What Are CitaDAO RETs And How Do They Work?

What is one of the most potential real estate tokenization projects? I would recommend CitaDAO.

First of all, if you don’t know what CitaDAO is: It is a decentralized real estate platform that is tokenizing real estate assets and putting them on a blockchain.

So, the whole idea behind RETs aka Real Estate Tokens is to create tokens backed by Real Estate Properties.

This is similar to the concept of how Bitcoin is backed by the people’s belief in it (although it has no intrinsic value) or how USDC/USDT or stable coins are backed by the US dollar value (the only issue is inflation though).

Also Read: CitaDAO Simplified – Real Estate On Blockchain

Ok, but how are these RETs created? How will they be distributed? How can people buy them? What makes them more unique and better than REITs (Real Estate Investment Trusts)?

Well, this article is all about that!

RETs Creation & Distribution

For CitaDAO to create RETs for a property, it has to be brought on-chain. That’s when IRO comes in place.

Initial Real Estate Offering (IRO) is the process that determines whether a particular property will be tokenized or not. So, for the IRO to be successful, investors have to commit some USDC.

And if the total amount committed reaches the target that is set, the IRO will be successful and investors will get back RETs worth the amount of USDC they committed during the IRO phase (usually 10 days).

For each real estate property that goes through a successful IRO, different RETs are created and distributed to the investors.

Of course, they’ll be available on the secondary market like Uniswap where you can swap for USDC, although earning them directly by committing USDC during the IRO will get you more rewards rather than buying.

But…Why Own RETs?

If you want to know why should you own RETs, you need to know the uses cases behind them, and how the value of the property is correlated to RET & KNIGHT token (CitaDAO’s governance token).

• The HODLers of RETs will benefit from the property’s price appreciation. Token price is directly proportional to the value of the property in real life.
• And moreover, the rent generated from the property will be used to buy back more tokens, which increases the value of the existing RETs, thereby benefiting the holders.
• And finally, RETs can be used to leverage Defi and generate higher yields. What does that mean? That means you can stake RET-USDC pairs into liquidity pools and earn KNIGHT tokens.
• And 2% of all Real Estate listed via the CitaDAO platform will be owned by the DAO itself. That means by HODling KNIGHT tokens you own some % of all the RETs that existed. As RETs grow in value, KNIGHT will grow in value.
• And you can even take advantage of the single-sided staking by staking your KNIGHT tokens to earn more rewards (in KNIGHT).

Now, you might be wondering: “Well, why can’t I just own REITs?” Well, here is a graphic that shall shine the light on that topic:

Conclusion

We all know that Real Estate is one of the top asset classes one should own to protect themselves against inflation.

Now, what if one can own Real Estate with very little capital?

But along with owning the Real Estate, what if the buying/selling tokens process is decentralized? What if one can leverage Defi with RETs rather than just holding the tokens that do nothing?

CitaDAO’s RETs make all of this possible.