HocDAO: A Property-Backed Lending Platform
Have you ever wished you could use your property as collateral to borrow money? Now, there’s a platform that allows you to do just that. HocDAO is a borrowing and lending platform that uses property as collateral. You can use $HGBP, our stablecoin, to borrow money or earn interest on your deposited funds. We’re excited to offer this new way of borrowing and lending, and we believe it will be a valuable addition to the DeFi ecosystem.
Have we captured your attention yet? ;)
Overview
Borrow. Lend. Invest. Stake
HocDAO, named after the phrase “House Coin” is aiming to bridge real-world assets with blockchain technology. HocDAO has developed a protocol that will transform the way real-world assets are leveraged on the blockchain by allowing property owners to securely and legally collateralise their property and borrow against it. Hoc Foundation is issuing HGBP, an GBP stablecoin, backed with a collateral pool of prime property real estate in London. Their comprehensive framework makes sure asset ownership remains secure and accurately represented through NFTs for better use of distributed ledger technology.
By utilising right-to-title NFTs as collateral, the Hoc Foundation is issuing its own stablecoin — HGBP. 10 billion premined HOC tokens are allocated to decentralise protocol governance and incentivise users through rewards & yield enhancement for holding onto their HGBP currency. Users can stake back into the Hoc Protocol’s treasury or use it to purchase Bitcoin/Ethereum — unlocking a variety of opportunities within the digital asset market!
HocDAO’s platform is built on the Ethereum blockchain and utilises smart contracts to ensure transparency and security. By collateralising their properties, investors can generate HGBP tokens, which can then be used to access a variety of financial services on the HocDAO platform. This includes borrowing, lending, and trading, as well as other DeFi services. Thus, making it a reliable option for investors looking to access more liquidity and capital. Leveraging their strong network, through decades of experience within London’s real estate sector, the Hoc protocol will focus on London’s prime real estate market with an impressive amount pledged to the project.
Scalable. Flexible. Borderless. Fair
Why us?
Enabling Capital and Unlocking Liquidity
The platform’s DeFi technology also allows for a more efficient and transparent way of unlocking true liquidity in real estate, making it easier for individuals and small businesses to access capital and invest in real world asset. With HocDAO, users can borrow against their property assets, which can enable them to invest in more properties or use the capital for other purposes.
The use of HGBP in real estate transactions also allows for a greater level of stability, as the stablecoin is pegged to the pound sterling, offering a stable form of value transfer that is less exposed to market fluctuations. This can provide peace of mind for investors and ensure that their investments remain stable, even in times of market volatility.
How does it work?
With HocDAO’s legally sound framework, our partnered provider TokenHouse has established a secure platform for property owners to covert their physical assets into Non-Fungible Tokens (NFTs). NFTs unique property ensures authenticity and trustworthiness of the asset on the blockchain. Through this process, users can entrust an independent third party with ‘custodising’ their real world assets while simultaneously conferring them ownership rights over said asset using its corresponding tokenised title.
Investors can benefit from a safe and secure short-term liquidity solution through HGBP, which is backed by real estate assets most in demand. These prime London property’s are evaluated annually by third parties for the RWA value with no existing debt or charges — guaranteeing stability to the holders of these NFTs as long as they remain on the Protocol. By tokenising physical properties onto blockchain technology via right-to-title Non Fungible Token (NFT) representation, investors gain access to revolutionary liquidation opportunities while preserving overall asset integrity.
The Benefits of Using HocDAO
“The money you make is a symbol of the value you create”
Using a DeFi platform like HocDAO offers several benefits over traditional banking methods. Firstly, because there are no third-party intermediaries involved in transactions, the process is much faster than traditional methods; this means that investors can access capital more quickly when needed. Lastly, DeFi platforms offer lower transaction fees than traditional methods; this makes them particularly attractive for those seeking alternative ways to access capital without paying high fees.
One of the key benefits of HocDAO is its ability to unlock liquidity from real estate properties. By allowing individuals and businesses to collateralise their properties and generate their own stablecoin, HGBP, HocDAO enables them to access new forms of lending and borrowing. This can open up new opportunities for people to access capital, and for investors to earn higher returns on their investments.
The advantages of using a stablecoin based on collateralised real estate are many: users can access quick and efficient liquidity without having to go through lengthy paperwork and bureaucratic processes; since these coins are backed by value-producing assets such as property, there is less risk associated with them compared with other forms of cryptocurrency; finally, it provides a secure way for investors to participate in DeFi protocols without having to worry about volatility or market shifts.
- Stability — The HoC Protocol team has a strong background in traditional finance and has applied that knowledge to create a stablecoin that is pegged to GBP.
- Liquidity — The liquidity of HGBP comes directly from physical assets, which means investors can rely on it as a store of value without worrying about price volatility.
- Transparency — The collateralised funds are backed by prime central London properties that have been evaluated annually by an independent third party RICS Chartered Surveyor.
- Efficiency — Lock up of NFTs will release HGBP into the blockchain ecosystem, making it easy for holders to access and use their tokens
Market Fit
The UK government is also working to create a supportive environment for innovation and growth in the stablecoin and cryptocurrency space. The government has set up a Cryptoassets Taskforce, which is working to identify ways to support the development of the industry, and has also established a Sandbox for businesses to test new products and services in a controlled environment.
The use of real estate as collateral for stablecoins is a novel approach in the DeFi space, and it has the potential to open up new opportunities for investors. By leveraging their real-world assets, investors can access capital that would otherwise be difficult to obtain. This can be especially beneficial for those who may not have the credit score or financial history to qualify for traditional loans.
