value. With just one click, you can withdraw money from the value of your real estate, from anywhere, at any time.

4. Improved Capital Efficiency

Real-world real estate is capital inefficient.

Meanwhile, real estate on the blockchain can create additional use cases by leveraging lending or stablecoin protocols (either through taking out a low-interest loan or minting a new stablecoin and then using this asset to farm for yield).

5. Own a property in the real world by redeeming and de-tokenizing

CitaDAO provides a two-way real estate tokenization bridge. Here is a summary of the entire procedure:

Landlords list properties on the CitaDAO platform and confirm their ownership. To be introduced on-chain, the property must receive sufficient interest and commitment from the DeFi community via a process known as Introducing Real Estate Onchain (IRO). Following that, a NFT will be minted and ERC20 fractions will be handed to buyers. Trades between buyers and sellers using Automated Market Makers will commence. Fraction holders can use the buyout provision to redeem the whole real estate NFT and de-tokenize to redeem the title to the property.

You no longer need to trade crypto for fiat money to acquire real estate; instead, you may purchase real estate directly on CitaDAO with your tokens, and vice versa.

We hope this post has given you a better understanding of how real-world and blockchain real estate can be merged, as well as the economic activity that the CitaDAO platform can facilitate between the two worlds.

About CitaDAO
CitaDAO.io is a Decentralized Finance (DeFi) platform for Real Estate to be tokenized on-chain, built on the Ethereum ecosystem. CitaDAO aims to solve the lack of liquidity, access limitation, and lack of composability in existing real estate ecosystem by creating interoperability with other DeFi applications/primitives that operate on the Ethereum protocol. Real estate token allows the community to diversify their portfolio on-chain to generate stable yield through real-world assets that have constant liquidity through AMM.
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Disclaimer: The information contained in this communication is based on sources considered to be reliable, but not guaranteed, to be accurate or complete. This communication should not be relied upon or the basis for making any investment decision or be construed as a recommendation to engage in any transaction or be construed as a recommendation of any investment strategy

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