Loansnap has launched Bacon Protocol to deliver smart mortgages and bHOME – a native mortgage-backed stable+ coin – in an effort to extend institutional tier real estate investment opportunities to the decentralised market.
Bacon Protocol will begin offering artificially intelligent automated smart mortgages to prospective homeowners across the DeFi space.
The project pilots the idea of a so-called ‘Stable+ coin’ which, in the instance, of Bacon Protocol’s bHome is a stablecoin backed by USDC, liens, and residential mortgage loans for property in the United States.
Institutional finance purchases a whopping $2tn of mortgage debt annually, and most can expect a reasonable 3% rate of return in 2021. Wells Fargo alone will receive more than $8bn from mortgages and liens.
Bacon has the simple goal of extending these investment opportunities to the crypto markets.
Bacon Protocol delivers smart mortgages
Not least of these benefits is the launch of Bacon’s Protocol – which allows homeowners to exchange a lien on their home for an NFT representing a part of the value of the property they have purchased. Those buyers can then use the NFT as collateral broadly across the DeFi ecosystem.
Known as ‘Smart Loans’, these will initially be available on the LoanSnap platform.
The smart mortgages will automatically deliver the lowest possible rates and can be flexibly tied to any duration, with the loan continually refinancing to lower rates whenever possible.
The project has excited famous musicians The Chainsmokers – fresh-faced investors in the cryptosphere – through their new venture capital firm Mantis VC.
Speaking to Coin Rivet, Alex Pall of The Chainsmokers and co-founder at Mantis VC, explained why Mantis VC had committed to purchasing a major stake in the initial coin offering.
“The Bacon Protocol is the only decentralised option for mass participation in the mortgage ecosystem,” said the DJ and producer.
“We have always been intrigued by the idea of levelling the playing field and bringing more access to areas that were underserved and this idea does just that.
“It allows ordinary people to participate in the same type of investments that banks and other financial institutions access on a daily basis.
“We believe that this solution will be the catalyst for bringing billions of dollars from the mortgage industry onto the blockchain and look forward to participating in the bHOME coin sale.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.