this is the link of the previously awarded project.

https://dashboard.communityfund.stellar.org/scfawards/scf-23_36/activationawardreview/suggestion/658

Check the tauvlo app here in the link below

app/tauvlo.com

Instructions for use

1) Freighter wallet setup on testnet - add it as a chrome extension

2) fund wallet with friendbot

3) trustlines can be set up in app when browsing property details

4) you can fund your wallet with usdc (after it is trusted) via https://faucet.circle.com/?_gl=1*1hy897g*_gcl_au*MTM0ODYyNjk3MC4xNzA3NjkzNzkw*_ga*MTM1OTc3NTc2NS4xNzA3NjkzNzkw*_ga_GJDVPCQNRV*MTcwNzk5OTI1Mi4yLjAuMTcwNzk5OTI1My41OS4wLjA 

Acceptance criteria

Milestone 1) Property token

The property token will be a classic Stellar asset.

Deliverable

• Minimum 5 deployed property tokens

Review of the Milestone

• Existence can be checked on explorers

Milestone 2) USDC in Testnet as stablecoin

The tauvlo testnet will use USDC in Testnet as stablecoin that will allow users to engage in various transactions

Deliverable

• Deployed USDC in Testnet

Review of the Milestone

• Existence can be checked on explorers

Milestone 3) Marketplace Matching Engine

The tauvlo marketplace introduces a matching engine designed to facilitate the exchange of property tokens through buy and sell orders.

Deliverable

• Property tokens and USDC on Testnet are tradable

Review of the Milestone

• Existence can be checked on explorers and tauvlo’s frontend.

Milestone 4) Frontend

tauvlo’s web platform’s frontend has four main components. The property listing page, where users can browse for properties, the single property page with details of the property and buy tokens, trading page where users can manage their investments portfolio and a dashboard.

Deliverable

• Running frontend for the tauvlo POC

Review of the Milestone

• Existence and functionality can be checked directly in the browser or in github.

Milestone 5) Backend

a simple backend deployed on cloud (in GCP), with an endpoint that creates a property in a database (simple database for now that will be replaced in further development phases).

Deliverable

• Running backend for the tauvlo POC

Review of the Milestone

• Existence and functionality can be checked directly in the browser (without backend the frontend will be empty) or in github.

Guillermo Alda (CEO)

20+ years in business leadership roles across AI (6 years in the AI field, created three AI consulting agencies and successfully exited one), Renewable Energy, and Smart Buildings.

Chris Kottnauer Head of Real Estate

Broad experience in finance and real estate in the Czech Republic, CEE and North America. Over 15 years of experience in financial structuring, real estate development and asset management.

Michael Levi (CMO)

20+ years experience in product and growth leadership roles across DeFi, Blockchain, web3, FinTech,  Renewable Energy, Enterprise Software, Supply Chain, Telecom, IoT and Grid Edge industries.

Matouš Jezerský (CTO)

Expert development lead with experience setting up and leading AI development teams. Matous has been the AI brain behind 30+ AI projects in complex corporate environments.

Marek Hauzr (Head of Blockchain)

Founder of Carmine Finance, experience in tech leadership roles in AI including automated pricing of real estate and mortgages, HFT (stocks and crypto), smart contract development and MEV.

Andrej Sojka, Smart COntract Developer, previously worked as a lead quant in companies doing HFT or as lead data scientist in a venture building company.

Andrej Chepelau, Smart Contract Developer, has experience as quant and smart contract developer.

David Vodrazka, Full Stack Developer, experienced developer from Seznam, Google competitor. Full stack developer. From BE, FE and DevOps to smart contracts.

Martin Galajda, Full Stack Developer, experienced developer in backend, frontend, cloud applications, smart contracts and AI/ML engineering for banking, insurance and healthcare institutions.

Stan Simek, Web3 Legal Expert

Web3 legal advisory expert, associate at Badokh, a top-tier law firm in Prague. He is also the co-founder and CEO of DROMI, a blockchain advisory company.

Which problem are we solving?

Traditional real estate investing can be expensive and complex, often limiting access to accredited investors and those with large down payments and high recurring costs to service loans and maintain properties

tauvlo solves these problems with tokenized real estate assets and bonds which allows us to fractionalize ownership of properties and debt and make them available to investors in lower amounts. We also provide access to a global marketplace of properties, making it easy for investors to quickly, efficiently and cost effectively build and diversify their portfolios and invest in markets that were previously out of reach.

For real estate holdings companies and realtors,  tauvlo offers a new way to reach buyers, sellers and investors around the world. We provide a platform for them to list their properties and connect with qualified investors. Additionally,  tauvlo can help real estate holdings companies to generate immediate cash flow and liquidity by tokenizing their portfolios, or by raising capital via tokenized bonds.

