# Introduction

The Next-Generation On-Chain Asset Manager

<figure><img src="/files/XbibDh5M2l1U4VZG3Gds" alt="" width="375"><figcaption></figcaption></figure>

**Ledgity.finance** is a next-generation savings and investment platform that provides access to **yield strategies on stablecoins (EURC and USDC)**. The platform is built for investors seeking **stable-value exposure**, **transparent underlying allocations**, and **structured liquidity management**, while benefiting from modern settlement rails that simplify subscriptions and redemptions.\
\
Stablecoins are reshaping payments and settlement; Ledgity is reshaping savings with institutional-grade yield infrastructure.”

Ledgity’s approach combines:

* **Real-economy yield drivers** (RWA / private-credit-like exposure) anchored in **contractual recurring cash flows** and other robust yield-generating strategies, and
* The **selective use of high-quality digital market infrastructure** to enhance **operational efficiency, accessibility, and liquidity**.

**Important:** Capital is not guaranteed. Investors may lose part or all of their investment.

***

### Why stablecoins?

Stablecoins are digital representations of fiat currencies (e.g., EUR or USD) designed to maintain a stable value. For investors, stablecoins offer a practical way to access yield strategies while limiting exposure to the price volatility typically associated with crypto-assets.

Beyond stability, stablecoins enable a meaningful wave of innovation in **payments and settlement**, notably through **programmability** and **process automation** (straight-through processing), which can reduce friction, delays, and operational costs across financial workflows.

In practice, stablecoins enable:

* **Payments & settlement innovation:** near real-time settlement, 24/7 availability, and programmable transfers that facilitate automated payment flows and treasury operations.
* **Operational efficiency:** improved settlement and streamlined subscription/redemption workflows compared to legacy processes, including faster reconciliation and reduced manual processing.
* **Capital flexibility:** easier allocation, rebalancing, and withdrawal of capital (subject to product liquidity terms).
* **Traceability and reporting:** clearer monitoring of flows and positions through digital infrastructure and reporting tools.
* **A new format for savings products:** stablecoins provide a standardized unit of account that can power modern yield solutions with more frequent accrual and improved transparency.

In short, stablecoins function as an efficient “cash-equivalent” layer—combining familiar fiat exposure with a more flexible infrastructure that modernizes both **payments** and **investment operations**.

***

### Why Ledgity.finance?

Today, stablecoins are increasingly used as a **cash reserve** in both crypto portfolios and corporate treasuries. However, investors face a structural gap in the current landscape:

* **Traditional money-market solutions** can be robust, but often lack **flexibility**, **speed of settlement**, and modern composability.
* **DeFi yield solutions** can be attractive, but are frequently **opaque**, **unstable**, or overly **speculative**.
* Many **RWA yield products** are not designed for **daily liquidity**, which limits their usefulness as a true cash-management tool.

**Ledgity.finance** bridges these gaps by offering a stablecoin savings solution designed with an **institutional mindset**, combining real yield sources with modern settlement infrastructure.

Ledgity.finance is designed for investors who value:

* **Risk-managed yield** supported by **identifiable sources of return**, primarily driven by selected financial assets and real-economy strategies.
* **Clear liquidity mechanics**, supported by an **on-chain liquidity buffer** and defined redemption conditions.
* **Full transparency**, using **price-per-share accounting** and investor-grade reporting (position tracking, transaction history).
* **Self-custody by design**, with no intermediary “holding” your assets in a traditional custodial model.
* A platform architecture that can **scale to multiple strategies over time**, enabling the launch of additional savings products with different risk/return profiles.

In short, Ledgity.finance provides a **stable, efficient, and institution-grade yield solution**—built to function as a modern savings layer for EUR and USD stablecoin liquidity.

***

### **Who Uses Ledgity**

Ledgity is designed for **professional-grade capital management**, from €5K to €50M+.

| User Type                          | What They Gain                                                |
| ---------------------------------- | ------------------------------------------------------------- |
| **Family Offices & Private Banks** | A compliant, transparent digital yield product with reporting |
| **Asset Managers & Funds**         | Cash management between market cycles, without idle capital   |
| **Companies & Startups**           | Extended runway on operational treasury                       |
| **Crypto Protocols & DAOs**        | Stable reserve growth + predictable spend planning            |
| **Individual Investors**           | Simple, secure yield on stable savings                        |

Ledgity speaks the **language of finance**, while delivering the **efficiency of Web3**.

***

### **How Ledgity Works**

1. **Users deposit EUR or USDC / EURC**
2. Assets are converted and allocated into a **diversified portfolio of selected real-world financial instruments**
3. These instruments generate **recurring cash flows**
4. Yield is **reflected automatically** (via a non-rebase **Price-Per-Share** model )
5. Users can **withdraw anytime**, subject to available on-chain liquidity buffer

No leverage.

***

### **A scalable yield infrastructure**

Ledgity is not a single product.\
It is a **platform** that will host a **range of yield vaults** tailored to different currencies, geographies, and treasury needs.

**Built to integrate with custody platforms, multisig treasuries, fund administrators, and DAO tooling.**

***

### **The Vision**

We believe the **future of wealth management** is:

* **On-chain**, for transparency and accessibility.
* **Regulated**, for trust,
* **Composable**, for efficiency,

Our mission is to make **institutional-grade yield**\
→ **accessible to everyone**, without compromising safety or compliance.

**The same tools that banks use.**\
**Now available to individuals, companies, and DAOs.**


# Product Suite Overview

Ledgity.finance provides access to yield strategies through yield-bearing positions, such as:

* **lyEUR** (EUR stablecoin yield strategy)
* **lyUSD** (USD stablecoin yield strategy)

Each strategy is defined by:

* a target return profile (indicative),
* an underlying allocation framework,
* liquidity and settlement terms,
* risk constraints and monitoring policies.


# Core strategy (lyEUR & lyUSD)

The core yield strategy follows a **hybrid allocation model**, designed to balance **stability**, **liquidity**, and **return consistency**.

#### 1. SARR Investment Fund (Core)

The underlying assets are held inside a **regulated investment fund domiciled in Luxembourg**, focusing on **Revenue-Based Financing**. This approach targets short-dated, senior exposures backed by contractual recurring revenues.

Typical characteristics include:

* **Short duration** (often ≤ 12 months),
* **Senior positioning** across transactions,
* Underwriting based on recurring revenue quality (churn, concentration, cash-flow visibility),
* Progressive diversification across issuers and verticals.

#### 2. Digital Market Infrastructure Allocation (Complementary)

A smaller portion of the portfolio may be allocated to **high-quality overcollateralized lending markets** (blue-chip venues) to support liquidity management and enhance capital efficiency, within predefined risk constraints.

#### 3. Liquidity Buffer

A dedicated liquidity buffer may be maintained to support day-to-day redemption flows and operational settlement requirements.

#### 4. Liquidity Buffer

### **Asset Allocation Model**

Ledgity applies a diversified model combining regulated RWA with on-chain liquidity management:

* **80% - 90% — Off-chain regulated RWA**
  * Short-term fixed income
  * Corporate and government debt
  * High-grade receivables
  * Instruments managed inside the Luxembourg fund
  * Full due diligence + monthly NAV valuation
* **5%-15% — On-chain integrations**
  * Blue-chip DeFi money markets (e.g., Aave)
  * Capital-efficient liquidity optimizations
  * Always non-custodial
* **5% — Liquidity Buffer (instant withdrawals)**
  * Immediate liquidity for user redemptions
  * Allocated automatiquement in AAVE pool
  * Fully visible on-chain

This model allows Ledgity to deliver a **stable daily yield (\~9% APY)** with **controlled risk** and full transparency.

> Allocation bands may evolve depending on market conditions, liquidity needs, and AUM growth.

#### 5. **Custody & Valuation**

#### **Custodian**

The Luxembourg investment fund has its own **regulated custodian** responsible for:

* Safekeeping the assets
* Settlement of financial instruments
* Oversight of cash movements

#### **Valuation Agent**

The fund appoints an **independent valuation entity** responsible for:

* Monthly NAV calculation
* Pricing of assets
* Reporting to auditors and regulator

#### **Auditors**

Yes — the fund is **audited annually** by a certified external auditor.


# Yield Sources & Proof of Reserves

lyEUR & lyUSD

Ledgity’s yield is generated through a **regulated investment vehicle** designed for institutional-grade treasury management.

#### **Regulated Investment Fund (Luxembourg)**

The underlying assets are held inside a **regulated investment fund domiciled in Luxembourg**, one of the strictest jurisdictions in Europe for asset management.

* Not a bank
* Not an informal structure
* A fully regulated investment fund
* Managed by licensed financial professionals
* Independent risk, valuation, and compliance procedures

Documentation:\
➡️ Fund Folder: [*https://drive.google.com/drive/folders/1Xf8om53t6agqqCjSAkgxR9P-9SwADKbF*](https://drive.google.com/drive/folders/1Xf8om53t6agqqCjSAkgxR9P-9SwADKbF)\
\
*Don't hesitate to schedule a call to have more info,* [*https://calendly.com/gregoire-ledgity*](https://calendly.com/gregoire-ledgity)

***

### **2. Asset Allocation Model**

Ledgity applies a diversified model combining regulated RWA with on-chain liquidity management:

* **80% - 90% — Off-chain regulated RWA**
  * Short-term fixed income
  * Corporate and government debt
  * High-grade receivables
  * Instruments managed inside the Luxembourg fund
  * Full due diligence + monthly NAV valuation
* **5%-15% — On-chain integrations**
  * Blue-chip DeFi money markets (e.g., Aave)
  * Capital-efficient liquidity optimizations
  * Always non-custodial
* **5% — Liquidity Buffer (instant withdrawals)**
  * Immediate liquidity for user redemptions
  * Allocated automatiquement in AAVE pool
  * Fully visible on-chain

This model allows Ledgity to deliver a **stable daily yield (\~9% APY)** with **controlled risk** and full transparency.

***

### **3. Custody & Valuation**

#### **Custodian**

The Luxembourg investment fund has its own **regulated custodian** responsible for:

* Safekeeping the assets
* Settlement of financial instruments
* Oversight of cash movements

#### **Valuation Agent**

The fund appoints an **independent valuation entity** responsible for:

* Monthly NAV calculation
* Pricing of assets
* Reporting to auditors and regulator

#### **Auditors**

Yes — the fund is **audited annually** by a certified external auditor.

***

### **4. Proof of Reserves (PoR)**

Ledgity is integrating **on-chain Proof of Reserves**, powered by **Chainlink**, to give users cryptographic verification of collateral.

#### **Phase 1 — On-chain Transparency**

* Real-time on-chain view of instant liquidity
* Ledger of Aave buffer positions
* Token supply vs liquid reserves

#### **Phase 2 — Off-chain Fund Proof (via Chainlink PoR)**

The Luxembourg fund publishes:

* Monthly NAV attestation
* Independent valuation documents
* Proof of assets held by the fund
* Automated updates through Chainlink PoR

This allows users to verify:

* Total token supply
* Total eligible collateral
* Excess reserves
* NAV evolution

#### **Future: Secure Mint (soon)**

We integrate a “**secure mint**” approach, ensuring that:

> **It becomes cryptographically impossible to mint more lyUSD/lyEUR than the proven reserves.**

This will fully align minting logic with verified Proof-of-Reserves data.

***

Ledgity’s vision is to deliver one of the most transparent stablecoin-yield infrastructures in Europe, aligned with institutional requirements and MICA standards.


# Liquidity & Redemption Policy

Ledgity.finance is structured to provide **instant liquidity under normal conditions**, supported by short duration exposures and an internal liquidity buffer.

#### 1. Standard Redemptions

Standard redemptions are expected to be processed within the product’s usual settlement timeline, according to available liquidity and operational flows.

{% columns %}
{% column %}
**Product**

lyEUR

lyUSD
{% endcolumn %}

{% column %}
**Redemption**&#x20;

Instant

Instant
{% endcolumn %}
{% endcolumns %}

#### 2. Large Redemptions / Stress Scenarios

If redemption requests exceed a defined proportion of AUM (e.g., **>20%**), settlement may require additional time (e.g., **1–4 weeks**) depending on available liquidity and the liquidation cycle of underlying exposures.


# How to use Ledgity


# Account creation & KYC

Ledgity.finance offers two ways to access the platform:

***

#### **Account creation (KYC/KYB) for fiat rails**

To enable **fiat deposits/withdrawals (EUR/USD)** and benefit from banking rails, investors complete:

* Account information
* Identity verification (**KYC/KYB**)
* Proof of address
* Registration of a bank account (**IBAN**) for future fiat withdrawals

Account approval is completed in line with internal compliance requirements.

***

#### **Wallet connection (no account creation)**

Investors can connect directly using a **non-custodial wallet** such as **Ledger, Rabby, MetaMask, or WalletConnect**.\
This wallet connection provides **immediate access to the savings products** (viewing products, subscribing, redeeming, swapping), without the need to create an account.

**Note:** Wallet connection gives instant access to the investment features, while KYC/KYB is required to use fiat on/off-ramp services and to withdraw stablecoin to an IBAN.

### **Regulatory Status**

Ledgity is **registered in France as a Digital Asset Service Provider (PSAN)** under the supervision of the **Autorité des Marchés Financiers (AMF)**.

This status ensures:

* KYC/KYB & AML enforcement
* Secure and segregated client accounts
* Compliant handling of digital asset operations

As the European **MiCA** regulation is rolled out, PSAN entities benefit from a **transitional operating regime**. Ledgity is currently working on the **full MiCA authorization**, expected in **2026 licensing window**.

> In short: **Compliant today under PSAN. Preparing for full MiCA authorization in 2026.**

***

### **Who Onboards Through This Flow**

| Client Type                     | Use Case                                        |
| ------------------------------- | ----------------------------------------------- |
| Family Offices & Asset Managers | Regulated exposure to real-yield strategies     |
| Companies Post-Fundraise        | Capital preservation with operational liquidity |
| DAOs & Protocol Treasuries      | Runway extension & stable on-chain reporting    |
| Crypto Funds & Trading Firms    | Cash management between market cycles           |

***

### **Contact Our Institutional Lead**

***JEAN-BAPTISTE SICARD*** &#x20;

{% embed url="<https://www.linkedin.com/in/jean-baptiste-sicard-charles>" %}

email: <jb@ledgity.com>


# Deposit EUR or Stablecoin

Ledgity.finance supports **two primary funding routes**:

#### **Fiat Funding (EUR/USD → EURC/USDC)**

Investors can fund in EUR (and USD where available). Funds are converted into stablecoins and credited to the investor’s account environment.

**i) Instant Funding via MoonPay Virtual Account Service**

1. The investor receives a dedicated virtual IBAN,
2. The investor executes a SEPA transfer,
3. EUR is converted to EURC,
4. EURC is credited to the investor’s account environment.

**ii)  Standard Funding via Delubac (2–3 business days)**

1. The investor uses the Delubac IBAN provided,
2. The investor executes a SEPA transfer,
3. Funds are processed under standard bank timelines (typically **2–3 business days**) and converted into EURC,
4. EURC is credited to the investor’s account environment.

***

#### **Direct Stablecoin Deposits (Stablecoin → Product)**

Investors who already hold stablecoins can deposit **EURC/USDC directly**, without fiat conversion:

1. The investor sends EURC/USDC from their wallet to the Ledgity.finance deposit address / designated contract,
2. Stablecoins are credited to the investor’s account environment,
3. The investor can subscribe to a yield strategy immediately.

This route is intended for investors seeking a faster subscription workflow.


# Subscribing to a Yield Strategy

Once your account funded, the investor can subscribe:

1. Select the strategy (e.g., **lyEUR** or **lyUSD**),
2. Confirm the subscription amount in EURC/USDC,
3. The position is created and recorded,
4. Yield accrual is reflected according to the product’s terms.

Features:

* Daily auto-compounding yield
* Transparent **PPS (Price Per Share)** accounting
* Liquidity buffer for instant or scheduled withdrawals


# Redemption & Withdrawals

(Yield Product → Stablecoin → Fiat)

Withdrawals occur in **two steps**:

**Step 1 — Redeem (exit the investment product)**

To withdraw from a Ledgity yield product, the investor first performs a **“Redeem”** operation.\
Upon redemption, the investor receives the **stablecoin equivalent** of their position—either **EURC** (for lyEUR) or **USDC** (for lyUSD)—credited to their account/wallet environment.

In other words:

* **Redeem = exit the product**
* **Result = you receive EURC/USDC**, representing the value of your investment at that time (including accrued yield, as applicable)

**Step 2 — Withdraw to fiat (Stablecoin → EUR/USD)**

Once the investor holds EURC/USDC following redemption, they can convert and withdraw to their registered bank account (IBAN) using one of the following rails:

**A) Instant Withdrawal via MoonPay (Fee: 0.5%)**

1. The investor initiates a withdrawal request
2. Stablecoins are converted into fiat (EUR/USD)
3. Fiat is credited via the instant rail where available\
   **Fee:** 0.5%

**B) Standard Withdrawal via Delubac (Free, 2–3 business days)**

1. The investor initiates a withdrawal request
2. Stablecoins are converted into fiat (EUR/USD)
3. Fiat is transferred via standard banking rails to the registered IBAN\
   **Timeline:** typically 2–3 business days\
   **Fee:** free (bank timelines apply)

> **Note:** Investors may also choose to keep their proceeds in stablecoins (EURC/USDC) after redeeming, without converting to fiat.


# Additional informations

**Step 1 — Go to the&#x20;*****Invest*****&#x20;page**\
→ [`https://ledgity.finance/invest`](https://ledgity.finance/invest)

<figure><img src="/files/wh7ShMfdsc1sllhaEuXB" alt=""><figcaption></figcaption></figure>

**Step 2 — Connect your wallet**\
Click **Connect Wallet**, select your wallet provider.

**Step 3 — Select the network**\
Choose the correct blockchain network (ex: **Base**, **Arbitrum**, **Sonic**, **Hedera**, **Ethereum, linea**).<br>

**Step 4 — Choose your vault**\
Select either:

* `lyUSDC` (USD yield)
* `lyEURC` (EUR yield)

**Step 5 — Approve your stablecoin**\
Before depositing, you must approve USDC/EURC for the vault smart contract.

* Click Approve with the amount you want to deposit
* Sign the transaction in your wallet<br>

**Step 6 — Deposit**\
Enter the amount you want to deposit and click **Invest**.\
Your wallet will ask you to confirm.

→ You will automatically receive **lyTokens** (lyUSDC or lyEURC) in your wallet.\
These represent your position and **accrue yield continuously via PPS**.

***

### **2. Understanding Your Position**

Your balance updates automatically as yield accrues.\
There is **no need to stake, harvest, or claim**.

* `lyUSDC / lyEURC` are **non-rebasing**
* Yield is reflected in **PPS (Price Per Share)** increasing daily.

Example:

* PPS = 1.0000 → After yield → PPS = 1.0075\
  Your tokens stay the same number, but each is **worth more**.

***

### **3. Withdraw**

Withdrawals depend on **available liquidity** in the on-chain buffer.

<figure><img src="/files/LRrSCOvYvN4PKum9n2h7" alt="" width="375"><figcaption></figcaption></figure>

#### **Instant Withdrawals**

A portion of TVL is always held on-chain to support immediate redemption.

You will see:

```
?  EURC/USDC available for instant redemption
```

<figure><img src="/files/w0yTz2OneoVrygio92nn" alt=""><figcaption></figcaption></figure>

If your withdrawal amount ≤ buffer → **withdrawal is instant**.

