AMA Recap — LandOrc
The session of AMA ( Ask Me Anything ) with LandOrc was conducted on 28th October 2021 at 5:30 PM IST (12 PM UTC) and lasted for 1:30 hours.
ADMIN ROUND
I welcome you on behalf of Crypto players India team, hope you will enjoy today’s AMA session.
Very excited to have you with us.😊
Jonty|Host
Please tell us about yourself and the team working on LandOrc?
Navonil
My name is Navonil and I come with 25+ years of experience so was part of the dot-com boom and have been involved in the blockchain space since 2017.
It's exciting to see the impact of technology on so many industries. LandOrc team has a lot of experienced team members, a few hundred years of corporate experience in the team. covering real estate, strategy, blockchain, finance and business development with personal experiences working across multiple global markets. The team currently is spread over geographies.
We have teams in India, Malaysia, Australia, US…so a global perspective.
Jonty|Host
What is LandOrc? Please provide a detailed introduction.
Navonil
In a nutshell LandOrc is solving the USD 500 billion real estate funding gap by tapping into USD 127 billion DeFi liquidity. and by providing land collateral available within the USD 137 trillion non mortgaged land bank available globally. We are using blockchain to connect players globally in a fast and transparent manner. We have 5 very distinguishing features.
1>We offer to lend with real-world collateral thus ensuring the protection of capital. This is very different from most DeFi projects that are based on digital assets alone and impacted by volatility.
2>The lending rates are aggressive at up to 20% APR so we still can deliver good returns.
3>We have a small base of tokens and the supply is linked to the demand on the platform. Only 21 mn token with just 60% available for sale, so expected to drive demand.
4>LandOrc has access to high-interest markets in Asia, Australia, Americas…and a portfolio of projects.
5. Real project with a working dApp, so it's not a meme coin but a real operating business. You can sign up and experience our dApp and see the projects available for staking. https://app.landorc.io/
We have 3 revenue sources.
a> Fees — we charge a small fee on the platform during the staking process, its only 0.8%.
b> Interest arbitrage the difference between the interest at the capital is sourced from DeFi participants in the staking process and the interest that is charged to the property developers. We target to achieve an interest of arbitrage of around 5% .
c> Licensensing of the NFT technology to proptech sector. The proptech sector is fast growing and has received investments to the tune of USD 85 billion. We have received interest from proptech players in Asia and United States for our land title NFT technology which is very unique in the space.
Jonty|Host
What is the process of registering a land in LandOrc?
Navonil
In our lending process, we use the land title as collateral. And are using the NFT of the land title for collateralisation, along with the power of attorney, or another relevant process for the local market. This is a very different use case for NFT since it's beyond gaming or entertainment and impacting a bigger industry — real estate, a USD 10 trillion per annum industry. The process of land title conversion into NFT is quite simple and you can do it on our platform. The process of NFT development is simple and quick and involves sharing the land title details and reference valuation for the same. Independent lawyers and valuers review and authenticate the same and the final valuation of the land is based on independent analysis. Post which the land title is converted into NFT and moved to the owner's wallet. The remaining information of the valuation and land details is stored in IPFS data linked to the NFT via a referral key that is available to the owner of the land title. They can choose to share with relevant parties on a need basis. The NFT moves from the owner's wallet to the platform during the collateral process and is returned back at the end of the tenure and repayment. So the use case is lending and NFT as collateral. But the technology has other use cases. Land title management, sale of land on Proptech sites… companies in Asia and the Americas have shown interest in this tech since the impact is wider.
Jonty|Host
How LandOrc works with different countries laws? Which countries does LandOrc supports at the moment?
Navonil
Lending and managing collateral is governed by local laws. Hence our operating model involves setting up a local SPV or subsidiary. So that we are compliant with local laws. We already have a subsidiary in India and operating a business there. So we have gone way beyond whitepaper and concepts. India offers big potential. Since many of you are from you India you will know. The real estate Industry is expected to grow to USD 1 trillion.
There is the involvement of global funds like Blackstone, Canadian Pension Fund, Xander, GIC Singapore, Allianz. Yet there is a funding gap estimated at USD 100 billion. Indian real estate developers were impacted by the reduction of lending by commercial banks and debt funds by 60%. LandOrc is focusing on Tier 2–3 cities which represents 75% of the GDP and seeing the biggest growth in real estate but the absence of global players in these markets.
Offers opportunity to generate interest rates of up to 20% APR. With the benefit of collateral and hence secured. We are looking at a high volume of projects but small and mid-sized. This reduces the risk our second market in Australia. we are in the process of setting up our subsidiary there. Australian real estate market is USD 8 trillion, 4X of aggregate GDP. Even in the Covid year, it saw an 18% growth rate. However local banks have reduced their liquidity by 13%. Alternative lending in Australis is not very mature it's only 10% of lending vs the global average of 37%. LandOrc is focusing on smaller projects offering mezzanine funding at around 12% per annum returns. While having the benefit of the growth of the Australian real estate market along with collateral. We are also in discussions on a few other markets to expand our scope. Hope that gives a sense of the markets we are operating in and our growth plans.
TWITTER ROUND
LandOrc1 have 3 token models which varies from its use cases: Land NFT tokens, LORC, and LGOV. Why did you decide to create 3 token models instead of LORC (native token) have all these use cases? Do these 3 have price in the market?
Navonil
Yes we have 3 tokens with very specific reasons
a> LORC token, the key token that is used for staking and which is up for sell and is already listed on Coinsbit on 19th October and 26th Oct on Bitforex.
