# Liquidity Primitives

### Reverse Mortgage Services

Real Estate Tokens (RET) can be collateralized in lending protocols to borrow other Digital Assets, unlocking potentially new strategies on-chain for the crypto native given RET low correlation with other Digital Asset classes.

### Real Estate Collateral Pools 

RET can be lent out in collateral pools, enabling RET holders to earn a higher yield on their RET.

### On-Chain Risk Hedging

Hedging against risk on-chain will be an important part of the ecosystem. Traditionally, insurance enables one to hedge against risks such as natural disasters like a fire.

Hedging against risk on-chain enables RET holders to reduce risk by way of a DeFi insurance primitive.. This could work in many ways. A simple example could work like this:

* A group of properties sends a premium to a shared pool to be locked up in a smart contract every month.
* When one property is unable to maintain its expenses, the smart contract is activated to cover the property expenses.
* The smart contract pays out to the property to keep it afloat.