***

#### **Redeem with Settlement Delay**

If your withdrawal amount **exceeds** the instant buffer:

* The protocol triggers a **redemption from underlying yield positions**
* This process takes **less than 72h**

You will receive your funds automatically once settlements are completed.

***

#### **Large Redeem (>20% of Vault TVL)**

For large redemptions:

* Liquidity unwinding may require **1–4 weeks**, depending on asset repayment cycles.
* **A communication channel is opened directly with you** to coordinate timing and transparency.

This avoids forced liquidation and ensures treasury preservation for all participants.

***

### **4. Summary**

| Withdrawal Size   | Settlement Speed | Notes                                     |
| ----------------- | ---------------- | ----------------------------------------- |
| ≤ On-chain buffer | **Instant**      | Fully automated                           |
| Buffer-exceeding  | **≤ 72h**        | Await scheduled repayment flows           |
| > 10% of TVL      | **1–4 weeks**    | Coordinated settlement with communication |

***

### **5. Key Principles**

* You always remain in control of your wallet.
* lyTokens can be moved, stored, or used in DeFi while accruing yield.
* Withdrawals are transparent: liquidity buffer is displayed **publicly on-chain**.


# Membership program

Staking LDY

Staking LDY allows you to access **key functionnalities** (instant withdrawal), **0% fees withdrawal**, **earn yield** from protocol revenue distribution,  **participate in governance and contribute to the growth of Ledgity**.\
When you stake LDY, you lock your tokens for a chosen duration and receive a **veNFT** that represents your voting power and staking position.

**Step 1 — Go to the Staking page**\
→ [`https://ledgity.finance/stake`](https://ledgity.finance/stake)

***

### **1. Access the Staking Page**

Go to:

<figure><img src="/files/DH0A1UeTpMMbz7e0MrZn" alt=""><figcaption></figcaption></figure>

### **2) Approve LDY**

Before staking for the first time on a network:

1. Enter the amount of **LDY** you plan to stake
2. Click **Approve**
3. Confirm the transaction in your wallet

This approval is required once per network.

***

### **3) Choose Your Lock Duration**

Select how long you want to lock your LDY.

| Duration   | veLDY (Voting Power) | APY from Protocol Revenue | Liquidity               |
| ---------- | -------------------- | ------------------------- | ----------------------- |
| Short lock | Lower                | Lower                     | Higher (unlocks sooner) |
| Long lock  | Higher               | Higher                    | Locked for longer       |

Lock duration directly influences:

* **Your share of protocol rewards**
* **Your influence in governance**

For more details, see **Governance → veLDY Voting**.

***

### **4) Confirm Stake**

Click **Stake** and confirm the transaction.\
Once processed, your position appears as a **veNFT** under *Your Lock Positions*.

***

### **Your Staking Position (veNFT)**

Each position displays:

| Field             | Meaning                       |
| ----------------- | ----------------------------- |
| **Stake**         | Amount of LDY locked          |
| **Votes (veLDY)** | Governance voting power       |
| **Unlocks**       | Date when the lock ends       |
| **Time Left**     | Remaining lock duration       |
| **Claimable**     | Available LDY rewards         |
| **APY**           | Effective staking reward rate |

<figure><img src="/files/ukPGeZ4s3nGNuaBkz8qI" alt=""><figcaption></figcaption></figure>

### **Claiming Rewards**

Rewards come from protocol performance fees and buybacks.\
They accumulate automatically to your position.

To collect rewards:

1. Click **Claim**
2. Confirm in your wallet

> Claiming does **not** affect your lock duration.

***

### **Unstaking**

You can **only unstake after the lock period ends**.

When the unlock date is reached:

1. Click **Unstake**
2. Confirm in your wallet
3. Your veNFT is burned → LDY is returned to your wallet

To keep your governance power active:\
→ You can **extend the lock** before it expires.

***

### **Summary**

| Action               | Outcome                              |
| -------------------- | ------------------------------------ |
| Stake LDY            | Receive veNFT + earn revenue share   |
| Claim                | Collect accumulated LDY rewards      |
| Extend Lock          | Increase/maintain veLDY voting power |
| Unstake after Unlock | Recover LDY, veNFT burns             |


# How to buy LDY on Ledgity.finance ?

**Step 1: Access** [**Ledgity.finance**](https://ledgity.finance/swap)

1. **Go to Ledgity**: Head over to the <https://ledgity.finance/swap>

**Step 2: Connect Your Wallet**

1. **Connect Wallet**: Click on **Connect Wallet** at the top right corner.
2. **Choose Your Wallet**: Select your preferred wallet.&#x20;
3. **Select Ethereum Network**
4. **Authorize Connection**: Choose your wallet account, click **Next**, and then **Connect**.

<figure><img src="/files/DxKjNzZqBlMulN4b71Xd" alt="" width="375"><figcaption></figcaption></figure>

**Step 3: Add $LDY to the receiver**

1. **Select Market**: To trade ETH for $LDY, click on **Select a token**.
2. **Enter Token**: Type in **LDY**. If $LDY isn’t listed, copy and paste its contract address : \
   0x482dF7483a52496F4C65AB499966dfcdf4DDFDbc

**Step 4: Swap Tokens**

1. **Enter Amount**: Specify the amount of ETH you want to swap for $LDY.
2. **Confirm Swap**: Click on **Swap**, review the details, and confirm the swap in your MetaMask wallet.

To start staking and particpate, visit our [staking page.](https://ledgity.finance/app/staking)

LFG! 🚀

<br>


# How to buy LDY on Uniswap ?

**Step 1: Access Uniswap**

1. **Go to Uniswap**: Head over to the [Uniswap official website](https://uniswap.org/) and click on **Launch App**. This will take you to the app at [app.uniswap.org](https://app.uniswap.org/).

**Step 2: Connect Your Wallet**

1. **Connect Wallet**: Click on **Connect Wallet** at the top right corner.
2. **Choose Your Wallet**: Select your preferred wallet. For this tutorial, we’re using MetaMask.
3. **Authorize Connection**: Choose your MetaMask account, click **Next**, and then **Connect**.

**Step 3: Add $LDY to Uniswap**

1. **Select Market**: To trade ETH for $LDY, click on **Select a token**.
2. **Enter Token**: Type in **LDY**. If $LDY isn’t listed, copy and paste its contract address : \
   0x482dF7483a52496F4C65AB499966dfcdf4DDFDbc

**Step 4: Swap Tokens**

1. **Enter Amount**: Specify the amount of ETH you want to swap for $LDY.
2. **Confirm Swap**: Click on **Swap**, review the details, and confirm the swap in your MetaMask wallet.

To start staking and particpate, visit our [staking page.](https://ledgity.finance/app/staking)

LFG! 🚀

<br>


# Vision

At Ledgity, our mission is to rebuild asset management for the onchain era.

We aim to make **institutional-grade yield strategies** accessible to everyone by combining the rigor of traditional finance with the transparency, efficiency, and programmability of decentralized finance.

Ledgity empowers individuals and institutions to **grow, protect, and deploy their capital** through:

* **Stable, liquid yield-bearing tokens** backed by real economic activity,
* **Community-driven risk curation**, aligning incentives between users and decision-makers,
* And a **modular legal and technological framework** designed to scale compliant, transparent, and sustainable yield solutions.

Our vision is to create a **global, open, and resilient financial system** where users retain control over their assets, earn predictable returns, and access the best investment opportunities — without complexity, opacity, or unnecessary intermediaries.

Ledgity is building the foundation for **the next generation of digital asset management**.

***

Stablecoins are becoming the primary gateway into Web3.\
They offer a familiar unit of value, global accessibility, and the ability to transact without exposure to market volatility.

However, **holding stablecoins without yield is equivalent to leaving cash idle in a non-interest bearing account**.\
Over time, inflation silently erodes purchasing power — a loss that compounds.

Most yield options in crypto attempt to solve this, but many rely on **speculative incentives, leverage layers, or opaque allocation strategies**.\
These structures work only while market sentiment remains favorable.\
When liquidity rotates, **the yield evaporates first**.

Meanwhile, **Real-World Assets (RWA)** provide one of the most scalable sources of **predictable, recurring, cash-flow-based return**.\
When structured with **short duration, transparent risk, and controlled liquidity**, yield comes from **economic activity — not speculation.**

Our vision is to **bridge these two worlds**.

Ledgity provides stablecoin holders with **direct access to real yield**, backed by a **diversified portfolio of short-duration, liquid RWA strategies**, while preserving the core principles of Web3:

* **Self-custody**
* **Programmability**
* **Transparency**
* **Composability**

We apply **institutional asset management standards** — liquidity buffers, risk scoring, independent reporting, governance controls — to deliver a yield infrastructure designed to be:

| Principle                  | Meaning                                                      |
| -------------------------- | ------------------------------------------------------------ |
| **Stable**                 | Not reliant on speculative market cycles or token incentives |
| **Scalable**               | Growth follows real economic demand, not emissions           |
| **Transparent**            | Yield sources and portfolio performance can be verified      |
| **Accessible every where** | Usable by individuals, DAOs, funds, and institutions         |

Ledgity aims to become the **default yield layer for stablecoins** — enabling users and organizations to preserve capital, extend treasury runway, and access sustainable return **without intermediaries or structural opacity**.

**Real yield, delivered on-chain.**\
**Simple to use.**

***


# Treasury solution

Whether you manage your own wallet, a DAO treasury, a crypto fund, or a corporate balance sheet, stablecoins represent **cash reserves** that require **preservation, liquidity, and yield**.\
However, most yield options available today introduce **structural risks** or **operational inefficiencies**:

| Option                                | Core Limitation                                                                               |
| ------------------------------------- | --------------------------------------------------------------------------------------------- |
| **Holding stablecoins**               | **0% yield** → purchasing power erodes over time                                              |
| **Typical DeFi strategies**           | Returns depend on **leverage, incentives, or liquidity mining**; risk transparency is limited |
| **Traditional money markets / funds** | **Slow settlement**, limited composability, onboarding friction, minimum sizes                |

***

### **Ledgity Yield addresses this gap**

Ledgity provides **stable, transparent, and predictable yield** sourced from **real economic activity**—not speculative emissions—while maintaining:

* **Full on-chain visibility**
* **Operational simplicity**
* **Withdrawals supported by a liquidity buffer**
* **Regulated and segregated fund infrastructure**

This enables **institutional-grade treasury management**, directly accessible **on-chain**.

***

### **Who Benefits**

| Segment                                           | Value Proposition                                                        |
| ------------------------------------------------- | ------------------------------------------------------------------------ |
| **Individual stablecoin holders**                 | Passive, auto-compounding yield without staking complexity               |
| **Crypto projects & DAOs**                        | **Runway extension** + transparent accounting for treasury reporting     |
| **Crypto funds & market makers**                  | Stable yield **uncorrelated** to crypto market volatility                |
| **Startups post-fundraising**                     | Capital preservation with **immediate liquidity**                        |
| **Family offices & wealth managers**              | Regulated structure + consolidated reporting + portfolio diversification |
| **Corporate treasuries exploring digital assets** | Compliant access to yield with operational controls                      |

***

### **Treasury Use Cases**

* Convert **idle cash reserves into productive yield**
* **Smooth operational spending** using predictable, daily-accruing yield
* Maintain **full liquidity** for strategic opportunities
* Improve **cash flow visibility** with on-chain accounting
* Avoid reliance on **token incentives or hyper-financialized DeFi loops**


# History of ledgity (V1 → V2)

#### 2021-2022: Foundation & First Steps

* **Ledgity App Creation**: The idea behind Ledgity was born, focusing on merging traditional finance with DeFi to make regulated crypto solutions accessible.
* **Regulatory Alignment**: Achieved AMF regulation, establishing a strong compliance foundation.
* **First Presale & Cardano Integration**: Initial token sale launched, exploring Cardano’s technology to create tokenization infrastructure.
* **Rebranding of LTY Token in LDY** : Rebranding to align with the vision of becoming one of the primary  RWA token on the market.

***

#### Q1-Q2 2023: Building the Core Infrastructure

* **Ledgity Yield v1 Smart Contracts**: Released the first version of smart contracts to power secure, yield-generating solutions.
* **Cross-Chain Compatibility**: Developed a unified, cross-chain frontend to increase accessibility.
* **Launch on Arbitrum Goerli & Linea Goerli (Testnets)**: Expanded testing capabilities for multi-chain compatibility.
* **AML Enforcement**: Implemented comprehensive AML measures, including geo-restriction, KYT, and wallet monitoring for secure user interactions.

***

#### Q3-Q4 2023: Scaling and Beta Launch

* **Mainnet Beta Launches**: Deployed on Arbitrum One and Linea for broader real-world testing.
* **Strategic Marketing & Partnerships**: Initiated marketing campaigns with Key Opinion Leaders (KOLs) and started ecosystem partnerships.
* **Community Engagement Campaigns**: Launched an airdrop and pre-mining campaign to engage users.
* **First LUSDC Liquidity Pool**: Established on SyncSwap, enhancing liquidity.
* **Integration with Chainlink BUILD Program**: Strengthened protocol security and scalability through Chainlink’s support.

***

#### Q1-Q2 2024: Community and R\&D Initiatives

* **LDY Community Seed**: Kicked off on Fjord Foundry, providing early access to the community.
* **RWA Yield Research on Bitcoin**: Began exploring bringing native RWA yield to Bitcoin.
* **Smart Contract Audits**: Partnered with Hacken to conduct rigorous audits.
* **L-Boost Vault R\&D**: Focused on developing a liquidity mining vault to enhance token utility.
* **Airdrop Campaign**: Continued community outreach with rewards for participation.
* **LDY Public Sale**: Launched on major launchpads SDAO and KOMMUNITAS.
* **Deployment on New Layer**: Strategic expansion onto additional networks.

***

#### Q3-Q4 2024: Expansion & Innovation

* **Deployment on Base & Ethereum**: New chain deployments to broaden network reach.
* **UI/UX Enhancements**: Revamped user interface and experience for smoother interactions.
* **Community Reward Programs**: Incentivizing community contributions and loyalty.
* **R\&D on Leverage Vault**: In collaboration with lending protocols, exploring new yield opportunities.
* **CCIP with Chainlink and XSwap**: Strengthened cross-chain integration with Chainlink
* **Wrapped L-Tokens Introduction**: Launching new wrapped token options to increase asset flexibility.
* **150+ Partnerships Ready to Launch**: Scaling up with a broad ecosystem of collaborators.
* **SWAP INTEGRATION** with SWING.XYZ
* **STAKING** on ETH and ARB&#x20;

***

#### Q1-Q2 2025:  Proof of concept validated

* **TVL structuring & deployment framework** established.
* **Cross-chain interoperability layer** finalized.
* **Unified non-rebase L-Tokens (lyUSDC / lyEURC)** built for full DeFi compatibility.
* **Community onboarding pathways** simplified.
* **LEURC strategy introduced** for EUR-based yield expansion.
* Ecosystem growth and contributor onboarding strengthened.

> Objective: Make the protocol scalable, composable, and institution-ready.

***

#### Q3-Q4 2025: Protocol V2 & New Horizons

* **Ledgity Cex fusion with Vancellian app** .
* **Appointment of** [**JB Sicard** ](https://www.linkedin.com/in/jean-baptiste-sicard-charles)**as CEO**, strengthening governance & operational leadership.
* **V2 Launch (scheduled within days)**:
  * PPS L-Tokens (lyUSDC / lyEURC)
  * Liquidity Buffer + Withdrawal Queue
  * veLDY Governance Staking
  * Institutional Onboarding Flow (Privy + Fiat On/Off Ramp)
  * Multi-chain deployment rollout

> **We are here:** Protocol V2 is being launched publicly.

***

**2026 — Scaling & Institutional Expansion**

With V2 live and operational maturity established, 2026 focuses on **distribution, regulatory enablement, and global onboarding**.

| Focus Area                            | Description                                                                                                                                                                         |
| ------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **MiCA Authorization Pathway**        | Transition from PSAN registration to full MiCA compliance and authorization across the EU regulatory perimeter.                                                                     |
| **Vancellian Integration**            | Integration of Ledgity into the Vancellian ecosystem to increase distribution channels and enterprise accessibility.                                                                |
| **Institutional Onboarding at Scale** | Rollout of structured onboarding pathways for **funds, corporate treasuries, DAOs, and family offices** with reporting & withdrawal scheduling.                                     |
| **RWA Strategy Diversification**      | Expansion into multiple short-duration, liquid real-world yield strategies (beyond invoice financing): treasury instruments, trade finance, corporate cash management products.     |
| **New Chain Deployments**             | Deployment on additional networks (including **Circle’s Arc** and strategic EVM ecosystems) to position Ledgity as **the yield layer** integrated across major Web3 liquidity hubs. |
| **Protocol Integrations in DeFi**     | Integration into lending markets, DEX liquidity layers, structured vaults, automated portfolio strategies, and treasury management platforms.                                       |
| **New Vaults & Product Lines**        | <p>Additional yield vaults tailored for:<br>• DAOs<br>• Corporate treasuries<br>• Stablecoin liquidity pools<br>• Regional currency exposure (EUR, USD where possible).</p>         |

> **2026 marks the shift from product readiness → ecosystem adoption.**\
> The objective is to make Ledgity **the default stable yield layer** plugged into wallets, chains, treasuries, and DeFi primitives.

> Objective: Industrialize access to real yield at institutional scale.

***

### **In One Line**

**V1 built the foundation.**\
**V2 makes it usable, scalable, and ready for everybody.**&#x20;


# Vault Strategy

Ledgity’s yield model is built on **real economic activity**, not token incentives or leverage cycles.\
The objective is to deliver **stable, recurring, and liquid yield** while preserving **capital integrity and on-chain accessibility.**

***

### **Strategy Principles**

The RWA portfolio is structured around three core principles:

| Principle                 | Meaning                                                                             |
| ------------------------- | ----------------------------------------------------------------------------------- |
| **Short Duration**        | Capital cycles frequently to support withdrawal liquidity and reduce duration risk. |
| **Diversified Exposure**  | Yield does not rely on a single asset class, issuer, or sector.                     |
| **Transparent Cash Flow** | Yield is generated from contractual, identifiable, and recurring payments.          |

> The strategy is designed to behave **independently from crypto market cycles**.

***

### **Portfolio Allocation Model (Target)**

| Allocation | Exposure Type                                         | Purpose                                                        |
| ---------- | ----------------------------------------------------- | -------------------------------------------------------------- |
| **80%**    | **Short-duration Real-World Yield Portfolio**         | Core yield generation — diversified, recurring payments.       |
| **15%**    | **Low-Risk On-Chain Strategies** (Aave, Morpho, etc.) | Liquidity efficiency & flexibility while maintaining security. |
| **5%**     | **On-Chain Liquidity Buffer**                         | Supports **instant withdrawals** and operational settlement.   |

#### **80% — Real-World Yield Portfolio**

The core portfolio includes diversified exposure to:

* Trade finance flows
* Short-term corporate receivables
* Treasury and cash management instruments
* Tokenized money market alternatives
* Factoring and revenue-based financing in select cases

All positions are:

* **Short duration** (typically 30–180 days)
* **Collateralized or secured by senior claims**
* **Audited and monitored** through institutional reporting frameworks

#### **15% — Secured On-Chain Yield**

Low-risk, liquid DeFi instruments used only where:

* Smart contracts are audited
* Protocols have battle-tested track records
* Collateral is high-quality & liquid

This component ensures on-chain composability and immediate redeployment flexibility.

