🏠LendrUSRE (USRE)
What is Lendr US Real Estate (USRE)?
LendrUSRE (USRE) is the world's first decentralized US Real Estate Index Token!
USRE is pegged to an index tracking the US real estate market and it is created through our decentralized interest-free lending platform. Users can earn rewards by staking their USRE on our platform. LendrUSRE is created using Lendr Network V1
LendrUSRE is fully over-collateralized and allows any holder to redeem USRE at a 1:1 rate for its backing at any time. USRE is additionally secured by a Stability Pool with fellow borrowers acting as guarantors of last resort.
The Lendr ecosystem is designed to be fully decentralized and governance-free, relying on immutable public smart contracts.
USRE is abbreviated LDRE on the BSC network, it was renamed to USRE to avoid confusion with LNDR.
How can I earn rewards/platform fee revenue with USRE?
USRE is deployed using Lendr Network V1 which has the reward token LendrR (LNDRr) that collects ALL revenue generated by USRE lending fees.
LendrUSRE offers users financial reward incentives for participating in various actions such as liquidations, USRE staking, LNDRr staking, and LP creation. These actions keep the system stable and reliable.
How does LendrUSRE calculate its price?
USRE is a specialized RWA Index token that functions like a stablecoin with an index-pegged price target. This price target grows in accordance with the US real estate market. We use a specialized real estate index provided by an unbiased on-chain oracle. This oracle calculates the US real estate rate of growth based on over 18 million data points from 30+ verified data sources.
As the price target moves, the LendrUSRE pegging mechanisms (arbitrage through issuance and redemptions, and liquidations) ensure that the token price also moves accordingly.
LendrUSRE is soft-pegged to the target price point, relying on incentivized user actions (arbitrage opportunities) to keep the token price close to the target price. This means that the exact value of USRE will fluctuate near the target price point.
Why was LendrUSD created?
We created Lendr US Real Estate to give everyone equal access to the US real estate market. Conventional real estate comes with a number of major challenges.
The US real estate market is one of the largest markets in the world. (Market Cap: $45.43T)
US real estate is inaccessible to almost everyone due to high entry costs. Lendr RWA tokens can be purchased in any amount.
Real estate management generally has very high overhead costs. Lendr RWA tokens have almost none.
Real estate is not a liquid market, it can take time and money to sell and buy properly. Lendr RWA tokens can be purchased and sold almost instantly.
Other forms of US real estate have high management costs or fees. Our tokens can be purchased from the market with almost no fees and held indefinitely.
LendrUSRE solves every one of these issues, providing users with a superior asset that they can hold instead of actual real estate. Our tokens can also be used in almost any defi protocol.
What are the main features of LendrUSRE?
LendrUSRE's main features are:
U.S. real estate index token, gain exposure to U.S. real estate on chain
Usable in exisitng DeFi protocols (ERC-20 compatible)
Real estate growth without real estate costs
Over-collateralized with verifiable on-chain assets
Decentralized and governance-free
0% Interest rate to issue/borrow USRE
Earn rewards from liquidations, issuance, and redemptions by staking in the Stability Pool or LNDRr Reward Pool
Redeemable for 1:1 collateral by anyone at any time
Financial incentives to complete liquidations
Can the LendrUSRE contracts be changed or updated?
No, ownership of the LendrUSRE smart contracts is relinquished making them immutable. The code is also open source allowing anyone to interface directly with the smart contracts if needed.
This makes LendrUSRE censorship and regulation resistant.
Note - At launch, the price target oracle contract ownership will be retained until a redundant system can be deployed. At this time there is only one oracle provider for the inflation index that LendrUSRE uses. Once a redundant fallback is added, this contract will be decentralized as well.
How do I use LendrUSRE?
Borrow USRE using collateral by opening a Trove
Earn rewards by staking USRE in the Stability Pool
Stake LNDRr in the LNDRr Staking Pool to earn fee revenue from users issuing or redeeming USRE
Redeem USRE for 1:1 backing if the price is below the target peg
Borrow USRE and sell it if the price is above the target peg
Complete Liquidations on troves under 110% collateralization to earn rewards
What are USRE and LNDRr?
