New Deposit Process

New Deposit Process

Stable processes asset deposits in a standard, streamlined process. The process may not be fast, easy, or fun, but it helps ensure the health of USDX. Here is how it works for real estate.

Real Estate Evaluation

Each property must go through a series of checks.

1. Property Valuation

   1. Multiple appraisals are obtained:

      1. A third-party appraisal with a confidence score

      2. A local appraiser’s valuation

      3. Stable’s internal model assessment

   2. The lowest valuation is used as Stable is incentivized for USDX to be as over-collateralized as possible. If significant discrepancies arise in the valuations, the property is not approved.

2. Title Verification

   1. A title check is run to ensure ownership legitimacy and identify liens or legal encumbrances on each property.

3. Document Submission

   1. Owners provide records of existing mortgages, liens, inspections, and sales documents.

4. Usage Declaration

   1. Commercial Use Declaration

      1. If the property has commercial use, relevant lease agreements, tenant quality assessments, market analyses, and financial statements are required.

   2. Rural or Agricultural Declaration

      1. If the property is classified as rural the depositor must note that. If the property is designated for agriculture then further information about the use of the property and the business that operates on it are required.

Owner Evaluation

The owner of that real estate is also evaluated.

1. Identity and Financial Assessment

   1. KYC, credit checks, income verification, asset balances, and debt analysis are run on each real estate owner depositing with Stable.

   2. For institutional depositors, a full KYB and business evaluation is conducted.

2. Risk Scoring

   1. Real estate and owner risk scores determine:

      1. Maximum loan-to-value (LTV) ratio.

      2. Yield cut and borrowing rates.

Property Accepted

If a property is accepted then next steps can be taken to add it to the ecosystem.

1. Notice

   1. The real estate owner is notified that their property has been approved for deposit. They have 30 days to execute before reapproval would be required.

2. Tokenization and Deposit

   1. Properties are transferred to an LLC and tokenized if not already on-chain.

   2. Owners deposit their tokenized real estate into the Stable protocol.