We already saw a healthy increase in prices on both the exchanges indicating the interest in our project.
b> LandOrc NFT the NFT of the land title that is used as collateral for the lending. Allowing for real-world lending. This is what I described earlier in terms of the flow for conversion of land title to NFT.
c> LandGov is our governance token that allows for members of the community to take part in key decisions. Our governance tokens are allocated out to key members of the community including independent lawyers and valuers who have a 20% allocation via a multi-sig wallet. The governance token is not sold Investors have a chance of getting LGOV our governance token We are giving out 100 LGOV for holders of 25 LORC tokens for an initial period. So its good to go and buy some LORC now so that you can participate in the decision making of the platform. We are ensuring a decentralized structure of decision making. Hope that gives a sense of our 3 tokens and their role.
The current process for real estate developers involve raising funding from local sources of their individual markets. Where the interest rates are higher and the process long and cumbersome. How about in LandOrc, can you tell the interest volatility and collateral for loans?
Navonil
The current process of lending for real estate projects is based on local liquidity available and interest rates locally. And hence the interest rates can be high. In India, some of the smaller property developers end up paying up to 30% interest. LandOrc brings global investors to the property developers offering lending at a similar and most times lower interest rates compared to local markets. Also since the process is on the blockchain it's transparent and fast. This ensures that property developers are getter cheaper capital and faster and in a more transparent manner. As you’ll know sometimes the process of lending in India and other developing markets is not very transparent also. As you’ll know sometimes the process of lending in India and other developing markets is not very transparent also. The interest rate is fixed with the property developer along with the tenure.So there is no volatility there. however, the volatility can happen in the local currency to USD. In order to reduce that each loan is backed by a currency hedge
that has been priced in to ensure that currency fluctuations do not impact returns.
In LandOrc investors bet their crypto investments on projects on the platforms with a target bet reward rate and a fixed period of time. But, can you explain how attractive are the profits or benefits that users get? How can users participate?
Navonil
Real Estate is a core human need and the industry is sized at USD 10 trillion per annum and growing at a steady rate and will have consistent demand.
LORC token holders will gain in two ways.
A> Staking on the plaform. There are already 3 projects that are available on the platform for lenders to stake and get staking rewards. Based on the Dividend discount model and the staking rewards the LORC token should grow at least 3X if not more in one year.
B> Speculation on LORC token is the second way the LORC token holders will gain With only 21 million pre-minted and just 60% available for sale there will be stronger demand and supply. Hence to increase liquidity we have made the LORC token available in two exchanges Coinsbit and Bitforex. In a short, while it's seen a high of 4x and an average growth of 50% vs listed price.
There are also trading competitions happening on the exchanges So the benefits are even higher We are looking to see LandOrc process lending up to USD 2.5bn within 3 years as we scale across markets
After all the addressable gap is USD 500bn and that will be only 0.5% of the addressable market So we believe we will offer good value to investors.
COMMUNITY ROUND
Naima Busra
Do You have any plan to support more blochchains in the future? what are your cross chain integration plans to gain mass adoption?
Navonil
Due to the ubiquity and security of the Ethereum blockchain, the current solution is built on it. As part of the long term development, interchain operability is part of the development plans thru Polkadot, Matic (it’s still something that is being worked out) So watch out for some updates.
Alina Patel
How do you plan to acquire new users and make your project more embraced and known? What do you expect from the future?
Navonil
I agree we need a bigger community to spread the awareness of the projects, their growth plans, benefits…we are trying to grow the community and would hope the big community of Crypto Players and your friends and acquaintances join the community, share our work and news https://twitter.com/LandOrc1 our Twitter handle do-follow and be updated and share with the rest of your community.
Bitcoin
In Landorc, all real estate owners and/or real estate developers who receive LorcFinancing will receive LandNFT. What is LorcFinancing? How can users benefit from this feature?
Navonil
Thank you for going thru the details of our process. LORC financing is the process of staking and LANDNFT is the collateral against which the lending or LORC financing is happening. Actually, if you register on our dApp you will see some projects already available for LORC financing and you can participate.
Crypto Babu
As we know security is very important in this space, a lot of projects get exploited and funds get lost. How do you plan to prove that your contracts are secure? Have you done any audits so far and if not do you plan on doing any?
Navonil
Yes we value security a lot and have published all our smart contracts on Etherscan and audited them by a global IT security firm Entersoft, out of Australia you can check out the audit report here https://spaces.landorc.io/public/20211001_ES0034_SCA_C.pdf
Huktuk02
IS your platform suitable for Crypto beginners? Or does it only appeal to professional users?
Navonil
It's relevant to both crypto beginners and professional traders. Since it's linked to real estate which is expected to have consistent growth it allows beginners to have a more secured investment and access to global projects. For professional traders, they will see value in growth from the scarcity of tokens and the inherent value from staking returns and the liquidity on multiple exchanges.
X J V E N
Do you have a Token Burning plan to increase Whate are you doing now Token value and attract Investors to invest?
Navonil
Our pre-minted token volume is very limited at only 21 million and the incremental token supply is linked to the activity on the platform so this ensures that the supply of tokens is not more than demand and the price grows with time.
Chola Jai
Why did you build project, what was the motivation to start this project? What is different about project to attract investors’ attention?
Navonil
LandOrc derives its name from Oracles. In the blockchain, oracles bring data from off-chain to on-chain. Similarly, as a business, we are linking the virtual world of DeFi to the real world of real estate and solving real business problems. Our motivation is to use blockchain to solve real and large business problems.
The AMA recorded many great questions from the Crypto Players India community, as well as meticulous answers from our guest Navonil from LandOrc. AMA Concluded at 7 pm IST.
