Landshare Development Update — March 16, 2022
The Landshare team has been hard at work developing several new features involving our Tokenized Assets, particularly our upcoming NFT ecosystem which can boost yields on your Asset Tokens by an additional 40% APR or more! Alongside our NFT feature, we have the existing auto-compounding feature for our Asset Tokens that allow you to automatically compound your rental yields into more Asset Tokens making for an exponential increase to your portfolio over time. We aren’t stopping there though! Additional features will be rolled out over the next 2 quarters such as our Tokenized Asset ETF feature, Asset Token loan protocol, and other standardized DeFi features.
With all these exciting announcements and developments on the horizon, our Tokenized Assets are going to be gaining more attention and use-cases. This was always the goal of the Landshare platform, but recently much of our advertising has been focused on the $LAND token, whether that be information about LAND token staking, LP staking, BUSD vault, or general token utility. This causes some confusion about the LAND token in relation to the Tokenized Asset.
Refining Our Messaging
To clarify each of our platform functions, we will be refining our messaging to help exemplify the differences between Tokenized Assets and the LAND token as well as show the strengths of Tokenized Assets beyond just “owning real estate on the blockchain”. What do we mean when we talk about refining our messaging— particularly with regards to Tokenized Assets? To put it simply, we will be expanding our messaging beyond just owning real estate on the blockchain to include Asset Tokens as a superior alternative to USD-backed stablecoins.
Why make this shift? Upon cursory glance, returns on Asset Tokens are less appealing than other investment ventures such as index funds or coins like ETH that can rally 50% over 3 months. However, unlike these other investments, the risk of loss on Asset Tokens is greatly diminished. Many traders hold BUSD, USDT, USDC, or one of the many other stablecoins as an intermediary token while either waiting for bear markets to end or while searching for another trade. Due to the stability of real estate, Asset Tokens can fill a similar role with a higher upside.
Real Estate values in the United States have been increasingly almost incessantly for the past 12 years. With inflation on USD reaching a whopping 7.8%, holding USD-based stablecoins is tantamount to a -7.8% APR in terms of buying power. Meanwhile, US-based real estate is projected to appreciate by as much as 13% annually (not including rental income). This is where the comparison into play and helps emphasize the benefits of Asset Tokens.
As we roll out our refined messaging for Asset Tokens, the advantages of Asset-back tokens over USD-backed stablecoins will become clear. This understanding will entice more users to partake in our Tokenized Asset feature, thus causing more LAND to be burned in the process.
Stablecoins vs Asset Tokens: A Deeper Dive
A typical stablecoin such as USDT is said to be “backed 1:1 by real world assets”, however many people within the crypto space fear that a run on USDT may occur and the real world assets supposedly backing their reserves will be exposed as fraudulent. This is an issue governments worldwide are investigating, but to date USDT has minted billions of $USDT without being fully audited or having their reserves verified by independent third parties.
When we compare the above issues to Asset Tokens we see a very clear and distinct advantage over stablecoins.
- Asset Tokens are fully collateralized by real world properties that can be verified by anyone at any time allowing a “run on Asset Tokens” to be impossible. At any time, a user can choose to liquidate their Asset Token and be guaranteed to have it collateralized.
- Asset Tokens generate passive income in the form of monthly rental income, property appreciation, and potentially other sources as well as the future of the platform continues to develop. Contrast this with USDT which effectively loses -7.8% APR to inflation while holding, it is a no brainer to choose the stable asset, with verifiability collateralization, that allows you to keep up with inflation, and earn additional yields on-top of it as well.
- Liquidation of Asset Tokens is as simple as trading any other token. Simply sell back your Asset Token to the platform, to a third-party user, or on a DEX starting Q2 2022 and instantly get your liquid cash to spend on the upcoming BNB or LAND token rally you may feel is coming.
Leveraging DeFi and Real Estate
Gaining passive income simply by holding an Asset Token collateralized by Real Estate is enticing in and of itself, but the benefits of Asset Tokens do not end there. Landshare’s vision is to enhance the returns and utilities of real estate-backed Asset Tokens with a whole suite of DeFi features, offering a clear advantage over both stablecoins and traditional real estate investments.
