Updated Proposal to add HOME/3CRV to the Gauge Controller

Summary:

Proposal to add HOME/3RCV Factory Pool to the Gauge Controller enabling users the ability to assign gauge weight and mint CRV.

HOME is stablecoin fully backed by the value of US homes and home loans. For reference there are $13 Trillion of mortgages today and the U.S. Federal government hold $3 Trillion of mortgages on their balance sheet. In fact, the return in most banks savings accounts are powered by a pool of mortgages banks hold on their balance sheets. Mortgages have been a key way financial instituations, governments and banks preserve and grow wealth. This proposal is submitted to promote deeper liquidity for HOME that allows it to provide more loans in the US and provide visibility for HOME to the broader crypto community that would benefit from a stablecoin with transparent, durable rewards that is backed by real world assets.

The protocol will also add an incentive to the pool of up to 25,000 BACON daily from HomeCoin governance in addition to the CRV emissions.

See the pool at HOME/3CRV and the Gauge

References/Useful links:

Website & Whitepaper: https://www.homecoin.finance

Token Address: HOME Token Tracker | Etherscan

Twitter: https://twitter.com/homecoinfinance

Mirror: https://mirror.xyz/homecoinfinance.eth

Community: https://discord.gg/homecoin

Protocol Description:

HOME is a new type of decentralized system to fund loans against houses (what most people call mortgages). It makes mortgages cheaper, faster, and more flexible for homeowners. Its native utility token is called HOME. HOME can provide the stability and growth of mortgages to the crypto community. At launch, HOME only accepts the same kind of loans and homes that banks and governments buy.

HOME naturally earns 1% rewards just by holding it in a wallet. It also allows access to higher rewards through boosts and staking in the protocol. It has historically held a strong peg at 1 USD per HOME on the curve pool and through exchange directly through the protocol’s smart contracts.

There is almost $7 million worth of HOME in existence today all fully backed by over-collateralized loans on over 40 real homes all over the United States that can easily be seen on-chain.

The protocol is created by a strong founding team and backed by well-known investors such as True Ventures, Richard Branson (Virgin) and Peter Thomson (ThomVest) among others

Motivation:

During a time where many crypto assets are seeing instability, HOME provides unique stability to the market by being one of the first highly decentralized, transparent stable coins with durable returns. This proposal and gauge were created to help get visibility to HOME and its benefits for the crypto community.

Increasing HOME liquidity also allows the protocol to further its work to provide broad access to easy, fast, and fair home loans in an on-chain mortgage ecosystem that benefits both homeowners and liquidity providers.

Specifications:

See full details in the Whitepaper and on the protocol home page at https://www.homecoin.finance/

Governance:

The protocol is governed by the BACON token. Votes are held in Snapshot and so far have been widely participated in (https://vote.baconcoin.com) by the over 350 wallets that hold BACON. See etherscan holder breakdown chart to see how diverse the holders are https://etherscan.io/token/tokenholderchart/0xa54d2EBfD977ad836203c85F18db2F0a0cF88854.

A 3 of 5 multisig (https://gnosis-safe.io/app/#/safes/0xa42f6FB68607048dDe54FCd53D2195cc8ca5F486) enacts the results of the votes on the DAO’s behalf. We expect fully on-chain governance to be enabled in the near future as the protocol grows.

Oracles:

The protocol relies only on an oracle to prove that the homes backing HOME have a lien recorded in the US county records. This oracle function is provided by the Servicers that have been appointed by the protocol to act in its behalf.

Audits:

The protocol has been thoroughly audited twice. See the latest audit here: https://files.homecoin.finance/homecoin-blocksec-audit.pdf

Centralization vectors:

The protocol is decentralizing as more Servicers come onto the platform. Today there is one that maintains the connection between the protocol and the liens registered with the US county records. Otherwise, all other functions are decentralized either by the protocol design (all payments can be made directly on chain without an intermediary).

Market History:

HOME has historically maintained a stable price. Being backed by stable, real assets that are each heavily over collateralized provides strength to HOME.

The curve pool has been active since May 20th and currently has over $600k in TVL. Its volume averages $25k per week, peaking over $200k from time to time and is growing. The Pool has seen almost $1.5M in transaction volume so far and growing quickly.

2 Likes

Please explain to us how your liquidations work. Does the DAO just … own the underlying home?

Also who is the US-govt regulated body that custodies the collateral (physical home)?

In a liquidation the mortgages would be sold off There is a robust existing market for mortgages including Fannie Mae and Freddie who actively buy mortgages The ownership is a lien on the house which is a promise to repay a debt of a fixed size. Liens have been in existence for years and have a well worn history of being enforceable in court. If a borrower does not repay the loan then the lien can be used to sell the house and recoup the principal The lien cannot be used to force the borrower to sell the house unless they have not paid their loan Mortgage is regulated at the state and federal level There is not a government body that “custodies” the collateral per se. This is one of the benefits of the system its decentralized at its core i.e. the liens are recorded and maintained at the county level

How do you ensure you have uncovered all liens senior to the one you own? The existence of “secret” liens, i.e. liens not easily found through public records, is a recognized problem for those involved in foreclosures.

We use a title company that does a thorough search for secret liens. For large loans or homes that don’t have title insurance through another loan, we also have the borrower buy title insurance that covers this concern. Secret liens are very rare, even in foreclosure cases, but we protect against it.