The SinnersClub business Model
Last updated
Last updated
Income investment principles
The first part of the investment is creating a real-estate portfolio through the purchase of land in different Metaverses starting with The Sandbox for the above-mentioned reasons.
The second part of the investment is intended to secure passive income to holders through DeFi. In The Sandbox, there are 2 DeFi products: Staking and Liquidity Mining (for more information see part III-c). Staking and Liquidity Mining have a yield of 19.03% and 36.83% respectively (figures as of 04/30/2022).
The size of the plot of land owned is an important factor in securing passive yield. Effectively, the total property portfolio makes it possible to obtain a boost called "land multiplier" which can multiply up to 1.6 times the annual return of the products mentioned above.
Example:
For $1,000,000 invested:
$300,000 is invested in land, i.e. 120 plots of land (with an average price to date of $2,500 per plot). 120 plots of land correspond to a boost of approximately x 1.51.
$700,000 is invested in DeFi:
$350,000 is invested in staking, i.e. $66,500 in return for the year.
$350,000 is invested in Liquidity Mining, i.e. $128,800 in return for the year.
Thanks to the land Multiplier of the 120 Sandbox Lands, APR are now :
($66,500 + $128,800) x 1.51 = $294,903
For a total of $294,903 generated for $1,000,000 invested, i.e. around 29.4% return over the year.
In addition to this, the operation of the 120 Lands will increase the income of the SinnersClub
The redistribution of the investment will then be voted upon by the community of holders using a DAO.
Risk management
As with many NFT projects, the floor price of the SinnersClub pass is a major issue.
The floor price is based on the return that the pass will offer and the company has carefully studied all possible scenarios to be proactive regarding this risk.
The first investments are based on The Sandbox and the upgrades that the platform will undergo.
Following an in-depth study, the metaverse has been proven to be the most interesting investment option to date.
Surveys are being carried out regularly over the main actors of the metaverse to extend and diversify investments cutting down the dependence concerning the return and floor price.
It is important to note the impossibility of the floor price falling below a certain threshold, as it is indexed to a share of a large number of plots of land, limiting the risks of an investment in the SinnersClub.
The SinnersClub is aware of the risks related to the financial investment. Maximum limitation of uncertainty is at the center of their focus realized by offering a high-performance, regular exponential return on investment.
