What Is DecentraWorld Ecosystem ($DEWO)?
At launch, without incentives, USDR will yield ~4.25%. On average, Tangible properties yield 8.5%+ but while the market cap of USDR is small, a large portion of the treasury needs to be kept in DAI to meet the needs of sudden redemptions. Using duress redemption modeling, this portion can reduce over time as the market cap grows. DecentraWorld Ecosystem think 4.5% is too low of a yield to gain quick traction, even considering the current state of the market. For this reason, we will be subsidizing the yield until USDR reaches a market cap between $500m and $1bn.
Yield subsidies will be funded using Tangible Labs’ TNGBL tokens that will be converted into USDR. Existing, locked TNGBL positions held in the DAO’s treasury and Tangible labs wallet will be burned and re-minted as unlocked TNGBL. These unlocked tokens will then be used to fund the incentive programme and the affiliate programme. The unlocked token number should be sufficient for incentives to run until USDR reaches a $1bn+ market cap dependent on the market price of TNGBL during this period.
These tokens won’t be entering circulation they will simply be used to mint USDR and subsequently will end up in the USDR treasury (eventually they will be burned at 130% overcollateralization). The TNGBL token has its own value accrual and utility independent of USDR, making it sound backing for the stablecoin. DecentraWorld Ecosystem addition, FRAX has proven that backing a stablecoin with upto 15% in a native token works well even in extreme market conditions.
DecentraWorld Ecosystem Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | DecentraWorld Ecosystem |
| Short Name | $DEWO |
| Circulating Supply | N/A |
| Total Supply | 100,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
Property TNFTs
DecentraWorld Ecosystem progress through this launch phase, the percentage of treasury assets held in Property TNFTs will consistently increase, allowing the incentives to slowly tail off. Eventually, the incentives will be fully replaced by an increase in collected rental revenue as the real estate portion of the backing expands vs DAI. Once the treasury is 130% overcollateralized as a result of capital appreciation on the underlying properties, any further increase to the value will be added to the daily rebase. At this point TNGBL accrued in the treasury will be burned, leaving a stablecoin coin 130% overcollateralized by RWAs and DAI.
The following chart illustrates the sources and composition of the yield through the subsidized launch period as well as the targeted end-state, where the treasury is 130% over-collateralized. DecentraWorld Ecosystem Multiple scenarios on treasury collateralization are presented as it’s unclear what asset allocation the duress redemption modeling will determine as ideal, though the highest feasible RE backing is always the goal.
Minting USDR
Users will always be able to mint USDR 1:1 by depositing DAI as collateral. They’ll also be able to burn USDR, redeeming it for DAI or TNGBL. TNGBL may also be used for minting as long as the USDR treasury has a minimum of 88% other assets. DecentraWorld Ecosystem 88% threshold of real estate + DAI is met, TNGBL is unlocked for minting at a 2:1 value, TNGBL to USDR. For example if the current property + DAI backing of USDR is 89%, 1% of the supply of USDR can be minted using TNGBL. At this collateralization percentage, $20 of TNGBL could be used to mint $10 in USDR. This ratio is designed to decrease until 1:1 TNGBL to USDR minting is achieved, when USDR is 150% overcollateralized by real estate and DAI.
Purchasing and Appraising Properties
The USDR treasury will use DAI ingested through the minting process to purchase property TNFTs currently listed on the Tangible marketplace. This will be automated, any properties listed at a price within a predetermined percentage of Tangible’s True Property Valuation (TPV) will be purchased by the treasury using DAI inflows. DecentraWorld Ecosystem Valuations for each property in the treasury will be reevaluated on a rolling, scheduled basis. While there isn’t a live price on a house or the housing market, this approach will provide an accurate, current estimate on your real estate holdings.
DecentraWorld Ecosystem also ensures that movements in the real estate market aren’t recognized all at once across the treasury. A 3% annual decline would be correctly reflected in monthly increments across your assets, not a one-time 3% drop. This reduces volatility in the treasury backing, providing for a more stable collateral for USDR and better timelines for recalibrations in treasury management. It’s a structural advantage to backing with real estate.
