About the ODISEO Protocol

About the ODISEO Protocol#

The ODISEO protocol is a decentralized and open-source blockchain backed by Real Estate assets to build additional level of trust on the Network. ODISEO is a bulletproof blockchain platform secured by long term commitment of development companies who run validator nodes. Market participants enjoy unheard level of transparency into Real Estate developments and gain access to secured and reliable information about underlying assets for their decision making process. Using a combination of open market arbitrage incentives and decentralized voting, the ODISEO protocol allow to participate in Real Estate development projects, build real estate assets as well as enjoy Liquid Real Estate swaps. Users can spend, save, trade, or exchange ODIS token, all on the ODISEO blockchain. ODIS provides its holders with staking rewards and governance power. The ODISEO ecosystem is an expanding network of decentralized real estate development projects that contribue to increasing the price of ODIS.

ODIS and GAIA NFTs#

The protocol consists of two main tokens, ODIS and GAIA NFTs.

  • ODIS: The ODISEO protocol’s native staking token that absorbs the price volatility. ODIS is used for governance and is also required to partcicipate in Liquid Real Estate protocol that allow to echange liquidity between real estate assets and cosmos COMPATIBLE tokens ATOM. Users stake ODIS to Real Estate development projects (validators / SPV companies) and provid funds to develop real estate assets in exchange for yield. Validators record and verify transactions on the blockchain in exchange for rewards from transaction fees and capital to develop new assets. Our Blockchain contains information about ALL Real Estate projects listed, such as Land Titles, Contracts, Budget Control, but also location, size, drawings, plans and other details of the development. ODIS is expected to inrcease in value as new assets are developed and new Validator are added to the system. The monetary policy and release of new coins is extrictely balanced with amount of Real Estate assets listed on ODISEO platform.

  • GAIA NFT Collections: The NFT based technology tokens known as GAIA represent ownership of real estate assets. GAIA collections are electronic certificates of ownership for SPV shares, issued by independent SPV companies and made available to the market. The rights to a real estate asset and the responsibilities of SPV shareholders are determined by the SPV Share Class design, which is open to the public. Upon acquiring GAIA shares, the SPV opens a specific address within the SPV vault where the certificate is held until the underlying real estate asset is constructed. In the meantime, the electronic certificate can be traded on the platform. During the development process, decisions regarding the final use or disposal of the asset are made, and corresponding certificates are released to the owners. Shareholders who acquire SPV GAIA shares can also pleadge their assets and withdrw liquidity with ODIS tokens, which can be staked within the SPV Validator Node to earn yield from the SPV development project. Each NFT/Share is a unique digital asset verified on the blockchain. GAIA NFT collections track the value of real estate assets and also allow bidding for them.

How the ODISEO protocol works#

Liquid Real Estate protocol#

The ODISEO protocol uses the basic market forces of supply and demand to maintain the price of ODIS. When the demand for ODIS is high and the supply is limited, the price of ODIS increases. When the demand for ODIS is low and the supply is too large, the price of ODIS decreases. Liquid Real Esate protocol ensures the supply and demand of ODIS is balanced, leading to a reasobably stable prices. New ODIS coins is extrictely balanced with amount of Real Estate assets listed on ODISEO platform.

  • Expansion: Incorporating a new Special Purpose Vehicle (SPV) company for real estate development is the first step before listing a new development project on the ODISO blockchain. This process involves the creation of a separate legal entity to handle the specific project, with its own assets and liabilities separate from other projects. Subsequently new Real estate development projects (SPVs) can submit proposals for listing on the blockchain through the DAODISEO Governance platform.

The due diligence process for approving an SPV listing on the ODISEO blockchain include the following steps:

  1. Review of the company’s financial statements: This includes reviewing the company’s balance sheet, income statement, and cash flow statement to ensure that the company is financially sound and has the resources to complete the development project.

  2. Review of the company’s legal and regulatory compliance: This includes verifying that the company is in compliance with all applicable laws and regulations, and that it has the necessary permits and licenses to conduct its business.

  3. Review of the company’s business plan: This includes reviewing the company’s plans for developing the real estate assets, including timelines, budgets, and expected returns on investment.

  4. Review of the company’s management team: This includes verifying the qualifications and experience of the company’s management team, and assessing their ability to successfully execute the business plan.