With our upcoming NFT ecosystem, token holders can add up to 40% APR to their Asset Token yields. What does this mean? On top of the estimated ~17% APR offered currently simply by holding, investors can now receive 40% APR in LAND tokens through the NFTs, totaling 57% APR by holding a stable alternative to stablecoins. Why is this APR so appealing? Most opportunities with similar returns involve holding or staking volatile assets, meaning the underlying asset is at greater risk of rapidly losing its value and offsetting the gains incurred from interest. Meanwhile, Asset Tokens are stable in price and retain their value through tangible underlying property.
What happens when you want to continue to earn that 57% APR by holding your Asset Tokens but need to liquidate to pay living expenses, buy a dip, or any other reason you may need access to your funds? With our Asset Token Loan Protocol slated for Q2 2022, you will no longer need to fully liquidate your Asset Token holdings and can take out a short-term loan to gain access without ever selling your stake of the property you invested in. Loans also open the door to several novel trading strategies commonly used by DeFi traders.
These are all very exciting developments and just highlight a few of the many benefits Asset Tokens bring when explored beyond a cursory glance, and with our refined messaging we aim to make this clearer to users both old and new going forward.
Upcoming Roadmap Additions
As we move forward, our primary focus is on feature development and delivery. The success of our platform ultimately be defined by delivering new and unique features. Two of the previously announced features we expect to deliver in Q2 2022 are the Loan Protocol and our first Crowdfunded House Flipping pool. More details on both features can be found in our Whitepaper.
The rest of our updates for Q2 are designed to coincide with the refined messaging for our platform. The two primary examples now are accepting Debit Card payments for Tokenized Assets and adding Asset Tokens to a DEX to improve secondary market conditions. We are also looking at ways to expand the number of countries that can participate in the sale, including the United States.
As we move forward with our campaign to highlight the versatility of Asset Tokens and add utility with new features, the adoption of Tokenized Assets is set to increase over time. While many in the crypto space put great emphasis on selling things out immediately, real estate is a traditional market and can be a slower process. We intend to offer tokenized real estate shares in an ongoing manner rather than focusing on selling out properties as quickly as possible. As adoption increases, our infrastructure is be set to scale linearly with demand, allowing investment opportunities to be available at all times.
To end this update to our community we will be addressing a topic that many users have been discussing and asking about as of late. That is what is the status of our roadmap’s deadlines, and specifically when, and what, CEX listing will be coming up. There are many things that the Landshare team can control within our ecosystem and developing new features. However, one thing we are unable to control is the global economic status ongoing. With fears of an imminent bear market, a potential repeat of 2017, an escalating global conflict, rising oil prices, and industry bubbles, a lot of users are hesitant to invest as we addressed in our Marketing Update post.
The team has been monitoring these conditions very closely over the last few months and have been in discussions with a few different exchanges. We have reviewed and back-tested listing outcomes over the last 6 months and the results in the current market are lackluster compared to the past, to say the least. After mutual agreement among the team and advisors, we will be delaying the CEX listings until market conditions improve.
While many short-term traders may find this news disappointing, recent listings in the current market often hinder price growth rather than catalyze growth. Although we cannot give exact details into what listing agreements entail, they often (if not always) come with some kind of “listing event” that includes giving free tokens to the exchange’s users. Additionally, as was seen in our Gate listing, unexpected externalities can have a detrimental impact on the price of a token. The prospect of giving away “free” tokens for listing events combined with lackluster performances for new listings and the risk of unforeseen errors means it is in the best long-term interest of the platform to delay listings until market conditions improve.
Instead of setting a deadline, we will look to list the LAND token on additional CEXs throughout the course of the year based on market conditions. By waiting for the global financial climate to change into a more positive uptrend, the price performance and adoption rate will be drastically improved compared to what data indicates at this time. We thank our users for understanding on this matter and the Landshare team will always continue to strive towards making the best decisions for the longevity and adoption of the Landshare platform.
We are eager to bring more awareness to the benefits and strengths of Tokenized Assets and release our road mapped features diligently being developed by our team. Over time, Asset Token holders will be able to increase their APR well beyond the baseline number by properly utilizing platform features. Demonstrating the potential value of real estate backed tokens for existing investors is one of the keys to our future success.
As this update is a bit longer than most, we want to help clarify any questions the community may have with these upcoming changes. To answer all your questions, we will be holding a live telegram AMA on Saturday, March 19th where we can discuss all the upcoming changes and how it will continue to strengthen and benefit the Landshare platform. Along with our live telegram AMA, we will be posting another recorded AMA on the Landshare YouTube channel where we delve into the upcoming NFT feature, the mechanics, and answering any questions relating to the NFT feature specifically.