# Real Protocol ### Overview The Real Protocol is built around a modular set of smart contracts that together power tokenization, offerings, trading, and yield distribution for real-world assets. The system includes fractional ownership tokens, offering and factory contracts for primary sales, a compliance-aware router for secondary trading, and a staking distributor that handles recurring or one-time yield proceeds. Together, these modules provide a complete, upgradeable, and audit-friendly foundation for compliant RWA markets. *** ### Purpose * [**Tokenization**](/ecosystem/real-protocol/tokenization-module.md)**:** Fractionalize ownership of real assets into digital assets represented by tokens. * [**Primary Market**](/ecosystem/real-protocol/primary-market-module.md)**:** Launch asset-backed offerings with flexible caps and investor protections. * [**Secondary Market**](/ecosystem/real-protocol/secondary-market-module.md)**:** Facilitate peer-to-peer trades that remain compliant with eligibility rules. * [**Yield Distribution**](/ecosystem/real-protocol/yield-distribution-contracts.md)**:** Provide a transparent mechanism for distributing recurring or one-time yield proceeds to token holders. * [**Lending**](/ecosystem/real-protocol/lending-contracts.md)**:** Unlock liquidity by allowing fractional tokens to be pledged as collateral, enabling borrowers to access stablecoin or $REAL-denominated credit. By combining these modules, Real Protocol establishes the foundation for a scalable ecosystem of compliant asset-backed markets. *** ### Smart Contracts Overview The Real Protocol smart contracts are organized into six core modules, each designed with a focused responsibility that, when combined, provide a complete framework for real-world asset tokenization. At the foundation are the **RealFractionalToken** contracts, ERC-20 tokens that represent fractional ownership of individual assets. These tokens support optional permissioned transfers, per-account or global timelocks, and can route transfer fees to a designated treasury. To streamline deployment, the **RealTokenFactory** acts as an upgradeable factory that creates new fractional token series using efficient minimal-proxy clones while assigning the correct administrative and treasury settings. Primary sales of these tokens are handled by the **RealOffering** contract, which manages fundraising campaigns with configurable soft and hard caps, per-wallet contribution limits, and refund logic if the soft cap is not reached. New offerings are deployed through the **OfferingFactory**, which ensures the deterministic, transparent creation of each sale contract and links them directly to the corresponding property token. For secondary trading, the **P2PRouter** provides a compliance-aware mechanism for exchanging fractional tokens between participants. It supports both direct swaps of fungible fractions and integration with external marketplaces like Seaport, while enforcing eligibility checks and routing protocol fees back to the treasury. Token holder (investor) returns are distributed through the **RealStakingDistributor**, an upgradeable staking and distribution contract. Token holders stake their fractions to qualify for either recurring income or one-time sale proceeds. Issuers or third parties can fund distribution cycles with stablecoins, and the contract enforces strict eligibility rules requiring holders to remain staked for the full duration of each cycle. Proceeds are then distributed through automated airdrops or individual claims. Finally, the **RealLending** contract enables collateralized borrowing against fractional ownership tokens, allowing investors to unlock liquidity without selling their positions. Users can pledge their fractional tokens as collateral and borrow approved stablecoins up to a defined loan-to-value (LTV) ratio. If the value of the collateral falls below the required threshold, positions can be liquidated by third parties or by the protocol itself to maintain system stability. Built-in compliance hooks ensure only eligible lenders and borrowers can participate, maintaining regulatory alignment. This module creates a practical use case by providing investors with liquidity while preserving their exposure to underlying real-world assets, ultimately enabling more efficient capital deployment within RWA markets. Together, these contracts form the backbone of the Real Protocol, enabling compliant tokenization, investment, trading, and yield distribution for real-world assets on-chain. --- # 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://docs.reallayer.com/ecosystem/real-protocol.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. 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