Proposal to collaborate with CitaDAO to incorporate real world assets into Abracadabra's portfolio

hey guys,

I am helping a project called CitaDAO.io - they are tokenizing real estate in a truly DeFi way. I think there is opportunity for SPELL community and CitaDAO to collaborate.

But FIRST, some background what is CitaDAO. They are building a Real Estate powered DeFi ecosystem, featuring a two-way asset tokenization bridge, ample liquidity, and bearer asset tokens that are composable with the broader DeFi applications and primitives. Real estate tokens will enable the DeFi community generate sustainable yield through real world productive assets, diversify their portfolio on-chain, AND serve the growing demand for on-chain yield. Unlike past real estate tokenization attempts, they are taking a 100% DeFi approach that leverages composability with other projects in DeFi, allowing us to scale users and usecases rapidly (as an example, see recent partnership with XToken to provide concentrated liquidity on UniswapV3: https://twitter.com/xtokenmarket/status/1461716880713039872 )

Through CitaDAO platform, Crypto Anons will soon be taking over meatspace real world assets and we shall see the physical world re-made in the likeness of our own Crypto community, and use tokenized real estate as collateral for permission-less loans on-chain via our collaboration with Chainlink on price feeds for real estate: (https://twitter.com/chainlink/status/1465814283938377729 )

The first property to be tokenized through an “IRO”, Introducing Real estate Onchain, will be a $20m prime real estate located in Cardiff, Wales, UK - in around February 2022 - exact date TBD, property details here: Cardiff Commercial Building IRO - CitaDAO Docs

OK, that’s fine. So what? Here is the collaboration idea:
Initial phase of collaboration: CitaDAO will use MIM exclusively as the contribution token for the IRO. SPELL treasury contributes $10.69M of their treasury into the IRO and receives the pro rata stake in the property, and achieves some treasury diversification while collecting rental income from the rent-seeking big banks (this property being leased to a global bank).

Frog nation takeover of meatspace commences. SPELL treasury also receives a percentage, say 3.33% of all CitaDAO governance tokens (would need to discuss with the team exact figures) with vesting timeline. The project has no token yet, but will, soon…

Subsequent to IRO, Abracadabra would allow real estate tokens to be used to mint MIM, this would be feasible as rails with Chainlink are being built to provide price feed data on the real estate.

This would just be the start of the takeover of meatspace by anons.

Would love to get your thoughts on this!

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I really like the idea of diversifying the treasury to hold real estate. Would there be liquidity for the real estate tokens when there’s a need to exit from the position?

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This is a good idea - to diversify SPELL treasury into something more stable. I imagine this would enable the mainstream adoption of MIM as the preferred stable coin out there now that the value is backed by something more resilient to market conditions.

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This is a super interesting proposal and the first time i’ve seen real estate tokenisation floated around Defi. It seems the optimal proposal from the standpoint of a lender like abracadabra is to lend MIMs based on the (securely) tokenised collateral rather than to bootstrap the actual purchase of the property. There are platforms with larger treasury’s that may be better suited to this purpose.

Does CitaDAO have plans on expanding their real estate portfolio beyond this location?

That may be a situation where the protocol could provide some value to CitaDAO as a lender.

In many ways active management of assets is not something Abracadabra focuses on, it is something that requires more preparation than simply exchanging capital for ownership and probably involves some overhead that may introduce some inefficiencies in to the current business model.

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CitaDAO has a pipeline of 8 properties with total value of >$200m, via collaboration w a singapore based family office that owns these assets.

Akin to being a lender, perhaps Abracadabra could become a “mortgage” provider who allows owners of the Real Estate Tokens (RETs) to use RETs to mint MIM, using an risk- appropriate LTV?

Can imagine a scenario where crypto Anons can take RET1 tokens to mint MIM, and use it for other farming activities or personal expenses. Would love to see if this is something that can be pursued together.

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it’s kind’a quiet but just want to say that this could be one of the ways that MIM differentiates from the other myriad stablecoins out there…
by using real estate as collateral to mint MIM, this could be a judo move to get tradfi suits to inadvertently support MIM. this can be huge for frog nation imho