The HiP Ecosystem
As the HiP Token sale continues, join Marty – Chief Technology Officer – as he discusses the HiP ecosystem and how it works.
One of the goals we set out to achieve with HiP was to create a platform that allows anyone to contribute new ways of funding or investing in property.
One of the ways we’re doing this is by creating an open marketplace of new finance products. These are the things we use to buy and sell property – for example, the mortgages that you can get today from a bank.
With HiP, we enable the buying & selling of shares in property, rather than the whole property itself – so this creates opportunities for all sorts of new products.
For example, we’ve already built an equity release product, letting people unlock equity in their homes by selling shares to investors — and we’re working on adding a “New Home Buyers” product right now — allowing new purchasers to buy property with a mixture of deposits, loans and external investment. These loans and investments might come from banks or even homeowners.
These finance products are simply bits of code that run across the ecosystem. They define the terms of how equity is bought and sold, and the conditions that are attached – such as interest rates on debt, how rent should be paid, or what we call “sweeteners” – add-ons to attract investment in low-return markets.
We’re opening the ecosystem to let people other than HiP develop these products too – simply by writing a smart contract and publishing them into the product marketplace. This gives access to a whole new breed of innovators to start coming up with interesting new ways of buying and selling property.
If the product is an attractive proposition for homeowners, and represents a good deal for investors, then people will start using it to buy and sell property.
For example, we’re exploring new ways to let parents help get their kids on the property ladder by leveraging equity in their existing home, rather than taking on new debt.
On a larger scale, a regional council might choose to create products that stimulate local economic growth, by matching pound-for-pound investment in, say, loft conversions.
On the other side of the market are investors, who are looking for property investment opportunities.
This is where investment strategies come in. These are algorightims that help investors and fund managers find and execute investment opportunities.
At HiP, we’re creating strategies that let people choose their risk and reward preferences, and matching these with portfolios of debt & equity.
However, just as with products – these investment strategies are simply pieces of code that execute in real-time across the HiP ecosystem, continually re-evaluating market conditions, open orders and held positions.
To encourage innovation, we’re making creating these strategies achievable to new entrants as well as those that have been writing these strategies for years.
Developers can write investment strategies that leverage all sorts of data – for example, investing in areas where there’s new urban development – like a new rail line being built – or choosing to invest exclusively in green energy initiatives. Powered by a rich ecosystem of real time data, machine learning supports and advises developers in creating a new breed of investment platform.
In order to encourage developers to write new finance products and new investment strategies, rewards to these developers, in the form of HiP Utility Tokens.
Each time a trade is matched on our trading exchange, a transaction fee is charged. Portions of this fee are then redistributed back to the authors of the product and the investment strategy that made the trade possible.
The HiP platform is really exciting – an open marketplace of new property financing ideas, and all the tools to make these ideas a reality.
The potential for these rewards is huge – we estimate that with just 0.1% of the UK market, the rewards through HiP are a multi-million pound annual business.
WHAT WE AIM TO DO
HiP is the NEW Way
to finance property
Creating affordable financing packages
HiP will change the way property wealth can be accessed and afforded, opening the world of real estate to many more buyers, owners and investors.
Releasing value from their assets
HiP offers a first for home owners, developers, investors and buyers enabling them to take control of their property and the wealth within it.
Offering investment flexibility in high-yield property markets
The property market excludes a large part of the community from being able to buy and invest. HiP unlocks this investment market for all.
Initially, HiP Will revolutionise the world of property for four major markets within this sector:
FIRST TIME BUYERS
“A record number of first time buyers must find at least £500,000 to get a foothold on the housing ladder in London.” - London Evening Standard, 15th December 2017
Although HiP is not just about London, this headline tells a sad story. Combined with an average £80,000 debt for University graduates in the UK and we have a major social problem. HiP will help solve this by allowing investors to participate in first time buyers' home ownership, bringing the barriers to entry far lower than ever conceived possible before.
To release equity in a property today can only be achieved by either selling it entirely or taking out further debt. Having to pay interest to access wealth that already belongs to you is a deeply flawed model.
HiP will allow people to release equity into their own property bank account on the HiP platform; in multiple currencies and without incurring further debt or moving out of their home.
BUY TO LET LANDLORDS
HiP will allow buy-to-let investors to leverage their entire portfolio to expand their portfolios faster, cheaper and more efficiently.
The HiP platform allows investors to choose from multiple opportunities with incredible flexibility.