What if Property could be traded like Currency?
When the market is hottest, win or lose the broker wins. Asset holders only make money by buying low and selling high but middlemen make money on the trade and on the profit. The farther an asset class is removed from liquidity, it seems the more brokers, gatekeepers, and bureaucratic costs creep in. Nowhere is this more predatory than in real estate where the estimated devaluation of an asset due to its illiquidity can be as high as 20-30%.
Imagine if you can an exchange where property could be traded back and forth like index funds depending on the value but instead of brokers being the only winner, the assetholders collected a portion of the trade cost.
“Impossible.” grumbles the bloated day trader.
Fortunately, your father’s stock broker has never heard of decentralized exchanges. As property is democratized through tokenization, the bar to invest in real estate has been lowered substantially. But what about selling this property back? Thanks to the decentralized exchange Uniswap.io, real estate tokens can now exchanged for Etherium. The best part? Half of the 0.3% trade fee goes to RealToken owners. That means that RealTokens reflect the value of the property they represent, collect rent income off that property, and accumulate value off of trade fees.
Someone get the old bean counter a bag to breath in before he hyperventilates.
Read more about how real estate tokens function on a decentralized exchange here:
Liquidity providers put assets in Uniswap to collect fees.
The Uniswap application charges 0.3% for every exchange. If you submit a $100 purchase of 9943 Marlowe, $0.30 will be left inside the pool for the liquidity providers ($0.15c of Ether, $0.15 worth of 9943 Marlowe).
Just by holding their assets inside the exchange, liquidity providers recieve revenue from their assets. The fees that are collected from all exchanges that go through the RealToken← →ETH trading pair go to the holders of the assets.
So the 9943 Marlowe Uniswap Pool Share collects the fees from the exchange. AND the owners of 9943 Marlowe RealToken also collect rent revenue paid by the tenant of the property. Holders of RealTokens that submit their RealToken into Uniswap receive fees twice. Fees are paid from the exchange, to RealToken holders, and rent is paid from the tenant to RealToken holders.
The RealToken Uniswap Pool Share Token is a brand new asset type. This asset is backed by both real estate and cryptocurrency, and it collects fees via two different mechanisms.