  5. Review of the company’s assets: This includes verifying the ownership and condition of the real estate assets that the company plans to develop, and assessing their potential for appreciation.

  6. Review of the company’s NFT issuance plan: This includes reviewing the issuance plan of the NFTs representing the ownership of the SPV shares, and assessing the compliance with the regulations and standards of the ODISEO blockchain.

After completing the due diligence process, the ODISEO Governance can make an informed decision on whether to approve the SPV listing and allow the company to set up a new node and issue NFTs representing the ownership of the shares.If the proposal is approved, the system will mint a new GAIA NFTs that represents the rights to the real estate assets held by SPV. The GAIA NFTs will be parked in the ODISEO SPV Vault as collateral until asset is fully developed.

In exchange for the GAIA NFTs, the system will mint a corresponding amount of ODIS tokens and allocate them to the project developer (SPV). The issuance rate will be based on the approved budget for the project and may be adjusted over time as the project progresses and as market conditions change.

The ODIS tokens issued to the project developer can be sold to ODISEO users and used to stake to the newly created validator node. At the same time provide access to revenue stream from yield as well as provide ability to participate in DAODISEO Governance.

  • Contraction: When a real estate development project is sold or disposed of outside of the ODISEO protocol, the GAIA NFTs representing the rights to the asset will be burned.

In exchange for the GAIA NFTs, the system will contract the corresponding amount of ODIS tokens that were issued to the project developer. The contraction rate will be based on the approved budget for the project and may be adjusted over time as market conditions change.

The ODIS tokens that are contracted will be permanently removed from circulation, reducing the overall supply of ODIS tokens in the system.

Overall, this approach could provide a transparent and fair mechanism for contracting the ODIS supply in a controlled and orderly manner, while also aligning the interests of stakeholders and promoting the overall health and stability of the system. It may be helpful to seek the advice of legal and financial professionals with expertise in real estate and token issuance in order to ensure compliance with all applicable laws and regulations.

The market module and arbitrage#

The price stability of ODIS on the native market is achieved by the DAO Governance market module, which also provided the initial liquidity to exchange Real Estate Assets and Liquid Briks ODIS through arbitrage opportunities. Arbitrage occurs when a user profits from price differences between markets.

The Liquid Real Estate ODISEO protocol enables users to trade Real Estate Assets for liquid ODIS bricks and exchange them for ATOMs, and vice versa, incentivizing users to maintain the price of ODIS.

Users can access the Liquid Real Estate ODISEO protocol by performing market swaps in ODISEO Station. To learn how to use the market swap feature of ODISEO Station, visit the ODISEO Station market swap guide.

Scalability#

The ODISEO protocol is scalable: New development project are expected to join DAODISEO. We are envisioning highly decentralized blockchain network that grow organically across multiple jurisdications. Protocol is designed to maintain ODIS price stability regardless of market size, volatility, or demand. The monetary policies encoded into the protocol ensure its durability and resilience in all market fluctuations.

Seigniorage and deflation#

Seigniorage is the value of a coin minus the cost of its production. In early versions of the ODISEO protocol, seigniorage will be diverted to fund various community projects. While seigniorage can create enormous value, it also creates inflation in the system. We expect in the future that all seigniorage in the ODISEO protocol is burned, making ODIS deflationary in nature.

Validators#

Validators are SPVs that carry out Real Estate development projects on ODISEO blockchain. They are responsible for securing the ODISEO blockchain and ensuring its accuracy. Validators run programs called full nodes which allow them to verify each transaction made on the ODISEO network. Validators propose blocks, vote on their validity, and add each new block to the chain in exchange for staking rewards from transaction fees. Users can stake their ODIS to validators in exchange for staking rewards. Validators also play an important role in the governance of the ODISEO protocol.

For more information on validators, visit the Validator FAQ.

Consensus#

The ODISEO blockchain is a proof-of-stake blockchain, powered by the Cosmos SDK and secured by a system of verification called the Tendermint consensus.

The following process explains how Tendermint consensus works. For more information on the Tendermint consensus, visit the official Tendermint documentation.

  1. A validator called a proposer is chosen to submit a new block of transactions.

  2. Validators vote in two rounds on whether they accept or reject the proposed block. If a block is rejected, a new proposer is selected and the process starts again.

