Thread by @Sykodelic_

The housing affordability crisis in the US is a MASSIVE issue.

Over 70% of millennials will never be able to afford their own home.

Introducing - @TheopetraLabs

$THEO have designed one of the best real-world #DeFi use cases to tackle this issue.

Don't miss this #RWA GEM 🧵👇

Intro:

Theopatra is a #RWA project that is utilising decentralised technology to tackle the world's housing affordability crisis.

Along with their partners T-Homes and REAT, they have developed an incredible ecosystem that will deliver accessibility, affordability & efficiency.

The problems:

- Over 70% of millennials will never afford their own home
- House price increases outpace wage increases by double+
- Rampant inflation destroys wealth
- People forced to rent which grows the rental market, exacerbating the issue
- Fees to buy houses are v high.

This is arguably one of the biggest problems of our current time.

If the issue continues on the same trajectory as now, only 5% of the population will ever be able to buy a home.

This creates a huge wealth divide and condemns the majority to a life of treading water.

The Mission:

$THEO are highly driven to create affordable housing for all utilising blockchain technology, with 3 core principles at the centre.

- Accessibility
- Affordability
- Capital efficiency

Providing as many people as possible the opportunity to own a home.

How are they doing this?

$THEO has developed an incredibly detailed and genius system to make this possible, through #DeFi.

Let's go back to the three entities involved.

1. $THEO
2. REAT
3. T-homes

And introduce a 4th

4. @Stacks $STX - BTC layer 2(Approved by SEC)

Ok... so you're probably wondering.

"How do they acquire the homes?"

Homes are acquired through what could be classed as a capital raise, called "Discount buying".

$THEO has an unlimited token supply(don't panic... more on this later)

Discount Buying:

They will be offering investors the opportunity to buy $THEO at a discount.

Investors lock up their USDC for certain intervals and receive extra tokens.

$THEO then mint new $THEO tokens for the USDC, and use the USDC to buy properties.

The System - REAT Flywheel.

What makes this all possible is their #DeFi system called the "REAT Flywheel".

REAT is a non profit entity that has its own $REAT token.

The REAT Flywheel works as follows...

1. USDC is staked for discount buying then used to purchase properties
2. THEO rent out the properties at fair rates
3. Rental payments are converted to $STX
4. $STX is staked to mine REAT
5. REAT Proceeds are used to invest back into the system

By utilising this system, THEO can effectively supplement the system with capital to keep rental rate increases to only 1%.

At the moment, rents are increasing at up to 20%!

THEO will be able to drastically improve affordability for the entire rental market.

What is genius about this system is that it's self-perpetuating. The more it grows, the more it grows.

$THEO is only minted when USDC is staked and then used to buy property.
More properties bring more assets and more rent payments
Rent payments feed the flywheel
Ecosystem grows

$THEO will literally be used to buy properties.

Do you know any other project that only mints tokens to buy real-world assets? Arguably the safest asset in the world?

The more properties they own, the more valuable they are, the more rent they bring in.

Genius.

Second partner: T-homes

In addition to acquiring properties, THEO have partnered with T-homes to provide further access to affordable housing.

T-homes will leverage its existing inventory to provide $THEO members priority access to housing

$THEO membership

This is where the #utility comes in.

THEO have membership options that are acquired via staking $THEO.

If someone wants to buy a T-home they have 3 pathways.

1. Standard(no staking)
2. THEO member
3. THEO premium member

Premium members have first refusal.

So essentially, THEO are providing affordable housing for as many people as possible.

The $THEO token is the access key to these properties. If you want to acquire a house, you will pretty much have to stake $THEO, taking it out of circulation.

Insane #Utility.

In addition to this staking bring others benefits.

Standard member - Receive $THEO rebates

Premium member - Receive $THEO rebates(upto 18% first year). In addition to this the top 4000 stakers will receive rebates in $ETH.

The incentive to stake is massive.

Token price moon.

And this isn't all speculation.

They have already onboarded their first property and tenant.

The mission is well underway.

https://twitter.com/1397314189803220997/status/1640537363909840896

Tokenomics

Ok so I've kinda covered the supply, but let's summarise.

Circ supply: 2.4m
Max supply: Unlimited(currently)

Remember, new $THEO is only minted when USDC is received, then used to buy properties.

$THEO will also be staked at a high level for memberships.

This means that even though $THEO can be minted, it has a valuable purpose.

Every time its minted THEO will be adding valuable property assets to their balance sheet.

$THEO will then be competitively staked to gain access to properties and rebates.

It can be deflationary.

Team:

The founder @Mel_Anic has also donated his entire 7% supply of tokens to the project. He is extremely experienced in the real-estate game.

@topshelfmg - Tokenomics/financial systems researcher, Wharton quantitative specialist.

Very smart team.

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