🏡 Real Estate in Web3

Today's Highlights

• DeFi in Real Estate
• Blockchain jobs - a listing of fresh jobs related to web3/blockchain/crypto.
• In Other News - a few interesting developments we're tracking.

DeFi in Real Estate

Decentralized finance, commonly known as DeFi, uses cryptocurrency and other decentralized blockchain technologies to manage financial transactions. DeFi is used in many aspects in the financial world such as asset management, insurance, and establishing/running a Decentralized Autonomous Organization (DAO). But recently, DeFi has found its way into the world of real estate.

Last week, Teller Protocol, a startup that specializes in bringing real world assets into DeFi, partnered with a prominent real estate firm Tower Fund Capital.

The partnership allows for DeFi liquidity providers to earn interest using USDC stablecoins. This will be done through Tower Fund Capital, where it provided a $140 million debt fund.

Ryan Berkum, Teller CEO, emphasizes the importance of transparency in finance, especially within the real estate market. Currently, centralized firms have many of their transactions hidden. Transparency in financial transactions will also be needed in the coming months as many economic experts predict a recession.

Previously, large real estate debt funds, which are used for commercial real estate projects such as shopping centers and construction loans, have been given to almost exclusively wealthy, specialized investors. But with DeFi, it will allow more people to take loans for these kind of projects due to the large capital pool in DeFi.

Besides utilizing loans and mortgages, DeFi can also be used for tokenizing properties by having a smart contract that can make ownership of an asset like owning a share in a company.

Additionally, DeFi can allow for automatic rent adjustment based on certain factors prescribed by a smart contract, which is especially important in this post-pandemic world where a lot of daily activities switched to virtual.

As many different financial transactions moved to the blockchain, it was a no-brainer, according to Berkum, to start incorporating DeFi with real estate. As DeFi grows and consumers realize the transparency it offers, more financial activities will surely transition to incorporate the technology.

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