Tangible
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Rebases Sourced From Rental Income
Rental yield from properties held in the USDR 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 USDR supply expands by the amount of DAI received from rent. To collect the daily rebase, users will simply need to stake their USDR at Tangible.
As the properties backing the TNFTs increase in value, USDR becomes even more overcollateralized, strengthening over time. Once the treasury reaches 130% overcollateralization through the strength of reassessed property values, any incremental appreciation will be minted and paid back to stakers in the form of a rebase, increasing APY and daily yield payments.
In the event that USDR collateralization falls below 100%, 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.
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