Liquidity Provision

  • The liquid staking model in real estate tokenization allows investors to stake their real estate-backed tokens to earn additional passive income. While their capital is invested in property, these tokens are not locked up or idle. Instead, investors receive a liquid staking derivative, which they can trade, use as collateral, or leverage in various DeFi applications. This process provides liquidity, as investors have access to capital through these derivatives without needing to sell their underlying real estate assets, thus enabling them to earn returns from the staked real estate and the activities of the liquid derivatives.

  • The liquid staking model enhances the attractiveness of real estate as an asset class by:

    • Improving Liquidity: Traditionally illiquid, real estate becomes more liquid through tokenization, making it easier to buy, sell, or trade portions of property.

    • Passive Income Opportunities: Investors earn from staking rewards while their capital appreciates in real estate, providing dual income streams.

    • Lowering Entry Barriers: Fractional ownership and liquidity attract a broader range of investors.

    • Portfolio Diversification: Investors can easily diversify their holdings across various real estate properties and types.

    • Flexibility: Liquid staking offers the flexibility to engage with the asset without needing full liquidation.

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