Milestone 1) Property token

The property token will be a classic Stellar asset. There will be multiple property tokens issued (minimum 5), based on the guideline here https://developers.stellar.org/docs/issuing-assets/how-to-issue-an-asset 

As explained in the documentation, there are 5 main steps:

Prerequisites: it will be in testnet, so we will fund the account by getting test XLM from friendbot

1. Create issuing account and an object to represent the new asset

2. Create distribution account

3. Establish trustline between the two

4. Make a payment from issuing to distribution account, issuing the asset

5. Optionally , lock the issuing account down so the asset’s supply is permanently fixed

Overview

Even though these tokens will be the classic Stellar assets, we will tailor the surrounding infrastructure (backend) for usage within a property-based blockchain ecosystem, providing a digital representation of a user's share in a property asset. The token is not currently intended for governance use, nor does it account for the legal implications of property ownership transfer at this stage. This section outlines the technical specifications and functions of the Property token and the surrounding backend that will provide additional functionality.

Proof of Concept Limitations

• The POC phase implements the Property token as classic Stellar asset which might impose limitations of the use down the line but is completely fine for the POC. 
• During the POC we will evaluate which will be the best option for further development, including how to use Stellar Soroban smart contracts to include additional property info into the tokens (i.e. property history, owners, title deed, etc).

Time Required and Cost

• Property token design
• Property token programming
• Property token deployment
• Testing 
• Writing documentation and user manual
• includes support of the FE/BE devs.
• $20,000

Deliverable

• Minimum 5 deployed property tokens

Review of the Milestone

• Existence can be checked on explorers

Milestone 2) USDC in Testnet as stablecoin

Overview

The tauvlo testnet will use USDC in Testnet as stablecoin that will allow users to engage in various transactions, simulating the behaviour of real stablecoins without any financial risk. This USDC is strictly for testnet purposes to enable developers and users to test functionalities in a controlled environment. Upon the transition to the mainnet, the USDC in testnet will be replaced with USDC in Mainnet as stablecoin.

The reason for choosing USDC is the widespread use and most importantly their regulation-friendly approach (vs. USDT).

Token Design

• Token Name: USDC in Testnet.
• Authorization Required: no

Minting Process

• Minting Permission: All users with a testnet account will be able to mint USDC tokens.
• Minting Limit: To mitigate the risk of multi-account attacks, there will be a stringent limit on the number of tokens that can be minted by a single account within a specified time frame.
• Rate Limiting: The minting function will incorporate rate limiting to prevent abuse of the service by the creation of excessive accounts and minting of tokens. This mechanism is critical to simulate realistic economic scenarios and to ensure the integrity of testing.

Transition to Mainnet

• Transition to Mainnet will be quite simple. We will just replace the Testnet USDC address with Mainnet USDC.

Conclusion

• The USDC in Testnet serves as a crucial tool for developers and users to test and interact with the tauvlo testnet platform. This proactive measure ensures that the platform is robust and fully functional before the introduction of real value tokens on the mainnet.

Time Required and Cost

• Setup the environment, deploying USDC in testnet, and perform different testing 
• Write documentation and supporting users (we don’t have experience in Stellar but in other chains in the Testnet environment there are numerous attacks and failures in API so we expect to spend some hours on that)
• Includes the support of the FE/BE devs. 
• $4,000

Deliverable

• Deployed USDC in Testnet

Review of the Milestone

• Existence can be checked on explorers

Milestone 3) Marketplace Matching Engine

Overview

The tauvlo marketplace introduces a matching engine designed to facilitate the exchange of property tokens through buy and sell orders. As the engine for this POC we will use the orderbooks of SDEX. 

We will follow the guidelines described here: https://developers.stellar.org/docs/encyclopedia/liquidity-on-stellar-sdex-liquidity-pools#order-books and https://quest.stellar.org/learn/series/1/quest/4

Proof of Concept Limitations

For testnet and POC the functionality is quite simplified. As explained in the user stories, there will be 3 user stories:

• User buys tokens of a property
• User sells tokens of a property
• User sees his investment portfolio

Time Required and Cost

• Setup, writing code scripts for market making,
• Deployment
• Writing documentation and user manuals, testing
• Includes the support of the FE/BE devs.
• $5,500

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

Overview

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. The goal for the POC is to build the first essential frontend pages that will allow users to browse, review and buy/sell (mock-up) tokens. Given the limited resources for this first activation phase it will be basic UI but if we are awarded with the additional grant phase we will develop more user friendly pages with better UX. Some properties will be fake in the POC phase, but it will prove the functionality. 

