Comunitti

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Decentralized Real World Assets on Flow EVM

Introduction

Comunitti is an auto finance project that enables lessees to own cars without traditional banks with the use of blockchain technology for a fully decentralized real-world assets finance experience, making it more transparent, secure, and accessible while also creating investment opportunities.

What It Is

Comunitti is a DeFi project on Flow Blockchain that is following the econommi business model, offering interest-free car leasing and also serving as an investment opportunity without relying on traditional banking and credit scoring metrics.

Since 2019, econommi has revolutionized the car leasing and auto finance sector by promoting fair leasing practices and a thriving community business model by digitizing real-world assets.

As of August 2024, econommi has successfully signed over 150 lease deals in Vancouver and Toronto which historically provided investors and lessors with double-digit yields.

Business Model‍

Econommi introduced the Fixed-Fee Model, where there is no debt and no monthly interest.

In this model, a fixed amount goes towards the car’s principal and leasing fees each month.

This means you own your car quicker and can buy it out anytime without penalties, furthermore, you can also easily calculate how much of the car you own at any point during the lease.

(You can check out the their leasing calculator here)

This is the exact opposite of an interest-bearing lease, where early payments mainly cover interest rather than the car’s principal. 

In the first half of the lease, payments make little progress toward owning the car. 

Additionally, without complex calculations, it’s unclear how much of the car you actually own.

Econommi’s revolutionizing business model and efficient automations significantly reduce overhead costs, demonstrating an innovative approach to automotive financing that is both beneficial to the lessee and the lessor.

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How the econommi Platform Works?

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1. A lessee signs a lease contract with Econommi for a $20,000 car, leased at a markup price of $30,000 over five years, offering a 10% annual RoA (17% IRR).
   
   
2. The lease contract is divided into 200 tokens and sold on the econommi Marketplace. Each token costs $100 and provides a 10% annual RoA (17% IRR).
   
   
3. Monthly lease payments from the lessee are distributed as profits to token holders which means the longer you hold the tokens, the more profits you earn.
   
   
4. Investors (token holders) can withdraw their profits or sell their tokens for cash through the econommi App,directly to their bank account.

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How does Comunitti implement this for DeFi?

Comunitti is adopting this business model by harnessing the power of blockchain technology through smart contracts and tokens to ensure transparency, security, and instant processing.

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1. Lease contracts are turned into digital tokens on the blockchain using multi-token ERC1155.
   
   
2. Monthly lease payments are handled by a smart contract, which converts Canadian Dollars (CAD) into the stablecoin USDC and records the transaction on the blockchain.
   
   
3. The USDC is deposited into the ERC1155 Tokenized Lease Contract.
   
   
4. Investors can manage their investments in ERC1155 tokens and withdraw USDC returns using a smart wallet, such as Metamask, on the Comunitti Platform.
   
   

Technology

Comunitti is currently on the Avalanche Fuji C-Chain Test network, which makes it easy to transfer to other Ethereum-compatible chains, such as Flow Blockchain, when the Crescendo upgrades begin on September 4th, 2024.

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What makes Comunitti  Unique?

• Transparent Transactions: Every activity from purchases to mints can be easily verified and identify through blockchain technology

• Easy-to-Use Marketplace: A simple and friendly interface that makes it easy to navigate contracts.

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• Detailed Contract: Contracts are easy to understand and display only the information you need to see.

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• Easy Steps to Fund Your Account: A simple 3-step process to get 10,000 USDC for investing in lease contracts.

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• Multiple Dealership Partners: Choose from 8 locations all across British Columbia that accepts leasing from Econommi and Communiti

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Founding Team

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Econommi and Communiti success in the auto finance industry in Canada are credited to the collaborative efforts of its skilled team. 

• Hudhaifah Zahid (Co-founder & CEO): Developed Blockchain Intelligence Group’s risk scoring algorithms.
• Arvin M (Chief Operations Officer): Led the transformation of business models and managed high-growth operations.
• Simranjeet Kaur (Chief Technology Officer): Mentored and nurtured technical skills among youth.
• Adrian Hodgson (CFO & Controller): Automated accounting and financial systems.
• Ahmad Bhatti (Director of Leasing): Gained extensive business development experience in auto financing with GM Financial and Volkswagen Credit.
• Izzul Syahmi (Lead Engineer): Executed complex engineering designs with precision and expertise.
• Owyn Cramer (Vice President Operations): Drove product design vision, ensuring user-centric practices and engaging experiences.

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Econommi’s scale, reach, and impact are made possible by the support of their strategic advisors worldwide:

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• Diraj Perkash Goel (Scaling Advisor): Founder of GetFresh Ventures. Supported 200+ startups & raised $100m+.
  
  
• Aly Hadibhai (Investor): Managing Director of Private Equity with $1B in Assets.
  
  
• Paul Ratchford (Investment Banker): Investor, Advisor, & Entrepreneur with experience at JP Morgan Chase & Kits Investments.
  
  
• Anthony Lau (Strategy Advisor): Provided strategic direction at BlackBerry, DMZ, and Optiva.
  
  
• Berjesty Kozanoglu (Product Advisor): CEO of Mojo Design Agency, former Director of UX at Cineplex, Shopify, Telus, and DMZ.
  
  
• Liane Coulahan (Marketing Advisor): Former Director of Marketing & Communications at DMZ, RBC Ventures.

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Conclusion

Econommi business model is redefining the auto finance landscape in Canada, and with its DeFi version, Comunitti, it is further innovating leasing through blockchain technology.

By leveraging smart contracts and tokenization on the Avalanche Fuji C-Chain (And soon on Flow Blockchain),Comunitti’s offer of a transparent, secure, and interest-free leasing model makes it accessible to everyone to drive a car that eliminates traditional banking barriers.

Backed by years of experience in auto financing, banking, and blockchain technology, Comunitti’s motto of “Cars today, Rockets tomorrow,” could become a reality.

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