Rebases Sourced From Rental Income
Rental yield from properties held in the Real USD treasury is collected, converted to DAI and paid into the treasury on a daily basis. New USDR is minted to account for the increased treasury and distributed proportionally in the form of a daily rebase. Thus, the Real USD supply expands by the amount of DAI received from rent. The daily rebase will appear automatically in the user’s wallet.
As the properties backing the TNFTs increase in value, USDR becomes even more overcollateralized, strengthening over time. As described in the minting against system gains section, this value appreciation is leveraged to buy more real estate, increasing APY and daily yield payments. At times, some of the Real USD minted against gains will be used to incentivize yield by swapping it for DAI and adding that money to the incentive vault.
In the event that USDR collateralization falls below 100%, 50% of yield payments will be retained by the treasury as stablecoin holdings and redeployed to procure additional property. This counteracts the decline in treasury value and recollateralizes the system using built-in mechanisms.