The HGBP token is backed by the underlying asset which is constantly monitored by smart contracts ensuring that all funds are secure at all times. Moreover, HocDAO introduces a new concept of “gated borrowing” whereby users can pre-qualify for loans without having to go through the lengthy conventional loan process. This feature allows users to receive funding from multiple lenders at once without needing to wait for approval from each lender separately.
Another interesting feature of HocDAO is its built-in insurance system that covers up any losses due to borrower defaults on debts or other risks associated with lending activities. Additionally, investors can earn rewards for taking part in governance activities as well as for staking their tokens on the platform. This provides an additional incentive for investors who wish to participate actively in the DeFi ecosystem and benefit from passive income sources like fixed interest rates or token appreciation over time.
The Adoption
Setting the record straight!
As mentioned here, One of the key ways in which the UK government is supporting stablecoin adoption is through its commitment to providing a clear regulatory framework for the industry. In 2019, the UK’s Financial Conduct Authority (FCA) announced that it would consult on the regulatory treatment of stablecoins, and in 2020 the FCA has proposed a new set of rules that are specific to stablecoin, which are expected to be implemented in 2023. This will provide greater legal clarity and certainty for businesses operating in the stablecoin and cryptocurrency space, making it easier for them to navigate the regulatory landscape. Adoption of this groundbreaking technology is expected to accelerate over time as more people become aware of the many benefits HocDAO provides.
As more people realise the potential benefits of borrowing and lending through NFTs, there will be an increase in adoption of this technology in various aspects of finance. Currently, most decentralised finance platforms are focusing on cryptocurrency trading and investing; however, HocDAO is one of the few platforms that is taking advantage of NFT technology in order to provide secure loans backed by real estate assets. This breakthrough technology can revolutionise how people borrow money, allowing them to get more out of their existing investments with greater speed and convenience than ever before possible.
By providing access to an entirely new asset class backed by tangible property rights, HocDAO is pioneering the effort for DeFi adoption at scale — something which has previously been reserved for larger institutional investors due to high entry costs associated with traditional investments. As awareness grows around NFTs as a form of collateralisation within DeFi projects, we expect this trend towards wider adoption will continue into 2021 and beyond — positioning HocDAO as a key innovator driving this revolution forward.
Security
“With great TVL, comes great responsibility”
HocDAO is committed to providing secure and safe services to its users. That’s why it has been thoroughly audited and checked by Certik — one of the world’s leading blockchain security firms. The audit focused on four key areas: smart contract security, architecture & code readability, code performance & scalability, and financial security formal verification.
The first area involved a thorough inspection of the smart contracts used by HocDAO. This was done in order to ensure that the platform was secure from external attacks and vulnerabilities. The second set of checks involved an investigation into the platform’s architecture and code readability, in order to make sure that everything is as clear and easy to understand as possible. The third set looked at code performance and scalability, making sure that all processes are running smoothly even under heavy load conditions. Lastly, the financial security formal verification examined all aspects of the platform’s finances in order to guarantee that users will not be exposed to any risks associated with their investments.
The results of these audits have been highly promising for HocDAO, indicating that its users can rest assured knowing that their funds are kept safe and secure on this platform. All this ensures a safe environment for both borrowers and lenders.
“We have seen the future, and the future is ours”
The future of HocDAO looks extremely promising. By leveraging NFT technology, it has created a DeFi platform which both borrowers and lenders can benefit from. For borrowers, it offers quick access to liquidity and low transaction fees, while for lenders it provides a secure and reliable asset that can generate stable returns.
With the growing popularity of DeFi platforms, HocDAO is well-positioned to continue expanding its user base and offering more features in the future. It could, for example, introduce a tokenised asset exchange where users are able to trade their locked real estate assets with other tokens or cryptocurrencies. This would open up new markets for real estate investors by allowing them to move their investments around quickly and easily.
HocDAO could also leverage its platform to expand into other areas such as borrowing for small businesses, providing a much needed source of capital for entrepreneurs who may not be able to access traditional lending sources. In addition, HocDAO could use its technology to create new derivatives based on real estate assets — allowing traders to take advantage of price movements without having direct exposure to the underlying asset.
Overall, HocDAO has opened up many possibilities that have never been seen before in the world of finance — offering faster liquidity solutions and increased transparency for both borrowers and lenders alike. As DeFi continues to grow in popularity, this platform will become an increasingly important part of the financial ecosystem, providing users with access to innovative financial instruments that have never been seen before.
Over time the Hoc Protocol will expand to different market to accept other RWA classes, as well as digital assets (Other stablecoins, cryptocurrencies, blue-chip NFTs) within a prescribed risk appetite to ensure that HGBP remains primarily backed by RWAs.
HocDAO has announced the launch of its new borrowing and lending platform, which allows users to collateralise their properties in order to borrow our stablecoin, $HGBP. This makes HocDAO the world’s first property-backed stablecoin, and provides a safe and secure way for investors to borrow and lend money. With our unique DeFi (decentralised finance) platform, users can enjoy all the benefits of decentralisation while still having access to high-quality loans. Come join us on our journey to revolutionise the world of finance!
TLDR?
Now we know Crypto frens have short attention spans, so here’s the short summary :)
Unlock liquidity for property owners
Convert assets into NFTs and collateralise
Borrow against your asset to get cash flow today
Mint our stablecoin $HGBP that is pegged to the value of GBP
References
https://www.msci.com/documents/10199/a4535e8e-3b0d-f34d-4a0b-dc73058f7469
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