What Is CitaDAO(KNIGHT)?
CitaDAO(KNIGHT) 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 the existing real estate ecosystem by creating interoperability with other DeFi applications and primitives that operate on the Ethereum protocol.
CitaDAO(KNIGHT) Real Estate Token allows the community to diversify their portfolio on-chain to generate sustainableyield through real-world assets and enjoy constant liquidity by leveraging AMM and Liquidity Pools. They are building a platform that creates easier, borderless, transparent, and scalable access to real estate for the community.
CitaDAO(KNIGHT) By tokenizing and transacting real estate on-chain, aim to solve the lack of liquidity, access limitation, and lack of composability plaguing the existing real estate universe. With DeFi gaining popularity over the past years, the ecosystem needs alternative sources of sustainable yield generation beyond lending protocols and trading fees. Real estate is an asset that has a proven track record of real world value that will provide better and more sustainable yields in the DeFi ecosystem.
CitaDAO(KNIGHT) Storage Key Points
|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|
|Official Project Website||Click Here To Visit Project Website|
Why Bring IRL Property on-Chain?
Sustainable DeFi Yields
Most of the sky-high yields in the existing DeFi ecosystem are not sustainable and will gradually revert to mean. In contrast, real estate generates its own yield, ensuring that the yield remains sustainable through productive real world rent.
An Alternative to Stablecoins
Stablecoins, especially those backed by currency, is inherently centralized. Currencies are held in the backing institution’s bank accounts that are centralized in nature. Moreover, coins tied to fiat currencies are affected by the inflationary dynamics plaguing those currencies; stablecoins are worth less over time.
DeFi Use Cases
Bringing real estate on-chain unlocks use cases that are not available in traditional real estate. For example, a physical real estate worth $100,000 can not be used to earn additional interest by depositing the title deed with a bank. Instead, the only return is via rental income and value appreciation. However, $100,000 in Real Estate Tokens can allow individuals to stake, farm, and earn rewards
Disrupting Real Estate
Real Estate IRL has long been recognized as both an inflation hedge and a stable source of passive income. However, the industry has yet to embrace modern technological disruptions, which leads to some disadvantages including:
- Lack of Liquidity — Unlike other asset classes, it takes a long time to enter and exist a a real estate position.
- Poor Accessibility — The high quantum of traditional Real Estate requires significant capital upfront and transaction fees can be high, creatinga high barrier to entry to many individuals.
- No Composability — Leveraging a real estate property for additional use cases beyond securing a mortgage IRL is difficult. Even then, getting a line of credit involves tons of paperwork, doxxing, and bureaucracy. Processes are also not transparent, limiting the use cases and demand for the title deed and constraining the potential value of the property.
Real Estate Tokens are ERC20 tokens designed to be composable with other DeFi projects on the public chain, increasing their use case and demand which will enhance the overall value of the Real Estate Tokens on chain. CitaDAO platform (Knight) governance tokens will, serve as a foundation to incentivize a plethora of innovative DeFi primitives, such as collateralized loans, futures, indexes, options, etc
Real Estate Tokens can be owned in any denomination, enabling anyone to own the rights to buyout other Real Estate Token Holders and redeem the title deed for a fraction of the full value of the property. The high quantum and transactional costs of traditional real estate are no longer a barrier to entry, empowering an entirely new class of landlords..