Real Coin With a Growing Floor
A hedge from crypto winters and a tool for DeFi leverage
The State of Stablecoins
TOP-5 coins have 92% of the total stablecoin market cap:
TOP-3 are fiat-backed centralized coins (USDT, USDC, and Binance USD) issued by a single legal entity:
USDC is issued by a regulated Coinbase-related firm that looks safe.
USDT is opaque and unregulated, but at least large exchange manage it.
BUSD is issued under the Paxos' NY BitLicense which makes it safe and regulated.
TOP-4 and 5 are considered decentralized:
UST is an algorithmic coin backed by LUNA, which is highly volatile and isn't backed by anything. Users believe that the Terra Foundation, funded by Chai (one of the largest South Korean wallet apps), will solve the issues in an emergency. Algo-stables, in general, are still in a lab mode, and there was no coin of such type which survived market volatility or a bank run.
DAI is a collateralized coin but primarily backed by USDC. Maker DAO is a great community, but it needs to diversify collateral types and involve more people in voting.
The whole crypto stablecoin market stands on the shoulders of four legal entities, two of which are unregulated. It's not good or bad: it's just what it is.
Looking for DeFi Yields
There's a high degree of enthusiasm around DeFi yields, both in web3 and general. But a closer look at the market shows that:
There's no sense in 20-50% APYs if the underlying asset's volatility is 300%/year: you're exposed to a high probability of losing money.
Prominent battle-tested protocols and strong stablecoins provide 1-3% APY, which is much better than 0.05% APY on bank deposits. But these APYs are shrinking as more institutions are flocking the crypto space with regulated custodians and other services.
The rest of the DeFi is a laboratory and/or is backed mainly by short-term, unsustainable financial incentives, which causes nothing but "liquidity vampire attacks" and draining marketing budgets.
Considering 1-3% APYs and $100 transaction fees, people must invest at least $100k per project to make some profits.
I.e., DeFi is for the rich today.
A Real Coin With Low Volatility, Price Appreciation, and Cash Flow
EVITA is backed by the real estate renovation portfolio, which means:
If somebody wants to sell $1 worth of liquid real estate in prime US locations at $0.9, there will be plenty of people wanting to repurchase it. Evita will be the first market-maker and invites liquidity providers to join us and share the spread.
5%+ annual cash-on-cash return in underlying assets is created by hard work and building new value. We turn old crappy buildings into shiny comfortable places.
The underlying assets are in private markets, which historically drives the price up faster than stocks. Historical IRR is 15-20%.
There's lower volatility in real estate compared to the stock market.
People could borrow stablecoins using EVITA as collateral with a high 80%+ LTV to increase their potential IRR to 40%.
Minting
EVITA is minted manually each time our legal entity buys more equity shares in real estate renovation LLP.
We will establish an independent quarterly audit of our holdings, so people can be sure that we invest according to our public agreements.
EVITA is an SEC-compliant security token distributed under the SEC RegS and RegD for the MVP (and RegA+ in later versions). So if someone finds that we violate the US law or our subscription agreements, he can whistle to the regulator, and the SEC will scrutinize us.
The initial EVITA supply is zero.
No free EVITA tokens have been allocated for the team or early investors.
No ICO, ITO, IDO, IEO, launchpad event, or airdrop has taken place.
Rental and Exit Cash Flow Distribution
It's cheaper and easier to increase the portfolio's net asset value (NAV) and the token price than to distribute dividends.
Each time Evita receives a rental payment or an exit payment (in case of selling a property), we put these dollars into our portfolio and reinvest them into the projects to keep the wheels running.
Spreading dividends will have a lot of negative issues:
It will trigger income tax events for investors.
We will have to spend money on gas fees.
It's more expensive in support and development.
TLDR: EVITA works like an SP500 ETF with perpetual reinvestment and NAV updates.
Ethereum Protocol
Evita's MVP is built on Ethereum Mainnet because it's easy to ramp up: lots of ready-to-go development tools, payment providers, integrations, etc.
Next versions will be bridged to Polygon and other popular Ethereum alternatives to make transactions cheaper.
Join Us
We're going to launch Evita gradually, so feel free to join our Discord to keep an eye on upcoming waitlist announcements, and more.
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