Thread by @DefiIntro

1. I previously wrote about how to use #NFTs in real life, let's expand it a little bit! Let's use the same #RealEstate example, but it can apply to many many more ideas!

$ftm

https://twitter.com/DefiIntro/status/1358059563556237313?s=20

2. So we have oracles like @chainlink or @BandProtocol , so we can get the price of the real estate from them.

Let's say our house is worth 1.000.000$ worth for now, and let's say we own %100 of the house. And our kid wants to go to college.

3. College payment is 50.000$/year. And we don't want to sell our house. Instead, we want to take a loan from the bank.

FROM @AaveAave !

4. We lock our #nfts that stands for the ownership of our house as collateral.

We take 200.000$ loan from @AaveAave, with %2 APR .

Now we have a health factor of:

1.000.000/200.000 = 5 .

5. We can not unlock our house's ownership unless we payback our loan. And the house can be "liquidated" which means go to @AaveAave's treasury after our health factor drops below 1,2.

6. This can happen via two things:

-Our house's value can drop in the market
or
-We couldn't pay back our loan for so many time that the interest ate it.

7. But how can we get the exact value of our house?
We can have a standard for it!

For example we can agree on something like this:

max[ 20_years_of_rent_gains, houses_that_in_the_same_block/m^2 * our_house's_m^2,
house's_first_value * (50 - house's_age) ]

8. If we make all the real estate data live on the chain, there is no way that there can be an argument for the ownership of the house.

And you can take loans from the "bank" with just some clicks on your phone, in a trustless way!

9. For now, we have to trust the banks.

In the future, we will just trust the code! Code will be the law!

Tokenized real estate is one hell of a solution!

Thanks for reading! $ftm

fantom.foundation/solutions/real…