The Landshare platform is now live, allowing investors to earn yields based on the appreciation and rental value of assets using the Property Vault, or earn daily rewards from the LAND Token Staking feature. This article will present a quick rundown of each feature and the differences between them, and briefly touch on upcoming features.
The Property Vault allows investors to stake BUSD to earn rewards in both BUSD and LAND Tokens.
In order to deposit, withdraw, or harvest from the Property Vault, investors must hold 1 LAND token for every 8 BUSD deposited. These LAND tokens must be in your wallet at the time of the transaction but are not locked into the vault and can be sold or moved freely until you wish to harvest or withdraw. Staked LAND tokens do NOT count as collateral.
The APR for the Property Vault is broken down into 4 categories:
- Rental (BUSD): The rental value of the property based on real estate data estimates*
- Appreciation (BUSD): The estimated annual appreciation of the property*
- Yield Bonus (BUSD): An additional payout from yield farming
- LAND Tokens (LAND): Additional rewards are paid out in LAND Tokens.
*Property Vault yields are not derived from real estate assets, and the Property Vault is not a real estate investment. Rental and appreciation values are estimates to determine staking rewards.
The combined BUSD yield of the Property Vault is Rental + Appreciation + Yield Bonus (13% at the time of writing). The LAND Token APR value is set at 12%, meaning your effective return is [Price of LAND] * 12.
LAND Token Staking
The LAND Token Staking feature allows investors to stake LAND tokens to earn LAND rewards, distributed once daily.
Investors can stake their LAND Tokens for a 1% deposit fee and earn daily reward distributions of LAND that can be withdrawn at any time. The APR for staking LAND varies based on reward pool size, number of stakers, market conditions and team discretion. The current APR can be seen on the app based on the previous day’s reward distribution.
With the Property Vault and LAND Token staking now live, the Landshare Team is hard at work rolling out 2 new features over the next few months: Governance Protocol and Tokenized assets, with our Crowdfunded House Flipping coming next year.
The Tokenized Asset feature intends to allow investors to buy a stake in a tokenized real estate LLC. These tokens will earn passive rental income from the property, just by holding them. The value of the tokens will scale with the asset, providing direct on chain exposure to the real estate market.
The Landshare Team or a third-party investor will tokenize an LLC holding a single real estate asset and offer equity in the asset through the sale of the tokens on the Landshare platform. Tokens can be resold to the Landshare platform for a LAND token fee or sold directly to another approved investor for no fee, but they cannot be sold on the open market.
This feature also allows third party real estate investors to sell their assets fractionally with minimal fees or hassle to a group of global investors, or homeowners to raise cash by selling equity in their home. Landshare will aid all third-party partners in the process of asset tokenization.
The Governance Protocol will allow LAND holders to vote on fund distribution, collateral amounts, fee structures, cosmetic property changes, and have a say in the development process of future features.
The Governance Protocol will be given access to a Trust Fund, whose distribution will be controlled based on a proportional voting system. Funds can be burned, distributed to stakers, used for giveaways/marketing, or for any other purpose the community can think of.
Crowdfunded House Flipping
Crowdfunded House Flipping will allow investors to lock funds for a 3 month period and earn a lump sum ROI upon completion of the flip. Investors will lock their desired BUSD amount and a proportionate LAND Token collateral which they can withdraw incrementally throughout the course of the flip. Expected ROI is 15% after 3 months, or a 60% APR, all returned in BUSD.
More details on both of these features will be made available in the coming months.
Landshare aims to bring real estate to the blockchain, offering easy-to-use features to allow investors to participate indirectly in the real estate market with a familiar token staking DeFi model.
The best is yet to come, with Crowdfunded House Flipping and the Governance Protocol on deck for the next 2 quarters, and Tokenized Assets — a major game changer — slated for next year. Landshare is continually seeking new ways to bring real estate to the blockchain, so expect even more features to come.