What is HOM DAO?
HOM DAO is releasing the HOM token and building the HOM Protocol, an open-source platform that will allow property owners to bond their property in exchange for HOM tokens and then stake the tokens for compounded returns. You will also be able to use the Protocol to buy or refi the property of your dreams.
What is the point of HOM DAO?
HOM DAO’s goal is to provide tools for you to build wealth, buy property, and generate passive income. Our community’s mission is to help provide access to safe, comfortable, sustainable housing for everyone, everywhere.
How do I participate in HOM DAO?
You are welcome to join the DAO and get involved. In order to be a voting member you must own pHOM or HOM tokens, which are available by making a contribution to the DAO. The minimum contribution to join the DAO is 1,000 USDC. In exchange you will receive pHOM tokens. You can also make larger contributions to receive more tokens. pHOM will convert to HOM on a 1:1 basis at the public launch of HOM. The public launch is estimated in Q2l 2022 with an initial offering price estimated at $3-$5 per HOM, although pricing and timing are subject to change at any time..
How can I benefit from HOM DAO?
The HOM Protocol will empower people to buy or refinance a property using the HOM Protocol and through the HOM Equity Liquidity Pool (HELP). By leveraging the HOM protocol in a concurrent closing, the HELP program will empower people to buy and refinance their property without a credit check or downpayment. The HELP program’s goal is to make it possible for anyone anywhere to access safe, comfortable, sustainable housing.
The HOM Protocol will also make it possible for you to build wealth through staking activities which result in compounded returns which accrue over time. Beyond passive income, the value of HOM may also go up over time, helping accelerate your personal abundance.
Who runs HOM DAO?
No one. HOM DAO is DAO-governed. Every decision is created by community members on the forum and made by token holders through Snapshot voting.
Why do we need HOM DAO? Currently there is a chasm between DeFi and real estate. HOM DAO exists to bridge that gap and provide tools for you to build wealth, buy property, and generate passive income. Our community’s mission is to help solve access to safe, comfortable, sustainable housing for everyone, everywhere.
Is HOM a stablecoin?
No, HOM is not a stablecoin; it is better categorized as a Steadycoin. Because the DAO treasury assets are based primarily on real estate, instead of crypto, HOM provides tangible benefits to owners.
How is HOM different than crypto like OHM?
As a real-estate backed cryptocurrency, when the value of the HOM token increases, more property is acquired by the DAO to support the higher valuations. The goal is for every HOM token to be backed up by a large percentage of its value in actual real estate assets. The Bonding and Staking periods in HOM are also different in that the minimum bonding periods are much longer (typically months or years, instead of ETH epochs) and the staking awards are greater for HOM owners who take their tokens for longer periods of time. The DAO’s goal with this is to reverse the short-term staking and flipping inherent to the first generation of bond-stake platforms.
What is a HOM-NFT?
A HOM-NFT is a NFT that contains meta-data for a specific property and a series of smart contracts that allow the property to be exchanged for HOM tokens over a period of time (bonding period).
Can anyone make a HOM-NFT?
Yes. Anyone can make a HOM-NFT as it is a permissionless platform. However, approval of a HOM-NFT requires validation by a third-party, including proof of title, or proof of purchase agreement, insurance, and many other elements.
What is Staking and how does in work at HOM?
Staking is the primary value accrual strategy of HOM DAO. Stakers stake their HOM tokens on homdao.finance to earn rebase rewards. The rebase rewards come from the proceeds from bond sales, and can vary based on the number of HOM staked in the protocol and the reward rate set by monetary policy.
Staking is a passive, long-term strategy. The increase in your stake of HOM translates into a constantly falling cost basis converging on zero. This means even if the market price of HOM drops below your initial purchase price, given a long enough staking period, the increase in your staked HOM balance should eventually outpace the fall in price.
Staking allows you to earn HOM passively via auto-compounding. When staking your HOM,, you receive HOMstake (staked HOM) in return at a 1:1 ratio. After that, your HOMstake balance will increase automatically on every epoch (8 hours) based on the current APY.
