Staking tokenized real estate
Oceanpoint enables anyone to start earning BST with tokenized real estate assets. Firstly, the real estate property needs to be tokenized through Blocksquare's tokenization protocol.
Once the property has been tokenized, a pre-agreed amount of BSPT tokens will be made available based on the asset owners strategy. Currently Oceanpoint enables several options
- Staking BSPT for real estate owners
- Staking BSPT for community participants
- Distributing BSPT via primary offering
- Distributing BSPT via secondary market
To define how much of an individual property's capital stack can be tokenized, our team will ask a property owner to disclose financial information about the property and run it through Blocksquare's Risk Assessment Framework — a comprehensive analysis tool that helps us understand the financial qualities of the underlying real estate asset.
Real estate owners can initiate a request for tokenization using this online form and schedule an intro call with our team who will guide them through the whole process.
Blocksquare Property Tokens (BSPTs) are a standard Ethereum ERC-20 token smart contract with a defined maximum issuance of 100,000 tokens for each real estate property, where 1,000 tokens can be issued for each 1% of an asset's capital stack.
Each asset has its own BSPT, meaning the token symbol varies from property to property i.e. BSPT-XYZ-##. The token standard features on-chain property valuation, a legally binding tokens enforceable by a standardized corporate resolution stored on IPFS. Learn more about it.
Transactions in Ethereum are cryptographically signed data messages that contain a set of instructions. These instructions can interpret to sending Ether from one Ethereum account to another or interacting with a smart contract deployed on the blockchain.
Initiating a transaction involves paying a fee to the network for it to be processed. This means you will need to hold a small amount of Ether on your wallet to interact with Oceanpoint and deposit/withdraw BSPT.
Open app.oceanpoint.fi on your Chrome or Brave browser and click connect wallet in the top right section of the screen.
A pop-up to select your wallet type will display. For this guide, we will use Metamask.
Make sure you are connected to Mainnet with the Ethereum wallet account where you hold BSPT tokens.
Once you have connected your wallet, scroll down until you see the Asset pool section.
Click on it to expand. Choose your property from the drop down on the left side. To make searching easier, the "hide tokens without balance" toggle switch is turned on by default.
After selecting the property you would like to stake, you will first need to allow Oceanpoint to interact with the BSPT tokens on your wallet. To do so, click approve and confirm the transaction in Metamask.
Because the Ethereum blockchain allows transactions with smart contracts and those smart contracts can be facilitated by 3rd parties – like a DEX or Protocol Relayer – permissions have to be granted to the 3rd party by token owners before those smart contracts can execute.
Setting token allowance does not mean you are giving your tokens to the 3rd party. All it means is you are willingly allowing the smart contract to transfer up-to a specified amount of a token on your behalf.
Oceanpoint enables you to manually approve token allowance amounts by switching off the "infinite" approve toggle button.
Once the approval transaction is confirmed, you will be able to deposit your real estate property tokens in the Asset pool to earn staking rewards.
Enter the desired token amount in the input field, than click Deposit and confirm the transaction in Metamask.
Please note, depositing BSPT to the Asset pool is subject to a 6 months lock period. This means you will be able to withdraw only after 6 months. Furthermore, depositing additional tokens of the same property won't be possible before the lock period ends.
Once your deposit transaction is confirmed, refresh your browser to see your deposited value and pool share.
Just like staking in the Governance pool, staking in the Asset pool is auto-compounding as long as your BSPT tokens are deposited.
You will see your earned BST under the My stats section of the Oceanpoint dapp.
Please note BST rewards will start being distributed to those staking only after 60% of the initial pool of tokenized real estate assets is deposited, however, no later that 22.8.2022.
250,000 BST / month have been initially set as rewards for real estate owners staking on Oceanpoint. With the introduction of v0.3 this reward is going to decrease to shift incentives towards liquidity providers.