DeFi features and mechanics

Features

Racingboyz

September 29, 2024

This article concerns only Wheelz cards sold in blisters with 2 driver cards and resource cards necessary to play and earn tokens.

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Understanding Racingboyz DeFi mechanisms

1- RNRI

2 -RWA Loops with RWA collateralized

3 – Value revaluation of your race car

4 – Stake

5 – Dual Stake

Introduction

Racingboyz creates for the first time a real RWA gaming product with IRL income & yield in the financial products and cryptocurrency markets : FIRST GAME WITH RWA & IRL INCOME

Racingboyz and Avvatar are launching a range of high-performance products that mix the guarantees of a rental product in a Deck game of car cards and racing drivers, all connected to real race data. Same for Bet program based on real championships races.

Players can accumulate game winnings, betting gains, and generate profits thanks to leverage effects on RWA assets.

To create proximity with holders/players, the cars they co-own race in championships across 4 continents, allowing them to follow their cars online or on circuits, visit the pits, meet the teams and drivers, and even drive the cars during OPENDAYS.

YouTube Chanel is already 660 K :

https://www.youtube.com/@GTWorld

A game with RWA with leverage effects

Tokenized cars do not use credit leverage and redistribute net rental yields. (RWA Race cardz with 4 levels of scarcity, with 4 differents values different % IRL income and then different staking level).

The teams’ interest in using tokenization is to be able to focus on racing and operations, and to facilitate the carrying of the asset not by banks and leasing companies but by token holders and a community of enthusiasts.

Sponsors, drivers, and team partners pay for entry fees, operating costs, insurance, consumables, and damage (restoration of the car to new condition).Token holders focus on creating asset portfolios, leverage effects, game winnings, and betting gains obtained with their digital cards.

The tokenized cars for 2025/2026 in the USA, UK, ASIA, Europe (Australia soon) championships are:

Ferrari challenge
Lamborghini Trofeo
Porsche
McLaren
Aston Martin
Mercedes AMG
Ford
Toyota
Audi
Honda

all with GT4 licence 2025 & 2026 agreement.

The team(s) produce operating accounts with vehicle status at the end of each season (Independent experts or Sotheby’s experts for tokenized cars sold in partnership with Sotheby’s (Mainly collection cars with rental reports but also engaged in racing)

https://rmsothebys.com/private-sales/inventory/r6020-1955-cooperbristol-t40/

Tokenized manufacturer maintenance costs only concern the management of normal wear parts, official revisions, and keeping the car in perfect condition. These charges maintain the value of the asset to generate operating profits and token capital gains on resale.The cars are insured by Axa: Link

With the token, a title of ownership is delivered with registration of the chassis number and expert and lawyer stamps (UK, USA, Europe, ASIA, Australia).

For the holder, owning Racingboyz RWA (RWA RAcing cardz NFTs) allows 6 ways to earn income

Obtain direct rental income with their RWA Race cardz
Offer potential options to increase their yields via collateralization (LOOP capitalization generated by leverage)
Obtain potential capital gains during the revaluation of the car’s ownership
Obtain additional yields via Staking & Dual staking programs with Race Cardz: Staking on RWA, GAME and BET based on IRL races
Obtain gains through games and their fantasy cards (See Marketplace)
BET on IRL races via the cards they own : UK , USA, EUROPE, ASIA 2025 real championships

1 – RNRI (Racing Net Rental Income)

It’s important to note that as an investor in Racingboyz, the first source of income is indicated as RNRI, the other boosters are independent of these rental incomes (e.g., staking program). On the website, Racingboyz indicates a % of expected income = the estimated net asset yield (RNRI).

The RNRI calculation is very simple

Net income divided by the total price of the car, per season.

A car is operated for 4 or 5 seasons. (We start with 4 seasons and the annual charge will be maintained if the car is operated for a 5th season).RWA racingcardz holders can sell them at any time. On the homepage, we can see that the expected RNRI for the Porsche GT4 RS is 12%.

