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tags: Mystic Whales, Template
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# Rigor

$2M seed
$5M raise

List shared, has not given a check
Who are the right lenders to Rigor, wants to reward for token rewards
Borrowers APY 8%-10%

What is the volume of their build is, home building is small medium size home builders, institutional builders own 25%, SMBs build 80-100 homes a year

Crypto VCs feedback:
Token opportunity to provide reliable stable,

1. This community wants to build a Mortgage Lending Group
2. Zillow has Zillow Group/Capital, Community is coming around Rigor to launch the capital arm
3. as a Builder, you should co-launch this Group together
4. These are the specs (APY, initial check-size, operational/non operational)

Questions:
1. repayment period
2. exit period for the member of the DAO
3. what is the interest rate the Borrower is going to get
^ for scheduling meetings
Pain-points so far:
1. the lending terms of the DAO seems less competitive than Web2 offerings
2. The daunting friction-point of crypto to USD transition during the escrow period
3. Real Estate industry is very relationship-based, I've gotten feedback that there's no incentive to refer the DAO vs a lender at a bank where they've built relationships and share deal-flow for years

Open and intro, and close
Open, Rigor closes

Prop Tech/Construction funds

**Issues:** DAO created to give back reliable returns, DAO proposition to an investor
The DAO is selling a thing, and Rigor is not selling a thing
Simplify the story, the dungeons of financing

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**Background**
Defi protocol for IRL construction
Protocol because there's not enough homes, need more liquidity
Rigor is defi solution to access capital to build
Protocol needs to be built, has an integration with OpenLaw

Coordinate the construction of more homes
Crypto and land management

homebuilding as a practice is regionalized, you have builders, you have a legacy financial stack

Commision protocol, in charge of who else is included in the member. Private club.

The DAO owns the property if it defaults.

Rigor is defi solution to access capital to build. The DAO owns the property if property defaults. Mystic Whales and Rigor will work together on communicating token economics for onboarding participants.

**Objectives**
The protocol is developed, one construction is developed

Near term: run closed beta, where Rigor can ID a home building partner/construction partner

Repalce web2 stack

Always the funding

70% are made by small home builderes

**Goals**
There's a way to build homes and finance

Rigor is made by DCorp/LLC?, wants community to summon RigorDAO and functions:
1. Provide financing to construction, new users on the lending side, put money into it, capital used for construction
- $4M in DAO, borrow $1M, use that $1M to finance construction projects, time project is done, Alchemix loan is paid back, and now you have a property back.

2. Think units of $200K, because that's how much you need to borrow and build a home

**Scope**

Phase I: communication, onboarding,
token economnics: how do we structure the shares, share issuance, is it loot and voting, DAO share

Phase II: KPIs to merge the legal and DAO entity, how to do you communicate it's a phase process

1. DAO structure and launch - capital & community
- any investor can launch a DAO contractor, and builders request to join the community. When a builder uploads the project, need request to join.
- Be the first big lender, DAO launches as a community effort, token permission

2. If successful, if we are able to fund new homes
If lending goes well/community goes well;
- project is created by an LLC
- Merge the LLC with the DAO
- based on principle

3. Token design needs (?)
- KPI dependent on when it would launch
- transition construction funding to funding construction
The merge of LLC and DAO may be the token launch

4. How raise money to bring into the DAO
- $2M DAO (raise for 20 houses)
- bring capital through the DAO
Convertable Note, proRata token notes, raised $1M is Seed round, deal is unpriced, buying your prorata share to 6%

18%APY

**Milestones**
- token generation event
- commit governance to move to community:
1. want a healty community, if a VC comes in does not disrupt
2. show this model of financing to 20 homes

Future Considerations

**Out of Scope**
Legal stuff

Project Exit
Phase I rolls into Phase II which we will rescope for Phase II

Key Stakeholders
Yalor (advisor/investor) in Rigor
Runs home builder (build 8K homes in FL a yr)
Sen

Constrains/Assumptions/Risks/Dependencies
Level of urgency, next week, well capitalized can value that

Deliverables

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# Capital

Sold $3M in convertable notes
pro-rata shares, up to 6% of token supply
2% is $1M
1% is $500,000