Pages

The pages we will develop in the first activation grant phase are:

Main page

A selection of properties will be displayed with filtering options (based on price, area, location, sold shares in the property).

(this is a mockup, final UI layout will be define at the start of the POC project)

Single property page

The description of the properties with different important information displayed, like price of the token, price per m2, expected yield (based on similar properties), and other property information. The users will be to review the property and buy property shares (tokens).

(this is a mockup, final UI layout will be define at the start of the POC project)

Trading page

This page will show all users orders in the market to illustrate the and the trading capabilities of tauvlo in the future secondary market, and for monitoring purposes. it will be a simple display of order tracking.

The trading page will include a way to get the tauvlo mock-up stablecoin.

Investments Portfolio Dashboard

We will develop a portfolio dashboard where users can track and manage their investments portfolio. This will be a great component to develop because this is what makes tauvlo different from REITs and other conventional RE platforms and it will help us gain early adopters and additional fundraising.

Techstack

• React framework 
• Styling: Styled-components

Security

• Implement HTTPS using TLS
• Data Validation: Validate inputs and handle errors gracefully
• Token-Based Authentication: JSON Web Tokens (JWT) for user sessions

Time Required and Cost

• Business analysis to define processes, main features to represent ownership and history of ta property, development of user stories, and wireframes
• Frontend Graphic design
• Frontend development, testing
• $10,000

Deliverable

• Running frontend for the tauvlo POC

Review of the Milestone

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

Note: Deployment, scaling and development described below in Backend.

Milestone 5) Backend

Overview

For this activation phase grant, we will develop 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). 

The backend will have endpoints to enable users perform basic operations of search and review properties, buy shares (tokens), and manage their portfolio. Overall it will be very basic and it will be developed further in later project phases.

API Endpoints and Services

Create property in database

(simple database, will be fully replaced down the line), to issue property tokens and to store few images on the server (heads-up this feature’s implementation won’t look good, it is essentially a hotfix to allow us to show the functionality).

Query all the properties 

All information from the properties. to enable browsing, search and filter of properties.

Query property images 

Image or images for given property.

Query all the property information

Each property will have descriptive fields, such as description, location, price, and expected yield. It will also include a link to an SPV incorporation documents, where SPV holds the property and the token represents ownership of the property.

Summarize user portfolio

Each user’s portfolio will be stored and this end point will query the financial parameters of each property. As explained above in the “Frontend” chapter, in the next development phase we will develop an “investment portfolio dashboard”, and this endpoint will be the one to query that data.

Market making

To allow users to be always able to buy something and to be always able to sell something. 

• We will have close to an infinite number of fake stablecoin (this is why we need our custom fake stablecoin)
• We will manually set the “correct price of the property”
• Market making will happen around this price

History of investments

List of acquisitions and exists from properties given user did.

Tech stack

• Python 
• FastAPI BE
• Postgres for RDB
• blob storage of Parquet files for data lake
• Subquery indexer

Deployment

• GCP

Limitation of the POC

• The POC is limited in terms of scaling and security. We will address these issues after the POC is done.

Time Required and Cost

• Setup infrastructure
• Devops, 
• Setup database
• Develop connectors to DB
• API development historical data and appraisals (suggested prices) and logic, testing
• $5,500

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.

User Stories

(what will the users be able to do)

US1. Browse and search all of the properties and their details

US2. Buy property share (tokens)

US3. Sell property share (tokens)

US4. See their net worth and portfolio status and portfolio dashboard

Cost Breakdown

(Based on the numbering above)

Milestone 1 - Property Token

Property token design
Property token programming
Property token deployment
Testing 
Writing documentation and user manual
includes support of the FE/BE devs.
Cost: $20,000.00

Milestone 2 - USDC on Testnet

Setup the environment, deploying USDC in testnet, and perform different testing 
Write documentation and supporting users (we don’t have experience in Stellar but in other chains in the Testnet environment there are numerous attacks and failures in API so we expect to spend some hours on that)
Includes the support of the FE/BE devs. 
Cost: $4,000.00 

Milestone 3 - Marketplace Matching Engine

Setup, writing code scripts for market making, 
Deployment
Writing documentation and user manuals, testing
Includes the support of the FE/BE devs.
Cost: $5,500.00 