  3. If accepted, the block is signed and added to the chain.

  4. The transaction fees from the block are distributed as staking rewards to validators and delegators. Proposers get rewarded extra for their participation.

This process repeats, adding new blocks of transactions to the chain. Each validator has a copy of all transactions made on the network, which they compare against the proposed block of transactions before voting. Because multiple independent validators take place in consensus voting, it is infeasible for any false block to be accepted. In this way, validators protect the integrity of the ODISEO blockchain and ensure the validity of each transaction.

Staking#

Staking is the process of bonding ODIS to a validator in exchange for staking rewards.

The ODISEO protocol currenlty only allows the top 8 validators to participate in consensus. A validator’s rank is determined by their stake or the total amount of ODIS bonded to them. Although validators can bond ODIS to themselves, they mainly amass larger stakes from delegators. Validators with larger stakes get chosen more often to propose new blocks and earn proportionally more rewards.

To learn how to stake your ODIS and earn staking rewards, visit the ODISEO Station staking guide

Delegators#

Delegators are users who want to receive rewards from consensus without running a full node. Any user that stakes ODIS is a delegator. Delegators stake their ODIS to a validator, adding to a validator’s weight, or total stake. In return, delegators receive a portion of transaction fees as staking rewards.

Who owns staked ODIS?

Staked ODIS never leaves the possession of the delegator. Even though it can’t be traded freely, staked ODIS is never owned by a validator. For more information, visit the Validator FAQ

Phases of ODIS#

To start receiving rewards, delegators bond their ODIS to a validator. The bonding process adds a delegator’s ODIS to a validator’s stake, which helps validators to participate in consensus.

ODIS exists in the following three phrases:

  • Unbonded: ODIS that can be freely traded and is not staked to a validator.

  • Bonded: ODIS that is staked to a validator. Bonded ODIS accrues staking rewards. Although ODIS bonded to validators in ODISEO Station can’t be traded freely, bODIS is a token that represents bonded ODIS that can be traded freely or used as collateral on other protocols in the ODISEO network, such as Zeus and Mirror.

  • Unbonding: ODIS that is in the process of becoming unbonded from a validator and does not accrue rewards. This process takes 21 days to complete.

Bonding, staking, and delegating#

Generally, the terms bonding, staking, and delegating can be used interchangeably, as they happen in the same step. A delegator delegates ODIS to a validator, the ODIS gets bonded to the validator, and the bonded ODIS gets added to the validator’s stake.

Delegators can bond ODIS to any validator in the active set using the delegate function in ODISEO Station. Delegators start earning staking rewards the moment they bond or stake to a validator.

Unbonding#

Delegators can unbond or unstake their ODIS using the undelegate function in ODISEO Station. The unbonding process takes 21 days to complete. During this period, the unbonding ODIS can’t be traded, and no staking rewards accrue.

Caution

Once started, the delegating or undelegating processes can’t be stopped. Undelegating takes 21 days to complete. The only way to undo a delegating or undelegating transaction is to wait for the unbonding process to pass. Alternatively, you can redelegate staked ODIS to a different validator without waiting 21 days.

The 21-day unbonding process helps the long-term stability of the ODISEO protocol. The unbonding period discourages volatility by locking staked ODIS in the system for at least 21 days. In exchange, delegators receive staking rewards, further incentivizing network stability.

Redelegation#

Redelegating instantly sends staked ODIS from one validator to another. Instead of waiting for the 21-day unstaking period, a user can redelegate their staked ODIS at any time using ODISEO Station’s redelegate function. Validators receiving redelegations are barred from further redelegating any amount of ODIS to any validator for 21 days.

Caution

When a user redelegates staked ODIS from one validator to another, the validator receiving the staked ODIS is barred from making further redelegation transactions for 21 days. This requirement only applies to the wallet that made the redelegation transaction.

Rewards#

The ODISEO protocol incentivizes validators and delegators with staking rewards. Staking rewards come from two sources: gas and swap fees.

  • Gas: Compute fees added on to each transaction to avoid spamming. Validators set minimum gas prices and reject transactions that have implied gas prices below this threshold.

  • Swap fees: The fee for swapping ODISEO stablecoin denominations is called a Tobin tax. Exchanges between ODISEO and ODIS are subject to a spread fee. Swap fees are directed to the Oracle reward pool, where they are distributed over a period of two years to validators who faithfully report correct Oracle prices.