HOMstake is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn HOMstake and receive an equal amount of HOM tokens. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked HOM.
What is Bonding?
Bonding is the secondary value accrual strategy of HOM DAO. When users bond HOM tokens, they are actually selling their assets in order to buy a bond from the protocol. Bonding Actions are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the bonder with terms for a trade at a future date. These terms include a predefined amount of HOM the bonder will bond and the time when vesting is complete. The bond becomes redeemable as it vests. I.e. in a 5-day term, after 2 days into the term 40% of the rewards can be claimed.
Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bonds discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Allowing users to purchase bonds through bonding allows HOM DAO to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders.
What are PCV and NAV and why are they important?
PCV Protocol Controlled Value, is the amount of funds the treasury owns and controls. The more PCV the better for the protocol and its users. NAV Net Asset Value per token is the sum of an enterprise's total assets less any liabilities divided by the number of issued tokens. Any difference between the NAV token price and actual trading price is called market premium.
What happens if there is a “bank run” on the HOM Protocol?
There are several safeguards built into the HOM protocol that were designed to prevent the kind of adverse spiral that have been observed in other bond-stake protocols. HOM DAO plans to include four specific defensive measures in the HOM Treasury that are unique to the protocol, including:
- 1.The bonding contracts for HOM are much longer (generally measured in years) than the bonding contracts for most crypto projects which are measured in hours/days.
- 2.It is envisioned that the real estate treasury reserve requirements of HOM will be rebased every quarter to be no less than 25% of the token price. This is vastly higher than the $1 USD per token requirement of other OHM forks. With a vastly greater reserve requirement in place, there should be a greater defense against a “bank run” scenario against the HOM treasury in a sell off.
- 3.HOM is unique in that it provides Staking contracts that provide greater rewards to longer-term contracts. Early withdrawals can subject the staking awards to the equivalent of an early withdrawal penalty.
- 4.When selling a HOM token, the smart contract is designed such that either 5% of the sales price or 1 USDC (whichever is greater) will be retained by the HOM Treasury. So if the token owner sells their HOM token for 50 USDC, 2.50 USDC is collected by the treasury. If a HOM token sells for 10 USDC, 1 USDC is collected by the treasury. This creates an additional buffer designed to stabilize the treasury in a sell-off scenario. It also provides additional funds for the treasury to bond and buy more property.
What is APY and why is it different from APR?
APY stands for annual percentage yield, versus APR, which is annual percentage rate. APY measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of HOM DAO Protocol, your staked HOM represents your principal, and the compound interest is added periodically on every epoch (24 hours) thanks to the rebase mechanism.
One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 1%, if you start with a balance of 1 HOM on day 1, after a year, your balance will grow to 38 HOM in the course of a year (a 38X return!).
What is a rebase?
HOM Protocol uses the term rebase to describe two activities.
When used in terms of treasury management, rebase is the method through which the protocol rebases the treasury to ensure that there is 25% coverage in real estate or stablecoins versus the token price. The goal of HOM DAO is to have treasury rebasing conducted on a monthly basis, but for the first 24 months of the project, treasury rebasing may be done on a quarterly basis
When used in staking, rebase means the value at which HOM token balance increases. So if you compound your yield payments from staking each day, a reward yield rebase occurs the next day that includes any interest paid in the last 24 hours. That is added to your prior balance (rebased) and provides a new base value on which the next day’s yield payment will be calculated.
Of note here, due to the way the protocol works, when a HOM Token owner stakes their HOM, they actually receive a new type of token called HOMstake. So they only HOMstake balance instead of a HOM balance. But DAO members need not get confused. 1 HOMStake is always equal to 1 HOM.
Do I have to unstake and stake HOM on every epoch to get my rebase rewards?
No. Once you have staked HOM with HOM Protocol, your staked HOM (HOMstake) balance will auto-compound on every epoch. That increase in balance represents your rebase rewards.