FACTOR-805: Introducing Dai into Security Tokens
Invest in a Brooklyn property, with Dai, and receive an expected yield of 13.24%, also in Dai.
Today we are pleased to introduce a first-of-its-kind investment opportunity. FACTOR-805 is the first real-world asset that can be tokenized and have distributions paid in Dai or fiat.
FACTOR-805 is groundbreaking because we are integrating Dai, the decentralized stablecoin from MakerDAO, into various parts of the security token process: we will accept Dai from investors, and will give investors the option to receive interest payments in Dai. The structure is the first tokenized, credit tranched debt security to incorporate stablecoins into purchase and payment processes.
Dai, as a stablecoin, has the potential to remove banks as transfer intermediaries by enabling investors to be paid seamlessly through the Ethereum network. We believe this kind of automated interest payment will help streamline the back end of these transactions, which are typically slow and costly.
The Factora team is excited to catalyze this first intersection of stablecoins and tokenized securities in this inaugural deal with MakerDAO. As a stablecoin, Dai is not intended to be subject to the volatility of cryptocurrencies (see chart: Normalized Dai/USD and Dai/ETH Prices).
“FACTOR-805 is a breakthrough. It’s a powerful example of how to unlock more value from investments by bringing real world assets to the blockchain,” said Rune Christensen, CEO and co-founder of MakerDAO. “With Dai, investors get the speed, security and efficiency of a cryptocurrency without the volatility that typically defines the space.”
Stablecoins bridge existing financial and crypto markets by utilizing the same reference pricing, empowering users to remain in the digital sphere while allowing real-world assets to come online. They carry some key benefits of fiat currencies, including the stability of the asset or currency to which it is linked — such as the US Dollar. Key benefits of cryptocurrencies also apply: fast and trustless settlement, frictionless transfer, and use of blockchain technology.
We believe in the Dai stablecoin and are pleased to incorporate it specifically into FACTOR-805. MakerDAO is noteworthy in the space for presenting a creative solution to the conundrum of volatility in stablecoins backed by other cryptocurrencies (read more here).
- A new, near-completion 37-unit residential condominium building with retail space at 805 Washington Avenue in Brooklyn, NY, situated two blocks from the Brooklyn Botanic Garden
- Investors have the option to purchase and receive payment in Dai or fiat, and to switch between the two
- Current 12.49% (LIBOR + 10.00%) coupon producing 13.24% yield to expected maturity, payable monthly
- Experienced repeat borrower with demonstrated experience in successfully building and selling out residential condominium projects in Brooklyn and Harlem
- 13 month maturity with the expectation that the first six month extension option will be exercised by the borrower
- High demand and rapidly developing neighborhood attributable to its central location, convenient public transportation access, and moderate unit sale prices compared to more developed neighborhoods like Williamsburg and Park Slope
MakerDAO is a decentralized organization dedicated to bringing stability to the crypto economy. MakerDAO issues Dai, the world’s first decentralized stablecoin on the Ethereum blockchain. Dai eliminates volatility through an autonomous system of smart contracts, specifically designed to respond to market dynamics. Launched in 2017, Dai has successfully maintained a soft peg to the US Dollar. With a presence on numerous cryptocurrency exchanges, multiple partnerships with global supply chain companies, and agreements with organizations serving non-government agencies, MakerDAO is unlocking the power of the blockchain to deliver on the promise of economic empowerment today. Visit www.makerdao.com
Fluidity Factora is upgrading financial infrastructure by refactoring real-world assets as blockchain tokens to enable standardization, transparency, and liquidity across capital markets. Created from the union of Propellr and Fluidity, Factora is a team of structured finance and blockchain professionals. Factora’s integrated broker dealer, blockchain capabilities, and digital end-to-end platform for securities are forging a new path of asset tokenization, creating a clear, instant, and elegant solution for legacy industries. Visit www.factora.io
HOW TO PARTICIPATE
We are now accepting allocation requests. To learn more about FACTOR-805 and register, visit www.propellr.com
The information above is for informational purposes only and should not be viewed as an offer to sell securities or as an investment recommendation or investment advice. Offers to sell securities can only be made through official offering documents, which contain important information about the investment opportunity and risks relating to the investment. You should carefully read the offering documents and consult with your own tax, legal and financial advisors with respect to the merits and risks of an investment.
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In loving memory of Oscar Fisch, who has been an inspiration to Propellr since inception.