#### **5% — Liquidity Buffer**

Maintained **on-chain**, enabling:

* Instant withdrawals for most users
* Low operational friction
* Linearity between inflows and outflows

Large withdrawals are processed through **scheduled liquidity windows** to preserve asset integrity.

***

### **Risk Management Framework**

| Risk Dimension                    | Controls in Place                                               |
| --------------------------------- | --------------------------------------------------------------- |
| **Counterparty Risk**             | Due diligence, financial scoring, performance tracking          |
| **Duration Risk**                 | Short-duration instruments with predictable repayment cycles    |
| **Liquidity Risk**                | On-chain liquidity buffer + rolling maturities                  |
| **Collateral / Asset Backing**    | Collateralization or senior-secured structures where applicable |
| **Operational & Compliance Risk** | PSAN compliance, KYB/KYC, AML screening, audit trails           |
| **Smart Contract Risk**           | Independent audits + battle-tested integrations                 |

Risk is not eliminated — but it is **identified, quantified, and managed transparently**.

***

### **Reporting & Transparency**

Ledgity provides:

* **Portfolio allocation breakdowns**
* **PPS (Price Per Share) valuation transparency**
* **On-chain valuation view for liquidity buffer**
* **Periodic reporting for institutional clients**

Institutional company will allow:

* Yield statements (CSV / PDF)


# Why Real Yield Matters

### **Incentive-Based Yield Is Not Sustainable**

A large portion of early DeFi yield relied on:

* Token emissions,
* Recursive leverage,
* Liquidity mining incentives.

These mechanisms **redistribute existing value** rather than create new value.\
When:

* Token prices fall,
* Incentives are reduced,
* Liquidity rotates elsewhere,

**Yields collapse**.\
This makes the model **procyclical and unstable**.

***

### **Illiquid Real-World Assets Create Liquidity Risk**

More recently, attention shifted to **Real-World Assets (RWA)** as a source of yield.\
However, **not all RWA exposure is appropriate for on-chain liquidity models**.

In particular, **real estate and long-duration credit** present:

* **Slow repayment cycles** (multi-year),
* **Valuation uncertainty in down markets**,
* **Limited secondary liquidity**.

If depositors expect **daily or immediate liquidity**, but the underlying assets only return capital **over years**, the structure creates a **liquidity mismatch**.

This mismatch is a primary cause of:

* Withdrawal queues,
* Redemption gates,
* Suspension events.

> **If asset duration is longer than withdrawal timing, the model cannot hold during stress.**

***

### **Real Yield Requires Short Duration + Cash Flow Visibility**

For yield to be **sustainable**, two elements must be present:

| Requirement                                      | Description                                                                                      |
| ------------------------------------------------ | ------------------------------------------------------------------------------------------------ |
| **Cash flows from productive economic activity** | Yield must be generated by businesses repaying obligations, not by inflation or leverage cycles. |
| **Short-duration and recurring repayments**      | Capital must return on predictable schedules to support ongoing withdrawal liquidity.            |

When these conditions are met, yield becomes:

* **Repeatable** (not dependent on new inflows),
* **Auditable** (linked to payments, not speculation),
* **Liquid** (capital cycles continuously instead of locking).

***

### **Why This Matters for Any Treasury**

Whether managing:

* A DAO treasury,
* A fund cash reserve,
* A corporate balance sheet,
* Or personal stablecoin holdings,

The priorities are consistent:

| Priority                | Importance                                                                     |
| ----------------------- | ------------------------------------------------------------------------------ |
| **Preserve capital**    | Avoid strategies dependent on leverage, speculation, or unrealized valuations. |
| **Maintain liquidity**  | Ensure assets can meet withdrawal or operational needs.                        |
| **Stability of return** | Favor recurring, contractual yields over volatile APY swings.                  |
| **Transparency**        | Returns should be traceable to real underlying cash flows.                     |

***

### **In Summary**

**Real Yield matters because it is anchored in the real economy.**\
It is based on **cash flows**, not **market sentiment** or **incentive cycles**.

> **Sustainable yield = Real economic activity → Cash flow → Distribution.**

This is the model that is becoming the standard for **institutional-grade digital asset yield**.


# Technical architecture

The Ledgity Yield protocol is composed of modular smart contracts that manage deposits, yield accrual, token utility, governance, and cross-chain interoperability.\
This section provides a clear overview of **how the contracts are organized and interact**.

> **Note:** Contract addresses will be added after the final V2 mainnet deployments and chain synchronizations.\
> Addresses are already defined in internal deployment manifests and will be published once audits and verification are finalized.

***

| Contract / Module             | Description                                                                 | Notes                                              |
| ----------------------------- | --------------------------------------------------------------------------- | -------------------------------------------------- |
| **GlobalOwner**               | Controls upgrades and role assignments via multisig governance.             | Core security gate.                                |
| **GlobalPause**               | Can temporarily halt deposits/withdrawals in emergencies.                   | User funds remain safe & redeemable.               |
| **GlobalBlacklist**           | Ability to restrict malicious or sanctioned wallets.                        | Used only when necessary (AML / exploit response). |
| **LToken (lyUSDC / lyEURC)**  | Core vault contract. Manages deposits, withdrawals, and PPS-based yield.    | Users hold L-Tokens instead of idle stables.       |
| **WrappedLToken (ERC-4626)**  | DeFi-compatible wrapper for L-Tokens, enabling LP and lending integrations. | Used for DEX & money market composability.         |
| **FeeCollector**              | Gathers performance fees generated from real yield.                         | Feeds BuybackManager.                              |
| **BuybackManager**            | Executes LDY buybacks and redistributes tokens to veLDY stakers.            | Drives value capture flywheel.                     |
| **LDY Token**                 | Governance & utility token of the Ledgity Protocol.                         | Fixed supply, no inflation.                        |
| **LDYStaking (veNFT)**        | Lock-based staking system providing rewards, boosts, and governance power.  | Lock longer → more power & yield share.            |
| **Chainlink CCIP Router**     | Ensures secure cross-chain messaging without relying on custom bridges.     | Forms the backbone of multi-chain L-Tokens.        |
| **LTokenSignaler / Subgraph** | Indexing & data transparency layer.                                         | Powers dashboards, reporting & analytics.          |

### **System Overview**

The protocol is structured into **four layers**:

| Layer                            | Purpose                                                    |
| -------------------------------- | ---------------------------------------------------------- |
| **Admin & Safety Layer**         | Ownership, pause control, compliance & incident response   |
| **Vault & Yield Layer**          | Deposit / withdrawal logic, L-Tokens, PPS-based real yield |
| **Value Capture & Governance**   | LDY token, staking, revenue distribution, voting power     |
| **Cross-Chain & Indexing Layer** | Multi-chain deployments, bridging, analytics & reporting   |

***

### **Contract Structure Diagram**

```
                           ┌──────────────────────┐
                           │    GlobalOwner       │
                           │  (Multisig Control)  │
                           └─────────┬────────────┘
                                     │
         ┌───────────────────────────┴────────────────────────────┐
         │                     Admin Layer                         │
         │                                                         │
         │   GlobalPause         GlobalBlacklist                   │
         │   (Emergency)         (Compliance / Threat Response)    │
         └───────────────────────────┬────────────────────────────┘
                                     │
                                     ▼
         ┌────────────────────────────────────────────────────────┐
         │                   Vault & Yield Layer                   │
         │                                                        │
         │   LToken (lyUSDC / lyEURC) → Deposit / Withdraw        │
         │   Liquidity Buffer & Withdrawal Queue Logic            │
         │   WrappedLToken (ERC-4626) for DeFi integrations       │
         │                                                        │
         └───────────────────────────┬────────────────────────────┘
                                     │
                                     ▼
         ┌────────────────────────────────────────────────────────┐
         │         Value Capture & Governance Layer                │
         │                                                        │
         │   FeeCollector → BuybackManager → LDYStaking (veNFT)   │
         │   LDY Governance Token                                 │
         │   veLDY Voting Power + Boosts                          │
         │                                                        │
         └───────────────────────────┬────────────────────────────┘
                                     │
                                     ▼
         ┌────────────────────────────────────────────────────────┐
         │         Cross-Chain & Indexing Layer                    │
         │                                                        │
         │   Chainlink CCIP Router                                │
         │   LTokenSignaler → Subgraph (Data / Dashboard)         │
         │   Multi-chain deployments (Base / Arbitrum / …)        │
         │                                                        │
         └────────────────────────────────────────────────────────┘
```


# Contracts details

## 🔹 1. **Staking Contracts**

#### **StakingPositions**

| Chain                | Contract                                     |
| -------------------- | -------------------------------------------- |
| **Ethereum Mainnet** | `0x902982C0C405091894FF82b3b51F180f99f75144` |
| **Sonic**            | `0x841A13A5C4Aa89d7C013E6f49E95188ed3e6c300` |
| **Arbitrum One**     | `0x6E83612c73f124127d49eA642c392FF4d9eAFd5b` |
| **Base**             | `0x0fCfdF9B6572116FA662A5CF8a074B51EB2D6d88` |
| **Linea**            | `0x891611398B53BBAaA3db04c158218c319c87d554` |
| **Hedera**           | `0xbea9Da36D218079ad6dEe79C447E33d57618B05d` |

***

## 🔹 2. **Vault Tokens (lyTokens)**

These are the **official V2 yield-bearing tokens**.

#### **lyEUR**

<table><thead><tr><th width="258.546875">Chain</th><th>Contract</th></tr></thead><tbody><tr><td><strong>Ethereum Mainnet</strong></td><td><code>0x20968165B7d2cDF33aF632aAB3e0539848d44BC8</code></td></tr><tr><td><strong>Base</strong></td><td><code>0xFaA1e3720e6Ef8cC76A800DB7B3dF8944833b134</code></td></tr></tbody></table>

#### **lyUSD**

<table><thead><tr><th width="261.98828125">Chain</th><th>Contract</th></tr></thead><tbody><tr><td><strong>Ethereum Mainnet</strong></td><td><code>0x3C769d0e8D21d380228dFB7918c6933bb6ecB6D4</code></td></tr><tr><td><strong>Sonic</strong></td><td><code>0x65f75c675Cc76474662DfBF7B6e8683764223001</code></td></tr><tr><td><strong>Arbitrum One</strong></td><td><code>0x283F35b6406a0e19a786ed119869eF2c0fE157Ee</code></td></tr><tr><td><strong>Base</strong></td><td><code>0x916f179D5D9B7d8Ad815AC2f8570aabF0C6a6e38</code></td></tr><tr><td><strong>Linea</strong></td><td><code>0x43b3c64dbc95F9eD83795E051fc00014059e698F</code></td></tr><tr><td><strong>Hedera</strong></td><td><code>0x102C86AC5b680149c34d6a8037692639263EAbb9</code></td></tr></tbody></table>

***

## 🔹 3. **Legacy Tokens (L-Tokens)**

These contracts belong to the V1 system and are progressively deprecated.

#### **LEURC**

<table><thead><tr><th width="245.57421875">Chain</th><th>Contract</th></tr></thead><tbody><tr><td><strong>Sonic</strong></td><td><code>0x88dC8674339731A12a08624f455Fd41Fe2d6DC82</code></td></tr><tr><td><strong>Base</strong></td><td><code>0x77ce973744745310359B0d1a3415A34FF983708F</code></td></tr></tbody></table>

#### **LUSDC**

<table><thead><tr><th width="250.48046875">Chain</th><th>Contract</th></tr></thead><tbody><tr><td><strong>Sonic</strong></td><td><code>0xD7cCABfBEfE332C9784FF3debeBdDbc787E75e69</code></td></tr><tr><td><strong>Arbitrum One</strong></td><td><code>0xd54d564606611A3502FE8909bBD3075dbeb77813</code></td></tr><tr><td><strong>Base</strong></td><td><code>0x3C769d0e8D21d380228dFB7918c6933bb6ecB6D4</code></td></tr><tr><td><strong>Linea</strong></td><td><code>0x4AF215DbE27fc030F37f73109B85F421FAB45B7a</code></td></tr><tr><td><strong>Hedera</strong></td><td><code>0x483e6c53Ca341AF3C05EE5952f6Af48b3cFeE5cD</code></td></tr></tbody></table>

***

## 🔹 4. **LDY Token (ERC-20)**

The LDY utility & governance token across all supported chains.

<table><thead><tr><th width="262.8203125">Chain</th><th>Contract</th></tr></thead><tbody><tr><td><strong>Ethereum Mainnet</strong></td><td><code>0x482dF7483a52496F4C65AB499966dfcdf4DDFDbc</code></td></tr><tr><td><strong>Arbitrum One</strong></td><td><code>0x999FAF0AF2fF109938eeFE6A7BF91CA56f0D07e1</code></td></tr><tr><td><strong>Sonic</strong></td><td><code>0x9cFBf905a444B5c871f0B447e137e8Ce7EeD0BCE</code></td></tr><tr><td><strong>Base</strong></td><td><code>0x055d20a70eFd45aB839Ae1A39603D0cFDBDd8a13</code></td></tr><tr><td><strong>Hedera</strong></td><td><code>0x9588f69388E905Dc55cF36f70c769da96aeE069F</code></td></tr></tbody></table>


# Vault Factory & L-Token architecture

Ledgity vaults are built to provide stable, predictable real yield while remaining **fully composable** and **non-custodial**. The architecture is modular: each stablecoin vault is instantiated from a **Vault Factory**, and each vault issues its own **L-Token**, representing a claim on underlying assets.

***

### **Vault Factory**

The **Vault Factory** is the contract responsible for deploying new vault instances (lyUSDC, lyEURC, future stable yield strategies, chain deployments, etc.).

#### **Key Responsibilities**

| Function                     | Description                                                           |
| ---------------------------- | --------------------------------------------------------------------- |
| **Deploy new vaults**        | Creates new L-Token vaults from a standardized implementation.        |
| **Register vault metadata**  | Keeps an on-chain registry of all active Ledgity vaults.              |
| **Parameter configuration**  | Sets initial parameters: stablecoin type, decimals, risk status, etc. |
| **Access & safety controls** | Ensures only governance-mandated vault deployments occur.             |

This allows Ledgity to:

* Expand yield products to new stablecoins (e.g., USDC / EURC / USDT in the future)
* Deploy the protocol across multiple chains
* Maintain a **single consistent logic base** for all vaults

> **No vault is deployed manually.**\
> Vault creation always occurs through the Factory to ensure consistency, auditing, and governance control.

***

### **L-Token (lyUSDC / lyEURC)**

When users deposit stablecoins into a vault, they receive **L-Tokens**.\
These tokens represent their share of the vault and **automatically accrue yield** via **PPS (price-per-share) increase**, not by minting additional tokens.

#### **Core Properties**

| Property                                | Value                                           |
| --------------------------------------- | ----------------------------------------------- |
| **1:1 deposit / redeem ratio at entry** | 1 USDC → 1 lyUSDC on deposit                    |
| **Non-rebase**                          | Balance stays constant, PPS increases over time |
| **ERC-20 standard**                     | Fully composable across DeFi                    |
| **Auto-compounding**                    | Yield reflected directly in redeem value        |

#### **Why PPS (Non-Rebase)?**

The move from rebase tokens (V1) → **non-rebase PPS tokens (V2)** solves the main DeFi integration problem:

| Model               | Issue                                            | Result                             |
| ------------------- | ------------------------------------------------ | ---------------------------------- |
| Rebase tokens (V1)  | Changing balances break DeFi pools & LP math     | Poor composability                 |
| **PPS tokens (V2)** | Yield reflected in share value, not token supply | **Plug-and-play with all of DeFi** |

This makes **lyUSDC / lyEURC integrable** into:

* DEX liquidity pools
* Lending & borrowing markets (Euler, Morpho, etc.)
* LP concentration strategies
* Index products
* Structured vaults

***

### **How Yield is Accrued**

Yield does not come from emissions or token inflation.\
It comes from **cash flows** generated by **short-duration RWA strategies** and reflected on-chain:

```
Yield generated → Forwarded to Vault → PPS increases
```

Users never need to:

* Claim rewards
* Stake separately
* Compound manually

**Holding the token = earning the yield.**


# FeeCollector / BuybackManager

The Ledgity Protocol routes a portion of real yield into **LDY buybacks and staking rewards**, ensuring that token value is driven by **actual economic performance**, not emissions.

This mechanism is shared between **the Community (veLDY stakers)** and the **Ledgity Council (governance & stewardship multisig)**.

***

### **1. Performance Fees → FeeCollector**

Each vault generates cash-flow yield from short-duration RWA strategies.\
A share of this yield is allocated as a **protocol performance fee**, collected **on-chain** by the **FeeCollector** contract.

| Parameter | Value                                                    |
| --------- | -------------------------------------------------------- |
| Fee Type  | Performance fee (taken from real yield, never principal) |
| Fee Asset | Stablecoins (USDC/EURC)                                  |
| Custody   | Smart contract controlled (non-custodial)                |

No deposit fees.\
No withdrawal fees if user holds sufficient LDY / veLDY.

***

### **2. FeeCollector → BuybackManager**

The **BuybackManager** receives stablecoins and executes **market buybacks of LDY** in a controlled, automated, transparent process.

```
Performance Yield → FeeCollector → BuybackManager → LDY Buyback (on-chain)
```

***

### **3. Distribution Split: Community & Council**

After LDY is bought back, the tokens are distributed into **two staking pools**:

| Recipient Pool           | Allocation | Purpose                                                                                        |
| ------------------------ | ---------- | ---------------------------------------------------------------------------------------------- |
| **veLDY Community Pool** | **80%**    | Rewards users who stake LDY and lock long-term → governance participation + aligned incentives |
| **veLDY Council Pool**   | **20%**    | Funds governance stewards, strategic contributors & long-term protocol sustainability          |

**This structure ensures that:**

* **Users** who commit and govern the protocol receive the majority of the value.
* **The Council** is funded **without minting inflation** or selling tokens into the market.

**No new LDY is created.**\
**No dilution.**\
All value comes from **real yield**.

***

### **4. Optional Burn Program (DAO Controlled)**

Governance (veLDY) may choose to:

* Adjust the split over time,
* Redirect a portion to **burns** (reducing circulating supply),
* Or allocate part to treasury for strategic partnerships.

This ensures maximum **long-term flexibility**.

***

### **5. The Flywheel**

```
TVL Grows
   ↓
More Real Yield Generated
   ↓
Performance Fees Flow Into FeeCollector
   ↓
BuybackManager Purchases LDY On-Chain
   ↓
80% → veLDY Community Rewards
20% → veLDY Council Pool
   ↓
More LDY gets Locked → Reduced Circulating Supply
   ↓
Stronger Governance + Higher Capital Efficiency
   ↓
Protocol Attractiveness Increases → TVL Grows Again
```

This is a **self-reinforcing loop**, entirely powered by **cash-flow yield**, not speculative incentives.

***

### **In Summary**

| Mechanism                      | Result                                     |
| ------------------------------ | ------------------------------------------ |
| Real yield → FeeCollector      | Transparent revenue capture                |
| BuybackManager → LDY purchases | Market-aligned value conversion            |
| 80% → veLDY Community Pool     | User-aligned incentive structure           |
| 20% → Council Pool             | Sustainable governance funding             |
| Optional burn mechanism        | Long-term supply reduction                 |
| No token inflation             | Value is tied to real protocol performance |

> **LDY becomes more valuable as the protocol grows — not by printing tokens, but by redistributing real economic yield back to the stakeholders who contribute to the system.**


# Emergency Controls

Ledgity is designed to provide **stable, predictable yield** while ensuring **user protection across all market conditions**.\
To achieve this, the protocol includes **on-chain safety mechanisms** that allow the system to react quickly and transparently to abnormal events.

