Tulpea - Whitepaper V1
  • Tulpea: The First Decentralized Bank
    • What is Tulpea?
    • Systemic Failures in Traditional Finance
    • Limitations of DeFi: Structural Inefficiencies and Barriers to Adoption
    • Tulpea: A New Financial Paradigm
      • Architecture: DAO at the core
      • Business Units
  • Decentralized Intermediation
    • Smart-Collateralized Loans in Rental Real Estate Investment
    • RE Lending: Between Bureaucratic Gatekeeping and Asset-limited Lending
    • Inefficient Existing Alternatives
  • Tulpea’s Solution
    • 1. Identification of Opportunities
    • 2. Submission to the DAO
    • 3. Collective Capital Contribution
    • 4. Debt structuring
    • 5. Deal Execution
    • 6. ABDT Distribution to Lenders
    • 7. REBT Distribution to Borrowers
    • Banking-Financed Model
  • System Analysis
    • Borrowers’ Perspective
    • Lenders’ Perspective
    • Institutional Lenders’ Perspective
  • Expansion of the Model: Decentralized Banking
  • veTULIP: Locked Governance & Incentive Mechanism
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  • Initial REBT Allocation
  • Automated REBT Unlocking
  • DeFi & Collateral Utilization
  1. Tulpea’s Solution

7. REBT Distribution to Borrowers

Previous6. ABDT Distribution to LendersNextBanking-Financed Model

Last updated 1 month ago

Borrowers participating in the Tulpea ecosystem benefit from a fully tokenized property ownership model, where ownership is represented by REBT at loan issuance. The unlocking mechanism is directly linked to structured loan repayments, ensuring progressive ownership accumulation over time.

Initial REBT Allocation

  • Borrowers receive 100% of the property’s tokenized as REBT upon acquisition.

  • A portion equivalent to their initial down payment (typically 20%) is unlocked from day one.

  • The remaining balance is vested and gradually unlocked as the borrower automatically repays the loan through rents.

Automated REBT Unlocking

REBT tokens are released progressively at each rental payment cycle (weekly or monthly), ensuring borrowers unlock equity in real-time.

The number of tokens unlocked at each payment period is given by:

Un=(Utotal−Uinitial)NU_n = \frac{(U_{\text{total}} - U_{\text{initial}})}{N} Un​=N(Utotal​−Uinitial​)​

Where:

  • Utotal = Total vested tokens representing property ownership.

  • Uinitial = Initial unlocked portion (e.g., 20% of total tokens).

  • N = Total number of payments (e.g., 240 for a 20-year loan with monthly payments, or 1040 for a 20-year loan with weekly payments).

The cumulative unlocked tokens at any payment period are calculated as:

Where:

  • n = Current payment period.

This structure enables a true leveraged real estate investment, allowing borrowers to acquire and control a high-value asset with only a fraction of the required upfront capital while implementing risk safeguards for lenders, ensuring financial stability and transparent loan management within the DAO ecosystem.

The loan structure is based on amortizing debt, meaning the property finances itself through structured repayments, avoiding balloon payments or high refinancing risks.

DeFi & Collateral Utilization

The REBT tokens can be used as collateral in DeFi lending protocols, allowing borrowers to access liquidity while maintaining their real estate exposure.

This model creates a liquid, programmable real estate mortgage, bridging traditional credit with decentralized financial applications

Ucumulative=Uinitial+(Utotal−Uinitial)×nNU_{\text{cumulative}} = U_{\text{initial}} + \frac{(U_{\text{total}} - U_{\text{initial}}) \times n}{N} Ucumulative​=Uinitial​+N(Utotal​−Uinitial​)×n​