Frequently Asked Questions
CitaDAO is built on the Ethereum blockchain for our Proof-of-Concept (POC) due to the Deep Liquidity and Security that the chain offers. Our team acknowledges the trade off of using the Ethereum network being the costly transaction fees and actively evaluates other Layer 1 and Layer 2 solutions for future phases.
An independent property manager will be engaged to lease and manage the Real Estate after it is tokenized.
Past Real Estate tokenization projects have struggled with constructing feasible secondary trading markets and using Real Estate to unlock DeFi use cases. The DeFi space has evolved significantly since 2018 and we now have the right toolset (e.g., Automated Market Makers, Collateralized Lending Pools, ERC721s, ERC20s) to introduce liquidity in the secondary market and improve Real Estate composability within the DeFi ecosystem. CitaDAO is a DeFi Project that:
- 1.Employs a unique legal structure to create a 2-way bridge that allows Real Estate Token (RET) holders to redeem the underlying real estate, creating legitimacy for the RET and ensuring a floor price of the RET;
- 2.Leverages its native KNIGHT token to incentivize an ecosystem of future Real Estate Primitives to increase the number of use cases and demand for the RET, enhancing its on-chain value; and
- 3.Is highly scalable as CitaDAO enables individual landlords to independently mint and fractionalize their own Real Estate NFTs to be distributed to RET Holders.
RET is specific to their property and represent the right to buyout all other RET holders to redeem the underlying title deed while the KNIGHT token is the CitaDAO governance token. Each successful Real Estate Listing will produce new and unique RET, not KNIGHT tokens.
For example, a successfully tokenized Bank building would mint ERC20 fractions in the form of RET1. A successfully tokenized Shopping Mall would mint ERC20 fractions in the form of RET2. RET1 and RET2 are both a form of RET but are unique to each other and hence, they differ in value.
RET can be used to provide liquidity in liquidity pools and earn KNIGHT tokens as rewards.
There are 2 methods to attain RET:
- 1.Participating in an IRO - RET will be distributed upon a successful IRO to the IRO participants proportional to the amount committed in the IRO.
- 2.Swapping on a DEX - If you missed out on the IRO, you can swap USDC for RET anytime on the Uniswap DEX.
We are the first and only project with a structure that allows RET holders to redeem the underlying Real Estate title deed. This is important for legitimacy because RET holders are able to redeem the underlying Real Estate title deed if the value on-chain falls below the value of the Real Estate in the real world.