uREM - Tracking Digital Real Estate Prices

What Problem Does Your Synthetic Solve:
The uRem synthetic token allows newbie retail crypto investors an easy way to get diversified exposure to the digital asset real estate metaverse without ever having to ever enter the digital world.

Summary Description:
So your friend just told you how we’re moving towards a more digitized, decentralized world. Great, but how the heck do I get exposure to digital assets?

There are various ways of making bets on certain narratives in crypto today (for example, instead of researching and trying to pick the best Defi token to invest in, I can merely buy the Defi Pulse Index which gives me exposure to the top 10 Defi tokens).

But what if I want to make a bet on the prices of digital real estate? What if I thought land parcels on Cryptovoxalls or Decentraland are about to explode in price? Do I really have to go and use thousands of Mana to purchase the best corner site in Decentraland (which not only concentrates my risk but is also expensive but also time consuming)?

Enter uREM - a synthetic token that tracks the prices of digital real estate in the crypto metaverse. I can now tell my normie friend to just buy the synthetic uREM token on Uniswap and he/she would get direct, diversified exposure to all digital parcels of land in crypto - quick and easy, right?

Which metric will your synth track?
The prices of digital real estate in various worlds such as Cryptovoxalls and Decentraland.

How will you get data for your metric:
This is where it gets tricky and I would need the help of Blockzero and their team. I’m not a developer per se (my experience is in real estate finance) so I’d need their input on how to pull blockchain data from transactions occurring into Decentraland and/or Cryptovoxalls to create an index fund of sorts that would track the prices of digital real estate.

The collateral would likely be USDC to mitigate any price volatility and ensure the peg to the value of digital real estate prices were directly correlated to transactions rather than external crypto price movements (ETH / BTC swings).

The largest problem I foresee is how to create an accurate, reliable measure of the value of the digital real estate. For example, what happens if we enter a bear market and digital real estate transactions slow down or large pieces of real estate don’t trade on a regular basis (for example how to accurately assess the value of a prime piece of digital real estate if the owner decides to hodl and the parcel of real estate never actually trades hands).

Hopefully if the community likes my idea I’ll dig further in order to solve the above issue, but first I thought I’d throw my idea in the metaverse (pun intended) and see what y’all think!

3 Likes

Another component to this down the line would be to provide an index price tracker for different types of real estate within the decentralized metaverse (say making a bet on the success of digital retail real estate).

Just FYI - I’m 100% committed to taking through the Blockzero accelerator if the community thinks it has traction in the real world :slight_smile:

I like the idea.
Just wondering: why focusing on DIGITAL real estate and not PHYSICAL one?
More crypto friendly? Easier to track?

2 Likes

Yeah good question - mostly due to the fact that I believe there is a real need for a product like this, especially as crypto grows.

I think that many of my colleagues in real estate (who aren’t crypto natives) would love to participate in the growing “digital economy” rather than traditional real estate (which anyone can get by purchasing a REIT on the stock exchange or a rental property in the real world).

I came looking for this Zoe. I have some thoughts about it!

I was thinking about physical tokenized real estate like RealT, so we could build an Real Estate Index based in all properties on RealT. What do you think? @Zoe @Saffa_Abroad

Do you believe there’s a strong demand for tokenized real estate? I’m not sure we’re there yet personally but could be convinced otherwise? That’s why I proposed a synthetic token that tracks something that people currently cannot get exposure to (like digital real estate) vs all the other options out there today that effectively provide investors with “tokenized” versions of real estate (REIT’s, Private Equity, Condo’s etc.)

1 Like

I think both synths would have their own market and sold as pretty different products. I didn’t want to change your proposal, I think it is great but ¿hardest to build? I guess this is UMAs target indeed.

On the other hand, focusing into physical tokenize real estate would be easier and it would be really similar to NFTX or NFT20 index, that helps investors diversify with no need of picking one specific property.