Right now, there’s a lot of interest and demand for real estate investment. It’s a relatively secure and stable alternative to other options, and the global market is expected to grow steadily.
But traditional real estate is not accessible to the average investor. Real estate investment is generally marked by very low liquidity and involves infinite intermediary parties. On top of that, transaction processes are long and expensive, and capital commitments are incredibly high.
These barriers to entry significantly narrow the pool of suitable investors for the real estate market and make it inaccessible for smaller investors.
DeFirm Finance seeks to solve this issue. Using DeFi and blockchain technology, DeFirm wants to enable a broader group of investors to engage in the real estate market, providing an affordable solution for the “retail” investor.
Let’s find out more about DeFirm and analyze the main features of its utility token: $DEFIRM.
What Is DeFirm Finance?
DeFirm Finance is on a mission to accumulate the most extensive community-governed real estate portfolio in the crypto space. To achieve that, the company has built a protocol that combines DeFi technology with real estate and other real-world assets.
The core pillar of DeFirm’s vision consists in leveraging the high returns of crypto and DeFi to generate passive income. To that end, the plan is to purchase and exploit real estate properties under a DAO LLC established in Wyoming, which has the most suitable regulations for DeFirm’s operations.
DeFirm will bring together a real estate board of industry experts from all over the world. The board will be in charge of assessing and vetting the best prospective properties for the DAO to invest in, creating a curated selection that will be submitted for a vote. So, the entire DeFirm community will be in charge of choosing the properties they invest in.
The goal is to focus on secure yield-generating properties that can grow the intrinsic value of the protocol. According to the project’s white paper, the plan is to begin by investing in Airbnb and vacation rentals in high-traffic destinations around the world and then move to other types of properties.
DeFirm Finance seeks to serve as a bridge to enable greater involvement and participation in the real estate market, maximizing potential returns for investors and the protocol through proven DeFi mechanisms.
The $DEFIRM Token
An Overview of the Token
$DEFIRM is the utility token of the DeFirm ecosystem. It hasn’t been launched yet, but according to the project’s documentation, it will feature an auto-staking protocol that enables holders to earn daily rebase rewards every 30 minutes.
Therefore, simply by keeping some $DEFIRM tokens in their wallets, investors will earn 48 rebase rewards per day. On top of that, their holdings compound automatically at every rebase, and rewards are accredited directly to their wallets.
So, essentially, DeFirm enables holders to grow their $DEFIRM position passively without the need for staking, farming, or any other mechanism, incentivizing investors to participate in the protocol on a long-term basis. The DeFirm protocol interface will allow users to track their daily earnings, find out when the next rebase will occur and track other relevant data to foster sustainability.
DeFirm will feature a limited-time 10,000% APY for early holders of the $DEFIRM token after it launches. That APY will decay over time as the project reaches its max supply, unlike other similar projects that simply mint endlessly. The goal is to offer a more sustainable model designed to reward early investors.
The Specifics
The $DEFIRM token will be hosted on the AVAX network and will be launched on the TraderJoe DEX. The initial supply of $DEFIRM will be 1 million tokens, and the max token supply will be 100 million tokens.
It’s also important to note that there will be a buy-and-sell tax of 15%. The funds will be used to support the protocol and advance DeFirm’s operations.
Also, 365 days after launch, the APY will come down to 200%.
Liquidity Management System
DeFirm has partnered with Horde to implement a Liquidity Management System (LMS) with precise and upgradeable configurations to stabilize the price range of the $DEFIRM token within a predefined range. The project touts it as the most robust LMS on the market, and it is vital in ensuring truly passive income.
The dynamics of this LMS are fairly simple: whenever the $DEFIRM token price reaches the ceiling of the predefined range, the system will sell tokens to keep the price stable. In turn, if the price hits the floor of the predefined range, the system will buy tokens to keep it within the defined boundaries.
High Return Expectations
DeFirm has ambitious expectations for their token: they want to deliver the highest stable returns in crypto and promise investors can earn up to $100,000 in $DEFIRM at 10,000% APY for every $1000 invested.
As mentioned above, the APY will be reduced to 200% a year after launch to incentivize early investment. So, these ambitious figures might only be available to those who decide to invest early in the project.
Over to You
With its high barriers to entry, real estate investment seems like an unachievable dream for many. But harnessing asset tokenization and innovative DeFi models, many promising projects out there are working to facilitate greater access to the market.
DeFirm presents a fresh approach to real estate investment, combining the benefits of DeFi with one of the most secure and stable assets available and providing investors with convenient passive income opportunities.
It’s still very early to tell whether the token holds any real promise. DeFirm is taking the very first steps in its roadmap, and the token launch date is yet to be announced.
But still, $DEFIRM seems like an attractive investment opportunity, so it would be wise to keep an eye on it.