Profiles

The property owner sends the request for tokenization of real estate assets which is afterwards reviewed by the platform admins (admins can check the property, documents and the legal part of the deal manually offline). Assets are added to the platform from the Admin Panel after the property verification process is completed.

For each asset, a separate ERC20 token contract with its own total supply is generated. The token can be purchased at the market price (the floor price is determined by the oracles from external resources) using the Metamask wallet connected to the platform.

Soul bound NFTs

All the widely known KYC and authorization designs cannot provide the needed level of security since the smart contract is stored and working separately from the rest of the product and users can interact with it directly bypassing the authentication process. With Soul Bound NFTs integrated, the smart contract firstly seeks for the authentication token on the user’s wallet and responds to their calls exclusively if such asset is present.

In terms of compliance, any person (either a property owner or a property investor) must pass the KYC verification process, after which the platform mints SBT (Soul Bound NFT Token) to the user wallet. This way our client can also add restrictions for transferring tokens if the target wallet address doesn’t have a specific SBT token.

Marketplace

The Marketplace tab features the primary and secondary sections. The primary marketplace allows users to invest in or resell newly-developed real estate assets.

The secondary marketplace allows users to trade already owned assets. For example, a user can purchase one token representing 10% of a three-storey mansion during the primary sales and then acquire the rest 90% on the secondary market and be the only possessor of this property.

Revenue distribution

Once investors acquire tokenized property, they begin earning income from their possessions.

The revenue is distributed using a separate Solidity smart contract that automatically spreads the income generated by the assets among token holders (or can be claimed manually at any point of time for gas fees). The smart contract is designed to distribute revenue on a regular basis, such as monthly or quarterly, and takes into account factors such as the number of tokens held by each individual and the total revenue generated. The revenue distribution is done using a predefined formula which is encoded in the smart contract to make it transparent and fair for all the token holders. Also the smart contract can be connected to external DEXes and automatically swap cryptocurrencies if needed.

The secondary market is based on a separate smart contract which leverages the possibilities of off-chain signatures (EIP-712) to avoid unnecessary gas fees during negotiations between property investors (off-chain signatures are stored on the back-end side and are validated by the smart contract).