Even though approximately **80% of the capital is allocated off-chain** to generate real yield, **user balances, liquidity buffers, governance, and access rights remain fully on-chain** and cannot be altered without transparent, on-chain actions.

***

### **Control Layer Breakdown**

| Component            | Role                                                                      | Controlled By                                   |
| -------------------- | ------------------------------------------------------------------------- | ----------------------------------------------- |
| **GlobalPause**      | Temporarily pausing deposits & new withdrawals during abnormal conditions | Multisig governance (Council + veLDY oversight) |
| **GlobalBlacklist**  | Restricting sanctioned or malicious addresses                             | Multisig governance (case-by-case only)         |
| **Withdrawal Queue** | Ensuring liquidity alignment between on-chain and off-chain assets        | Smart contract logic (automatic, rule-based)    |

These mechanisms **do not give custody** to the protocol operators.\
They **only control transaction flow** to protect user funds when needed.

***

### **GlobalPause — Protocol Circuit Breaker**

`GlobalPause` allows the protocol to **temporarily pause operations** if a security or infrastructure risk is detected.

Typical activation scenarios:

* Bridge or infrastructure exploit detected upstream
* Custodian or SPV operational alert
* Smart contract vulnerability flagged
* Irregular on-chain behavior detected

**Effects during pause:**

* Deposits & *new* withdrawal requests are paused
* *Existing* withdrawal claims remain redeemable
* User balances remain fully intact and auditable

This mechanism is **transparent, reversible, and limited in scope.**

**Funds are never frozen or seized.**

***

### **GlobalBlacklist — Targeted Address Restriction**

`GlobalBlacklist` allows the protocol to **block only specific wallets** in case of:

* Confirmed malicious activity
* Legal sanction lists
* Fund flows linked to exploitation or theft

This is **not a censorship tool.**\
It is used **only in objective, provable risk or compliance cases**.

It protects the protocol **without impacting legitimate users.**

***

### **Withdrawal Safety & Liquidity Management**

Ledgity maintains a **hybrid liquidity model**, balancing **instant on-chain liquidity** with **scheduled off-chain repayment cycles**.

| Withdrawal Size                       | Source                                    | Settlement Time                          |
| ------------------------------------- | ----------------------------------------- | ---------------------------------------- |
| **Within the Liquidity Buffer**       | On-chain buffer                           | **Instant**                              |
| **Standard withdrawal (< \~10% TVL)** | Next short-duration repayment cycle       | **Typically < 72h**                      |
| **Large withdrawal (> \~20% TVL)**    | Coordinated redemption from RWA portfolio | **1–4 weeks**, with direct communication |

This ensures:

* No forced liquidation of off-chain assets
* No redemption gate
* No “withdrawals suspended until further notice”
* Predictable exit timelines even during stress

The queue is **automatic**, not discretionary.

***

### **Why the System Is More Resilient**

Although yield comes from **off-chain economic activity**, the protocol maintains:

| Element                          | Stored On-Chain?      | Purpose                                           |
| -------------------------------- | --------------------- | ------------------------------------------------- |
| User balances & vault accounting | ✅ Yes                 | Transparent & verifiable                          |
| Liquidity buffer                 | ✅ Yes                 | Supports instant exits                            |
| Governance rules & permissions   | ✅ Yes                 | Community-supervised                              |
| Off-chain collateral             | ❗ Via Custodian + SPV | Secured, segregated from Ledgity corporate assets |

The **SPV structure** ensures assets are **bankruptcy-remote**\
→ User capital is **legally separated** from Ledgity’s operating entity.

***

### **In Summary**

| Principle                          | Outcome                                            |
| ---------------------------------- | -------------------------------------------------- |
| Safety without custody             | Users always remain the final owner of their funds |
| On-chain control + off-chain yield | Stability without sacrificing transparency         |
| Rule-based withdrawals             | No panic, no freeze, no arbitrary gating           |
| Governance oversight + multi-sig   | No single party can act alone                      |

> **Ledgity is built to remain stable and redeemable — even in stressed conditions — by combining on-chain transparency with institutional-grade asset protection.**

***

####


# Membership program

veLDY Pools

The Ledgity Protocol uses a **veToken (vote-escrowed)** staking model to align long-term incentives between users, governance stewards, and the protocol’s economic growth.

When users **stake LDY**, they lock it for a chosen duration and receive a **veNFT** that represents:

* **Voting Power** in governance
* **Share of protocol buybacks**
* **Utility boosts** inside the protocol (priority withdrawals, yield boosts, etc.)

The longer the lock → the higher the **veLDY weight** → and the larger the share of rewards.

***

### **How veLDY Works**

| Action                                   | Result                                              |
| ---------------------------------------- | --------------------------------------------------- |
| Stake LDY                                | Receive a veNFT position                            |
| Choose lock duration (e.g., 1–24 months) | Lock duration increases veLDY weight                |
| Hold veNFT                               | Earn a share of BUYBACK rewards + governance rights |

veLDY **does not** inflate or mint new tokens.\
Value accrues through **real yield → buybacks → reward distribution**.

***

### **Dual Pool Reward System**

The protocol distributes bought-back LDY into **two separate staking pools**.

| Pool                     | Allocation                  | Beneficiaries                                | Purpose                                                                |
| ------------------------ | --------------------------- | -------------------------------------------- | ---------------------------------------------------------------------- |
| **veLDY Community Pool** | **80%** of all LDY buybacks | Users who stake LDY                          | Rewards aligned community participation & long-term commitment         |
| **veLDY Council Pool**   | **20%** of all LDY buybacks | Governance stewards & strategic contributors | Sustainable funding for protocol oversight, partnerships & development |

This structure ensures:

* **Users receive the majority of value** created by the protocol
* **Governance is sustainably incentivized**, without requiring inflation or forced token sales\
  \
  **What veLDY Unlocks**

  | Benefit                           | Description                                                     |
  | --------------------------------- | --------------------------------------------------------------- |
  | **Part of the Buybacks**          | Earn yield sourced from *real economic activity*, not inflation |
  | **Governance Voting Power**       | Propose / vote on protocol upgrades, fees, treasury usage       |
  | **Priority Withdrawals**          | Higher queue ranking in withdrawal scheduling                   |
  | **Boosted Yield Access**          | Required to use boosted vaults & future leverage strategies     |
  | **Eligibility for Council Roles** | veLDY stakers can be elected to governance committees           |


# Wallet set up & Access control

Depending on needs:

| Option                             | Description                                                                                     |
| ---------------------------------- | ----------------------------------------------------------------------------------------------- |
| **Smart Wallet (Privy)**           | Automatic non-custodial wallet creation for teams unfamiliar with Web3, secured with your email |
| **Multi-Sig (Safe / Gnosis Safe)** | Shared governance for treasuries & funds                                                        |
| **Role-Based Access**              | CFO, Operations, Auditor permission segmentation                                                |

Clients always retain **full control of funds**.


# Chainlink Incubation

Ledgity integrates **Chainlink CCIP (Cross-Chain Interoperability Protocol)** to provide secure, standardized cross-chain functionality for its yield-bearing stablecoins (`lyUSDC`, `lyEURC`) and governance systems.\
This ensures stable yield behavior across networks, without relying on unverified bridges or custom cross-chain infrastructure.

<https://www.chainlinkecosystem.com/ecosystem/ledgity-yield>

### **Why CCIP Matters**

To scale yield across multiple ecosystems, L-Tokens must remain:

* **Unified in supply**
* **Synchronized in PPS (Price Per Share)**
* **Secure against cross-chain exploits**

CCIP provides:

| Capability               | Purpose                                       |
| ------------------------ | --------------------------------------------- |
| Secure messaging         | Single source of truth across chains          |
| Risk-managed bridging    | Reduces bridge-attack vectors                 |
| Standardized deployments | Enables predictable expansion to new networks |

> CCIP ensures Ledgity vault positions stay consistent and yield remains accurate across chains.

***

### **Cross-Chain Architecture**

L-Tokens are **non-rebasing** yield-bearing assets.\
Users can deploy on one chain, move liquidity to another, and maintain full yield continuity.

This allows integration into:

* DEX liquidity pools
* Lending markets
* DAO & fund treasury workflows
* Structured yield strategies

across chains such as **Ethereum, Arbitrum, Base, Sonic, Linea, and Hedera**.

***

### **Proof-of-Reserves (PoR) Exploration**

Ledgity is also exploring **Chainlink Proof-of-Reserves** to make its **off-chain RWA collateral** publicly verifiable.

| Benefit                        | Result                         |
| ------------------------------ | ------------------------------ |
| Real-time collateral oversight | Strong transparency assurances |
| Independent validation         | Institutional-grade trust      |
| Public reporting               | Seamless audit compatibility   |

This strengthens visibility into **real-world assets backing vault yield**.

***

### **Aligned Long-Term Incentives** *(Important)*

Ledgity participates in the **Chainlink BUILD** program.

As part of this partnership:

> **4% of the total LDY token supply is allocated to Chainlink service providers and the Chainlink community**, aligning long-term incentives and reinforcing ecosystem cooperation.


# On-Chain Proof Liquidity

Ledgity provides full real-time transparency on the liquidity and allocations of **lyUSD** and **lyEURC**. All values shown on Ledgity.finance (TVL, allocations, strategy movements) are pulled directly from the vaults’ on-chain balances and can be independently verified through our official Debank:<br>

* lyEUR: <https://debank.com/profile/0xf25a516caf56895032b3f3ee842b45462ff491c3>&#x20;
* lyUSD: <https://debank.com/profile/0xe7616e98d2506e571e8f6e38e7bfd0b55642acac>\
  \
  This allows anyone to confirm, at any moment, that the vaults are fully backed and that all allocation changes are reflected on-chain. \
  \
  For complete clarity, every contract and vault address used by the protocol is also publicly listed here: <https://docs.ledgity.finance/overview/contracts-details>.


# Off-Chain Proof Liquidity

Beyond on-chain visibility, Ledgity provides full transparency on the **off-chain RWA portfolio** that backs part of the yield generated by lyUSD and lyEURC. The strategy is managed through a regulated structure (the SARR Fund) and follows strict allocation, reporting, and risk-management frameworks. Users can explore the complete methodology and oversight process here:\
\
• Strategy Allocation — <https://docs.ledgity.finance/rwa-portfolio/strategy-allocation>\
• SARR Fund Overview — <https://docs.ledgity.finance/rwa-portfolio/sarr-fund-overview>\
• Risk Management & Reporting — <https://docs.ledgity.finance/rwa-portfolio/risk-management-and-reporting>\
• RWA Risk Framework — <https://docs.ledgity.finance/risk-framework/rwa-risk>

For anyone seeking deeper insights or due-diligence materials, you can also schedule a direct call here with [Pierre Yves Dittlot](https://www.linkedin.com/in/pierre-yves-ledgity) : [Lien Calendar ](https://calendar.google.com/calendar/u/0/appointments/schedules/AcZssZ0FnM7_eM0c5jyB5yQ-0MPwIxeumGO7dfucsGk83XgNt6N5xTmOZmLthIbo9LZtFMEWnKnPs1vX)<br>

***

Si tu veux, je peux :


# Yield Mechanics

<table data-view="cards"><thead><tr><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>L-Tokens (lyUSDC / lyEURC)</strong></td><td><a href="/pages/oVzscpe2Yof1DI5cXuiz">/pages/oVzscpe2Yof1DI5cXuiz</a></td></tr><tr><td><strong>Liquidity Buffer &#x26; Withdrawal Queue</strong></td><td><a href="/pages/yZ1Q7aGAzCAJSBHqmydo">/pages/yZ1Q7aGAzCAJSBHqmydo</a></td></tr><tr><td><strong>PPS Model (Non-rebase real yield)</strong></td><td><a href="/pages/Pc4w738aXwFbtSfJ9PX2">/pages/Pc4w738aXwFbtSfJ9PX2</a></td></tr></tbody></table>


# L-Tokens (lyUSDC / lyEURC)

**L-Tokens** are yield-bearing representations of deposited stablecoins in Ledgity.\
When you deposit USDC or EURC into the protocol, you receive **lyUSDC** or **lyEURC** in return — these tokens track your position and automatically accrue yield.

They are designed to be:

* **Non-rebasing** (balance stays the same)
* **Price-Per-Share (PPS) increasing over time** (value per token goes up)
* **Composable across DeFi** (can be deposited, LP’d, borrowed, automated, etc.)

***

### **How L-Tokens Work**

| You Deposit | You Receive | Yield               | How It Grows            |
| ----------- | ----------- | ------------------- | ----------------------- |
| `1 USDC` →  | `1 lyUSDC`  | \~9% APY (variable) | PPS increases over time |
| `1 EURC` →  | `1 lyEURC`  | \~9% APY (variable) | PPS increases over time |

→ **Your balance of lyUSDC / lyEURC does not change.**\
→ **The value of each L-Token increases instead.**

This avoids:

* Rebasing tokens breaking dApps
* LP accounting issues
* Frequent “claim / stake / harvest” steps

Yield is **auto-compounded** inside the token itself.

***

### **Why Non-Rebasing Matters**

| Feature                       | Rebasing Tokens | L-Tokens (Ledgity) |
| ----------------------------- | --------------- | ------------------ |
| Balance changes over time     | ✅               | ❌                  |
| Value increases w/ PPS        | ❌               | ✅                  |
| Safe for LPs / lenders / DEXs | ❌               | ✅                  |
| Integrates deeply in DeFi     | Limited         | Excellent          |

Non-rebasing = **plug-and-play yield in any DeFi application.**

No special integration required.

***

### **Price-Per-Share (PPS)**

Each L-Token has a **PPS price**, starting at **1.0000**.\
As yield accrues, PPS rises:

```
Day 0:  1 lyUSDC = 1.0000 USDC
Month 3: 1 lyUSDC = 1.0185 USDC
Month 12: 1 lyUSDC ≈ 1.0920 USDC   (≈9% APY)
```

When you **withdraw**, the protocol converts your L-Tokens back into the underlying stablecoin *at the current PPS*.

More yield earned → **higher PPS** → **more stablecoins received**.

***

### **Liquidity & Withdrawals**

Ledgity maintains a **liquidity buffer** on-chain to support **instant withdrawals**.

| Withdrawal Size        | Settlement Time                                  |
| ---------------------- | ------------------------------------------------ |
| **Small** (≤ 5% TVL)   | **Instant**                                      |
| **Medium** (5–20% TVL) | \~ 24–72 hours (RWA unwind)                      |
| **Large** (> 20% TVL)  | Withdrawal scheduling & coordination (1–4 weeks) |

This prevents liquidity mismatch — **no hidden gates, no surprise locks.**

***

### **Where L-Tokens Can Be Used**

| Integration                    | Status                 |
| ------------------------------ | ---------------------- |
| DEX Liquidity (LPs)            | ✅ Live                 |
| Lending Protocols (Collateral) | ✅ Integrations ongoing |
| DAOs & Project Treasuries      | ✅ Active use cases     |
| Yield Aggregation Strategies   | ✅ Being standardized   |
| Cross-Chain Usage via CCIP     | ✅ In production        |

Because L-Tokens follow a **standard ERC-20 + PPS model**, they slot into DeFi **naturally**.

***

### **Why L-Tokens Are Different**

| Property                              | Ledgity L-Tokens | Traditional DeFi Yield Tokens        |
| ------------------------------------- | ---------------- | ------------------------------------ |
| Backed by Real Yield (RWA cash flows) | ✅                | ❌ Often emissions-based              |
| Non-rebasing & composable             | ✅                | ❌ Balance-changing tokens break DeFi |
| Transparent PPS growth                | ✅                | ❌ APY fluctuates & unclear           |
| Withdrawals match asset duration      | ✅                | ❌ Liquidity mismatch risk            |

***

### **In Short**

> **lyUSDC and lyEURC turn your stablecoins into stable, auto-compounding, composable yield assets — with no staking, no claiming, no games.**

Deposit → Receive L-Tokens → PPS goes up → Withdraw more than you put in.

**Simple, predictable, and built for Web3 + traditional finance**


# Liquidity Buffer & Withdrawal Queue

Ledgity is designed to provide **stable yield without liquidity mismatch**.\
To do this, the protocol combines a **real-world yield portfolio** with an **on-chain liquidity buffer** that supports withdrawals at any time.

***

### **How Withdrawals Work**

When users withdraw, L-Tokens are redeemed for the underlying stablecoin at the **current PPS**.

Withdrawals are processed in two layers:

| Layer                           | Source of Funds                                                    | Purpose                          |
| ------------------------------- | ------------------------------------------------------------------ | -------------------------------- |
| **Liquidity Buffer** (on-chain) | Stablecoins held directly in protocol-controlled wallets           | Supports **instant withdrawals** |
| **RWA Settlement** (off-chain)  | Assets in the RWA portfolio (short-duration financing instruments) | Used for **larger withdrawals**  |

***

### **Withdrawal Settlement Times**

| Withdrawal Size (relative to vault TVL) | Settlement Time                                       | Notes                                                 |
| --------------------------------------- | ----------------------------------------------------- | ----------------------------------------------------- |
| **≤ 5%**                                | **Instant**                                           | Covered by the on-chain liquidity buffer              |
| **5% – 20%**                            | \~**24–72 hours**                                     | Requires RWA repayment cycle / liquidity rotation     |
| **> 20%**                               | **Scheduled with coordination** (typically 1–4 weeks) | Treasury team communicates timeline & execution steps |

The withdrawal schedule is designed to **match the liquidity profile** of the underlying assets — avoiding forced selling or degradation of yield.

***

### **Why This Matters**

This structure prevents the two most common failure modes seen in RWA protocols:

| Failure Mode                    | Without Liquidity Buffer                            | Ledgity’s Model                                       |
| ------------------------------- | --------------------------------------------------- | ----------------------------------------------------- |
| Liquidity Mismatch              | RWA assets are long-duration → users can’t withdraw | Portfolio uses **short-duration** strategies + buffer |
| Forced Liquidation Under Stress | Selling assets during down cycles destroys yield    | Withdrawals **follow cash-flow cycles** instead       |

Result:

> **Capital remains productive, yet always accessible.**

***

### **Buffer Management**

The liquidity buffer is dynamically adjusted based on:

* Vault TVL size
* Withdrawal frequency
* Market conditions
* RWA cash flow schedules

Buffer levels are monitored continuously and rebalanced to ensure **smooth withdrawal processing**.

***

### **Transparency**

All withdrawal states are visible in the app:

| Display                       | Meaning                             |
| ----------------------------- | ----------------------------------- |
| **Instant available**         | Amount withdrawable directly        |
| **Queued amount**             | Scheduled for next settlement cycle |
| **Estimated settlement date** | Based on RWA repayment calendar     |

Users always know **where their withdrawal stands** — no opacity, no guessing.

***

### **In Short**

> The Liquidity Buffer enables **instant withdrawals** for day-to-day user activity, while the Withdrawal Queue ensures **predictable settlements** for larger exits — all without compromising yield stability.

This is the **core principle**:\
**Real yield without liquidity traps**


# PPS Model (Non-rebase real yield)

L-Tokens follow a **Price-Per-Share (PPS)** model to account for yield.\
Instead of increasing your token balance, the **value of each token increases over time** as the vault generates returns.

No rebasing. No claiming. No restaking loops.

