LandOrc Brings DeFi to Real World Assets
There’s a booming economy in Decentralized Finance (DeFi), where you can lend, borrow, long/short, earn interest, and more. DeFi is essentially a closed system. It involves digital asset owners who collateralize their digital assets for loans and invest in DeFi projects. Real World Assets (RWA) is where innovation is happening in the DeFi space. On Tuesday (Dec. 28, 2021), the fast growing DeFi lending platform Aave (www.aave.com), with a market capitalization of USD 3.5 billion, announced its entry into RWA based lending. That will allow small and medium enterprises (SMEs) to access the liquidity available in digital asset markets by tokenizing real-world assets like freight invoices, bridge loans, trade receivables and the like, and then use those tokens as collateral
In October 2021, LandOrc (www.landorc.io), the United Arab Emirates headquartered company, bridged DeFi with the real world. It launched its real estate lending platform for funding property developers across high-interest segments. The platform allows property developers to get lower interest loans while offering collateral via land titles in NFT (Non-Fungible Token). This ensures that the lenders have greater transparency via tracking on the blockchain. In the lending category, LandOrc is the first to bring DeFi to RWA.
The LandOrc offering is very distinct from the other lending on DeFi where there is no underlying collateral and is exposed to the high volatility of the digital assets. By offering to lend to the real estate developers, LandOrc is solving the core needs of the USD 326.5 trillion (estimated by www.savills.com) global real estate market and solving a core human need. This ensures that LandOrc and its business model will be relevant for the years to come.
The LandOrc platform and its dApp is already operating https://app.landorc.io/ and has already completed a few staking projects lending to property developments at APR (annual percentage rate) of an average of 15%. Collateral for the lending is vetted via the LandOrc Governance (LGOV) token holders. LGOV tokens are made available to the overall community with a specific allocation to specialists like independent Valuers and lawyers to provide an independent perspective. This ensures that LandOrc operates like a Decentralized Autonomous Organisation (DAO).
LandOrc’s first market of focus is India. The Indian real estate market has been the focus of prominent private equity companies like the United States based players Blackstone (www.blackstone.com), GIC (www.gic.com.sg) from Singapore, Anarock (www.anarock.com), focusing on investors in Canada, Japan’s Marubeni (www.marubeni.com) etc. However, the focus of the more significant funds has been on Tier 1 larger cities — Mumbai, Delhi etc.
LandOrc is focusing on the high growth Tier 2 and Tier 3 cities. These cities contribute 75% of India’s GDP and have not been the focus of large private equity funds. The focus of LandOrc is on smaller and middle-sized developers seeking funding at a faster turnaround from a locally incorporated company.
The second market where LandOrc is seeking to focus is Australia, a USD 9 trillion real estate market that has grown despite the pandemic. LandOrc concentrates on small and mid-tier property developers and sees relatively high annual percentage returns and the added stability of the Australian market.
Beyond the above, LandOrc is in active discussions across partners in various markets covering the United States, United Kingdom, United Arab Emirates, Thailand, Ecuador and Brazil to name a few. It will continue to bring in high-interest opportunities for lenders looking at RWA across global markets with benefits of security of collateral, transparency and speed of blockchain.
The attached video provides a walk-thru of the LandOrc platform, its business and the vision ahead https://www.youtube.com/watch?v=zQ8mTjqcPeo&t=3s including a detailed understanding of the business.
