flipside

    Try Quests to earn cryptoTry Quests to earn crypto
    Share

    LoanSnap

    To fully grasp the content of this analysis, reader is advised to read the INTRODUCTORY part of the analysis in detail to understand how the LoanSnap ecosystem works.

    LoanSnap Ecosystem
    WHAT IS LOANSNAP?

    LoanSnap

    LoanSnap is a digital mortgage lender that uses artificial intelligence (AI) and machine learning (ML) technology to help borrowers find the right mortgage product for their individual financial situation. The company was founded in 2018 by Karl Jacob and Allan Carroll, who both have extensive experience in the tech and financial industries.

    LoanSnap's AI-powered technology analyzes a borrower's financial situation, credit history, and other relevant factors to recommend the best mortgage options from a wide range of lenders. The platform also provides personalized financial advice to help borrowers improve their credit scores and reduce debt, with the ultimate goal of making the mortgage process faster, more efficient, and more transparent.

    In addition to its digital mortgage platform, LoanSnap has also developed a blockchain-based protocol known as the Bacon Protocol, which allows mortgage liens to be tokenized and traded on a decentralized marketplace. This enables investors to gain exposure to the $17 trillion mortgage industry without the barriers to entry that have historically existed, and also allows for faster loan approvals and more flexible repayment terms.

    Overall, LoanSnap aims to disrupt the traditional mortgage lending industry by leveraging AI, ML, and blockchain technology to provide borrowers with better, more personalized financial solutions and to democratize access to real estate investment opportunities for retail investors.

    BACONCOIN

    The LoanSnap ecosystem consists of several key components that work together to enable the tokenization of mortgage debt and the creation of a new asset class for investors.

    1. First, there is the LoanSnap platform itself, which serves as a marketplace for mortgage loans. Through this platform, qualified borrowers can connect with multiple lenders and find the best rates and terms for their loans.

    2. Second, there is the Bacon Protocol, which is the technical backbone of the LoanSnap ecosystem. The protocol enables the tokenization of mortgage liens and the creation of NFTs called Slices which represents valuse of real life assets. This allows investors to own a fractional share of a mortgage and earn a return based on the performance of the underlying real estate.

    3. Third, there is the bHOME stablecoin, which is the primary asset of the LoanSnap ecosystem. This stablecoin is backed by tokenized mortgage liens and is designed to provide a stable store of value while also offering potential investment upside based on the appreciation of the underlying real estate.

    4. Finally, there is the network of investors and lenders that participate in the LoanSnap ecosystem. These include retail investors who can now gain access to the $17 trillion mortgage industry, as well as traditional financial institutions who can use the protocol to streamline their mortgage lending operations.

    Overall, the LoanSnap ecosystem represents a major innovation in the mortgage lending space, bringing the benefits of blockchain technology and decentralized finance to a historically closed and opaque market.

    What links LoanSnap to Bacon Protocol and Home?

    LoanSnap is a mortgage lending platform that recently made headlines for its innovative use of blockchain technology to tokenize mortgages. Through its partnership with the Bacon Protocol, LoanSnap has successfully created the world's first NFT mortgages by wrapping seven mortgage liens into tokens worth $1.5 million.

    By tokenizing housing debt, LoanSnap has eliminated many of the barriers to entry that have historically made it difficult for retail investors to get involved in mortgage lending. Now, anyone with a DeFi wallet can own a fractional share of a mortgage, giving them access to what was once considered to be one of the lowest-risk and consistent yielding asset classes available.

    Using the Bacon Protocol, LoanSnap has minted NFTs tied to individual mortgage liens and used those non-fungible assets to back their stablecoin, known as the bHOME token. As payments are made towards the mortgage, or the underlying property appreciates, the bHOME token grows in equal value, generating a return similar to what a bank would receive as a mortgage lender.

    One of the unique features of the bHOME stablecoin is its transparency, as it is backed by a historically well-understood asset like housing. This transparency sets it apart from other stablecoins, such as Tether, which have been notoriously opaque in publishing the contents of their reserve assets. Additionally, bHOME offers investment upside over other stablecoins, as it appreciates in line with the underlying real estate, earning it the nickname 'Stable+' coin.

    As the Bacon Protocol expands, it will be possible to mint additional tokens each with a specific set of criteria, such as liens on homes in a given metro area or only homes worth more than $1M. This will enable investors to get exposure to real estate in a particular region that may be experiencing a boom without needing to invest in any one specific home.

    In summary, LoanSnap has leveraged the Bacon Protocol to create a platform that democratizes access to mortgage lending and allows investors to gain exposure to the housing market through tokenization. By creating a stablecoin backed by real estate, LoanSnap has provided investors with a transparent and potentially lucrative investment opportunity, while also reducing the cost and time involved in the lending process.

    HOMEcoin

    GLOSSARY
    • Flipside tables shall be used for this analysis.
    • The ethereum.core.ez_transfers, ethereum.core.ez_swap, ethereum.core.nft_sales, ethereum.core.nft_mints and ethereum.core.fact_evet_logs.
    • To answer the first part of the question, the balance of the two(2) tokens are summed up to get the total supply of the token in USD available in users wallet.
    • All latest NFT sales of tokens in USD are also gotten and used as the current value of NFTs in wallets.
    • To get the general overview of interactions with loansnap, all contracts associated with bacon and home are filtered out and their transations alongside user metrics were counted.
    1. WALLET DOLLAR: is the value of the balance of token in the wallet in USD
    2. LIENS: is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets.
    3. SLICES: is the name of the native NFT project of the LoanSnap ecosystem.
    METHODOLOGY⚒️
    REFERENCES