***

### **How PPS Is Calculated**

```
PPS = Vault Net Asset Value / L-Token Supply
```

* Vault value increases as yield is collected.
* L-Token supply remains constant.\
  → **PPS goes up.**

Your yield is reflected directly in the **exchange value** of the token.

***

### **Example**

| Time              | lyUSDC Balance | PPS    | Redeemable Value |
| ----------------- | -------------- | ------ | ---------------- |
| Initial Deposit   | 1,000 lyUSDC   | 1.0000 | 1,000 USDC       |
| After \~3 Months  | 1,000 lyUSDC   | 1.0184 | 1,018 USDC       |
| After \~12 Months | 1,000 lyUSDC   | 1.0920 | 1,092 USDC       |

Your **balance** stays the same.\
Your **claimable value** increases.

***

### **Why PPS Instead of Rebasing?**

| PPS Model                         | Rebasing Model                     |
| --------------------------------- | ---------------------------------- |
| Value increases, balance stable   | Balance fluctuates                 |
| Safe for LPs, lending, collateral | Often breaks DeFi accounting       |
| No custom integrations needed     | Requires protocol-specific support |

PPS makes L-Tokens **plug-and-play** across DeFi.

***

### **Withdrawals**

When you withdraw:

```
Withdrawn USDC/EURC = L-Token Balance × Current PPS
```

If PPS has increased, you redeem **more stablecoins** than you deposited.

Withdrawals are processed using:

* **On-chain liquidity buffer** for instant settlements
* **RWA settlement process** for large requests\
  (covered in the next section)

***

### **Key Benefits**

* **Auto-compounding**
* **No inflation / no emissions**
* **Fully auditable on-chain**
* **Composability preserved**

PPS ensures yield is **clean, transparent, and portable**.


# Strategy Allocation

Ledgity’s yield is generated from a **diversified portfolio of short-duration, cash-flow-producing real-world financial instruments**, combined with a controlled on-chain liquidity component.

The allocation framework is designed to balance:

* **Yield stability**
* **Liquidity availability**
* **Risk diversification**

***

### **Target Allocation Model**

| Allocation Segment                       | Approx. Weight | Role                                   | Characteristics                                            |
| ---------------------------------------- | -------------- | -------------------------------------- | ---------------------------------------------------------- |
| **Short-Duration Revenue Financing**     | **\~80%**      | Core yield source                      | Recurring repayments, diversified issuers, non-speculative |
| **On-Chain Structured Yield (Low Risk)** | **\~15%**      | Liquidity optimization & composability | Non-leveraged lending, institutional-grade DeFi partners   |
| **Liquidity Buffer (On-Chain)**          | **\~5%**       | Supports instant withdrawals           | Dynamic, monitored & rebalanced                            |

> This allocation model may evolve based on market conditions, liquidity needs, and governance oversight.

***

### **1) Short-Duration Revenue Financing (\~80%)**

This segment provides the **majority of yield**.

* Companies repay financing **in recurring cash flows** (monthly/weekly)
* Maturities are **short (typically <12 months)**
* Positions are **diversified** across sectors and issuers
* Documentation, collateral, and reporting follow **institutional standards**

This ensures the yield is **predictable, repeatable, and linked to real economic activity** — not speculation.

***

### **2) On-Chain Structured Yield (\~15%)**

Exposure to **conservative, battle-tested DeFi strategies**, used only when:

* Collateral is transparent and verifiable
* No leverage loops are required
* Counterparty risk is understood and monitored

Typical examples:

* Lending to over-collateralized borrowers
* Liquid, non-speculative yield markets
* Institutional-grade DeFi protocols only

This segment provides **composability** and **additional liquidity mobility**.

***

### **3) Liquidity Buffer (\~5%)**

Maintained **on-chain** to process **instant withdrawals** and operational rebalancing.

* Adjusted dynamically based on vault inflows/outflows
* Ensures day-to-day liquidity availability
* Reduces reliance on forced unwinds of longer-duration positions

This prevents **liquidity mismatch**, a common failure mode in RWA protocols.

***

### **Why This Allocation Works**

| Risk Dimension      | Ledgity Approach                          | Outcome                                |
| ------------------- | ----------------------------------------- | -------------------------------------- |
| **Duration Risk**   | Short-duration repayment cycles           | Predictable liquidity                  |
| **Credit Risk**     | Diversified issuers + strict underwriting | Stable performance profile             |
| **Liquidity Risk**  | Dedicated on-chain buffer                 | Instant withdrawals for standard usage |
| **Volatility Risk** | No yield dependence on token incentives   | Sustainable return profile             |


# SARR Fund overview

The **SARR Fund (Stable and Recurring Revenue Fund)** is a Luxembourg-based investment vehicle focused on financing European companies with **predictable subscription-based revenues**. Instead of providing traditional loans or taking equity, SARR purchases **future recurring revenue streams** over short durations (typically **6–12 months**) at a discount.

This model allows Ledgity to generate **stable, repeatable, non-cyclical yield** — independent from token incentives or speculative market cycles.

#### **Why SARR Fits Ledgity’s Yield Model**

| Attribute                           | Benefit for Yield Stability                                          |
| ----------------------------------- | -------------------------------------------------------------------- |
| **Short Duration (6–12 months)**    | Predictable cash flow cycles, supports flexible withdrawal liquidity |
| **Recurring subscription revenues** | Revenue streams with historically high payment reliability           |
| **Super senior claim structure**    | Repaid **before** banks, equity holders, and even the company itself |
| **Real-time transparency**          | Underwriting based on **bank, accounting, and subscriber data**      |
| **No equity, no traditional debt**  | Cash flow purchase model reduces default + refinancing risk          |

> In simple terms:\
> **SARR finances companies the moment revenue is earned, not based on hoped-for future growth.**\
> Which means yield comes from **real activity**, not projection or speculation.

***

### **How the Yield Is Generated**

1. SARR identifies European businesses with **stable subscription revenue**.
2. It **purchases 6–12 months of future subscriber payments** at a discount.
3. Subscribers continue paying monthly → payments are **automatically collected**.
4. The difference between **purchase price and collected revenue** = **yield**.

→ This is **not** lending.\
→ This is **not** revenue-based financing dependent on future growth.\
→ This is **cash-flow acquisition** on **existing, proven, stable revenue**.

***

### **Risk Mitigation Framework**

SARR reduces risk structurally (not just statistically).

| Risk Reduction Mechanism             | Description                                                             |
| ------------------------------------ | ----------------------------------------------------------------------- |
| **Full data transparency**           | Real-time access to **bank data, accounting, and subscriber analytics** |
| **Collateral selection (LTV ≤ 30%)** | Only the highest-quality subscriber cohorts are used as collateral      |
| **Super-senior repayment**           | SARR is paid **before** banks, creditors, and the company               |
| **Automatic repayment sweeps**       | Monthly revenue is **requisitioned before reaching the company**        |
| **Diversified portfolio**            | Exposure is spread across **many companies and sectors**                |

This model has been deployed across **1,000+ financings**, representing **€500M+ of revenue secured** to date **with no recorded capital loss events**.\
(Source: SARR Fund Performance Summary) **▶SARR – Stable And Recurring Re…**

***

### **Why SARR Is Not “RBF”, Not Private Credit, and Not Factoring**

| Model                             | Risk Driver                               | SARR Difference                                        |
| --------------------------------- | ----------------------------------------- | ------------------------------------------------------ |
| **Revenue-Based Financing (RBF)** | Performance depends on growth             | SARR purchases stable *existing* revenue streams       |
| **Private Credit**                | Exposure to company solvency and leverage | SARR receives cash **before** debt holders or banks    |
| **Factoring**                     | Counterparty relies on invoice payers     | SARR selects **best-paying subscribers**, not invoices |

→ **SARR is effectively a new asset class** made possible by:

* Open Banking (real-time bank + accounting data)
* Subscription business models (predictable revenue dynamics)

***

### **Role of SARR in Ledgity Yield**

| Ledgity Allocation Component        | Function                             |
| ----------------------------------- | ------------------------------------ |
| **SARR Fund (\~80%)**               | Core stable real yield source        |
| **DeFi secured strategies (\~15%)** | On-chain flexibility + composability |
| **Liquidity Buffer (\~5%)**         | Fast withdrawals and safety margin   |

This allows Ledgity to deliver:

* **Stable target yield (\~9% APY)**
* **Predictable liquidity cycles**
* **Risk-controlled exposure**
* **Full transparency (on-chain + off-chain reporting)**

***

### **In Summary**

SARR enables Ledgity to deliver **real yield** that is:

* **Uncorrelated** to crypto market cycles
* **Independent** of inflationary token incentives
* **Anchored** in recurring business revenues
* **Backed** by institutional-grade underwriting and transparency


# Custodian & SPV setup

Ledgity uses a robust regulatory and operational structure to ensure that user deposits are protected, transparently managed, and legally compliant under EU financial frameworks.

**Special Purpose Vehicle (SPV)**

User funds deposited into Ledgity yield vaults are allocated to a dedicated Special Purpose Vehicle (*SPV*).\
This SPV is a ring-fenced legal entity whose **sole purpose** is to hold and manage the underlying assets supporting yield generation.

**Key characteristics:**

| Feature                                             | Description                                                            |
| --------------------------------------------------- | ---------------------------------------------------------------------- |
| **Segregated from Ledgity corporate balance sheet** | Protects user funds in case of operational or corporate events.        |
| **No speculative activities**                       | Capital is deployed strictly according to predefined allocation rules. |
| **Fully audited and monitored**                     | Financial reporting and oversight ensure ongoing transparency.         |

The SPV ensures that **user assets remain legally protected and clearly separated** from any other activities of the Ledgity group.

**Custodian & Safeguarding Framework**

The SPV holds funds through **regulated custodians** meeting EU compliance standards.\
These custodians ensure:

* Secure storage of digital and fiat assets
* Full traceability of all asset movements
* Independent internal and external controls

This reduces counterparty risk and ensures that assets cannot be commingled or accessed outside agreed processes.

**Regulatory Alignment**

Ledgity operates as a **PSAN-registered** entity in France and structures the SPV using frameworks that are compatible with the **MiCA** regulatory regime coming into effect in the EU.

This approach allows Ledgity to:

* Provide compliant stablecoin-based yield products
* Avoid structures that would qualify as unauthorized lending or collective investment schemes
* Prepare a clear path toward **MiCA authorization in 2026**

**Why This Matters**

This framework is designed to provide:

| Benefit             | Result                                                                                                    |
| ------------------- | --------------------------------------------------------------------------------------------------------- |
| **Legal clarity**   | Yield distribution is structured in a way that is compatible with EU regulatory treatment of stablecoins. |
| **User protection** | Assets are safeguarded in a bankruptcy-remote structure.                                                  |
| **Transparency**    | Users can verify asset backing and performance.                                                           |
| **Future-proofing** | The structure is aligned with MiCA’s upcoming requirements.                                               |

***

#### **In Short**

Ledgity’s SPV and custodian setup ensures that:

**Your stablecoins remain your assets.**\
They are held in a **secure, regulated, segregated** structure — managed transparently, not rehypothecated, not exposed to speculative risks.

This is what allows Ledgity to offer **real yield, with institutional security, accessible on-chain**.


# Risk Management & Reporting

Ledgity applies institutional-grade risk controls to ensure that yield is stable, withdrawals remain predictable, and capital is protected across market cycles.\
The objective is simple:

> **Stable yield → without liquidity mismatch → with full transparency.**

This is achieved through a combination of **portfolio diversification**, **liquidity buffer coverage**, **counterparty evaluation**, and **ongoing monitoring**.

***

### **1. Portfolio Construction Principles**

Ledgity’s RWA strategy is built around **short-duration, high-repayment-visibility credit**.

| Principle                      | Description                                                             |
| ------------------------------ | ----------------------------------------------------------------------- |
| **Short duration**             | Capital cycles quickly, reducing liquidity and duration risk.           |
| **Recurring cash flows**       | Yield is generated through frequent repayment schedules.                |
| **Diversification**            | Exposure is spread across multiple borrowers, sectors, and instruments. |
| **Senior secured positioning** | Contracts structured to prioritize capital protection.                  |

This avoids the liquidity mismatch risks seen in:

* **Real estate-backed lending** (multi-year repayment cycles)
* **Long-duration bonds** exposed to **rate volatility**
* **Illiquid private credit** that cannot respond to withdrawals

***

### **2. Liquidity Management & Withdrawal Safety**

Ledgity maintains a **Liquidity Buffer** on-chain to support **instant withdrawals**.

| Withdrawal Type                               | Source of Funds                              | Time to Settle                          |
| --------------------------------------------- | -------------------------------------------- | --------------------------------------- |
| **Up to available on-chain buffer**           | Direct smart contract liquidity              | **Instant**                             |
| **Standard withdrawal** (typically < 10% TVL) | Scheduled RWA repayment cycle                | **Up to 72 hours**                      |
| **Large withdrawals** (≥ 20% TVL)             | Portfolio unwinding + dedicated coordination | **1–4 weeks** (with live communication) |

This ensures:

* No forced liquidation under stress
* No redemption bans
* No unpredictable gating

Withdrawals are **predictable and transparent**, not dependent on market price movements.

***

### **3. Counterparty & Credit Evaluation**

Every RWA allocation undergoes a standardized due diligence process:

| Stage                  | Evaluation Criteria                                            |
| ---------------------- | -------------------------------------------------------------- |
| **Screening**          | Regulatory status, financial history, credibility              |
| **Risk Assessment**    | Business model, repayment predictability, collateral structure |
| **Credit Scoring**     | Quantitative & qualitative rating matrix                       |
| **Ongoing Monitoring** | Weekly repayment tracking + monthly performance review         |

In cases of deterioration:

* Exposure is gradually reduced
* Allocation is rebalanced
* Collateral claims procedures may be activated (case-dependent)

***

### **4. Custody, Legal Structuring & Asset Segregation**

Assets are held through a **qualified EU custodian**, and deployed via a **segregated SPV (Luxembourg)**.\
This ensures that:

* Assets are **legally separated** from Ledgity corporate balance sheets
* Users retain **beneficial ownership claim**
* Capital remains protected even in the event of company insolvency

This is the same structure used by **institutional asset managers** in traditional finance.

***

### **5. Reporting & Transparency**

Ledgity provides **multi-layer reporting** to ensure traceability and user confidence:

| Layer                              | Frequency       | Content                                        | Where                       |
| ---------------------------------- | --------------- | ---------------------------------------------- | --------------------------- |
| **Protocol Dashboard**             | Real-time       | TVL, yields, PPS growth, deposits/withdrawals  | App                         |
| **Monthly Portfolio Report**       | Monthly         | Allocation breakdown, performance metrics      | Documentation / Dashboard   |
| **Custodian Balance Verification** | Periodic        | Proof of segregated holdings                   | Published proofs            |
| **Proof of Reserves (PoR)**        | **In progress** | Verifiable on-chain asset collateral reporting | Via Chainlink PoR framework |

**Chainlink BUILD** supports our PoR and cross-chain transport layer:\
[https://www.chainlinkecosystem.com/ecosystem/ledgity-yield](https://www.chainlinkecosystem.com/ecosystem/ledgity-yield?utm_source=chatgpt.com)

***

### **6. Incident Response**

Ledgity maintains a **protocol-wide emergency pause mechanism**, allowing operations to be frozen across all chains if suspicious activity is detected.

Emergency actions:

* Freeze malicious actors (via GlobalBlacklist)
* Pause deposits/withdrawals temporarily (via GlobalPause)
* Execute rapid asset protection procedures

This ensures rapid containment and user fund safety.

***


# Governance Framework

Ledgity Yield is governed through a hybrid structure that combines **regulated financial oversight** with **decentralized, on-chain participation**.\
This ensures:

* Legal and operational continuity
* Transparent economic alignment
* Community-driven control of protocol parameters

***

#### Governance Structure

The protocol operates across three coordinated layers:

| Layer                        | Entity                               | Responsibility                                                                         |
| ---------------------------- | ------------------------------------ | -------------------------------------------------------------------------------------- |
| **Legal & Compliance**       | **Ledgity SAS** (PSAN-registered)    | Regulatory obligations, onboarding, custody workflows, development & operations        |
| **RWA Portfolio Management** | **SARR Fund** (Luxembourg-regulated) | Allocation of fiat collateral into short-duration, cash-flow-generating RWA strategies |
| **Decentralized Governance** | **Ledgity DAO** (veLDY holders)      | Controls protocol parameters, performance fee routing, and strategic direction         |

This separation allows Ledgity to merge **institutional-grade asset management** with **permissionless on-chain governance**.

***

### Token Governance (veLDY Model)

Protocol governance is powered by the **$LDY token** and its vote-escrowed representation **veLDY**, issued as a **veNFT** when tokens are locked.

| Action                         | Result                                                             |
| ------------------------------ | ------------------------------------------------------------------ |
| Lock LDY for a chosen duration | Receive veNFT containing veLDY voting power                        |
| Longer lock duration           | Higher voting weight + higher share of reward distributions        |
| Hold veLDY                     | Participate in DAO governance and receive real yield distributions |

veLDY holders can:

* Vote on governance proposals (Snapshot)
* Influence protocol yield mechanics and treasury usage
* Receive LDY rewards from real-yield buybacks
* Access boosted vaults & priority features
* Submit proposals (threshold: **10,000 veLDY**)

***

### Revenue Allocation and Distribution

Protocol revenues flow through on-chain smart contracts.\
They originate from:

* Performance fees on RWA yield
* Early withdrawal fees (if applicable)
* Integration and partnership incentives
* Institutional vault servicing agreements

**Distribution Model:**

| Destination              | Allocation | Purpose                                                            |
| ------------------------ | ---------- | ------------------------------------------------------------------ |
| **veLDY Community Pool** | **80%**    | Distributed to LDY stakers as real yield                           |
| **veLDY Council Pool**   | **20%**    | Distributed to Council stakers to compensate execution & oversight |

There are **no emissions-based inflation rewards** — distributions come from **actual economic yield** generated by the RWA portfolio.

***

### Operational Sustainability (Ledgity SAS)

Maintaining a regulated RWA yield protocol carries **fixed structural costs**:

* PSAN regulatory compliance and reporting
* KYC/KYB onboarding and AML monitoring
* Custody + settlement infrastructure
* External audits and legal supervision
* Product development and security operations
* Institutional account management

These are required to ensure **continuity and legal security**.

To support this, a **baseline operational budget** is recognized:

| Protocol TVL | Required Annual Operational Budget | Covered By                                                    |
| ------------ | ---------------------------------- | ------------------------------------------------------------- |
| Up to €10M   | \~€750,000                         | Initial investor + revenues (Setup fees + service fees + OTC) |
| €10M–€50M    | \~€1,000,000                       | Share of DAO performance fees (governance-approved)           |
| Above €50M   | Scales proportionally (≈1–2%)      | Combination of DAO revenue + institutional fees               |

**Governance Safeguard**

The DAO may adjust this operational contribution **only** if an alternative sustainability plan is approved.

Changes require:

* **⅔ supermajority** DAO vote
* **Council validation** to ensure operational continuity

This prevents governance attacks that could jeopardize regulatory compliance or investor protection.

***

### Governance Procedures (LIPs)

Governance decisions follow the **Ledgity Improvement Proposal (LIP)** lifecycle:

| Phase             | Description                                                              |
| ----------------- | ------------------------------------------------------------------------ |
| **Discussion**    | Open debate on forum or Discord                                          |
| **Snapshot Vote** | veLDY holders vote on proposal parameters (quorum 5%)                    |
| **Execution**     | Council implements approved actions via multisig (⅔ signatures required) |

Major economic changes (e.g., performance fee adjustments) require **supermajority approval**.

