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SPECS.md

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version: 0.2

Initial draft

Elevator pitch

Protocol that manages rent payment, deposits and rent guarantees for landlords and tenants without any third-party or guarantors.

Definitions

Rent: Payment from tenant to landlord for the use of a property.

Security Deposit: A security deposit protects the landlord from financial loss should the tenant cause serious damage to the property.

Rent guarantee: Money locked upfront that is claimable by the landlord in case of non-payment of rent

Note: Security deposit usually also protects from unpaid rent however we would make a distinction between Security Deposit and Rent Guarantee because the latter is verifiable on-chain, the former is not.

User stories

1. Moving in

Amount for rent, security deposit and rent guarantee to be agreed upon off-chain between landlord and tenant.

As a tenant:

  • I should be able to lock a certain amount as deposit
  • I should be able to lock a certain amount as rent guarantee

2. Renting

As a tenant:

  • I should be able to pay my rent on time (if rent is due on the 5th of each month, it means before that day).

As a landlord:

  • I should be able to withdraw from the protocol the rent from the moment it's due
  • If rent payment is late, I should be able to withdraw from the rent guarantee an amount equivalent to the unpaid rent (see below for integration with Sablier)

3. Moving out

As a landlord:

  • I should have control over the deposit and how much of it is given back (dependency with off-chain legal procedure for outgoing inspection)

Further integrations

  • Deposit and rent guarantee locked in the protocol can be deposited on Aave and generate interests => 100% of the interests go to the tenant ? x% to the tenant / y% to the landlord ?

  • Sablier allows to stream money, which could potentially be used to:

    • Determine the amount of rent that is due and increasing each second! If rent is due once, the tenant doesn't necessarily to do 1 transfer per month. Similarly, the landlord doesn't have to withdraw rent money owed once a month.
    • Determine exactly the amount of rent that is due, unpaid and claimable from the rent guarantee (also increasing each second)

  • L2 solution: tenants & landlords won't be happy if they have to pay an additional 10% of the rent in tx fees!

Research