LendrUSRE (USRE) is the inflation-proof flatcoin used to pay out loans on the LendrUSRE protocol/dapp. USRE tokens can be redeemed for the underlying collateral by anyone at any time. Lendr Reward Token (LNDRr) is a secondary token issued by the Lendr Network protocol. It captures the fee revenue that is generated by the LendrUSRE system and incentivizes early adopters. The total LNDRr supply is 100,000,000 tokens.
For more information on how these tokens have been allocated and released please refer to the LNDRr rewards and distribution page.
What do I need to get started with LendrUSRE?
You will need a web3 wallet (e.g. Metamask) that is connected to a Lendr Network blockchain (e.g. Ethereum or Binance Smart Chain) and the native blockchain tokens (e.g. ETH or BNB) to open a trove and pay the gas fees.
To stake in our Stability Pool or LNDRr Staking Pool, you will need USRE or LNDRr tokens in your wallet. These can be issued through borrowing or obtained on Pancakeswap or other major exchanges that we are listed on.
Does LendrUSRE charge any fees?
USRE and LNDRr have no additional transaction fees.
There are one-off fees paid when USRE is borrowed or redeemed.
For borrowers, there is a borrowing fee on loans as a percentage of the issued amount (in USRE).
For redeemers, there is a redemption fee on the amount paid to users by the system in the native blockchain tokens.
Note that redemption is separate from repaying your loan as a borrower, which is free of charge.
These fees are paid directly to LNDRr Staking Pool stakers.
How are issuance/redemption fees determined?
These fees are controlled completely autonomously by the smart contract code and do not involve governance from our team or community.
Both fees depend on redemption volumes, i.e. they increase upon every redemption in function of the redeemed amount, and decay over time as long as no redemptions take place. The intent is to throttle large redemptions with higher fees, and to throttle borrowing directly after large redemption volumes. The fee decay over time ensures that the fee for both borrowers and redeemers will “cool down”, while redemptions volumes are low.
The fees cannot become smaller than 0.5% (except in Recovery Mode), which protects the redemption facility from being misused by arbitrageurs front-running the price feed. The borrowing fee is capped at 5%, keeping the system (somewhat) attractive for borrowers even in phases where the monetary is contracting due to redemptions. Other than that, the two fees are identical and are depicted as "Fee" in the following exemplary chart:
How do users gain yield using LendrUSRE?
There are two different ways to generate revenue using LendrUSRE:
Deposit USRE to the Stability Pool and earn liquidation gains in collateral and LNDRr rewards.
Stake LNDRr in the LNDRr Reward Pool and earn USRE and native blockchain tokens (ETH, BNB, etc.) from borrowing and redemption fees.
Is there an ecosystem diagram that shows how it all works together?
Yes but its a little complicated! Here you go:
Can I lose my funds?
As a non-custodial system, all the tokens sent to the protocol will be held and managed algorithmically without the interference of any person or legal entity. That means your funds will only be subject to the rules set forth in the public smart contract code, which is being audited by multiple third-party companies.
There are two scenarios under which you may lose a part of your funds:
You are a borrower (Trove owner) and your collateral in ETH is liquidated. You will still keep your borrowed USRE, but your Trove will be closed and your collateral will be used to compensate Stability Pool depositors.
You are a Stability Pool depositor and your deposited USRE is used to repay debt from liquidated borrowers. Since liquidations are triggered any time borrowers’ collateral drops below 110%, you will receive more collateral in return with a very high probability. However, if the native blockchain token decreases in price and you maintain exposure, you may lose value in your total pool deposits.
Please note that USRE isn't perfectly pegged to the price target, and can deviate slightly in both directions under certain market conditions.
Although the system is diligently audited, a hack or a bug that results in losses for the users can never be fully excluded. Our bug bounty program helps ensure greater security but absolute security cannot be guaranteed. Please ensure you understand the system in its entirety before use.
Video Overview
Refer to our Quick Start Guide for short, simple explainer videos on how to use the network, and take a look at our FAQ Video Series for information explained by our CEO, Nathaji Metivier.
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