For the first time in history, you can now lend the Property Tokens you own and earn additional return.

Staking (lending) property tokens allows you to receive rent for the property and still receive yield from staking, thus potentially boosting your overall returns. Your ownership in the property will fluctuate as your assets in the pool may be bought and sold over time, so your rental returns will also fluctuate along with your ownership.

In an extreme scenario, you may temporarily only be earning yield from lending your assets and none from rental income. In the opposite end of that extreme scenario, you may receive nearly all of your rental income plus any yield from lending, thus allowing your overall return to be higher than what’s historically been possible by investing in a rental property alone. Whether you’re comfortable to increase your risk in exchange for increased reward is entirely up to you.

The maximum staking of property tokens is equal to 20% of a property’s circulating token supply in the pool, so it will be first come first serve. If a pool is already full, you can attempt a deposit in the future when someone else removes their property tokens from the pool. Users buying and selling using Market orders will also see slippage if they make a large order relative to the supply in the pool. This means that their order volume was so large that it will “move” the market-price from that single order. As a result, it’s important to be aware that you may not receive the same quoted price per token if your order is large enough to encounter slippage.

To lend your property tokens, either go to amm.lofty.ai or click "Lend & Earn" in your Lofty account dashboard.

Click “Connect Wallet” at the top right and choose Lofty Wallet. You can also choose an external wallet if you prefer, including Pera wallet or Defly.

Here, you can see the available Liquidity Pools, as well as the Total Value Lent and the Avg. 7 day APY for the pools. The Average 7 day APY is calculated by taking the average daily transactional volume (and fees earned) over the last 7 days divided by the liquidity deposited currently in the pool and then annualizing that rate of return. This number can fluctuate over time. It's largely dependent on the overall trading volume for that property through the AMM as well as the amount of liquidity available currently.

Click the "Select" button for a property in which you own tokens. You will then see the following screen:

You will see that you have two options to stake USDC or your property tokens. You can stake both the property token as well as USDC at the same time in a single transaction.

You can also stake single-sided by only staking property tokens or only staking USDC.

Enter the amount of property tokens you'd like to lend in the lower field:

In this example, 90 property tokens have been staked (lent). As a result, you will receive 90 Liquidity pool tokens. We discuss Liquidity pool tokens in another article, which you can find a link to here.

Click "Preview Deposit" and then "Confirm Deposit" per the image below to complete the transaction:

You’ll be greeted with either a success notification or an error if 20% of the total circulating supply has already been lent.

If it’s the former, then congratulations! You’ve just loaned out ownership in your house in exchange for future income! This hasn’t existed in real estate before. You aren’t necessarily renting out your house, but you’re lending the ownership to someone else in exchange for income.