In the discussion, Miseswei introduced the proposal of adding a real-world asset (RWA), OST-1, to the Aave protocol. This move would allow investors to gain exposure to asset types that are not correlated with cryptocurrency. The party interested in this collateral application is UPRETS, a company that provides digital security issuance technology and framework for integrating real estate assets into MCD. The main contacts for this application are Ran Wei, David Wei, and Wesley Ma of UPRETS¹.

OST is a type of asset-based digital security designed for global real estate investors and blockchain enthusiasts. It is a product of UPRETS' advanced digitalization technology, secured by the Omnilayer & self-owned patented consortium chain Xbolt. This ensures the compatibility of OST digital securities with mainstream public chains and secondary exchanges. OST represents the phase I legally compliant digital securities of the Oosten project, corresponding to the limited partnership interest of UPRETS Oosten Fund I LP, a real estate fund company located in Delaware, USA. The fund holds apartment No.730, which was acquired through private equity investment in compliance with the U.S. SEC’s Reg D and S standards¹.

The OST Digital Securities are traded on the MERJ Exchange and represent the limited partnership interest in UPRETS Oosten Fund I LP. Investors can enjoy the steady dividend return of the rental revenue and value appreciation of the underlying asset. The value of each token is backed by the assets and determined by the current price on the MERJ Exchange. The OST was listed on the MERJ Exchange on June 5, 2020, with an initial market value of US$1 million and an initial price of US$0.01 per OST¹.

Miseswei also provided information about the MERJ Exchange, a regulated market in Seychelles that adheres to the same exchange standards as other mainstream exchanges like LSE, NYSE, Nasdaq, CBOE, and CME. As of July 16, 2020, MERJ has listed 43 securities, including OST which has achieved eight transactions with a bilateral transaction volume of 298,924 tokens¹.

The discussion concluded with the liquidation options for the proposed Collateral type. Low to mid volume liquidations will be directed towards preferred global real estate investors and blockchain tech enthusiasts, while mid to high volume liquidations will be through the MERJ Exchange. OST can also be used as collateral to get liquidity in the FAN system¹.