Tangible is the issuer of of Real USD, the first overcollateralized stablecoin backed by tokenized, income-producing real estate.
Tangible offers the first overcollateralized stablecoin that is backed by income-generating, tokenized real estate. Tangible notes two key advantages to backing a stablecoin with real world assets like real estate. First is the quality of the underlying yield. The tokenized properties in the Real USD (USDR) treasury are leased to tenants. This rental yield is paid out to USDR holders via a daily rebase (similar to OUSD). If USDR were ever to fall below 100% collateralization, 50% of the daily rebase would be used to recollateralize the treasury instead. Second is the underlying real estate properties may appreciate in value over time. This appreciation in the backing of USDR allows for novel design mechanisms that contribute to additonal yield and sustainability of the overall system. Any system gains from appreciation of assets in the treasury will push USDR's collateralization above 100%. Instead of holding that value in the appreciated assets (i.e. TNGBL token and tokenized real estate), the protocol will immediately recognize the incremental value and use it to add new property to the treasury. This is done by minting USDR 1:1 against those gains. Users can mint USDR 1:1 with DAI and can be redeemed 1:1 for DAI. In the event that all DAI reserves have been depleted from the treasury, the treasury will issue pDAI (promissory DAI) at a 1:1 ratio. pDAI entitles the holder to claim DAI 1:1 once real estate NFTs are liquidated and proceeds are transferred back to the treasury. The max supply of pDAI at any given time is the total USD value of all RWAs (real world assets) and DAI in the treasury. When pDAI is redeemed for DAI it is burned.
When purchasing a real estate NFT, there are several fees and reserves that are included in the True Property Value (TPV). A 2% vacancy fee is taken at the initial purchase to ensure continued rental disbursement during periods without an active lease. A 5% maintenance fee is also taken at the initial purchase to cover repairs and maintenance costs, and any excess funds are returned to the owner if not used. A 2% annual management fee is charged by Tangible Custody to manage the property and is deducted from the rent after the first year. Local taxes, such as stamp duty in the UK, are included in the initial real world purchase transaction and do not apply when the NFT is transferred or resold. Finally, insurance fees are included in the tokenization costs, and the first year's insurance is included with the initial purchase. The value of all fees and reserves that transfer with the NFT are included in the TPV.
You can deposit your DAI stablecoin or buy USDR on the open market to start earning passive yield directly to your wallet. There is also a 10% temporary incentive that is airdropped daily to USDR holders for early adopters.