RealT, a real estate tokenization project, saw its total value locked (TVL) reach a record $115 million on August 28, according to DefiLlama. The project’s TVL has been increasing at a constant rate since tracking began in 2021.
RealT provides a method to buy fractions of tokenized real estate on a blockchain-based platform that complies with the US legal system. Buying RealT tokens means owning parts of properties and proving ownership through blockchain.
According to DefiLlama, RealT’s TVL represents the total value of all listed real estate units. Each property price consists of a token supply and token price dictated by the community.
For example, this property in Los Santos, Panama, costs over $1 million. The house, which is expected to be ready by 2027, has a RealT supply of 20,500 tokens, and each token is priced at $50.18.
RealT properties are sold through different types of tokens that leverage Ethereum and Gnosis chains. For example, the mentioned property is tokenized through 20,500 so-called Panama Raise tokens. The RealT platform suggests that investors should expect an annual percentage yield between 6% and 20% without counting the potential price increase of the property itself.
Another example is this $100,000 property in Cleveland, US. Its token supply is 1,950 Standard Equity tokens priced at $51.45, with an expected annual income of 10%.
RealTokens represent 99% of the platform’s TVL. The remaining 1%, or $1.4 million, is the TVL of RealT RMM Marketplace, an Aave V3-based lending application that enables users to borrow crypto against RealTokens tied to properties. Users can use RealTokens to borrow stablecoins like USDC and wxDAI. The latter is the wrapped version of the DAI stablecoin on the Gnosis chain.
In fact, RealT is the largest DeFi application on the Gnosis chain, which has a total TVL of $246 million.
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