# Treasury Transparency

Ledgity is structured to provide **full traceability** of how capital is managed, how yield is generated, and how value flows back to participants.\
There are **no opaque strategies, no discretionary treasury movements, and no hidden incentives**.\
Every component of the system is either **on-chain and verifiable** or **regulated and audited off-chain**.

Treasury transparency is ensured through two complementary layers:

* **On-chain protocol accounting** (immutable, auditable, programmatic)
* **Off-chain RWA portfolio reporting** (regulated, reconciled, externally verified)

***

#### **On-Chain Treasury Logic**

All protocol revenue handling is executed through smart contracts. No private key or operator can redirect funds outside defined rules.

| Component                      | Purpose                                                                         |
| ------------------------------ | ------------------------------------------------------------------------------- |
| **Vault Contracts**            | Hold user deposits and compute PPS (Price-Per-Share) to reflect yield over time |
| **FeeCollector**               | Aggregates yield performance fees                                               |
| **BuybackManager**             | Executes automated buybacks of LDY from open markets                            |
| **veLDY Community Pool (80%)** | Distributes rewards to veLDY stakers (the DAO)                                  |
| **veLDY Council Pool (20%)**   | Incentivizes operational oversight and execution                                |

> **20% of all protocol performance is automatically redistributed to the DAO** via the veLDY Community Pool.\
> Since veLDY stakers *are the DAO*, they directly benefit from protocol growth.

No revenue ever flows into private team wallets through the protocol layer.

***

#### **Off-Chain RWA Portfolio Transparency**

The RWA portfolio is managed through **SARR Fund**, a **regulated Luxembourg investment vehicle** with independent oversight.

Key guarantees:

* **Segregated client assets**
* **Short-duration, liquid fixed-income allocations**
* **No leverage and no rehypothecation**
* **Portfolio reporting reconciled with on-chain PPS movement**

Yield = cash flows repaid by real economic activity\
→ converted → reflected continuously in the PPS price of L-Tokens.

This ensures **real, repeatable, non-speculative yield**.

***

#### **Withdrawal Transparency & Liquidity Management**

Withdrawals are structured to avoid liquidity mismatch — a frequent failure point in RWA projects.

| Liquidity Source                          | Timing       | Purpose                       |
| ----------------------------------------- | ------------ | ----------------------------- |
| **On-chain liquidity buffer**             | Instant      | Supports everyday withdrawals |
| **Short-duration repayment cycle**        | \~24–72h     | Normal redemption processing  |
| **Extraordinary withdrawal coordination** | Case-by-case | For withdrawals >10% of TVL   |

This framework ensures users can withdraw capital without destabilizing the underlying portfolio.

***

#### **Reporting & Observability**

All performance and movement can be monitored in real time:

| Layer                          | Transparency Mechanism                               |
| ------------------------------ | ---------------------------------------------------- |
| On-chain Vault Activity        | Dune dashboards, DeFiLlama, Token Terminal           |
| Buybacks & Reward Distribution | Smart contract logs + open execution traces          |
| RWA Performance Reports        | Periodic disclosures from the SARR Fund              |
| Governance Decisions           | Public Snapshot votes and multisig execution records |


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