We believe that  tauvlo is the future of real estate investing. By leveraging blockchain technology and Web3, we are creating a more accessible, efficient, and transparent marketplace for everyone involved.

How tauvlo uses Stellar

Stellar’s focus on RWA tokenization is a natural fit for us, since we want to bring “tradfi” retail investors and institutions into the crypto and digital asset space.

Stellar’s on and off ramps and compliance-ready approach with integrations with highly regulated partners like Circle are also of great interest for us, since we will need the highest KYC/AML and security standards.

We are aiming at a global audience, and we need a global on/off ramp ecosystem that helps reach as many users around the globe as possible. We feel particularly identified with the retail user approach that Stellar has (vs. other solutions focused on wholesale cross-border payments) because it fits exactly with tauvlo use case of making real estate investment available for everyone, and putting down the high barriers to entry. The money corridors and partnerships that Stellar Foundation is developing are a perfect fit for tauvlo to help reach a global audience.

Additionally, tauvlo is committed to  working with regulators and being fully compliant with local regulations and frameworks in every market we participate in. We see Stellar’s efforts in regulatory compliance as a critical aspect for us, for example how Stellar is part of the ISO20022 is an added value.

What can we bring to Stellar? 

We are targeting global crypto and blockchain adoption to bring people from all corners of the world into our ecosystem. There are millions of small scale investors all over the world that can’t afford to invest in real estate due to the high barriers to entry and how illiquid the asset is, but that would happily invest in RE if it was accessible to them. We want to bring those millions of users to blockchain and to the Stellar ecosystem.

Additionally, we are bringing financial institutions that want to tokenize their assets. The newly launched Bitcoin ETF’s by various large financial players like Blackrock is changing the narrative within the TradFi ecosystem and there is a demand from Real Estate companies to tokenize assets to access new capital markets.

What is the goal of this grant for tauvlo and Stellar?

The goal for the Activation Award grant was to build on Stellar as soon as possible and build the basic infrastructure to allow buy & sell of property tokens. The activation grant has been successfully deployed on testnet.

For this Community Award grant, we want to launch on Mainnet two realworld asset Security Token Offerings (STOs) of tokenized bonds. We have secured two strategic partnerships with two well-established Real Estate investment companies from Central Europe (see below for contact details). The estimated amount of the offerings are estimated at a total of $1 million USD (2x $500k in each Security Token Offering, although the total amount will be determined in the first analysis phase), which will be external capital brought to the Stellar ecosystem. The absolute value is at the moment not the main metric, the value is bringing those clients to Stellar and them deploying a lot more capital later.

The launch of these RWA tokenization use cases will help both Stellar and tauvlo to become a well established player in the promising RWA tokenization space.

Info about the Real Estate partners:

• Star Capital Finance https://www.scfinance.cz/ 
  • Star Capital Finance (SCF) invests in commercial properties such as shopping malls, office buildings, residential and industrial properties. Within their group they also have is a licensed SICAV fund which is regulated by the Czech National Bank (CNB). 
  • “We are keen to explore the tokenization of various real estate investment vehicles, and the tokenization of a bond raise is a perfect first step for us. We have demand from our clients to explore digital assets, and we are interested in raising capital through new Web3 channels. We see the partnership with tauvlo as strategic for our future strategy”.

Josef Malir, Managing Director (j.malir@scfinance.cz)

• Edifice, https://edifice.cz/  
  • Real Estate Investment & Development Firm Based in Prague, Czech Republic focused primarily on residential and industrial development projects with a Global-Reach.
  • “We are looking forward to this pilot to tokenize a real estate asset bond in order to uncover new ways of raising capital. We are ready to start, we have the assets ready and we look forward to this exciting partnership with tauvlo”.

Patrick Buck, Managing Director (patrick.buck@edifice.cz)

Milestone 1: Legal Analysis and Documentation for Bond Listing

Objective: The primary objective of this milestone is to conduct a comprehensive legal analysis and prepare all necessary documentation to facilitate the listing of a tokenized bond on Stellar, backed by real estate. This milestone is critical for ensuring that the bond issuance complies with all applicable laws and regulations, and sets a solid foundation for the subsequent stages of the project.

Scope of Work: We have already done a big part of this work, below we label what is to be done and what has been done.

