Real Estate Collateralized Lending

Real estate owners can list their real estate as collateral to borrow funds with a number of parameters such as loan amount, interest and loan period. Potential lenders can browse through available loan listings to choose the terms and collaterals that best fit with their needs. In case real estate owners do not return the agreed amount at the end of the period, the smart contract will provide the right for the lenders to claim the collateralized real estate.

Collateralized lending allows real estate owners to free up capital tied to their real estates to perform any income-generating activities, increasing capital efficiency of the market. On the other hand, lenders can provide loans to real estate owners to generate income. In the case of default, lenders can essentially acquire real estate at discounted prices.

Lending pool model is also explored as part of the roadmap for collateralized lending as the market continues to mature. This model allows quicker access to borrowed funds for real estate owners as they do not need to wait for any counterparties to accept the terms. On the other hand, it opens up the lender population from just a small proportion of experts who can evaluate price for each real estate, to a much larger crowd who understands the general value of real estate on each metaverse.