PLR Partner Token Swap(s)

[Drew_Harding]

Summary: Web3 has proven the positive sum potential of network effects. Projects can benefit from engaging in deeper partnerships through aligned economic incentives via token swaps. Pillar should look to identify opportunities where token swaps can solidify strategic partnerships and grow its user base.

Motivation: Token swaps create long term economic alignment between projects. They also serve to cross-pollinate communities and expose existing market participants to new opportunities. It is important to identify opportunities where alignment makes sense for both parties.

Approach: Etherspot, as a robust, intuitive SDK provides one potential avenue for such possibilities. Partner projects can leverage our technology to facilitate cross chain transaction support, robust smart contract account management, sophisticated relayer support and more. I also see tremendous potential in the small cap social/personal/community token segment for Pillar to establish rich and mutually beneficial partnerships - a community-owned wallet should be the natural choice for others community in need of a more ‘branded’ wallet experience. This could mean white label opportunities or simply community voted feature updates driven by our partners (and their new PLR tokens). We will need to evaluate the specifics of each swap on a case by case basis, but over time, the Pillar DAO will begin to accumulate partner tokens providing treasury diversification.

[0xhWondrOfWorld]

Indeed!! The network effects are incredible.

The idea of token swaps and purpose-built use cases amplify these network effects. I’d love to propose a use case and “white-labeled” implementation for a swap. Less “white-labeled” and more “powered by”. A case designed for longer-term holding/hodlrs.

I find that the popularity of a high yeild generating implementation succeeds as a standard when executed thoughtfully (see UNI, YAM, YFI, etc.).

Background:

Over the past few months, I’ve personally seen the incredible interest in tokenized real estate. Namely realT (https://realt.co/). RealT is tokenizing US real estate via Reg-S (licensed us-based securities. note reg-s can only be sold with international parties only. which has its own challenges). It’s pretty straightforward – E.g. They take a $100k (usd) valued house, convert it to 1,000 tokens @ $100 each. Monthly rent is converted into daily yield payments, proportionately to token holders. When the property sells, the tokens are liquidated proportionately as well. It’s a fantastic way to continue to introduce new dollar flow inbound.

Opportunity 1:

The RealT tokens use case is fantastic, however, when you factor the average daily yield against gas fee’s it’s problematic. The gas is often more than the amount transferred. Enter the case for L2 payments. While it’s not a criticism to realT’s engineering team, their wallet is simply is not as amazing as Pillar’s.

To date they have tokenized over $10m USD in real estate, and it’s growing rapidly every day. There is a new entrant, homestead, which is Reg-CF (focused on US based investors, selling licensed securities of tokenized real estate).

These real-estate-based-tokens are traded on swapcat and uniswap v1. I truly feel there is a significant use case to introduce this via a powered by experience which I am happy to help drive.

Further, the ease-of-use within the pillar-powered experience could enable a case to factor TVL into the brandable metrics of Pillar. Remember, the daily rent (yield) payments processing across the network and the value of the real estate appreciation over time all have leverage points.

These leverage points could be designed in such a way to drive PLR token value.

Opportunity 2:

US security laws for Reg-S, Reg-A and Reg-CF create transfer limitations. The very nature of defi’s building blocks surrounding lending are designed to solve that very issue. Enabling streamlined access to a lending network to issue a synthetic asset representing the locked value of these tokens presents another key use case, especially when you can augment fee’s on L2.

Opportunity 3:

Today, the real estate MLS is decoupled from the tokenized properties. As it stands, these properties are simply token address. Bonding these yield generating tokens with an NFT to marry real-world information about the properties (pictures, stats) along with tracked yield APY creates a high-value case for a utility to store as collectibles within the Pillar wallet. The idea that the qualified payments to the real-estate token can be computed to determine real-time APY as rent adjusts over time is believed to be high value. The idea that an external oracle could be utilized to also periodically adjust the value of the property overall (think how Zillow’s Zestimate works) allows these real-world bridges into crypto to be more practical and familiar… presumably worthy of storing. The NFT allows the tokens not to have a dependency on third party site as well.

…

There are several more layers that I’d gladly discuss. I’m full of diagrams, test-net dev, documentation and more.

Lastly, thanks again for guiding the first governance call. It was incredible, watching your leadership.

[eggman]

Dude, where did you come from whats your background?