For more information on fees, visit the fee page.

At the end of every block, transaction fees are distributed to each validator and their delegators proportional to their staked amount. Validators can keep a portion of rewards to pay for their services. This portion is called commission. The rest of the rewards are distributed to delegators according to their staked amounts.

Slashing#

Running a validator is a big responsibility. Validators must meet strict standards and constantly monitor and participate in the consensus process. Slashing is the penalty for misbehaving validators. When a validator gets slashed, they lose a small portion of their stake as well as a small portion of their delegator’s stake. Slashed validators also get jailed, or excluded, from consensus for a period of time.

The risks of staking

Slashing affects validators and delegators. When a validator gets slashed, delegators who stake to that validator also get slashed. Slashing is proportional to a delegator’s staked amount. Though slashing is rare and usually results in a small penalty, it does occur. Delegators should monitor their validators closely, do their research, and understand the risks of staking ODIS.

Slashing occurs under the following conditions:

  • Double signing: When a validator signs two different blocks with the same chain ID at the same height.

  • Downtime: When a validator is unresponsive or can’t be reached for a period of time.

  • Missed votes: When a validator misses votes in consensus or fails to vote correctly in the Oracle process.

Validators monitor each other closely and can submit evidence of misbehavior. Once discovered, the misbehaving validator will have a small portion of their funds slashed. Offending validators will also be jailed or excluded from consensus for a period of time. Even simple issues such as malfunctions or downtimes from upgrading can lead to slashing.

For more information on slashing, visit the slashing module.

Governance#

The ODISEO protocol is a decentralized public blockchain governed by community members. Governance is the democratic process that allows users and validators to make changes to the ODISEO protocol. Community members submit, vote, and implement proposals.

To learn how to vote with your staked ODIS or submit proposals, visit the ODISEO Station governance guide.

Proposals#

Proposals start as ideas within the community. A community member drafts and submits a proposal alongside an initial deposit.

The most common proposal types include:

  • ParameterChangeProposal: To change the parameters defined in each module.

  • CommunityPoolSpendProposal: To spend funds in the community pool.

  • TextProposal : To handle other issues like large directional changes or any decision requiring manual implementation.

Voting process#

Community members vote with their staked ODIS. One staked ODIS equals one vote. If a user fails to specify a vote, their vote defaults to the validator they are staked to. Validators vote with their entire stake unless specified by delegators. For this reason, it is very important that each delegator votes according to their preferences.

The following is a basic outline of the governance process. Visit the governance module for more details.

  1. A user submits a proposal and a two-week deposit period begins.

  2. Users deposit ODIS as collateral to back the proposal. This period ends once a minimum threshold of 50 ODIS is deposited. Deposits are to protect against spam.

  3. The one-week vote period begins. The voting options are:

    • Yes: In favor.

    • No: Not in favor.

    • NoWithVeto: Not in favor, the deposit should be burned.

    • Abstain: Voter abstains.

  4. The votes are tallied. Proposals pass if they meet three conditions:

    • Quorum is met: at least 40% of all staked ODIS must vote.

    • The total number of NoWithVeto votes is less than 33.4% of the total vote.

    • The number of Yes votes reaches a 50% majority. If the previous conditions are not met, the proposal is rejected.

  5. Accepted proposals get put into effect.

  6. Deposits get refunded or burned.

Once accepted, the changes described in a governance proposal are automatically put into effect by the proposal handler. Generic proposals, such as a passed TextProposal, must be reviewed by the ODISEO team and community, and they must be manually implemented.

Deposits#

Deposits protect against unnecessary proposals and spam. Users can veto any proposal they deem to be spam by voting NoWithVeto.

Deposits get refunded if all of the following conditions are met:

  • The minimum deposit of 50 ODIS is reached within the two-week deposit period.

  • Quorum is met: the number of total votes is greater than 40% of all staked ODIS

  • The total number of NoWithVeto votes is less than 33.4% of the total vote.

  • A vote returns a majority of Yes or No votes.

Deposits are burned under any of the following conditions:

  • The minimum deposit of 50 ODIS is not reached within the two-week deposit period.

  • Quorum is not met: the number of total votes after the one-week voting period is less than 40% of all staked ODIS.

  • the number of NoWithVeto votes is above 33.4% of the total vote.

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