Real‑World Asset Stable Yield Strategy

The Real-World Asset Stable Yield Strategy is designed to give you consistent returns by combining real-world asset exposure with DeFi lending.

To get started, you’ll deposit your RealT tokens into the strategy. These are test tokens modeled after popular real estate tokens like the ones from RealT. Once deposited, your tokens are supplied to an Aave v3 lending pool on the Base network.

From there, the strategy simulates an annual yield of around 6%. This is calculated based on your net collateral (the amount you’ve supplied minus any borrowings). The yield you earn is distributed through the strategy’s Farm contract, and you can claim it using a token called deRWA.

This strategy provides a predictable and steady yield, making it attractive for risk‑averse investors. In addition, it demonstrates the integration of traditional real‑world asset yield generation with decentralized lending protocols.

Technical Flow

Follow the steps below to understand how the system handles token flows, collateralization, yield distribution, and emergency procedures.

1. Deposit & Lending

• Token Transfer As a user, you will deposit RealT tokens (tokenized real estate assets) from the Farm into the strategy. These tokens are transferred securely and verified before proceeding.

• Lending Pool Deposit Once deposited, the strategy approves and supplies the RealT tokens into the Aave v3 lending pool on the testnet. This step allows the strategy to utilize Aave's lending protocol for potential interest accrual.

• Collateral Tracking Upon successful deposit, the system tracks the total amount of supplied tokens as collateral. This recorded collateral forms the basis for yield calculation.

1. Yield Simulation

• Fixed APY Simulation Given the limitations of the testnet environment (where real yield generation may not occur), the strategy simulates a fixed Annual Percentage Yield (APY) of approximately 6% based on the net collateral.

• Time-Based Calculation The simulated yield is computed based on the time elapsed since the last recorded checkpoint. This ensures that the yield mimics real-time behavior.

• Reward Distribution Once yield is simulated, the strategy transfers the equivalent reward amount to the Farm. The Farm then distributes these simulated rewards proportionally to eligible liquidity providers.

1. Withdrawals

• Standard Withdrawal When a liquidity provider initiates a withdrawal, the strategy interacts with the Aave lending pool to withdraw the requested token amount. These tokens are then returned to the Farm for final delivery to the user.

• Collateral Adjustment The strategy updates its internal records to reflect the new collateral state, subtracting the withdrawn amount from the total.

4. Emergency Handling

• Emergency Withdraw In emergency scenarios, the strategy can execute a full withdrawal from the lending pool. All tokens are immediately transferred back to the Farm, bypassing normal yield simulation or distribution logic.

5. On-Chain Transparency

• View Functions The strategy exposes on-chain view functions that allow stakeholders to query the current TVL and any pending rewards. This ensures complete transparency and real-time visibility into strategy operations.

Technical Benefits

1. Stable Yield Generation Just deploy your RealT tokens into the lending protocol. The strategy will automatically simulate a 6% APY on the net collateral, ensuring steady returns on your investment.

2. Brand Recognition By using RealT tokens, you’re tapping into a trusted and recognized name in tokenized real estate. This gives your strategy added credibility, which can help attract more liquidity providers.

3. Capital Efficiency When you deposit your funds, the strategy integrates with a trusted lending protocol. This ensures your assets are being used efficiently, maximizing returns while keeping risks low.

4. Transparency & Risk Management You’ll be able to see important details like TVL and pending rewards in real time. And if needed, you can easily withdraw your funds through emergency features, keeping your investment safe.

5. Seamless Integration This strategy works perfectly with the Dexponent Protocol’s standard interface. Simply deploy your assets, and everything will work smoothly within the ecosystem.