> For the complete documentation index, see [llms.txt](https://usvp-token.gitbook.io/english-ver-usvp-rwa-backed-in-real-state/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://usvp-token.gitbook.io/english-ver-usvp-rwa-backed-in-real-state/usvp-rwa-backed-by-real-estate/erc-3690-protocol.md).

# Erc-3690 Protocol

**Dual Token Protocol**\
The dual-layer token combines the functionalities of ERC-20, ERC-721, and ERC-1155 while adding a classification layer that uses (mainId) as the identifier for the main asset type and (subId) as the unique attributes or variations of the main asset.

<figure><img src="/files/6vli1s3djkWRWGqaicHL" alt=""><figcaption></figcaption></figure>

Each RWA or property is a distinct token and has a total supply limited to its scope. Each unit of this total supply is considered a supply dependent on the (mainId).

For example, a property of 150 square meters could be divided into 1 or 10 square meters, thus creating 15 distinct sub-tokens, which are compatible with the ERC-1155 protocol for trading and negotiation on web3 platforms.

<figure><img src="/files/MeyXgNkgT0e1BUSmAPwk" alt=""><figcaption></figcaption></figure>

The proposed token aims to offer greater granularity in token management, facilitating a well-organized token ecosystem and simplifying the process of token tracking within a contract.

This standard is particularly useful for tokenizing and enabling fractional ownership of Real World Assets (RWAs). It also allows for the efficient and flexible management of both fungible and non-fungible assets.

The following are examples of assets for which the DLT standard can represent fractional ownership:

* Invoices
* Company shares
* Digital collectibles
* Real estate

The ERC-1155 standard has seen considerable adoption within the Ethereum ecosystem; however, its design shows limitations when handling tokens with multiple classifications, particularly in relation to Real World Assets (RWAs) and asset fractionalization.

#### Example of Real Estate Fractionalization Using Other Protocols

* **ERC20 🏠 (All houses are the same and interchangeable)**\
  **Problem**: The ERC20 standard cannot represent a single property with different attributes.
* **ERC721 (Each house is unique but not interchangeable)**\
  **Problem**: The ERC721 standard cannot represent the fractional ownership of a single house.
* **ERC1155 (Houses are unique, and their parts are interchangeable)**\
  **Problem**: ERC1155 can represent a single house and its fractional ownership, but this requires creating two types of assets within the same contract.

#### **DLT: Dual Layer Token**

**Solution**: DLT tokens can efficiently represent a single house (MainId) and its fractional ownership (SubId) within the same contract, enabling greater versatility in the negotiation and trading of each asset.

<figure><img src="/files/8pKiWECSEl1TjRbljolG" alt=""><figcaption></figcaption></figure>