***

### Council Responsibilities

The **Council** is the operational execution and protocol risk oversight layer.\
It **cannot override** DAO decisions — it **executes** them.

Responsibilities:

* Execute governance-approved parameter changes
* Monitor RWA portfolio repayments and liquidity buffer health
* Maintain operational security and protocol stability
* Coordinate incident response when predefined conditions are met
* Publish periodic reports for transparency

#### Council Membership Requirement

| Requirement                                 | Purpose                                       |
| ------------------------------------------- | --------------------------------------------- |
| Stake **≥ 500,000 LDY** in the Council Pool | Ensures economic alignment and responsibility |

Council incentives scale **only when the protocol performs**, aligning execution with sustainability.

***

### Transparency & Reporting

Ledgity commits to **real-time and verifiable transparency** through:

* Public dashboards (Dune, DeFiLlama, TokenTerminal)
* Smart contract audit publication and open-source repositories
* Quarterly governance & financial performance reporting
* Clear separation between **on-chain revenue**, **off-chain treasury**, and **corporate operations**

No hidden accounts, no opaque yield sources.


# veLDY Voting

veLDY is the **governance layer** of the Ledgity protocol.\
When users stake LDY, they receive a **veNFT** representing their **voting power** and **economic participation** in the protocol.

This model ensures that **those who commit long-term** have **stronger influence** over protocol decisions.

***

### **What is veLDY?**

| Property                                   | Explanation                                           |
| ------------------------------------------ | ----------------------------------------------------- |
| **veLDY = Voting Escrow LDY**              | A non-transferable representation of staked LDY       |
| **Issued as a veNFT**                      | Your staking position is stored on-chain as an NFT    |
| **Voting Power scales with lock duration** | Longer lock → more governance weight                  |
| **Accrues buyback yield**                  | veLDY receives distributions from real-yield buybacks |

veLDY cannot be sold or traded — it represents **commitment**, not speculation.

***

### **Voting Power Formula**

Voting weight is determined by:

```
Amount of LDY locked × Lock Duration Multiplier
```

Longer lock = more influence + larger share of buyback rewards.

***

### **What veLDY Holders Vote On**

veLDY stakers govern **all key protocol decisions**, including:

| Category                      | Examples                                             |
| ----------------------------- | ---------------------------------------------------- |
| **Yield Parameters**          | Performance fee rate, liquidity buffer ratio         |
| **Treasury Allocation**       | Incentives, partnerships, liquidity deployments      |
| **Vault Listings**            | Approval of new RWA strategies or network expansions |
| **Burn / Distribution Split** | Decide how buybacked LDY is allocated                |

> **Stakers (veLDY) are the DAO.**\
> The DAO sets direction. The Council executes it.

***

### **Voting Process**

1. **Discussion** starts on governance forum (or community call)
2. A formal proposal is drafted following the Proposal Template
3. Proposal is submitted to **Snapshot**
4. veLDY holders vote off-chain (gasless)
5. If approved, the **Council executes the decision on-chain**

```
Forum → Proposal → Snapshot Vote → Council Execution → On-Chain Result
```

***

### **Economic Alignment**

veLDY ensures that **those who benefit from protocol growth are the same people who guide it.**

| Stakeholder                 | Benefit                                               |
| --------------------------- | ----------------------------------------------------- |
| **Long-term stakers**       | Earn yield from buybacks + shape the protocol         |
| **Short-term participants** | Can still use vaults, but do not influence governance |

This prevents short-term liquidity from influencing long-term strategic decisions.

***

### **In Summary**

| Principle                            | Outcome                                              |
| ------------------------------------ | ---------------------------------------------------- |
| Commitment = Influence               | Governance power reflects long-term alignment        |
| veLDY is non-transferable            | Governance cannot be bought temporarily              |
| Voting controls real economic flows  | Stakers direct how value is captured and distributed |
| Governance is transparent & on-chain | No closed decision-making                            |

> **veLDY makes Ledgity a community-directed protocol — not a company-controlled product.**


# Community Staking

Community Staking is the primary entry point for users who want to **participate in the protocol’s governance** and **earn rewards backed by real economic yield**.

When you stake LDY, you receive **veLDY**, represented as an **on-chain veNFT**.\
This grants you:

* Governance voting power
* **A share of protocol revenue via buybacks**
* Withdrawal queue priority & reduced exit fees
* Eligibility for boosted vaults and early product access

Community staking aligns long-term participants with protocol growth.

***

### **How Rewards Work**

The protocol collects performance fees from the RWA strategy.\
These fees are used to **buy LDY from the open market**.

**80% of all repurchased LDY is distributed to Community Stakers (veLDY holders).**\
The remaining **20%** goes to the **Council Pool** to incentivize execution and risk oversight.

> **Stakers receive the majority of value generated by the protocol.**

***

### **Benefits for Community Stakers**

| Benefit                          | Description                                                                           |
| -------------------------------- | ------------------------------------------------------------------------------------- |
| **Real Yield Rewards**           | **80% of all buybacked LDY** is distributed to veLDY stakers                          |
| **Governance Voting Power**      | Influence protocol parameters, vault listings, fee schedules, and treasury allocation |
| **Withdrawal Queue Priority**    | Longer lock = earlier liquidity in queue processing                                   |
| **Reduced / 0% Withdrawal Fees** | Higher veLDY scores unlock lower exit fees                                            |
| **Boosted Vault Eligibility**    | Some strategies offer enhanced APY for veLDY holders                                  |
| **Early Access**                 | Priority access to new vaults, product releases, and chain deployments                |

> **Community stakers&#x20;*****are*****&#x20;the DAO.**\
> They decide how value is allocated and benefit from protocol success.


# Council Staker Privileges

The **Council** is the operational execution and risk oversight layer of the protocol.\
While **veLDY stakers (the DAO)** vote on governance proposals, the Council is responsible for **executing** decisions safely and transparently.

To participate, a member must **stake a minimum of 500,000 LDY** in the **Council Staking Pool**.\
This ensures that every Council participant has meaningful **economic alignment** with the protocol.

There is **no election**, **no appointment**, and **no revocation process**.\
**Council membership is permissionless**:\
→ **Stake ≥ 500,000 LDY → You are in the Council**\
→ **Unstake → You leave the Council**

***

### **Council Responsibilities**

| Area                             | Description                                                             |
| -------------------------------- | ----------------------------------------------------------------------- |
| **Execute Governance Decisions** | Apply on-chain parameter changes approved by veLDY votes                |
| **Risk & Liquidity Monitoring**  | Monitor RWA allocations, liquidity buffers, and performance indicators  |
| **Operational Security**         | Ensure stable system behavior and parameter integrity                   |
| **Incident Execution**           | Activate emergency safeguards if pre-programmed risk conditions are met |

> **veLDY decides.**\
> **Council executes.**\
> Governance outcomes **cannot** be overridden by the Council.

***

### **Incentive Structure**

Protocol performance fees are used to **buy LDY from the market**, then distributed:

| Allocation | Destination                    | Effect                         |
| ---------- | ------------------------------ | ------------------------------ |
| **80%**    | **veLDY Community Pool (DAO)** | Distributed to veLDY stakers   |
| **20%**    | **veLDY Council Pool**         | Distributed to Council stakers |

> **20% of protocol performance is automatically paid to DAO members** (veLDY stakers).


# Proposal Lifecycle

Ledgity governance is based on a **simple and transparent decision flow**:

→ **veLDY stakers** (the DAO) **vote on proposals**\
→ **Council stakers** execute the approved decisions on-chain\
→ The protocol updates automatically or through predefined smart contract actions

Governance is **stake-based**, permissionless, and recorded **fully on-chain**.

***

### **Lifecycle Overview**

```
1. Discussion → 2. Proposal → 3. Snapshot Vote → 4. Execution → 5. Reporting
```

***

### **1. Discussion (Forum / Discord / Community Call)**

Ideas, improvements, or parameter adjustments start with **open discussion**.

Examples of topics:

* Adjusting vault fees
* Updating collateral or strategy allocations
* Launching new network deployments
* Adding or modifying vaults
* Buyback or burn schedule adjustments

The goal of this stage is **consensus-building**, not decision-making.

> Anyone can start a proposal discussion.

***

### **2. Governance Proposal Draft (Formalization)**

Once the idea is clear, the proposer writes a **Governance Proposal** with:

| Field                                      | Description                                             |
| ------------------------------------------ | ------------------------------------------------------- |
| **Title**                                  | Clear name of the proposal                              |
| **Context / Motivation**                   | Why this change matters                                 |
| **Specification**                          | The exact change to be made                             |
| **Smart Contract Targets (if applicable)** | Parameter(s) / vault(s) / contract(s) impacted          |
| **Expected Outcome**                       | What should happen after execution                      |
| **Risks**                                  | Any operational, liquidity or governance considerations |

The proposal is shared publicly before voting.

***

### **3. Snapshot Vote (veLDY Holders Vote)**

The proposal is submitted to **Snapshot** for a weighted vote.

* Voting power = **veLDY balance** (not LDY)
* Each veNFT contributes voting weight according to its lock duration & stake size
* Voting is gasless and transparent

| Outcome          | Effect               |
| ---------------- | -------------------- |
| **Majority YES** | Proposal is approved |
| **Majority NO**  | Proposal is rejected |

> **veLDY stakers are the DAO. Their vote is final.**

***

### **4. Execution (Council On-Chain Actions)**

Once a proposal is approved:

* **Council stakers** (≥ 500,000 LDY) perform the on-chain execution steps
* Execution is **fully deterministic**: Council cannot modify the proposal
* If execution requires multiple steps, they are coordinated transparently


# 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 |


# Council Transparency

The Ledgity DAO is built around a simple principle:\
**every token, every stream, every decision must be fully visible on-chain.**

This page aggregates all information related to the DAO-controlled $LDY

If you have any questions or need clarification, feel free to contact **@metacasper** on Telegram.

Everything related to the DAO is verifiable on-chain.

#### **Council Treasury Address**

```
0x30fa557608017afb6e8e4abe8027787c00473ff0
```

#### **Sablier Vesting Streams (DAO-controlled)**

📎 <https://app.sablier.com/vesting/?t=search&c=1&r=0x30fa557608017afb6e8e4abe8027787c00473ff0>

This represents **over 20% of the total LDY supply already transparently on-chain**.

#### **Snapshot Governance**

All Council votes and proposals are available here:

📎 <https://snapshot.box/#/s:ledgitydao.eth>

Snapshot allows gasless, trustless community voting.

### **Council-Controlled LDY Streams**

#### **Vested Tokens Available**

As of today, approximately:

➡️ **\~4,000,000 LDY are already claimable**\
These tokens belong to the DAO and will be the subject of the first governance proposal.\
**2. Buyback Fees & Protocol Revenue Reserve**

A portion of protocol revenues (performance fees, buffer gains, yield spreads, etc.) is used to **automatically buy back $LDY** on the market.

All purchased tokens are accumulated in a **Buyback Reserve Address** controlled by the DAO.

### **Buyback Reserve**

* Protocol generates revenue
* Revenue is routed to the BuybackManager
* $LDY is purchased on-chain
* Purchased tokens accumulate in the Reserve

#### **What Happens Next?**

The DAO will decide — via proposal — how to use the accumulated LDY:

* Burn them (deflationary)
* Redirect to veLDY stakers
* Provide liquidity
* Treasury funding
* Grants & ecosystem incentives

Nothing will be moved without a validated Snapshot vote.

### **Governance Proposal  — What Comes Next**

#### **1️⃣ Claiming all vested LDY (\~4M)**

The DAO will claim the tokens on-chain and move them to the treasury.

#### **2️⃣ Deciding what to do with the claimed tokens**

The options submitted to community vote may include:

* **Burning a portion of the tokens**
* **Depositing into the DAO Treasury** for future ecosystem spending
* **Distributing rewards to veLDY stakers**
* **Bootstrapping liquidity**
* **Funding DAO operations or grants**

Nothing will be executed without a validated Snapshot vote.

### **Governance Process (Step-by-Step)**

To ensure full transparency, every proposal follows the same lifecycle:

#### **Step 1 — Draft**

A community member or contributor creates a proposal draft.

#### **Step 2 — Discussion**

The topic is discussed openly on Telegram, Discord or the forum.

#### **Step 3 — Snapshot Vote**

The final proposal is submitted to Snapshot:\
<https://snapshot.box/#/s:ledgitydao.eth>

#### **Step 4 — Execution**

If approved:

* The DAO executes the on-chain actions (claim, transfer, burn, etc.)
* All tx hashes are published on this page

#### **Step 5 — Post-Execution Report**

A summary including:

* Actions executed
* Updated balances
* Proofs / tx hashes
* Next steps

This ensures a permanent transparency archive.

#### *PROOF OF PROPOSAL*

#### **🟦 Proposal Title**

#### **🕒 Execution Date**

#### **📌 Actions Executed**

#### **📤 Transactions (Tx Hashes)**

#### **📊 Updated Balances**

#### **🔍 Proof Links**

\ <br>


# Protocol fees


# Withdraw fees

Withdrawals on Ledgity vaults are designed to remain flexible while ensuring stable portfolio management.\
A **small withdrawal fee of 0.3%** applies to standard withdrawals. This fee is necessary to ensure that withdrawals do not disrupt yield performance or liquidity allocation across the RWA portfolio.

> **There are no hidden spreads or dynamic penalties.**\
> The withdrawal fee is stable, predictable, and visible directly in the interface.

***

### **Standard Withdrawal Fee**

| User Type                           | Withdrawal Fee | Description                                                                         |
| ----------------------------------- | -------------- | ----------------------------------------------------------------------------------- |
| **Default Users**                   | **0.3%**       | Applies to all withdrawals when liquidity is available or processed normally        |
| **veLDY Stakers**                   | **0%**         | Users who stake LDY and hold veLDY benefit from a lower withdrawal fee              |
| **Council Stakers (≥ 500,000 LDY)** | **0%**         | Council members withdraw without any fee, reflecting their operational contribution |

***

### **Why the Withdrawal Fee Exists**

Ledgity vaults invest in **short-duration, real-world financial assets**.\
Unwinding these positions cleanly incurs operational and settlement costs.

The fixed 0.3% withdrawal fee:

* Protects yield stability for all users
* Prevents forced asset sales during market movements
* Ensures treasury and liquidity remain healthy
* Maintains a stable Price-Per-Share (PPS) evolution

This model is similar to **liquidity management fees** used in regulated money-market and fixed-income funds.

***

### **Priority Liquidity for veLDY Holders**

Staking LDY and holding veLDY provides:

| Benefit                   | Impact                                                 |
| ------------------------- | ------------------------------------------------------ |
| Reduced withdrawal fee    | Lower cost for exiting the vault                       |
| Higher liquidity priority | Faster fulfillment when demand for withdrawals is high |
| Governance participation  | Influence on parameters, including liquidity settings  |

This mechanism ensures **long-term aligned users benefit the most** from protocol performance.

***

### **Large Withdrawals (>10% TVL)**

For large institutional redemptions, the protocol activates the **withdrawal coordination desk**, ensuring:

* Controlled unwinding of assets
* No negative impact on other depositors
* Clear communication timeline (generally **up to 72h**, exceptional cases discussed privately)


# Performance fees

Ledgity vaults generate yield from **real-world, cash-flow producing assets**.\
A **performance fee** applies **only** on **net yield actually earned** by the portfolio.

> **No yield → no performance fee.**\
> The protocol is only compensated when depositors earn returns.

There is **no fee on your initial capital**, and **no fee on unrealized gains**.


# Management fees

Ledgity vaults apply a **small management fee** to support the operational infrastructure required to source, monitor, and report real-world yield safely.

This fee **does not reduce depositors' principal** and **does not modify the advertised net APY**.\
All yields displayed in the interface are **always net of management fees**.

> **If you see 9% APY — you receive 9% APY.**\
> No hidden deductions. No surprise charges.

***

### **Why Management Fees Exist**

Delivering regulated real-world yield requires:

* **Due diligence & risk screening** of financial counterparties
* **Legal & regulatory compliance** (PSAN, MiCA onboarding, KYT/KYC flows)
* **Asset custody & settlement infrastructure**
* **Execution of RWA portfolio strategy**
* **Continuous monitoring of liquidity and performance**

These are **real operating costs**, not protocol “marketing overhead.”

Management fees ensure the system remains:

* **Sustainable**
* **Auditable**
* **Regulated**
* **Scalable**

***

### **Fee Structure**

| Fee                 | Rate                            | Applied To                                        | Purpose                                                       |
| ------------------- | ------------------------------- | ------------------------------------------------- | ------------------------------------------------------------- |
| **Management Fee**  | *Included in displayed net APY* | Vault yield (not capital)                         | Covers asset management, compliance, and reporting operations |
| **Impact on Users** | **None**                        | You always receive the **full net APY** displayed | Simplicity & predictability                                   |

Users **never need to calculate or claim anything** — all yields displayed are already **net of fees**.

***


# Listing fees

Ledgity allows DAOs, funds, protocols, and asset managers to **list their own yield vaults** on the platform, benefiting from:

* On-chain infrastructure (vault factory, accounting, withdrawals buffer, etc.)
* Institutional-grade reporting and risk monitoring
* Integrated DeFi routing (DEX LP, staking boosts, aggregator indexing)
* Distribution to Ledgity’s community, partners, and whitelist

To ensure **seriousness, sustainability, and security**, vault listing requires a **listing commitment**.

***

### **Why Listing Fees Exist**

Listing a vault requires:

* Legal & regulatory verification
* Risk and compliance review
* On-chain & off-chain integration work
* Liquidity planning + operational monitoring
* UI/UX implementation + distribution support

This ensures that **every vault listed** on Ledgity is:

✔ Compliant\
✔ Audited or reviewable\
✔ Aligned with long-term sustainability\
✔ Meaningful in scale and reputation

***

### **Vault Listing Models**

Projects can choose between two listing models:

| Model                   | Requirement                                                                         | Suitable For                        | Key Benefits                                               |
| ----------------------- | ----------------------------------------------------------------------------------- | ----------------------------------- | ---------------------------------------------------------- |
| **Flat Listing Fee**    | **€XX XXX** setup fee                                                               | Institutions, funds, asset managers | Fast integration, branded vault, regulatory support        |
| **LDY-Aligned Listing** | Commit a portion of vault liquidity in **lyUSDC / LDY** (minimum threshold applies) | DAOs, protocols, DeFi teams         | Shared incentives + boosted visibility + zero upfront cost |

Both models ensure **reciprocal alignment** between the vault operator and the protocol.

***

### **Value Provided to Listing Partners**

| Benefit                         | Description                                                                |
| ------------------------------- | -------------------------------------------------------------------------- |
| On-Chain Vault Factory          | Your strategy deployed via audited production infrastructure               |
| Liquidity Buffer Integration    | Instant withdrawals for your users                                         |
| Dune + Reporting Tools          | Institutional-grade reporting dashboards                                   |
| White-Label & Multi-Language UI | Optional branded frontends                                                 |
| Institutional Onboarding Suite  | KYC/KYB support for corporate clients                                      |
| DeFi Distribution               | Exposure through Base, Arbitrum, Sonic, Ethereum, Linea, Hedera ecosystems |

Ledgity acts as an **infrastructure layer**, not as a strategy originator — your vault remains **your vault**.

