(Europe) Reental, a tokenized real estate project company, becomes the first platform in Europe that allows you to request P2P loans using its real estate tokens as collateral. This milestone is achieved thanks to an agreement with AAVE, one of the leading decentralized finance (defi) protocols in the world, and strengthens ReentalS position as a benchmark in innovation within the ecosystem. blockchainestablishing a tangible bridge between real estate and decentralized finance.
“This represents a radical change in the way peopel look at borrowing. From now on, and thanks to collateralization, our users will be able to use the purchased tokens to invest in a property as collateral or collateral to request a loan at any time (24/7), with a couple of clicks and without the need for a previous study, because the guarantee for the creditor will be that cryptoasset”explains Eric Sánchez, co-founder and CEO of Reental.
HOW IT WORKS
Thanks to its integration into the AAVE protocol,Reental will connect people who need loaned capital with others who want to lend it in exchange for obtaining a return in the form of interest. The borrower will deposit his real estate tokens as collateral and receive the funds, which he can use according to his needs, either because he needs liquidity or because he wants to invest it in a new project. A loan of up to 80% of the value of such collateral may be required, and if it cannot be repaid, the lender may liquidate the collateral to recover the borrowed funds.
Thus, for the first time, investors from argentina and anywhere in the world will be able to use real estate tokens backed by real assets in our country, Spain, the Dominican Republic, Mexico, the United States and other global markets as collateral. in a decentralized system. This will allow them to obtain immediate liquidity while eliminating the need to disinvest, preserving ownership and the passive income generating potential of the assets.
According to Sanchez, “Being part of the AAVE protocol, recognized for its rigorous selection process and with a collateral value of 21,000 million euros, is very complex and not all companies that want to participate succeed. But at Reental we have done this and this gives us total security and transparency in transactions, reducing the risk of default, as lenders can request collateral (or collateral) in the event of default.”
INNOVATION AT THE SERVICE OF INVESTORS
Reental designed this solution with both small investors and large institutional players in mind and these are some of the benefits it offers:
- Unprecedented global collateralization– Investors can use real estate tokens from different countries as support for P2P lending.
- Liquidity without giving up ownership: This solution facilitates the diversification of financial strategies without the need to sell shares.
- Access to a global DeFi market: Reental expands investment opportunities by combining the stability of real estate with the flexibility and agility of blockchain.
- P2P lending: In a decentralized way a user can request loans and at the same time provide liquidity for which he gets extra profitability.
- Safety: The use of smart contracts ensures transparency and eliminates intermediaries.
- Flexibility: Real estate tokens can be used as collateral at any time, depending on the investor’s needs.
- Greater profitability: Investors can maximize the value of their holdings, leveraging the performance of their tokens and gaining liquidity.
With this development, the company’s real estate tokens not only represent real estate rights, but also consolidate themselves as a powerful financial instrument. This step places reental at the forefront of the industry,laying the foundations of a model for other market players to explore the possibilities of tokenizing real assets,paving the way towards a more accessible,inclusive and sustainable financial ecosystem,where physical assets can be liquid and dynamic like digital ones.
“We are entering a phase of total change of finance and Reental is once again in the top positions, marking the path that large funds and banks will follow in the coming years. “This is one of the first steps, among many in the future, to convert an investment product into a financial product with which many more transactions can be carried out.”assures the CEO.
See also: Cryptoeconomics: Bit2Me Loan, instant loans in cryptocurrencies up to 1 million euros
See more: Cryptoeconomics: Bitso closes its 10th anniversary with 9 million users
See also: Cryptoeconomics: The Alliance bets on the gaming sector
How does tokenized real estate improve liquidity in the conventional real estate market?
Title: Bridging Real Estate and DeFi: An Interview with Eric Sánchez, CEO of Reental
Time.news Editor: Welcome, Eric! Thank you for joining us today. Reental has recently made headlines as the first platform in Europe allowing users to request peer-to-peer loans with tokenized real estate as collateral. Can you tell us more about what this means for the real estate and decentralized finance (DeFi) sectors?
Eric Sánchez: Thank you for having me! This initiative represents a significant shift in how individuals can leverage their real estate assets. By using tokenized real estate as collateral,we are creating a seamless connection between traditional real estate and the DeFi world. This offers users a new way to access liquidity while their assets continue to appreciate.
time.news Editor: that sounds revolutionary! How exactly do users go about securing these loans with their real estate tokens?
Eric Sánchez: It’s quite straightforward. Once a user purchases real estate tokens on our platform, they can deposit these tokens as collateral through our integration with the AAVE protocol. After depositing,they can request a loan that can be as high as 80% of their token’s value. The entire process is designed to be fast and efficient, allowing users to access funds within minutes and without the cumbersome paperwork usually associated with traditional loans.
Time.news Editor: It’s great to hear that the loan process can be done in just a few clicks. Does this new model change the way people think about borrowing?
Eric Sánchez: Absolutely. Traditionally, borrowing frequently enough requires extensive credit checks and documentation. Our model offers a 24/7 service where users can leverage their assets instantly, without lengthy approval processes. This flexibility empowers users to manage their investments and finances on their terms.
Time.news Editor: With this new form of financing, what safeguards are in place to protect both borrowers and lenders?
Eric Sánchez: That’s a crucial aspect of our platform. When users deposit their real estate tokens as collateral, they must maintain a certain loan-to-value ratio. If the value of the collateral drops below a specified threshold,there are mechanisms in place to handle that scenario,ensuring that lenders have adequate security for their investment. Additionally, our integration with AAVE provides a robust infrastructure for lending and borrowing, known for its security and reliability in the DeFi space.
Time.news Editor: Speaking of security, there are frequently enough concerns about the volatility of crypto assets. How do you mitigate the risks associated with this volatility for your users?
Eric Sánchez: We acknowledge the volatility in the crypto market and its potential impact on our users. Our platform dynamically monitors token values throughout the loan period, and users receive real-time updates regarding their collateral status.We also provide educational resources to help users understand market conditions and manage their risks effectively.
Time.news Editor: It’s clear that Reental is paving the way for innovation in both real estate and finance. In light of this evolution, where do you see the future of tokenized real estate heading?
Eric Sánchez: The future is incredibly promising.As more people become cozy with the concept of tokenization, we expect an increase in investment opportunities involving real estate. Tokenization will not only democratize access to real estate investments but will also enhance liquidity in the market. Moreover, as we continue to collaborate with other DeFi protocols, we can explore even more possibilities, potentially unlocking new levels of financial freedom for individuals and investors alike.
Time.news Editor: Thank you so much for sharing your insights, Eric. This new venture by Reental certainly opens exciting doors for both investors and the future of real estate.
Eric Sánchez: Thank you! It’s a pleasure to discuss the potential of tokenized real estate.We’re excited to be at the forefront of this change and invite everyone to join us on this journey.