Integration Details and Workflow
Proof of Reserves Feed
Off-Chain reserves are aggregated from multiple sources and provided as a single API endpoint to the Chainlink Network through an external adapter. External adapters are how Chainlink enables easy integration of custom computations and specialized APIs. External adapters are services which the core of the Chainlink node communicates via its API.
The PoR workflow can be envisaged as follows:
Tangible’s off-chain reserves data is aggregated by a third-party, The Network Firm (TNF), as covered in the section above. Through on-chain systems and off-chain attestation, they combine both digital and real property assets into a numeric value that is reported against the token.
The token balance of our DAI reserves, protocol-owned liquidity, TNGBL token, insurance fund assets and tokenized real estate assets (TNFTs) are queried from verified on-chain sources. The value of those assets are then calculated using decentralized, on-chain pricing data provided by ~16 Chainlink node operators and our home price oracle, covered in the section above.
Monthly Attestation
Agreed-upon attestation procedures, and the resulting report, cover two core areas of transparency:
Original Purchase of Real-Estate Property Assets for corresponding TNFTs
Ongoing Ownership Review*
The following provides the intent and detailed workflow for each of these procedures.
Original Purchase of Real-Estate Property Assets for corresponding TNFTs
The goal of this first set of procedures is to verify that new TNFTs are backed with the purchased real estate represented in that TNFT. Each month, The Network Firm will perform agreed upon procedures, and will report findings from the procedures, which relate to documentation on properties which have had the sale and tokenization process completed. Our agreed upon attestation procedures and report are intended to demonstrate to intended users of such reporting that, at the time of the report’s publication, the sales and tokenization process was completed as represented by the Tangible team.
Using everyday language, we have described the procedures performed by TNF using the following workflow:
TNF will pull from on-chain data sources the Token ID, Fingerprint ID, and Product ID for each TNFT issued by Tangible. This data will be input onto a Findings Table used to map sales and tokenization documents back to the individual TNFTs.
For each of these TNFTs, Tangible will provide TNF the related Special Purpose Vehicle entity formation documents, sales contracts, purchase payment receipts and Land Registry Transfer (TR1) records (together the “Purchase Documents”).
TNF will then reconcile the following attributes between the TNFTs and the Purchase Documents:
Compare address from the sales contract and transfer paperwork (TR1) to the TNFT address
Compare the name of the SPV to the buyer listed within the sales contract and transferee on the TR1
Compare the title guarantee (full or limited) noted in the sales contract to the guarantee noted in the TR1
Compare the purchase price listed in the sales contract to the consideration amount in the TR1
If all attributes are correct, document the results with a “check mark” in the Purchase Documents column of the Findings Table. If one or more than one attribute are not fulfilled, TNF will follow-up with Tangible and note any discrepancies in the Table footnotes.
NOTE: The workflow above is management’s interpretation of the procedures performed. The workflow above may not be reflective of the exact procedures performed and may be missing context important to the intended users of the report. Therefore, we recommend that all intended users read the full attestation report(s), including the exact procedures, available here.
The findings from all these steps will be aggregated onto the Findings Table providing all customers with immediate transparency into the purchase process for new TNFTs, helping showcase that the process has been completed as represented by Tangible.
Ongoing Ownership Review
The outcome of the first procedure is a documented snapshot in time seeking to prove that real estate has been purchased and tokenized as represented. However, we believe it is also important to show Tangible users that the real estate remains under protocol ownership and management after the attestation document date.
A second procedure is in development that will showcase the continued ownership/management of the properties backing the TNFTs.
Future Developments
Tangible is committed to optimizing and refining our transparency efforts on behalf of our users. Attestation reporting will evolve to include additional considerations such as valuation of properties and procedures covering rental income streams. However, Tangible is working with necessary parties/vendors to ensure that such data can be provided to TNF in a repeatable and reliable format so that it can be used in future attestation procedures.
*Reporting for the ongoing management of tokenized real-estate was not relevant for our first month's attestation, as all properties were "new" for the month. Procedures related to the ongoing management of tokenized real estate will be added to the attestation reports in the subsequent months.
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