***

### **Alignment Mechanism**

To be listed, a vault **must benefit the broader ecosystem**, meaning:

* It must **not create systemic liquidity risk**
* It must be **transparent and auditable**
* It must contribute to **protocol growth & token value capture**

In short:\
**If the vault helps everyone win — it qualifies.**


# Infos

**LDY** is the native token of the Ledgity protocol.\
It is used for **utility,** **governance, value capture, staking incentives, and ecosystem participation.**

***

### **Token Details**

<table><thead><tr><th width="238.453125">Field</th><th>Value</th></tr></thead><tbody><tr><td><strong>Token Name</strong></td><td>Ledgity Token</td></tr><tr><td><strong>Symbol</strong></td><td><strong>LDY</strong></td></tr><tr><td><strong>Standard</strong></td><td><strong>ERC-20</strong></td></tr><tr><td><strong>Decimals</strong></td><td><strong>18</strong></td></tr><tr><td><strong>Primary Network</strong></td><td><strong>Ethereum Mainnet</strong></td></tr><tr><td><strong>Token Contract</strong></td><td><code>0x482dF7483A52496F4C65Ab499966dFCdF4DdFDBC</code></td></tr></tbody></table>

> ✅ All cross-chain deployments (Arbitrum, Base, Sonic, Linea, Hedera) are mirrored 1:1 using CCIP.\
> LDY **is not bridged via custodial bridges**. Supply remains unified.

### **Official Explorers & Links**

| Platform      | Link                                                                      |
| ------------- | ------------------------------------------------------------------------- |
| **Etherscan** | <https://etherscan.io/token/0x482df7483a52496f4c65ab499966dfcdf4ddfdbc>   |
| **DeBank**    | <https://debank.com/token/eth/0x482df7483a52496f4c65ab499966dfcdf4ddfdbc> |


# Token map & Vesting

LDY has a **fixed supply of 75,000,000** tokens.\
No minting. No inflation. All allocations are **pre-defined and transparently streamed on-chain**.

The token is distributed between protocol governance, user staking, liquidity, strategic partners, and ecosystem integrations.

### **Allocation Breakdown (Oct 2025)**

| Allocation Group                                             | % Supply   | Amount (LDY)   | Description                                                         |
| ------------------------------------------------------------ | ---------- | -------------- | ------------------------------------------------------------------- |
| **DAO Rewards (veLDY Staking & Incentives, Sablier Linear)** | **39.98%** | **29,985,815** | **Sablier Linear  allocation**                                      |
| **Cross-Chain Bridge Reserves (CCIP)**                       | **10.46%** | **7,842,703**  | Mirrored supply for Arbitrum & Base — always locked 1:1 on Ethereum |
| **Uniswap V3 Liquidity Pool**                                | **10.27%** | **7,700,433**  | Enables market liquidity and price discovery                        |
| **User Staking Contract**                                    | **8.18%**  | **6,135,741**  | Locked  by stakers                                                  |
| **Treasury Reserves**                                        | **5.39%**  | **4,042,923**  | Used for partnerships, integrations, growth initiatives             |
| **Strategic Investors (Sablier Dynamic Vesting)**            | **5.04%**  | **3,777,015**  | Long-term partner & early contributor alignment                     |
| **Chainlink BUILD Allocation**                               | **4.00%**  | **3,000,000**  | Formal allocation under Chainlink BUILD partnership                 |
| **Circulating Holders**                                      | **16.28%** | **12,218,370** | Organic holders, CEX, secondary market distribution                 |

**Total Supply:** 75,000,000 LDY

***

### **Vesting Model**

All vesting is done via **Sablier V2 streaming contracts**:

| Category                     | Vesting Duration | Unlock Style                       | Transparency           |
| ---------------------------- | ---------------- | ---------------------------------- | ---------------------- |
| **Team & Core Contributors** | 36–48 months     | Continuous stream                  | Public Sablier link    |
| **Strategic Investors**      | 24–36 months     | Continuous stream                  | Public Sablier link    |
| **DAO Rewards & Incentives** | Perpetual        | Continuous stream tied to buybacks | Fully visible on-chain |

**No cliffs. No batch unlock events. No “unlock bombs”.**\
Every token unlocks **second-by-second** — transparently.

***

### **Cross-Chain Supply Integrity**

LDY uses **Chainlink CCIP** for secure bridging.

```
Ethereum (native supply)
   ↕ CCIP (1:1 locked reserves, non-custodial)
Arbitrum + Base
```

* No synthetic wrapped supply
* No multi-sig custody risks
* Total supply always remains **75,000,000**

> This design ensures **perfect supply consistency across chains**.

***

### **In Summary**

| Property      | Status                                           |
| ------------- | ------------------------------------------------ |
| Supply        | **Fixed at 75M** — no inflation                  |
| Value Capture | **Real yield → buybacks → distributed to veLDY** |
| Governance    | **veLDY stakers control decisions**              |
| Vesting       | **Fully on-chain, streamed, transparent**        |
| Bridging      | **CCIP-secured, 1:1 reserve mirrored**           |


# Early investors

The $**LDY** token, a community-centric utility token for the Ledgity ecosystem.

Here are some of the major improvements brought by that new version:

* Simplified codebase and so reduced attack surface
* DAO-ready
* No more transfer fees
* Non-owned and non-pausable
* Easy to bridge cross-chains

This new version creates a fairer and safer environment to build a DeFi community and will allow Ledgity to accelerate the development of its RWA-backed protocol.

Conversion

**$LTY holders from 2021-2022 was able to claim $LDY in a 70:1 ratio**, which represents **a premium of 50%** compared to current LTY price.

Claiming was possible since early 2024.\
\
You can also fill the form there if you forget to claim and contact us on TG&#x20;

<https://docs.google.com/forms/d/1B88KO3eSyJ6xEQj75f_MJFTYyo8L1KvDsKuN_R0efQk/edit>

## Availability Trading

The $LDY token is on ETHEREUM&#x20;


# Staking Benefits (utility)

Staking LDY converts the token into **veLDY**, a non-transferable governance and yield-bearing position represented as an **on-chain veNFT**.\
This design aligns economic participation with long-term commitment to the protocol.

When you stake LDY, you receive:

1. **Governance Power** (vote weight scales with lock duration)
2. **Protocol Revenue Share** (distributed through buybacks to veLDY holders)
3. **Operational Advantages inside the protocol**

***

### **How Staking Works**

| Input               | Output                       | Meaning                                           |
| ------------------- | ---------------------------- | ------------------------------------------------- |
| **LDY**             | Locked for a chosen duration | You choose how long you commit your tokens        |
| **veNFT (veLDY)**   | Non-transferable             | Represents your staking position and voting power |
| **Boosted Rewards** | Scales with lock duration    | Longer lock → higher yield share + more influence |

### **What Stakers Receive**

#### **1. Share of Protocol Revenue (Real Yield)**

Ledgity generates yield from its RWA strategy.\
A portion of performance fees is used to:

* Buy LDY on the open market
* Distribute it to veLDY holders

This means:

**More TVL → More yield generated → More buyback → Higher rewards for stakers.**

This is **value capture from real economic activity**, not emissions.

***

#### **2. Governance Rights (veLDY = Voting Power)**

Stakers decide on:

| Decision Area       | Examples                                       |
| ------------------- | ---------------------------------------------- |
| Protocol Parameters | Performance fee split, liquidity buffer ratios |
| Vault Listings      | Which RWA strategies or new vaults are enabled |
| Treasury Allocation | Partner incentives, liquidity support, grants  |
| Council Elections   | Who executes governance decisions              |

**Stakers are the DAO.**\
The Council **executes**, but does not override staker votes.

***

#### **3. Withdrawal Priority & Fee Reductions**

| Benefit                          | Description                                                |
| -------------------------------- | ---------------------------------------------------------- |
| **Priority Withdrawals**         | High veLDY scores receive faster exit processing.          |
| **Reduced or 0% Withdrawal Fee** | veLDY stakers unlock reduced protocol fees.                |
| **Preferred Liquidity Access**   | Institutional stakers may schedule redemptions in advance. |

This ensures that **aligned, long-term participants receive smoother liquidity access**.

***

#### **4. Access to Boosted Vaults**

Some yield vaults offer **boosted APY** for veLDY stakers.

| Vault Type      | Requirement                   | Benefit                   |
| --------------- | ----------------------------- | ------------------------- |
| L-Boost Vaults  | veLDY balance threshold       | Enhanced APY              |
| Leverage Vaults | veLDY lock duration threshold | Higher capital efficiency |

This reinforces a **flywheel** between staking and vault participation.

***

#### **5. Access to Holders-Only Privileges**

Stakers gain:

* Early access to new vaults & product launches
* Access to governance discussions and research channels
* Invitations to **Holder-Only IRL + digital events**
* Optional institutional-grade reporting (for qualified entities)

***

### **In Summary**

| Staking LDY Gives You              | Why It Matters                                    |
| ---------------------------------- | ------------------------------------------------- |
| Revenue Share from real yield      | Earn from actual economic activity, not emissions |
| Governance Power via veNFT         | Shape how the protocol evolves                    |
| Withdrawal & fee advantages        | Operational benefits over non-stakers             |
| Boosted yields in advanced vaults  | Higher efficiency for active users                |
| Holder-gated perks & opportunities | Access and influence                              |

> **Staking LDY is how users participate in ownership, decision-making, and value capture across Ledgity.**


# Value Capture (Buyback Flywheel)

The LDY token is designed as a **value capture asset**:\
as the protocol grows, **real yield generated from the RWA portfolio flows back to LDY stakers.**

Yield does **not** come from emissions or inflation.\
It comes from **performance fees generated by real economic activity**.

***

### **How the Flywheel Works**

1. Users deposit stablecoins (USDC / EURC) into Ledgity vaults
2. The collateral is allocated to **short-duration, diversified RWA strategies**
3. These assets generate **real cash flows** (yield)
4. The protocol collects **performance fees** on that yield
5. Fees are used to **buy LDY on the open market**
6. Purchased LDY is **distributed to stakers (veLDY)** or **burned**, depending on governance decisions

```
Deposits → Real Yield → Fees → Buybacks → Distributed to stakers → More incentive to stake & hold
```

This links **protocol growth → token demand → staker rewards** directly.

***

### **Fee Flow Structure**

| Step | Flow                             | Description                                       |
| ---- | -------------------------------- | ------------------------------------------------- |
| 1    | Performance fees collected       | A fixed % of yield generated from the portfolio   |
| 2    | Fees sent to **FeeCollector**    | Held transparently in stablecoins                 |
| 3    | **BuybackManager** executes buys | Purchases LDY from the open market                |
| 4    | LDY is allocated to two pools    | **veLDY Community Pool** & **veLDY Council Pool** |

***

### **Allocation Breakdown**

| Destination              | % of Buybacked LDY | Purpose                                                         |
| ------------------------ | ------------------ | --------------------------------------------------------------- |
| **veLDY Community Pool** | **80%**            | Distributed to users who stake LDY and contribute to governance |
| **veLDY Council Pool**   | **20%**            | Aligns Council incentives with long-term protocol performance   |

> **Stakers always receive the majority of value capture.**

***

### **Why This Model Is Sustainable**

| Feature                                  | Result                               |
| ---------------------------------------- | ------------------------------------ |
| Real yield → No inflation                | Rewards do not dilute holders        |
| Buybacks come from revenue               | Higher TVL = higher buyback pressure |
| veLDY locking reduces circulating supply | Creates natural supply scarcity      |
| No reliance on speculative incentives    | No “farm and dump” dynamics          |

### **Economic Impact**

| Metric                           | Effect on LDY                                            |
| -------------------------------- | -------------------------------------------------------- |
| **TVL Growth**                   | Increases buyback volume                                 |
| **Higher Staking Participation** | Reduces circulating supply & increases governance weight |
| **Protocol Longevity**           | Reinforces token utility and long-term alignment         |

In other words:

> The more the protocol is used, the more LDY is **bought**, **locked**, and **distributed** to aligned participants.


# Burn Program & Deflation Model

As the protocol generates real yield, a portion of the performance fees is used to **buy LDY from the open market**.\
Governance can then choose to **redistribute or burn** part of this repurchased supply — gradually reducing circulating tokens over time and reinforcing scarcity.

***

### **Deflation Model Overview**

| Mechanism                     | Effect                                 | Why It Matters                           |
| ----------------------------- | -------------------------------------- | ---------------------------------------- |
| **Fixed max supply**          | No new tokens can ever be created      | Holders are never diluted by emissions   |
| **Buybacks from real yield**  | Sustained, organic buy pressure        | Token value scales with protocol usage   |
| **Governance-directed burns** | Circulating supply decreases over time | Increases scarcity & long-term alignment |

This ensures that **value flows toward long-term participants** rather than short-term speculators.

***

### **Buyback Distribution Structure**

Performance fees flow through the **FeeCollector** and are executed by the **BuybackManager**.\
Purchased LDY is then allocated into two pools:

| Destination              | Share   | Purpose                                             |
| ------------------------ | ------- | --------------------------------------------------- |
| **veLDY Community Pool** | **80%** | Distributed to locked stakers (veLDY) as real yield |
| **veLDY Council Pool**   | **20%** | Incentivizes governance execution & risk oversight  |

> **Stakers receive the majority of captured value.**

***

### **DAO-Controlled Burn Program**

The **DAO (via veLDY voting)** controls how repurchased LDY is treated:

* ✅ **Redistribute 100% to stakers** (default, increases yield APR)
* 🔥 **Burn a portion** (accelerates deflation & scarcity)
* 🔄 **Adjust buyback intensity** (based on TVL + liquidity conditions)

**Burns are not automatic.**\
They are **intentional and governed** to avoid destabilizing token liquidity.

***

### **Strategic Burn Capacity**

Up to **30% of the total LDY supply is controlled by the DAO** and may be:

* **Distributed** as long-term staking rewards
* **Burned** to reduce circulating supply
* **Re-allocated** to partnerships or liquidity incentives

This allows governance to balance:

| Objective                             | When It Applies                                |
| ------------------------------------- | ---------------------------------------------- |
| **Boost yield APR**                   | When staking demand is high                    |
| **Increase scarcity & price support** | When liquidity is deep and TVL is accelerating |
| **Support strategic growth**          | For integrations & ecosystem alignment         |


# lyUSDC

**lyUSDC** is the USD-denominated yield vault of the Ledgity protocol.\
It allows users, DAOs, and institutions to earn **real yield** on USDC while maintaining **self-custody and on-chain liquidity**.

When you deposit **USDC**, you receive **lyUSDC**.\
The **Price-Per-Share (PPS)** of lyUSDC increases as yield is generated.

There are **no lockups**, no staking, and no claiming.\
Your yield is reflected automatically in your **lyUSDC balance value**.

***

#### **How It Works (Simple)**

1. Deposit **USDC**
2. Receive **lyUSDC (1:1)**
3. The **PPS** of lyUSDC increases as yield accrues
4. Withdraw **USDC** at any time based on PPS value

***

#### **Yield Source**

**lyUSDC** yield comes from a **diversified RWA portfolio** managed through the SARR Fund:

| Allocation                       | Description                                |
| -------------------------------- | ------------------------------------------ |
| **80% RWA Portfolio**            | Short-duration, cash-flow-producing assets |
| **15% DeFi Strategies**          | Low-risk lending (Morpho / Aave)           |
| **5% On-Chain Liquidity Buffer** | Ensures withdrawals at any time            |

***

#### **Withdrawals**

| Withdrawal Type                | Delay        | Notes                                      |
| ------------------------------ | ------------ | ------------------------------------------ |
| **Instant**                    | Immediate    | As long as buffer liquidity is available   |
| **Scheduled**                  | 24–72h       | When RWA liquidity is cycled               |
| **Large withdrawals >10% TVL** | Case-by-case | Coordinated to protect portfolio integrity |

You can **always withdraw**, but timing depends on liquidity conditions.

***

#### **Use Cases**

* Safe parking of stablecoins between plays
* DAO runway preservation
* Hedge against inflation while remaining liquid
* Stable base collateral for on-chain strategies

***

#### **Integrations**

* **Chainlink CCIP** supports seamless bridging across chains
* DeFi integrations (DEX LPs, lending protocols) coming in 2026


# lyEURC

**lyEURC** is the Euro-denominated yield vault.\
It functions exactly like lyUSDC, but uses **EUROC** as base collateral and is optimized for **European treasuries, family offices, and euro liquidity markets.**

Deposit **EUROC** → receive **lyEURC** → PPS grows over time.

***

#### **Why lyEURC Exists**

Most DeFi is USD-centric.\
Euro liquidity has lacked:

* yield,
* transparency,
* on-chain accessibility,
* regulated collateral handling.

**lyEURC solves this** by enabling **euro money market exposure** directly on-chain, through a regulated structure.

***

#### **Allocation Model**

| Allocation                           | Description                                    |
| ------------------------------------ | ---------------------------------------------- |
| **80% European short-duration RWA**  | Corporate & sovereign fixed-income instruments |
| **15% DeFi Market-Making & Lending** | Low-risk base layer strategies                 |
| **5% Liquidity Buffer**              | On-chain withdrawal support                    |

Same model. Same transparency.\
Just **Euro-native**.

***

#### **Who Uses lyEURC**

| User Type                        | Motivation                                         |
| -------------------------------- | -------------------------------------------------- |
| French & EU retail               | High inflation → need capital preservation         |
| Companies / Startups             | Park treasury funds in EUR without banking lock-in |
| Wealth managers / Family offices | Yield + reporting + custody segregation            |
| Stablecoin farmers               | Diversified yield exposure                         |

***

#### **Withdrawals**

Same logic as lyUSDC — governed by liquidity buffer and RWA repayment cycles.


# How Vaults Are Listed / Future Vaults

Ledgity is designed to support multiple yield strategies over time.\
While the protocol currently offers **lyUSDC** and **lyEURC**, additional vaults may be listed when they provide:

* **Clear and predictable yield**
* **Regulated or verifiable asset backing**
* **Proper liquidity management**
* **Alignment with the protocol and DAO**

New vaults are not added casually.\
They must strengthen the ecosystem — not dilute it.

***

#### **Vault Listing Requirements**

To list a new vault on Ledgity, three criteria must be met:

| Requirement                    | Description                                                                                      |
| ------------------------------ | ------------------------------------------------------------------------------------------------ |
| **Transparency**               | The underlying strategy must have clear performance, liquidity schedules, and risk documentation |
| **Operational Reliability**    | The asset manager must demonstrate operational maturity and reporting capability                 |
| **Alignment with Ledgity DAO** | Value must flow back into the ecosystem through LDY incentives or strategic participation        |

This ensures vaults are **sustainable**, **auditable**, and **not dependent on speculative yield**.

***

#### **Integration Models**

There are **two ways** for partners to launch vaults on Ledgity:

**Model A — Fixed Setup + Performance Alignment**

For teams, funds, and asset managers who want direct onboarding:

| Component                 | Amount                   |
| ------------------------- | ------------------------ |
| **Setup Fee**             | 50k $                    |
| **Performance Fee Share** | **0.5% of TVL annually** |

This model is best suited for **institutional partners** and **RWA-native managers**.

***

**Model B — Strategic Alignment Through LDY Participation**

Instead of paying setup fees, partners may **participate in protocol alignment** by:

| Commitment                                               | Mechanism                                                     |
| -------------------------------------------------------- | ------------------------------------------------------------- |
| **Holding / Staking LDY**                                | Demonstrates long-term interest and ensures shared incentives |
| **Providing part of vault liquidity in lyUSDC / lyEURC** | Strengthens protocol liquidity and risk-sharing               |
| **Maintaining a minimum TVL threshold**                  | Ensures meaningful contribution to the ecosystem              |

This model is best suited for:

* DAOs
* Crypto funds
* On-chain asset managers
* Ecosystem partners

> The goal is **win–win alignment**, not extraction.

