October 30, 2024: We Will RAAC You 🏘️🎸
Inside Regnum Aurum's plans for real estate tokenization and lending
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Now that this is out of the way…
Regnum Aurum
What is Regnum Aurum? In their words…
RAAC transforms real estate properties into NFTs (Regna Minima), which serve as on-chain collateral. Users unlock liquidity by lending, borrowing, and farming yield through auto-compounders. The platform focuses on Section 8 housing—properties with government-backed rent, ensuring income stability.
This summary a lot to digest? Well, yes… real estate is a complicated business. Historically it’s been difficult to successfully bring it onchain. Might Regnum Aurum be the first to break through?
We’ll do our best to distill it into a comprehensible article.
Introduction
Many of us are here in DeFi because it’s risky… high price swings and complex contracts. But as an industry, we need to scale beyond us degenerates. Price volatility is a turnoff to many retail investors.
Regnum Aurum Acquisition Corp (RAAC) believes tokenized real estate has the potential to turn DeFi into a safer and more sustainable ecosystem.
What is RAAC?
RAAC tokenizes real estate as “Regna Minima NFTs.” Once it’s tokenized, you open up access to all of DeFi. The NFTs can be traded, borrowed against, and yield farmed, all without the overhead introduced by banks.
Borrowing and Lending: Users can lend digital assets (like stablecoins) to RAAC’s pool and earn returns from the income generated by real estate-backed assets.
Yield Farming: RAAC’s system automatically reinvests profits, so users’ returns grow over time without needing constant attention.
Ownership Options: NFTs representing the real estate can even be exchanged for property ownership if users want a direct link to the physical property.
Regna’s beachhead is “Section 8 housing,” a U.S. government program that helps low-income families pay rent. Section 8 properties have stable, government-backed rent payments, making them a great source of steady income for investors.
Real estate is a stable investment option that grows steadily over time, unlike cryptocurrency, which can be unpredictable. By introducing this stability, RAAC offers DeFi users a more predictable, low-risk option. Section 8 properties, with their guaranteed rent from the government, add another layer of income security, creating a safer investment option.
Tokenomics
RAAC introduces the $RAAC token, which collects rewards and has governance power. Users can vote on key platform decisions with these tokens, aligning everyone’s interests toward RAAC’s long-term success. Additionally, locking these tokens earns participants a share of platform revenue, creating incentives for holding and supporting the protocol.
RAAC plans to build Protocol Owned Liquidity to sustain growth, in the form of collecting assets like $CRV and $CVX. The use of Llama Air Force’s auto-compounders allows participants to earn extra rewards without external supervision. This treasury enables RAAC to have predictable borrowing rates, with rates linked to half of the U.S. Prime Rate. As more properties are added, the system gains strength, making it easier for RAAC to expand its impact and improve stability.
They’ve also been incubated by the Llamas NFT, and have used them for key hires, so you know this will pass the initial quality screen.
Data Security
RAAC’s commitment to accuracy and security led it to join Chainlink’s Build program, ensuring real-time data through decentralized oracles. This partnership enhances the reliability of RAAC’s platform, allowing users to track property values securely and accurately. As RAAC continues growing, these partnerships ensure a robust, trustworthy infrastructure for all users.
We asked the team for a bit more info about RAAC, and they offered a tidbit:
“RAAC is currently in the process of onboarding a substantial volume of precious metals through a new partnership with a fellow Chainlink BUILD project, Instruxi. Keep your eyes peeled for an co-announcement coming soon”
Conclusion
Tokenized real estate has always been tricky, but if crypto is to mature, then real estate will inevitably move onchain at some point. RAAC may well help usher in this new era in DeFi, bringing real-world stability to a space that often lacks it.
By incorporating real estate-backed assets, RAAC offers users reliable income and borrowing options. With a future-focused treasury strategy, auto-compounding returns, and partnerships for secure data, RAAC is shaping the future of real estate in DeFi, making it accessible, sustainable, and secure for all.
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Disclaimers! Author has no affiliation with RAAC