Milestone 4 - Frontend

Business analysis to define processes, main features to represent ownership and history of ta property, development of user stories, and wireframes
Frontend Graphic design
Frontend development, testing
Cost: $10,000.00 

Milestone 5 - Backend

Setup infrastructure
Devops, 
Setup database
Develop connectors to DB
API development historical data and appraisals (suggested prices) and logic, testing
Cost: $5,500.00

The main goal of this grant is to start building as soon as possible on Stellar. This will help us and Stellar showcase users (and investors we are under discussions with) how to buy & sell, and manage a tokenized RE investment portfolio. There are a number of things we will develop in the next grant phase if we are lucky enough to be awarded. The main goal of the next phase is having a better looking and enhanced user experience Proof of Concept to help us onboard users and raise funds.

• Property governance. The governance aspect of fractional ownership is an important module. In the next phase we will develop the basics of the governance portal that will allow users to manage and govern their properties (e.g. decide on a specific improvement investment, have all property contracts in one place, etc).
• Improved backend
• Improved frontend
• Not all of the property token features may be implemented, according to the going assessment throughout the POC.
• The matching engine is heavily simplified and it will almost surely be a custom build down the line.
• There will still be some fake things, through lorem ipsum, endpoint returning constant text/value instead of variable one, etc. We will minimize those but will prioritize functionality over polished features.
• Smart contracts: We will assess if and how developing smart contracts in the Soroban framework will add value to our platform.

The total roadmap of building the platform will take us 12 months, we don’t expect Stellar to sustain our project, it will just be a very important milestone that will help us build the community and in our current fund raising rounds. The estimates to build the full platform in version 1 are $500k (we are currently raising a seed financing round).

This is the feedback received: (in blue what we have done)

Tauvlo Feedback:

Original Feedback: Make your budget more specific per-deliverable, and add more information about your Stellar Integration

• Not sure I'm seeing any changes to what they had? The cost breakdown is too general for this project, and costs such as "hardware" shouldn't be even there in the first place. We have added additional details in the costs breakdown in each milestone (please note not in the cost breakdown summary). We have removed the hardware costs.

• Also... I'm not really sure they've looked into how Stellar (classic) and tokens actually work. They talk about a "Property token" which, should(?) be a fractionalized asset but there's no clear discussion on how (technically) they plan to do this. We have added more info, but essentially on the POC we will use Stellar Classic (per your recommendation on a previous submission, our initial ida was to use Soroban smart contract. A smart contract can have more details on the asset ownership and history, but for the POC and for the sake of simplicity we will use Stellar Classic, but for next phase 9f we are lucky to be awarded with it) we will use Soroban Smart contract (pending on the findings and lessons learned on the Phase 1 POC)

• They also say include another token in the proposal, "mock-up stablecoin" but honestly, they could just use USDC on testnet for testing (and would make the most sense to do so). I mean, one of the reasons they list for coming to stellar is the on/off ramps, and TBH that's going to end up being USDC-centered :) . That's actually a good idea, we have incorporated it and now we won't be minting a fake stable coin but we'll be using USDC in Testnet. Milestone 2 updated in the doc.

Risk: "The total roadmap of building the platform will take us 12 months" -> but no estimate on how much $ needed to actually launch. If they are basing this on Stellar classic then there's NO unknowns related to Soroban.  The estimate to develop the V1 fo the platform is approx $500k, we are currently raising a seed round and we don't expect Stellar to fund it.

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 which allows us to fractionalize ownership of properties and make them available to investors in any amount, starting at just $50. 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 and sellers 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.

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

The main reason why we want to build on the Stellar chain is the on and off ramps Stellar can provide, providing access to millions of users around the world who could benefit from investing in fractional real estate ownership.

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.

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

Our main goal is to start building on Stellar as soon as possible. In this first activation phase grant, we want to build the basic infrastructure of tauvlo that will allow users to experience tauvlo’s core value proposition. It will allow users to browse and search for properties, buy & sell properties, and manage their investment portfolio. For this proof of concept, there will be fake tokens and fake properties and a representation of a market place. The property assets will be issued in Stellar Classic, and we will use Stellar’s native decentralized exchange (SDEX) to manage, buy, and sell the assets. After the feedback received by SCF, we believe this approach can add efficiency to the process.

This will be an important milestone because it will allow us (and Stellar) to showcase this use case to a broader audience, grow our community and attract investors.

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.

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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.

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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.

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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.

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