1. DONE - Legal Analysis of Blockchain Securities: Conduct a thorough legal analysis to understand the regulatory landscape related to issuing and trading tokenized securities on the blockchain, with a particular focus on bonds backed by real estate assets. This analysis will include, but not be limited to, securities law, real estate law, tax implications, and any jurisdiction-specific regulations that may apply.
2. DONE - Compliance Framework Development: Based on the legal analysis, develop a comprehensive compliance framework that outlines the necessary steps and considerations for legally issuing a tokenized real estate-backed bond. This framework will ensure adherence to all regulatory requirements and best practices for investor protection.
3. TBD - Drafting Legal Documentation: Prepare all legal documents required for the bond issuance, including but not limited to, the bond indenture, the terms of the bond, the token sale agreement, investor disclosures, and any other documents necessary to meet regulatory requirements and protect all parties involved.
4. TBD - Real Estate Due Diligence: Conduct due diligence on the real estate assets backing the bond to ensure their suitability, legality, and value. This will include title searches, property appraisals, and the preparation of legal descriptions of the properties involved.
5. TBD - Regulatory Approval Process: Engage with relevant regulatory bodies to ensure the bond issuance meets all necessary criteria and obtain any required approvals or exemptions. This may include filing documentation with securities regulators, obtaining legal opinions on the tokenized bond's compliance with law, and interfacing with blockchain regulatory authorities.

Deliverables:

• An article made for a wide audience about the process of tokenization of bonds backed by real estate.
• Two articles made for a wide audience detailing the bonds, what the buyers are expected to receive, and what the properties backing these bonds are. One article for each property.
• An article made for a wide audience explaining how to buy a share in the issued bonds.

Timeline: The expected duration for completing this milestone is 1.5 months, subject to adjustments based on regulatory feedback and the complexity of legal analysis required.

Assumptions:

• Access to relevant legal and regulatory information will be provided in a timely manner.
• Cooperation from regulatory bodies and a clear regulatory pathway for tokenized securities.
• Availability of all necessary information regarding the real estate assets to be used for due diligence purposes.

Milestone Review: Milestone can be reviewed by checking the articles that will be published.

Milestone 2: Integration of KYC/KYB into Investor Onboarding Process

Objective: The objective of this milestone is to integrate a robust Know Your Customer (KYC) and Know Your Business (KYB) process into the investor onboarding workflow for our tokenized real estate-backed bond offering on the blockchain. This step is essential to ensure regulatory compliance, enhance security, and establish trust with investors by verifying their identities and assessing their suitability to participate in the bond offering.

Scope of Work:

1. Technology Selection and Integration: Select and integrate a technology solution for KYC/KYB that is compatible with our blockchain platform. The solution should offer a seamless user experience, ensuring that investors can easily submit their identification documents and business information for verification while maintaining high levels of security and privacy.
2. Onboarding Workflow Design: Design an onboarding workflow that incorporates the KYC/KYB process, ensuring it is user-friendly and efficient. This includes creating step-by-step guides for investors, outlining the types of documents required, and explaining the verification process.
3. Integration of a 3rd party service into the workflow design:
   1. Integration to the frontend so that the user can follow the workflow process
   2. Integration on the backend side, so that tauvlo team is aware of the investors and can efficiently communicate with them.
   3. Integration to the smart contracts, so that users that have been KYCed/KYBed can buy the bond tokens.

Deliverables:

• A report outlining the KYC/KYB process and the chosen technology solution for integration.
• Implementation of the KYC/KYB integration, including both the technology solution and the designed workflow.
• Documentation of data privacy and security measures implemented to protect investor information.
• Documentation outlining the entire process and motivation.

Timeline: The expected duration for completing this milestone is 2 months, allowing for technology integration, testing, and refinement based on initial user feedback.

Assumptions:

• Cooperation and clear communication with regulatory bodies regarding KYC/KYB requirements.
• Effective engagement and feedback from investors during the testing phase to refine the onboarding process.

Milestone Review: Milestone can be reviewed by checking the documentation and testing the process.

Milestone 3: Frontend Update

Objective: The objective of this milestone is to update the project's frontend interface to incorporate key features that enhance the user experience and interaction with the tokenized bond on the blockchain. Specifically, this milestone focuses on integrating the Stellar X DEX order book visualisation, providing detailed explanations of the bonds with visuals, and enabling direct interaction for trading on the Stellar X DEX from the frontend. This upgrade aims to make the platform more informative, user-friendly, and functional for investors interested in the real estate-backed bond.

Scope of Work:

1. Stellar X DEX Order Book Integration: Implement a live feed of the Stellar X DEX order book for the tokenized bond into the frontend. This involves developing API integrations with Stellar X DEX to fetch real-time order book data, including buy and sell orders, prices, and quantities. The goal is to provide investors with a transparent view of the market activity related to the bond.
2. Visualisation and Explanation of Bonds: Design and integrate visual aids and written content that explain the nature of the tokenized bonds, including how they are backed by real estate, their value proposition, and the benefits of investing in them. This content should be educational and cater to both seasoned investors and those new to bond investment or blockchain technology.
3. Trading Interface for Stellar X DEX: Develop a trading interface that allows users to directly place buy or sell orders for the tokenized bond on the Stellar X DEX from within the frontend. This interface should be intuitive, secure, and provide users with the necessary tools to make informed trading decisions, such as price charts, order history, and transaction confirmation prompts.

