Robinland | MakerDAO Announcement

  • The applicant submitting applications to the governance forum according to Maker’s pre-specified format for the application.
  • The community engages with it during a cooling off period (usually 2–4 weeks) by posting questions
  • Community Greenlight Poll to determine which applications to prioritize
  • Maker’s ‘Core Units’ to conduct assessment/verification of the application along 3 dimensions: commercial, legal and technology
  • Onboarding call where the applicants present to the community, the community asks questions, and finalizes with an onboarding poll to decide whether funds will be dispersed
  • Studied all of the applications on Maker’s forum that are relevant to our case
  • Talked to 10+ security/real estate/financial lawyers about our legal structure and any/all regulations related to the process
  • Talked to Matthew Rabinowitz, the architect behind the 6s capital structure to understand its rationale and what Maker is mainly looking for
  • RBL represents fractions of a *portfolio* of loans. This brings 2 benefits (1) mutual insurance among the loans minimizes risk of default of the overall portfolio (2) rather than issuing heterogeneous tokens mapping to each underlying projects which suffer from poor liquidity, we’re issuing a form of homogeneous tokens that represent the senior lien commercial real estate asset class, which brings about much better liquidity.
  • The underlying collaterals are full-recourse right senior lien debt, which is more secure than any asset we’ve seen in other real estate MIP6 applications. The senior lien debt itself is equivalent to the ‘senior tranche’ in a capital stack MakerMan suggested. (See illustration for details) The full-recourse right (again not present in other real estate MIP6 proposals) is the highest level of protection for real estate debt projects, as it means the entirety of the value of the loan can be traced back in the case of default. If we were to adopt the tranching method MakerMan suggested, defaults on the ‘first loss’ tranche can still affect the senior lien.
  • We are taking on most of the labor-intensive steps in the process because we have the right skillset, experience, and industry connections in our team to do so. We are alleviating Maker from touching the dirty work and we are achieving our mission of serving as a bridge between Trad-Fi and DeFi — as the financial service provider. We let all the transformation happen within, such that our partners — real estate developer & DeFi lenders can stay within their comfort zone.
  • There isn’t a concern over ‘conflict of interest’ as (1) all the valuation and audit of the loan portfolio is conducted by industry-standard third party consultancies such as CBRE, BakerTilly, JLL, and Cushman & Wakefield (2) Role of the liquidator is purely to execute steps according to judicial process and state laws and all documentations and data involved in the process is out in the public (3) which we are more than happy to let Maker appoint a third party to take on and/or let Maker appoint a third party to supervise such process.
  • In fact, Robinland’s role is similar to an Arranger: we’ve set up a structure that is robust enough to include a large number of commercial real estate debt assets, mitigating Maker’s risk as outlined above, and also saving Maker from labor-intensive work by taking on that in-house. This means we are a financial service provider that can serve as the bridge between Trad-Fi and DeFi specialized in the real estate industry for the benefit of both parties. (Project suppliers and liquidity suppliers)
  • Clarified to the community that what Robinland is proposing is much in line with what Maker is looking for, both under the current framework and where it’s headed.
  • Showcased Robinland’s professionalism & flexibility in adapting to major partners’ needs such as Maker, which is the key in a healthy long-term partnership in a changing environment such as RWA X DeFi

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