# 3. Property Tokens — Real Assets, Real Yield Each property on the platform issues its own ERC-20 token, integrated with an ERC-4626 vault that manages yield accounting and distribution for that specific asset. This structure enables transparent, on-chain exposure to individual real estate properties while remaining fully composable within DeFi markets. #### Asset Structure Property tokens are designed to represent economic exposure to a single property: * Backed by legally enforceable rights to property-related revenues * Freely tradable via AMM-based liquidity pools * Integrated with ERC-4626 vaults for standardized yield distribution #### Sources of Value Accrual Each property token accrues value from the economic performance of its underlying asset, including: * Net rental income * Capital appreciation * Profits from property sales * Gains resulting from bank-financed leverage (where applicable) #### Token Holder Rights Holding a property token grants a contractual right to a proportional share of: * Net rental income generated by the property * Capital appreciation of the underlying asset * Net proceeds from a property sale * Leverage-related gains, if external financing is used Returns are distributed automatically through the associated ERC-4626 vault. The issuing legal entity commits to this structure through binding legal agreements, ensuring that on-chain distributions reflect real-world cash flows. #### Summary Property tokens provide direct, asset-specific exposure to real estate performance, combining legally backed rights with automated, transparent yield distribution. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://liquidestate.gitbook.io/docs/documentation/tokenomics/3.-property-tokens-real-assets-real-yield.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.