Deliverables:

• An updated frontend interface that seamlessly integrates the Stellar X DEX order book, providing real-time market data to users.
• Educational content and visuals that effectively communicate the concept, benefits, and mechanics of the tokenized real estate-backed bond to potential investors.
• A fully functional trading interface that enables direct interaction with the Stellar X DEX, including features for placing and managing orders.

Timeline: The expected duration for completing this milestone is 2-3 months, starting from the project kickoff date. This timeline accounts for the development, testing, and deployment phases of the frontend update.

Milestone Review: Milestone can be reviewed easily by checking the documentation and the frontend.

Milestone 4) Backend

Objective: The aim of this milestone is to update and enhance the project's backend infrastructure to support the automated sale of tokenized bonds backed by real estate on Stellar. This involves developing and integrating to Stellar X DEX from backend, setting up a secure and scalable server environment, and ensuring seamless transaction processing. The update will facilitate a smooth, automated process for investors to purchase tokens, with robust security measures and compliance checks integrated throughout.

Scope of Work:

1. Scalability and Security Enhancements: Ensure the backend infrastructure is scalable to handle high volumes of transactions and secure against potential threats. This includes implementing load balancing, data encryption, and other best practices in cybersecurity.
2. Implementation of quoting algorithm: Implement an algorithm that will be creating orders on Stellar X DEX with the goal of selling the bond tokens (raising the capital). 

Deliverables:

• APIs for frontend-backend interaction, enabling a seamless user experience during the token sale.
• Documentation detailing the backend architecture, smart contract functions, API endpoints, and security measures.

Timeline: The estimated time to complete this milestone is 2-3 months from the start date. This includes development, testing, and deployment phases, with buffer time for addressing potential issues discovered during testing.

Milestone Review: Milestone can be reviewed easily by checking the documentation and during the release date by checking that orders are arriving to the market correctly.

Milestone 5) Listing the first bond backed by property

Objective: The objective of this milestone is to actually list a bond backed by property. All the milestones 1-4 are creating technical and legal means to list the bond, this milestone wraps it and executes on the legal and technical infrastructure.

Scope of Work:

1. Going through the entire process of the token listing: To deliver a possibility for the end user to buy a share in a tokenized bond we have to go through both the legal, raising of the capital and the technical process

Deliverables:

• Tokenized bond backed by real estate property listed on Stellar X DEX.

Timeline: The estimated time to complete this milestone is 3 months from the start date. This includes development, testing, and deployment phases, with buffer time for addressing potential issues discovered during testing.

Milestone Review: Milestone can be reviewed easily by checking the documentation, legal reports and on Stellar X DEX by observing the property being listed.

Milestone 6) Listing the second bond backed by property

Objective: The objective of this milestone is to list a second bond backed by property. All the milestones 1-4 are creating technical and legal means to list the bond, this milestone wraps it and executes on the legal and technical infrastructure.

Scope of Work:

1. Going through the entire process of the token listing: To deliver a possibility for the end user to buy a share in a tokenized bond we have to go through both the legal, raising of the capital and the technical process

Deliverables:

• Second tokenized bond backed by real estate property listed on Stellar X DEX.

Timeline: The estimated time to complete this milestone is 4 months from the start date. This includes development, testing, and deployment phases, with buffer time for addressing potential issues discovered during testing. This time may change based on findings during the development, especially due to some regulatory matters.

Total Expected Roadmap

(Based on the numbering above, the detailed information is above in each milestone)

Milestone 1 - Legal analysis and bond documentation

Duration: 1,5 months

Cost: $20,000.00

Milestone 2 - Integration of KYC/KYB

Duration: 2-3 months

Cost: $10,000.00 

Milestone 3 - Frontend update

Duration 2-3 months

Cost: $10,000.00

Milestone 4 - Backend

Duration: 2-3 months

Cost: $40,000.00 

Milestone 5 - Listing of first bond

Duration: 3 months

Cost: $10,000.00

Milestone 6 - Listing of second bond

Duration 3,5 months

Cost: $10,000.00

The total duration of the project is estimated in 3-4 months. Milestones will be worked in parallel. The teams are defined and ready to start.

Future Roadmap

High-level tauvlo roadmap

Phase 1 - testnet deployment of tauvlo marketplace - DONE in the previous activation grant

Phase 2 - tokenized RWA on mainnet on Stellar X DEX - This current community fund grant request

Phase 3 - Custom tauvlo marketplace for tokenized RWAs (build thanks to Soroban) - Q3 2024

Phase 4 - Full scale release of the tauvlo marketplace - 2025