Asset-Linked Income
value-backed yield
Asset-linked income refers to yield or rewards generated from the performance, usage, or intrinsic value of a real or tokenized asset. Unlike speculative or emission-based returns, this income is tied directly to tangible sources such as physical commodities (e.g. silver), real estate, tokenized goods, or infrastructure. In Web3, asset-linked income is key to building sustainable financial products that are resilient to market volatility and aligned with measurable value.
Use Case: A user holds $KAG in a yield vault backed by physical silver. Their income is derived from storage fees, exchange volume, and real-world demand for the assetÔÇönot from inflationary token rewards.
Key Concepts:
- Physical Collateral ÔÇö Yield tied to gold, silver, land, or energy.
- Real-World Demand ÔÇö Income increases with actual usage or need.
- Tokenized Assets ÔÇö On-chain representation of off-chain value.
- Non-Speculative Yield ÔÇö Payouts are not driven by token hype or emissions.
Summary: Asset-linked income provides a foundation for sustainable finance by anchoring yield to the value of real-world goods. It protects capital, ensures transparency, and bridges traditional asset reliability with crypto innovation.
| Income Type | Source | Stability | Example |
|---|---|---|---|
| Asset-Linked | Real-world value | High | $KAG, $KAU, tokenized land rent |
| Protocol Revenue | On-chain fees | ModerateÔÇôHigh | DEX trading fees, node rewards |
| Emission-Based | Token inflation | Low | Liquidity mining APYs |