We are pleased to announce that we’ve partnered with the Ripio Credit Network (RCN) to provide smart contract-based mortgages for purchasing Decentraland LAND!

Introducing the Ripio Credit Network

RCN is a peer-to-peer credit network built using Ethereum. Through the use of co-signed smart contracts and the RCN token, they have made it possible for lenders and borrowers from any country to enter secure, transparent, and reliable credit agreements– regardless of their country, currency or token.

In contrast to many traditional credit networks, the decentralized nature of RCN has minimized the associated fees and costs that go along with taking out loans.

Furthermore, RCN allows borrowers to establish a credit rating (viewable on the RCN dApp) based on the immutable and transparent record of their loan payments. This both gives lenders peace of mind and borrowers a simple path to their next loan or investment.

What does this mean for Decentraland?

As of today, Decentraland and RCN users will be able to request a mortgage through the Decentraland Marketplace to purchase any LAND parcel posted for sale.

Our goal at Decentraland is to lower the barrier of entry to the platform for all developers, artists, and enthusiasts. Introducing support for LAND mortgages with the Ripio Credit Network is a big step toward realizing this goal.

How do I apply for a LAND mortgage?

To request a LAND Mortgage, start by navigating to market.decentraland.org.

Log into your MetaMask, Mist, or Ledger wallet and select the account that you wish to use for your LAND Mortgage.

Before you can request a LAND mortgage, you will have to approve the Ripio Credit Network’s smart contracts to conduct transactions on your behalf using your MANA and RCN tokens. Open your Account Settings in the upper right corner, and check the two “LAND by Mortgage” boxes. (You only need MANA to request a mortgage, RCN will convert the MANA you use to the RCN token for you.)

Next, navigate to the parcel that you wish to request a mortgage for. Click Request Mortgage, directly next to the Buy button.

Next, you will have to submit a brief application form including the following details and a deposit of at least 10% of the price of the parcel you wish to buy.

  • Amount requested: the amount of MANA that you need for your mortgage.
  • Duration: how long (in days) you have to pay off your mortgage at the standard interest rate. Once the duration is reached, you will have to pay the punitory interest rate until the mortgage is paid off or defaulted.
  • Payable at: this represents the minimum amount of interest you will pay, regardless of when you pay off your mortgage. For example, if you take out a mortgage lasting 30 days, with a Payable at of 10 days, then you will be charged for at least 10 days of interest (even if you pay off your mortgage within one day of your request).
  • Interest rate: the annual interest rate for your mortgage.
  • Punitory interest rate: the amount of additional interest you must pay if you do not pay off your mortgage before the duration of your mortgage.
  • Request expiration: how long the mortgage will be listed on RCN. If this date is reached and no one fulfills your mortgage request, you will have to request another mortgage.

Once you request your mortgage, it will be published to the RCN network. Remember, so long as your mortgage request is still open on RCN, anyone else may purchase the parcel. A mortgage request does not take a parcel off of the Marketplace until a lender fulfills the mortgage.

Any lender on RCN can supply the funds and fulfill the loan (as long as the parcel in question is still for sale). Once a lender fulfils the loan, the parcel will be transferred to a separate smart contract for the mortgage.

As a borrower, you can then repay the loan by making periodic payments through the Decentraland Marketplace.

If you fail to fully repay the loan, you have up to 7 days after the expiration date to repay your loan. After this period, then your lender may request the mortgage back through the RCN dApp. If your lender requests the mortgage back, you will see a “Defaulted” notice on the parcel page. You will lose the MANA you’ve paid, along with your ability to claim that parcel.

You can see a list of your open mortgages by clicking My Land in the Decentraland Marketplace, and selecting the Mortgages tab.

To make a payment, click Pay, enter the amount of MANA you want to include in your payment, and click Submit.

Once you have completely paid off your mortgage, you can claim your parcel. Simply navigate to the parcel’s page in the Marketplace, and click Claim Parcel. Now, the parcel is freed from the mortgage smart contract is transferred to your account.

This feature is still in a testing phase and is provided on an “as is” and “as available” basis and may contain defects and software bugs. You are advised to safeguard important data, property and content, to use caution, and to not rely in any way on the correct or secure functionality or performance of the application. For more information, please take a look at our terms of use.

About Decentraland

Decentraland is a virtual reality platform built on top of the Ethereum network, making it possible for individuals, brands, and studios to develop rich, interactive 3D content hosted on a decentralized platform.

By dividing the 3D space of Decentraland into a finite supply of virtual parcels of land (LAND), with each parcel corresponding to a non-fungible token, Decentraland gives its users full control and ownership of their own digital space, assets, and experiences.

The web, mobile, and VR client allowing users to connect to and view the virtual world is still being built with an intended release date of early 2019, but Decentraland has an established community of developers already building games and experiences.

Decentraland’s technical lead, Esteban Ordano, expressed his excitement for this launch and the partnership:

“Ethereum projects are limited by oracles to know what happens outside of the blockchain. The Mortgages project is quite different: it combines two pure-information systems (RCN and Decentraland) to deliver a product where you can rest assured that the source code will be executed as written on the blockchain. It’s a great step forward towards fair, transparent, and open financial systems.

Decentraland and RCN are at the forefront of smart contract innovation and we’re very happy to join efforts with such a talented team.”

About RCN (Ripio Credit Network)

RCN is a global smart contract and blockchain-based credit network that connects lenders and borrowers located anywhere in the world and on any currency guaranteeing transparency and reliability in the lending. By reducing the traditional banking brokerage costs and management fees, RCN allows better conditions for both sides, creating a better credit alternative than anything available today. RCN leads the road towards credit democratization, offering a solution to traditional banking system alternatives.

In the words of RCN’s CEO, Sebastian Serrano:

“The partnership between RCN and Decentraland—two of the most promising Ethereum-based projects—is one of the first examples that highlights how different smart contracts-based applications can work together.

At RCN we drive our efforts to connect lenders and borrowers and offer them. Doing so in virtual reality is an exciting new horizon.”

Learn more about RCN