Dear Knights 🏰,
Welcome to another issue of RealFi. We’ve got ourselves loaded with news: the Terra Luna stablecoin problem, a successful IRO, and much more. Buckle up Knights, we’re going to the moo
Contributors: The Psych Guy, Cheetah, Ethan, Mak, Martian, Bella
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Above the stables and the s*&& coins, there is real estate and then there is CitaDAO
Author: Martian
Crypto markets are in free fall this month, which will arguably be one of the most painful periods in crypto history that we will have to reckon with. With Luna’s recent crash, more than $400b in value was wiped out as easily and fast as it was the case with the coin’s rise to glory – which is far gone by now. While Luna’s hodlers are those who felt the most pain, it is a great story to be told and one that emphasizes the importance of having fundamental value anchor that is, the token’s value needs to be backed by something tangible, tradable, and in demand by most. This writing was intended to be friendly to both the pros and crypto newbies.
Not so “Stable Coins”
The risk/return spectrum within the crypto market ranges from safe/little return to extremely risky/ high return and almost all the coins available in the market today could be fit into somewhere along this risk/return spectrum. High growth coins which pose a high degree of risk and great promise of return comprise of some of the most (used to be) successful/ probable mechanisms out there such as self-rebasing, auto re-balancing, liquidity management…etc. At one point, those coins/ tokens were very successful and attracted huge amounts of capital. However, the fun didn’t last for so long and those markets crashed as we knew.
On the other end of the spectrum, there are stable coins which are further divided into different categories including algorithmic stable coins and treasury backed stable coins. Both share the same characteristic, that is their value will (hopefully) always equal 1 USD. Algorithmic stable coins rely on algorithms to maintain their value whereas treasury backed stable coins do so by maintaining a treasury of USD or USD equivalent. The stable coins are supposed to be safe and provide no opportunity for appreciation. This market has also recently crashed and crumble the industry as we have seen with Luna (my heart and thoughts are with you, Lunatics).
Due to the pegged nature of stable coins, they are not entirely decentralized and are subjected to central government’s monetary policies. As for where things are right now, DeFi is no match for TradFi. Central governments can simply stimulate a bank run scenario and collapse any “stable” protocol out there by just simply turning on their magical printers. We need truly decentralized, stable tokens whose value will be driven purely by market supply and demand.
CitaDAO and its opportunities
CitaDAO was born out of a vision to onboard a billion users to DeFi. We are doing so by facilitating simple, borderless, permissionless commercial real estate transactions and we are aiming to become the world’s decentralized marketplace for real estate tokens. We are choosing commercial real estate because of the following reasons:
The asset class itself is deflationary in nature and
Has the tendency to accrue more in value over time.
It is tradfi’s holy grail – complexity and costly transactions keep most of the working class out of a commercial real estate transaction.
Commercial real estate commands high value everywhere on earth.
By aggregating all the above reasons, we have for ourselves a very compelling case for tokenized commercial real estate. Imagine a protocol that can directly connect to tradfi to leverage tradfi’s wealth which is to be created via real estate to enhance its own; A protocol that holds the power of diversification by having quality assets located across countries, and regimes; A protocol whose tokens fall outside the risk/ return spectrum of the crypto market yet possess the same characteristics; A safe haven for degens to park their capital during volatile periods; A means for us to partake into transactions that would normally take place behind a closed door. CitaDAO is on its way to solving some of the most painful issues in DeFi.
Leverage tradfi’s wealth to build its own
CitaDAO will eventually evolve itself into a fully decentralized marketplace where landlords can list their real estate for sale on the blockchain. The said real estate will then go through a process called “Introducing Real Estate Onchain” or IRO for short. The ending result of such a process is property will get tokenized. The tokens will then be put into a liquidity mining pool where mining reward will be paid out in $Knight – valueless governance tokens of the platform, of which, many use cases are being implemented.
The liquidity pools are built on the concept of Automated Market Maker (AMM) in which, a pair of tokens will be listed to maintain a certain ratio between the two in terms of price and quantity. As the quantity of one token goes down, its price goes up and vice versa. All of this happens on-chain and automatically. The rental income collected from the tokenized properties will be utilized to facilitate real estate token purchase/ burn on those liquidity pools and further contracting the supply which will benefit the remainder token hodlers.
Diversified pool of assets
As more real estate gets tokenized, the end product that CitaDAO will have, is a platform where many assets located in many countries are tokenized. Each of the countries will have its own Government and set of policies which could be vastly different from each other. The protocol will be independent and be affected very little by each country’s policy whereas its token’s supply will gradually be shrunk.
The Knights of CitaDAO will be able to roam, ape into geographically diversified assets without worrying about converting, on-ramping, off-ramping of their on-chain capital. For each property that gets tokenized, the CitaDAO treasury will accumulate 2% of the total value which will then be used to back/ support the $KNIGHT. By simply holding $KNIGHT, degens are automatically exposed to the world’s most diversified real estate portfolio. Albeit, this will take time and if you are reading this, you are early 😊
Haven during market volatile periods
Recent headlines have that, crypto markets are in free fall, 80%, 90%, 100% of value wiped out in a single, two, three days. It struck fears in our heavy hearts. We understand the risk/ return spectrum and often fall victims to attractive yields and returns. OHMforks are rug-pulling left, right and center. UST/ Luna is comparable to SHIB. Lunatics are bathing in blood. People often refer to this as the crypto winter. But from where I live, the sun is shining warm and doesn’t feel like winter at all as I am sure is the case for many of you. My belief in the chain, crypto, the potential, and the eagerness remain the same as the first day I learnt about crypto.
CitaDAO features a tokenization process as well as a detokenization process wherein a property can be tokenized and also detokenized when the token hodlers decide to redeem the title deed for themselves. The buyout protocol can be initiated by anyone holding 30% of the total real estate tokens for a specific property in which she can purchase everyone’s tokens at an acceptable price and redeem the property for herself. In case of a market downturn, the token’s price drops, should the collective price of all the real estate tokens on-chain be is less than its’ real life (IRL) value, which is to be fed to CitaDAO via ChainLink (LINK), an arbitrary opportunity will emerge itself and arbitragers can come in and buyout all the tokens and make a profit. This buyout mechanic will protect the token price from falling below the IRL value. The result is that the degens’ precious tokens will be kept safe and while not appreciating like crazy, they will not be in free fall. Period.
Simplifying the transactions
When was the last time you were involved in a real estate transaction? Any larger value transaction? Let’s say you want to buy a car. That lambo costs a lot, you know? You go to the dealership and get asked how you would like to pay for the lambo, your info for registration, your address, your wife/ girlfriend if they will be on the title, and if you need financing, your bank will ask you about your job, your salary, your dad, your mom, your cousin’s hot friend…etc. you take all that, and multiply it by 100x to get the complexity of a commercial real estate transaction. Do you honestly want to go through all that? Let alone that, if you are like me, you don’t have that kind of money.
Thanks to web3 and blockchain, we can now execute transactions with all the details readily available at our fingertips and we know that those are true and tamperproof. With just as little money as you like, you can partake in any commercial real estate that you like regardless of where it is located. No matter how complex the transaction was before, it is now as simple as clicking that fox-like icon, connect, approve, and submit. Maybe sell your diversified commercial real estate portfolio at 3AM on a Sunday? And buy that lambo?
🗓 Ecosystem Updates
We’re deep in the bear market and its a bad news for DeFi yield farmers. Or is it? Great thread from Spencernoon highlighting how some RWA protocols are still generating 10%+ yield