Example: In the example of the presentation of the first tokenized car, we can see that the value of the car is offered for sale for a total amount of $290,000, also called the “Total price ».

The figures break down as follows

Price of the non-tokenized car: $250,000 /
$50,000 of the value is kept by the team as co-owner to be able to insure and manage operating costs with insurance , drivers and sponsors *
Price of the tokenized car: $200,000 excluding tax

To this are added

Racingboyz management fees: $15,000 / distributed over the number of RWA NFTs and Paid upon purchase

Fixed manufacturer maintenance over 4 seasons: $100,000 – Included in the NFTs (Maintains the car to manufacturer standards for operation and sale)The total tokenized amount is $275,000 divided into X NFTs

Calculation of RNRI (Racing Net Rental Income)
Annual net income: $34,800 (12% of $290,000)
RNRI = (Annual net income / Total tokenized price) * 100
RNRI = ($34,800 / $290,000) * 100 = 12%
Amount per race (assuming 6 races per year):
Revenue per race = $34,800 / 6 = $5,800
Amount per token per race:
Total number of tokens: 5,800 ($290,000 / $50 per token)
Amount per token per race = $5,800 / 5,800 = $1

2 – RWA Loops with RWA collateralized

Racingboyz has made the strategic choice not to capitalize on the leverage effect of credit.

All cars are 100% financed via equity. Then the cars are tokenized for 70 or 80% of the value.No credit is granted, 100% of the property is purchased with token investors’ funds.A credit functionality is set up with the collateralization of Wheelz. This option is optional.

Example with the Porsche GT4 RS

You deposit 200 Wheelz tokens of Porsche GT4 for a value of $10,000 (200 * $50 Token price) with an expected RNRI of 12%. With a Loan To Value (LTV) of 60%, you could borrow up to $6,000 (60% * $10,000).

Keeping a safety margin, you borrow $5,000 (50% LTV) with an interest rate of 4%. You decide with these $5,000 to buy new Wheelz tokens and deposit them as collateral. By borrowing a second time, you decide to borrow 50% of your last deposit, namely $2,500 to buy back Porsche shares to increase your yield ($5,000 * 50%).

Your LTV is now equal to 50% (($5,000 + $2,500) / ($10,000 + $5,000)).

You decide to make a loop.

Loop	Portfolio	RNRI 12%	Interest 4%
0	$10,000.00	$1,200.00
1	$5,000.00	$600.00	$200.00
2	$2,500.00	$300.00	$100.00
3	$1,250.00	$150.00	$50.00
4	$625.00	$75.00	$25.00
Total	$19,375.00	$2,325.00	$375.00

With an initial capital of $10,000, the leverage effect of collateralization increases the yield from 12% to 19.50% (($2,325.00 – $375) / $10,000).The financial profitability of the operation has increased by 7.50% (19.50% – 12%).

3- The potential capital gain during the revaluation of your race car

Generally, each year, Racingboyz engages an independent third-party company to reassess the value of the assets. The first evaluations showed that properties had gained 10% on average over the last year. The RWA tokens have therefore gained 5% because the 10% Racingboyz commission is removed from the token price and converted into governance tokens.

In the rest of our analysis, we will take into account an annual increase of 5% on the value of the property . If we take our example again, we deposited 200 RWA tokens for a value of $10,000 with an expected RNRI of 12%. We had at the end of our loop a capital of $19,375.00.

At the end of the year, the car is revalued by 5%. The token therefore goes from $50 to $52.50.

Our investment therefore goes from $19,375.00 to $20,343.75, which makes an additional gain of $968.75.

4 – Staking on RWA

Thanks to an attractive game mechanic and a community of drivers and teams, Racingboyz offers a staking program for Wheelz NFTs. NFTs can be locked for 1, 3, or 6 races. With each RWA Wheelz token locked, a quantity of $RACE tokens is locked for equivalent durations.

