Functioning

Ledgity Yield provides stablecoins holders with high and stable yields backed by Ledgity's institutional-grade custody and RWA management.

This page is an introduction to the protocol's architecture and functioning. In-depth details can be found under the Architecture section of this documentation.

A. Lending agreement

Via a set of on-chain smart contracts, stablecoins holders can deposit stablecoins into the Ledgity Yield protocol, they receive L-Tokens as a proof-of-deposit.

At any time, they can return those L-Tokens to withdraw the initially deposited stablecoins.

B. Off/On ramps

Thanks to partners like Circle, deposited stablecoins are converted into the native FIAT currencies they represent (e.g., USD for USDC).

On the other hand, when users are requesting to withdraw, we use our partners again to convert back those FIAT currencies into the initially deposited stablecoins.

C. RWA portfolio

Converted FIAT currency are then sent to our institutional partners through our qualified custodian banking partners in order to purchase Revenue Base financing during the same business day.

D. Yield distribution

In addition to backing one-for-one the loaned assets, the RWA portofolio also backs stablecoin yield distributed to protocol's users. This yield is then forwarded to smart contracts to be distributed to wallets that have deposited stablecoins.

Visit the "Architecture" section of this documentation to get an in-depth understanding of Ledgity Yield's functioning.