More institutional capital are looking to financing RWAs on-chain and this partnership help accelerates the adoption.


And uncollateralized lending to the real world reached $1.34B!

Community Highlights
🏆IRO2 SUCEEDED!
We hit the required commitment of 617,647.06 USDC within just 3 days!! Soon, this Industrial condo unit will be our 1st tokenised property on-chain. We’re excited to bring this highly attractive industrial asset into the CitaDAO ecosystem. This property is currently leased to a well capitalised non-profit organization and is earning a gross rental yield of 4.1%. This income will be used to burn RET tokens and support appreciation for RET token for holders. We’d like the thank everyone that got involved. More properties coming soon…
🚀 RET-USDC Liquidity Pool is Live
RET (Real Estate Token) tokens are ERC-20 tokens that designed to be both exchangeable and liquid. To facilitate this, we’ve created a RET-USDC liquidity pool that can be accessed 24/7 via xToken and powered by Uniswap. RET token holders can also earn $KNIGHT tokens by providing liquidity to the pool and thus increasing their yields. We see RET tokens as a stable, reliable and inflation-resistant asset. Our partnership with Chainlink means that soon RET token holders will have access to a live price feed of the property’s valuation.
xToken RET-USDC Liquidity Pool
What’s New
🧠 Great Reads
A16z’s 2022 State of Crypto Report
The Current State of Under-Collateralised Lending in DeFi
Get Involved
💪 CitaDAO is looking for writers
Would you like to write for the CitaDAO’s RealFi newsletter? We’re focusing on producing high quality deep dives into the real estate and DeFi space. Come say hi in the #newsletterteam channel in our discord server and get in touch!
Core Spotlight - Bella
Hi! Bella from Marketing & Community team here. My favorite quote is “A single tree doesn’t make a forest.” My passion is connecting people to achieve more. I had so much joy growing and serving 5k people community within past 10 months & hoping more and more people will be interested in Real Estate DeFi.
Real estate is the king of all sectors, but not many DeFi people have dipped into it because it is regulated, time-consuming, and labor-intensive to set up the project. However, innovation occurs quickly & there must be pioneers to launch the trend. Web3 is still in its early phases, it’s the moment to start putting the puzzle pieces together in order to prepare for the future and alter the real estate sector.
Consider how Paypal has impacted the banking industry. It is entirely conceivable to make a move in real estate with emerging technologies such as Web3, and it must occur; it is how we evolve.
I have complete faith in the CitaDAO team and community, let’s tokenize the entire globe and bring true value to crypto !!!
🏰 Knight of the week
I’m your typical TradFi guy, having worked in the commercial real estate investment for over 10 years. I have had the opportunity to lead, manage and successfully close and finance in over $1.0 billion in total value in multiple markets including SEA, Singapore and Canada. Very often, I found the process to be overly complicated and I don’t think that is the way Commercial Real Estate should be and I believe CitaDAO is on its’ way to solving this problem.
Joel introduced me to DeFi and later on CitaDAO where I have been involved mostly in contributing my knowledge on Real Estate in both Defi and Tradfi and help building the protocol in whatever capacity I can. It is more than a vision, but a dream I have to make Commercial Real Estate more accessible for everyone, anyone, permissionlessly and borderlessly.
🤣 Meme of the Week
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Thank you for participating in the previous IRO, dear knights! 🚀
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