The yield for stakers (lenders) is generated by the fees collected by the PMM when Lofty users sell real estate (property tokens) using the new "Market orders".

The fees are then paid out as rewards to those who staked. Percentage return is calculated as rewards over the last 7 days, divided by volume staked.

Liquidity pools on Lofty can consistently pay out higher yields as long as there is trading activity in the underlying property. This is because real estate investors are already used to paying higher fees than most Decentralized Exchange (DEX) users.

Real estate buyers and sellers are paying 250 basis points per trade on Lofty vs the typical 10-25 basis points that liquidity pools on other DEX's earn.