The staking program on RWA allows, thanks to the use of $RACE tokens, to secure the protocol and therefore to pay higher % yields to Wheelz and $RACE Token depositors. The yields are based on Scarcity, the car model, and the staking duration.

Example

the Porsche GT4 RS, a $50 token with a net rental yield of 12%.
The car races in 6 races in 2025 on the Asian GT championship.

The buyer buys $10,000 of RWA and holds $5,000 of $RACE.
He chooses to stake his RWA and its $RACE on the 6 races of the season.

The staking program is as follows:

You deposit for example 200 Wheelz tokens of Porsche GT4 for a value of $10,000 (200 * $50 Token price) with an expected RNRI of 12%.
You stake $5,000 of $RACE to secure the protocol with a staking yield of 5%.
Over the 6 races, you will therefore receive not $133.33 per race but $166.67.
Over the entire championship, you will receive $1,000 instead of $800.

At the end of the season, you will be able to recover your $RACE tokens at their initial value and keep or resell your Wheelz Tokens.

5 – Dual Staking Mechanism

How it works
- Primary staking with $RACE token
- Secondary token airdrop for branded cars
- Enhanced rewards through partner token staking
- 2 . Partner Integration:
  - Branded RWA cars (Example: Seedify Lamborghini)
  - Free partner token allocation ($SFUND)
  - Combined staking benefits
  Reward Distribution
  
  Dual Token Benefits:
  - Base rewards from $RACE staking (12% yield)
  - Additional yield from partner token
  - Special multipliers for dual stakers
  Example Structure:
  - Seedify Lamborghini NFT holder receives:
    - Regular RWA rental yield
    - Free $SFUND allocation
    - Access to both ecosystems’ staking programs

Conclusion

In this article, we wanted to present the exploitation and seriousness of the assets of investment portfolios and explain to you the 5 ways to make money with the world’s first game with RWA rental yield:

1. RNRI (Racing Net Rental Income) on RWA
Initial value of Wheelz tokens: 200 * $50 = $10,000
Annual RNRI: 12% of $10,000 = $1,200

2. Leverage effect (yield loop on RWA)
We will assume that this increases the base yield by 7.50% (as calculated previously)
Additional gain: 7.50% of $10,000 = $750

3. Staking with $RACE tokens

Amount of staked RWA: $10,000
Staking yield: 5% of the staked RWA amount
Staking gain: 5% of $10,000 = $500

4. Potential capital gain
Annual increase in token value: 5%
Capital gain: 5% of $10,000 = $500

5. Game winnings and IRL race betting gains
RandomSummary of potential gains over one year:

Summary of Gains

RNRI (Racing Net Rental Income) on RWA

Initial value of Wheelz tokens: 200 * $50 = $10,000
Annual RNRI: 12% of $290,000 = $34,800
RNRI for $10,000 invested: ($10,000 / $290,000) * $34,800 = $1,200

Leverage effect (yield loop on RWA)

Increase in base yield of 7.50% (as calculated previously)
Additional gain: 7.50% of $10,000 = $750

Staking with $RACE tokens

Amount of staked RWA: $10,000
Staking yield: 5% of the staked RWA amount
Staking gain: 5% of $10,000 = $500

Potential capital gain

Annual increase in token value: 5%
Capital gain: 5% of $10,000 = $500
Game winnings and IRL race betting gains: Random

Summary of potential gains over one year:

RNRI: $1,200
Leverage effect: $750
RWA Staking: $500
Capital gain: $500
Total potential gains: $1,200 + $750 + $500 + $500 = $2,950
Initial investment in RWA: $10,000
Investment in RBoyz tokens for staking: $5,000
Total investment: $15,000Total return on initial investment: ($2,950 / $15,000) * 100 = 19.67%

This simulation shows a potential total return of 19.67% over one year, combining the different sources of income offered by the Racingboyz system, without including potential game winnings and betting gains that could further increase this return.