Introduction

What is the Konkrete protocol and why does it matter ?

Bringing real-world investment to Defi

Konkrete is a decentralized credit protocol that allows for crypto borrowing without crypto collateral—with loans instead fully collateralized with Real Estate off-chain.

Limitations of the current crypto lending space

Crypto loan requirements differ substantially from real-world loans by requiring on-chain overcollaterization to compensate for the absence of solvability background checks. Overcollateriation is thus a prerequisite to allowing permissionless borrowings. This in turn limits greatly the potential for on-chain lending. When looking at the current lending market, it is interesting to understand the main use case for crypto borrowing. Crypto borrowings are mostly sought by crypto natives and advanced DeFi users in order to speculate and trade in crypto markets. As such, market conditions are a key factor driving loan demand, but also yield levels in the space. In times of market expansion, the need for borrowings increases rapidly together with interest rates. However, as market conditions degrade, demand for loans and yields fall.

Crypto lending for the real economy

The main challenge is to adapt borrowing requirements to the market they serve. If overcollaterization works for crypto native borrowers, it is in no way adapted to potential borrowers in the real economy.

Konkrete opens on-chain lending to real-world assets. Real estate has traditionally been one of the most sought-after asset classes for professional investors, with the power to deepen portfolio diversification, achieve higher return potential, and provide performance consistency when other markets are volatile. Now available to DeFi lenders. All the projects offered on Konkrete are carried out by real estate professionals. The audit division of Konkrete is uniquely composed of real estate investment experts that analyze each real estate program so that they meet the selection criteria specific to their offer. Investors invest in carefully selected and pre-vetted real estate investment opportunities and benefit from the greatest transparency on their investments. Lenders are regularly informed of the progress of their real estate investment, throughout its duration.

Konkrete stands out from countless lending protocols by opening DeFi lending to real estate projects. Offering the opportunity to DeFi lenders to contribute directly in the Real Economy.