Citadao.io as the Foundation of a New Financial Ecosystem
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In previous articles, we discussed how Citadao is revolutionizing DeFi by moving real estate onto the Blockchain. The tokens corresponding to real estate ownership will provide a stable, sustainable, income generating source of value for the DeFi ecosystem. This raises the obvious question: once that value has been locked as collateral into real estate smart contracts, what else can we do with it?
We envision Citadao as the foundational building block of a whole host of new application primitives. For example, holders of these real estate tokens could assemble their own Real Estate Investment Trusts (REITs) and ETFs, either individually or in partnerships with other members of the Citadao community. Other financial innovations associated with traditional real estate, such as futures and options contracts, could also be built on top of Citadao’s “on-chain real estate”.
These new primitives aren’t limited to the economic and financial domains. Additional primitives can be built to utilize the real estate in productive ways. Token holders could be entitled to access and use the real estate through a booking system or other arbitration mechanism. We expect a large proportion of the real estate properties listed on the Citadao platform to be commercial real estate, whether retail spaces or coworking spaces or temporary housing (hotels or coliving spaces). Token holders in these properties could be entitled to use these spaces to launch a business or live for a period of time.
Other utility primitives that can be built on top of the Citadao platform include tools for managing the properties’ development rights (if the real estate is fully or partially undeveloped) and asset management rights (to determine how the property can be used to generate additional value).
Finally, given that one of the main benefits of the Citadao platform lies in providing unprecedented liquidity to the real estate market, we expect primitives taking advantage of this liquidity to be developed also. Given the established track record of real estate as a source of sustainable value, tokenizing this value and using it as collateral opens up the potential for a host of blockchain based services that have traditionally been linked to illiquid real estate holdings. These services could include reverse mortgages, collateral pools, and underwriting, all of which would receive a boost from the liquidity of tokenized real estate.
The world of DeFi has already seen many revolutionary innovations, but there’s still much more progress to be made. Like all financial innovations, the most ingenious and bold advancements can only be built on top of a stable and trusted foundational source of value. With our unique real estate tokenization platform, Citadao is enabling an incredible source of value to enter the DeFi ecosystem. At the same time, we are enhancing this source of value through additional technologically enabled features like liquidity and composability. It’s only natural that additional applications will be built on top of this first building block, and in the coming years, we expect to see application primitives across many domains spring up around our platform. Some of these primitives will be created by the Citadao organization, and some will be implemented with carefully chosen partners from throughout the DeFi world. The Citadao you read about now is just the first step into an entire universe of real estate enabled innovations on the blockchain!
Interested to build the future with us? Follow us on Twitter @citadao_io, join our community on Discord, or check out our website citadao.io
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
