What Problem Does Your Synthetic Solve:
The uRem synthetic token allows newbie retail crypto investors an easy way to get diversified exposure to the digital asset real estate metaverse without ever having to ever enter the digital world.
So your friend just told you how we’re moving towards a more digitized, decentralized world. Great, but how the heck do I get exposure to digital assets?
There are various ways of making bets on certain narratives in crypto today (for example, instead of researching and trying to pick the best Defi token to invest in, I can merely buy the Defi Pulse Index which gives me exposure to the top 10 Defi tokens).
But what if I want to make a bet on the prices of digital real estate? What if I thought land parcels on Cryptovoxalls or Decentraland are about to explode in price? Do I really have to go and use thousands of Mana to purchase the best corner site in Decentraland (which not only concentrates my risk but is also expensive but also time consuming)?
Enter uREM - a synthetic token that tracks the prices of digital real estate in the crypto metaverse. I can now tell my normie friend to just buy the synthetic uREM token on Uniswap and he/she would get direct, diversified exposure to all digital parcels of land in crypto - quick and easy, right?
Which metric will your synth track?
The prices of digital real estate in various worlds such as Cryptovoxalls and Decentraland.
How will you get data for your metric:
This is where it gets tricky and I would need the help of Blockzero and their team. I’m not a developer per se (my experience is in real estate finance) so I’d need their input on how to pull blockchain data from transactions occurring into Decentraland and/or Cryptovoxalls to create an index fund of sorts that would track the prices of digital real estate.
The collateral would likely be USDC to mitigate any price volatility and ensure the peg to the value of digital real estate prices were directly correlated to transactions rather than external crypto price movements (ETH / BTC swings).
The largest problem I foresee is how to create an accurate, reliable measure of the value of the digital real estate. For example, what happens if we enter a bear market and digital real estate transactions slow down or large pieces of real estate don’t trade on a regular basis (for example how to accurately assess the value of a prime piece of digital real estate if the owner decides to hodl and the parcel of real estate never actually trades hands).
Hopefully if the community likes my idea I’ll dig further in order to solve the above issue, but first I thought I’d throw my idea in the metaverse (pun intended) and see what y’all think!