***

#### **Why Alignment Matters**

Each vault added to Ledgity:

* **Attracts new users**
* **Deepens protocol liquidity**
* **Strengthens LDY value capture**
* **Expands RWA access for the whole ecosystem**

Therefore, **vault listings must benefit all stakeholders**, not just the vault originatorl

***


# Introduction

Disclaimer

Partner Vaults are managed by independent third-party strategy providers. **Ledgity does not operate, manage, or assume any responsibility** for the performance, risk management, or underlying assets of these strategies. Ledgity acts solely as a technology provider.

Investors should conduct their own due diligence and fully understand the associated risks before allocating capital. **Returns are not guaranteed**, and investments may be subject to loss.


# Lps (Partner Vault)

⚠️ Disclaimer: This vault operates independently of Ledgity. While we don’t manage its strategy or performance, we encourage you to do your own analysis and due diligence.

**1) INTRODUCTION**

The LP Strategy is a dynamic liquidity provision vault designed to generate passive yield on

your deposit. It provides concentrated liquidity using USDC (ERC-20) paired with crypto assets from the top 50 market capitalisations.

This vault is one of the high-performance products available on the platform to actively put their assets to work instead of keeping them idle. Thanks to the smart-contract used for the vault, the strategy deployment is ensured without ever needing custody of the participants capital. You are always in control of your funds using your wallet.

Target audience:

* Investors aiming to outperform a simple “hold” strategy
* Investors seeking passive income through liquidity providing service on chain.

The strategy seeks to generate higher long-term returns than holding crypto assets passively, by actively providing concentrated liquidity on highly traded pairs.

**Recommended horizon: 18+ months (long-term strategy)**

* Liquidity of the capital: 100%, withdrawals are immediate, partial or full, with no delay
* Risk level: High (due to volatility of the underlying asset within the strategy)

***

**2) PORTFOLIO ALLOCATION MODEL**

* Primary underlying: USDC (native ERC-20)
* Network: Ethereum
* Why USDC? Provides a stable base that reduces volatility and ensures predictable position sizing.
* Liquidity pairs: Always composed of USDC paired with a top-50 crypto asset, selected dynamically.
* Full USDC option: The vault can remain entirely in USDC during adverse market conditions.

***

**3) STRATEGY DESCRIPTION**

The LP Strategy deploys capital with automated execution to optimise yield through concentrated liquidity.

* Asset exposure:  Top-50 crypto assets paired with USDC.
* Liquidity ranges:  Ranges are moderately tight to balance staying in-range vs capturing higher fees.
* Adjustments:  Positions are adjusted opportunistically, not on a fixed schedule. LP strategy sets auto rebalance, stop loss, take profit and while automations ensure execution 24/7.
* Exit to USDC: The vault rotates entirely into USDC during:
  * Market crises
  * Trend breakdowns
  * Extreme volatility
* Diversification: The vault may be exposed to multiple liquidity pools simultaneously, depending on opportunities (no strict maximum).
* Yield optimisation:&#x20;
  * Active rebalance to remain in-range
  * Use of technical analysis to optimise entry levels
  * Dynamic selection of high-volume pools
  * Multi-pair exposure when beneficial
* Automation: LP strategy sets ranges, assets, risk levels, and management rules. Automations execute stop-loss and rebalancing instructions instantly and without emotion.

***

**4) TECHNICAL ARCHITECTURE**

The vault is operated by Krystal. Krystal Vaults offer a modular and secure structure:

* Vault Components:&#x20;

  * Smart contract vault (non-custodial)
  * Strategy module (logic layer)
  * Automated execution layer (stop-loss & rebalancing)
  * Deposit/withdrawal module (USDC only)

* DEX interactions

The vault uses all compatible Ethereum-based DEXs supporting concentrated liquidity.

Automations used (All parameters set by LP strategy experts.):&#x20;

* Rebalancing execution
* Stop-loss execution
* Deposits & Withdrawals
* Always in USDC only
* Withdrawals are immediate, partial or full, with no delay
* Users always receive 100% USDC

***

**5) FEES**

* Entry Fee: None
* Management Fee: None
* Exit Fee: 0.01% (distributed to remaining participants)
* Performance Fee: 50%
  * Applied only to the yield generated by the strategy
  * Never applied to capital appreciation of assets
  * Participants simply receive their net portion after fees
  * A pure win-win model: we only earn when investors earn

***

**6) RISK MANAGEMENT FRAMEWORK**

| RISK                | CONTROLS IN PLACE                               |
| ------------------- | ----------------------------------------------- |
| Impermanent Loss    | Due diligence, active management                |
| Altcoin Volatility  | Due diligence, active management                |
| Smart Contract Risk | Independent audits + battle-tested integrations |

**The strategy may experience periods of variable returns depending on market conditions and trading volumes. Drawdowns can occur, especially in volatile market phases.**

**No capital guarantee: Investors may lose part or all of their investment.**

***

**7) PROJECTIONS & ILLUSTRATIONS SCENARIOS**

To help investors better understand the potential volatility of capital and the mechanics of concentrated liquidity. These projections are not performance promises, nor should they be interpreted as expected or guaranteed returns. Their sole purpose is to provide a clearer view of how the vault may behave under different market conditions.

The examples use a simulated liquidity position with an initial deposit of $50,000 on an ETH/USDC pair, with a net APR of 40% for the client (after all fees), yields are paid in both assets in the pair at 50/50 (in this scenario 50% in ETH and 50% in USDC). This figure reflects the historical performance range observed in similar market environments for our strategy, but it remains highly dependent on factors such as trading volume, volatility, pool utilisation, and asset price movements.

| Scenario ($50,000 deposit)                                                                                | Holding ETH          | LP Strategy                                                                                                                    |
| --------------------------------------------------------------------------------------------------------- | -------------------- | ------------------------------------------------------------------------------------------------------------------------------ |
| <p>ETH drops 25% valuation</p><p>after 12 months</p><p>The yields are withdrawn</p><p>and held</p>        | $37,500 worth of ETH | <p>$39,917.04 worth of ETH</p><p>$0.00 worth of USDC</p><p>$17,500.00 worth of Yields</p><p>For a Total of $57,417.04</p>      |
| <p>ETH drops 25% valuation</p><p>after 12 months</p><p>The yields are compounded</p><p>every 2 weeks</p>  | $37,500 worth of ETH | <p>$39,917.04 worth of ETH</p><p>$0.00 worth of USDC</p><p>$21,318.85 worth of Yields</p><p>For a Total of $61,235.89</p>      |
| <p>ETH is at the same price</p><p>after 12 months</p><p>The yields are withdrawn</p><p>and held</p>       | $50,000 worth of ETH | <p>$25,000.00 worth of ETH</p><p>$25,000.00 worth of USDC</p><p>$20,000.00 worth of Yields</p><p>For a Total of $70,000.00</p> |
| <p>ETH is at the same price</p><p>after 12 months</p><p>The yields are compounded</p><p>every 2 weeks</p> | $50,000 worth of ETH | <p>$25,000.00 worth of ETH</p><p>$25,000.00 worth of USDC</p><p>$24,364.40 worth of Yields</p><p>For a Total of $74,364.40</p> |
| <p>ETH gains 25% valuation</p><p>after 12 months</p><p>The yields are withdrawn</p><p>and held</p>        | $62,500 worth of ETH | <p>$0 worth of ETH</p><p>$52,155.04 worth of USDC</p><p>$22,500.00 worth of Yields</p><p>For a Total of $74,655.04</p>         |
| <p>ETH gains 25% valuation</p><p>after 12 months</p><p>The yields are compounded</p><p>every 2 weeks</p>  | $62,500 worth of ETH | <p>$0 worth of ETH</p><p>$52,155.04 worth of USDC</p><p>$27,409.95 worth of Yields</p><p>For a Total of $79,564.99</p>         |

These scenarios illustrate:

* How capital value can fluctuate due to price movements of the underlying crypto asset (ETH)
* How concentrated liquidity positions can generate significant yield, while still being exposed to short-term drawdowns
* How the strategy may behave with asset ratio varying within the pools thus reducing volatility (upward or downward)
* The potential impact of the underlying assets volatility on the yields (upward or downward)
* The impact of withdrawing or compounding yields

Again, these projections are hypothetical educational tools, not forecasts. They aim to help investors develop a more realistic understanding of the risk/return profile of concentrated liquidity strategies.


# BuffX

Instant Liquidity Node, Fixed Rate (ILN-FR)

BuffX develops independent liquidity products designed to connect stablecoin capital with real-world financial activity.

Instant Liquidity Node, Fixed Rate (ILN-FR) is a fixed-term stablecoin liquidity product designed by the [BuffX](https://buffx.io/) team.

It is structured as a **30-day vault**, with each monthly cycle operating under **contract-defined terms**, including a fixed return rate for that specific period. The product is designed to support real-world transactional activity while offering a predictable, short-duration allocation framework for liquidity providers.

Solving a real world problem

International payment corridors involving certain currencies remain constrained by settlement delays, pre-funding requirements, and limited access to immediately available liquidity.

These constraints are operational rather than theoretical. They affect how quickly transactions can be completed and how efficiently capital can move across borders.

ILN-FR is designed to address this issue by maintaining **USD fiat liquidity in a pre-positioned state**, allowing partners to execute transfers without waiting for traditional settlement processes.

For more information: <https://buffx.gitbook.io/buffx-docs><br>


# RWA Risk

Ledgity’s yield is primarily generated through Real-World Assets (RWA) managed by the SARR Fund, a regulated investment vehicle. The objective is to produce stable, recurring cash-flow–based returns while minimizing capital and liquidity risk.

The strategy is built on **short-duration, high-transparency credit exposure**, without leverage or speculative instruments.

***

#### Asset Selection

The RWA portfolio only includes assets that meet the following criteria:

* Short maturity and predictable repayment schedules
* Clear and auditable cash flows
* Verified and financially credible counterparties
* Senior or secured position in the capital stack
* Fully traceable through regulated intermediaries

If an asset category introduces long-term lockups, mark-to-market uncertainty, or opaque valuation, it is excluded.

***

#### Explicitly Excluded RWA Categories

To avoid liquidity mismatch and valuation risk, Ledgity does **not** invest in:

* Real estate development or renovation loans
* Long-duration bonds with multi-year duration
* Structured or tranche-layered credit products
* Synthetic or derivative-based yield
* Any collateral dependent on speculative market conditions

This approach eliminates the failure patterns observed in many RWA protocols (frozen redemptions, repayment gaps, pricing opacity).

***

#### Portfolio Construction

* Diversified across multiple issuers
* Short-duration repayment cycles to support ongoing withdrawals
* No leverage and no rehypothecation
* Yield is generated by contractual repayment, not token incentives

The priority is **capital stability**, not maximizing APY.

***

#### Counterparty Monitoring

Each portfolio exposure undergoes:

* Business and financial due diligence
* Creditworthiness and repayment analysis
* Legal enforceability review
* Continuous monitoring during the entire lending period

Risk scoring is updated as cash flows occur, not only at onboarding.

***

#### Liquidity Alignment

The RWA portfolio is structured to align **repayment frequency** with **on-chain withdrawal expectations**.\
Short-duration cycles ensure capital continuously returns to the vaults.

This prevents the liquidity mismatch that occurs when long-term assets are used in products with daily withdrawals.

***

#### Reporting & Transparency

The SARR Fund provides periodic reporting and reconciliation, allowing the protocol to align:

* RWA yield performance
* Vault PPS (Price-Per-Share) growth
* Liquidity planning for withdrawals

Yield observed on-chain is directly supported by real, documented economic activity.


# Liquidity Risk

Ledgity is designed to provide yield while maintaining **reliable withdrawal availability**.\
To achieve this, the protocol avoids the liquidity mismatch that commonly occurs when long-duration assets are combined with on-chain withdrawal expectations.

Liquidity risk is managed through **allocation structure**, **repayment scheduling**, and **on-chain liquidity buffering**.

***

#### Liquidity Model

Each vault uses a **three-layer liquidity design**:

| Layer                                                      | Purpose                                                       | Availability                  |
| ---------------------------------------------------------- | ------------------------------------------------------------- | ----------------------------- |
| **On-chain Liquidity Buffer** (\~5%)                       | Supports everyday withdrawals                                 | **Instant**                   |
| **Short-Duration RWA Repayments** (\~80%)                  | Provides ongoing liquidity through recurring repayment cycles | **\~24–72 hours**             |
| **Coordinated Liquidity Schedule** (for large withdrawals) | Ensures portfolio stability during exceptional outflows       | **Case-by-case coordination** |

This structure ensures that **day-to-day withdrawals are seamless**, while maintaining portfolio health over time.

***

#### No Duration Mismatch

Only **short-duration and recurring cash-flow instruments** are used in the RWA allocation.\
This prevents the common failure mode in RWA yield products where users expect **daily liquidity** but the underlying assets repay over **months or years**.

Ledgity does **not** allocate to:

* Real estate development loans
* Multi-year credit instruments
* Long-term fixed income requiring mark-to-market liquidation

By matching asset duration with withdrawal patterns, **withdrawal queues and redemption freezes are avoided**.

***

#### On-Chain PPS Reflection

Yield is not distributed manually or via rebase.\
Instead, **vault performance increases PPS (Price Per Share)** continuously.

This means that:

* Withdrawals do not require selling yield-bearing receipts
* There is **no incentive to exit early**
* Yield is always fully accounted for

This model stabilizes behavior during periods of market stress.

***

#### Large Withdrawals

Withdrawals that exceed the available liquidity buffer and current repayment cycle are still honored, but require coordinated scheduling to avoid unnecessary forced liquidation.

This ensures:

* Portfolio integrity
* No panic selling of underlying assets
* Fair treatment across depositors

Users remain informed throughout the process.

***

#### Risk Controls & Monitoring

Liquidity is monitored continuously across:

* RWA repayment calendar
* Liquidity buffer levels
* New deposit/withdrawal flows
* Market conditions relevant to RWA instruments

The Council can adjust liquidity allocation parameters through governance if required.


# Incident Response Flow

Ledgity is built to operate reliably under normal conditions, but the protocol also includes a defined response framework for anormal or unexpected situations.\
The goal is always the same:

**Protect user funds first.**\
**Stabilize the system second.**\
**Restore normal operation responsibly.**

Incident response applies to both:

* **On-chain irregularities** (unexpected contract behavior, exploit attempts, liquidity anomalies)
* **Off-chain disruption** (delays in RWA repayment, market stress affecting liquidity timing)

***

#### Detection

Monitoring occurs continuously at multiple levels:

| Source                          | Type of Monitoring                             |
| ------------------------------- | ---------------------------------------------- |
| Smart contract event tracking   | Withdrawal, mint/burn, and state anomalies     |
| Liquidity buffer monitoring     | Sudden or large outflows                       |
| RWA repayment schedule tracking | Expected vs actual cash flow reconciliation    |
| Automated alerts & dashboards   | Internal operational monitoring                |
| Community + partner escalation  | Open reporting channels via Discord / Telegram |

If anormal behavior is detected, the Council is immediately alerted.

***

#### Initial Action: Temporary Pause

The protocol includes a **Global Pause** mechanism that allows deposits and withdrawals to be temporarily stopped.

* **This does&#x20;*****not*****&#x20;move funds**
* It only prevents *new* inflows/outflows until conditions are reviewed

This mechanism prevents cascading effects during uncertainty.

Pause may be triggered when:

* Liquidity buffer is unexpectedly depleted
* Off-chain repayment delays exceed predefined tolerances
* Smart contract inconsistencies are detected
* Security audit or exploit alerts require investigation

***

#### Assessment & Diagnosis

Once paused, the Council performs structured investigation:

| Area Reviewed                  | Purpose                                   |
| ------------------------------ | ----------------------------------------- |
| On-chain contract state        | Confirm integrity and balance correctness |
| Vault accounting vs. PPS       | Ensure yield calculations remain valid    |
| RWA portfolio cash flow        | Confirm repayment schedule status         |
| Custody and banking operations | Ensure off-chain balances are intact      |

If needed, external security or financial auditors may be engaged.

***

#### Resolution Actions

Depending on the diagnosis:

| Scenario                         | Action                                                                            |
| -------------------------------- | --------------------------------------------------------------------------------- |
| Smart contract anomaly           | Patch and redeploy through audited upgrade path                                   |
| Liquidity shortage due to timing | Coordinate scheduled repayment release                                            |
| RWA repayment delay              | Communicate adjusted withdrawal timeframes                                        |
| Confirmed malicious exploit      | Execute defensive withdrawal, coordinate fund protection, publish forensic report |

The priority is **protecting capital**, not rushing to reopen operations.

***

#### Communication

Transparent communication is critical.\
Users are informed through:

* Discord announcements
* Telegram updates
* Website banner (if needed)
* Formal written post-mortem (for major incidents)
* DAO governance update

No silent interventions. No hidden decisions.

***

#### Resumption

Once the system is confirmed stable:

* The pause is lifted
* Regular withdrawals and deposits resume
* A summary of findings is provided to the DAO
* If applicable, governance proposes long-term mitigation adjustments


# Smart Contract Risk

The on-chain infrastructure of Ledgity is intentionally minimalist to reduce attack surface and complexity. Smart contracts are designed to be transparent, upgrade-controlled, and auditable, ensuring that the on-chain system remains stable even as TVL scales.

The architecture focuses on **custody safety, deterministic yield accounting, and predictable liquidity flow** rather than complex on-chain logic.

***

#### Contract Design Principles

* **No leverage** is used anywhere on-chain.
* **No rebase mechanics**: yield is reflected through **Price-Per-Share (PPS)**, preventing integration issues.
* **Vaults are segregated**: a failure in one vault cannot impact another.
* **No algorithmic yield generation**: contracts do not “seek” yield; they reflect yield produced off-chain.

This significantly reduces systemic risk and composability failures.

***

#### Upgrade & Permission Controls

Smart contracts are controlled by an upgrade process that prioritizes safety:

| Control Layer                    | Purpose                                                                       |
| -------------------------------- | ----------------------------------------------------------------------------- |
| **Multisig Ownership (Council)** | Execution of approved parameter or contract updates                           |
| **Timelock (if enabled)**        | Allows the community to review before changes take effect                     |
| **Global Pause Mechanism**       | Enables temporary freeze of deposits/withdrawals in case of abnormal behavior |

These controls exist to prevent unauthorized changes, mitigate cascading failure, and allow structured incident response.

***

#### Audits

All core vault and token contracts will need external security audits \
Any material upgrade or new vault listing triggers a new review cycle.

Audit scope includes:

* Permission and role controls
* State transition integrity
* PPS accounting correctness
* Deposit / withdrawal flows
* Emergency controls

Audit reports will be publicly linked in the new section once published.

***

#### Attack Surface Reduction

The protocol avoids common high-risk DeFi patterns:

| Risk Pattern Avoided               | Why                                           |
| ---------------------------------- | --------------------------------------------- |
| Rebase tokens                      | Breaks accounting across integrations         |
| Leveraged yield loops              | Can fail catastrophically in volatile markets |
| Auto-compounding vault recursion   | Hard to monitor, can destabilize liquidity    |
| Flash-loan-sensitive oracle design | Eliminated by off-chain pricing and PPS model |

Yield cannot be manipulated on-chain because it does **not** depend on AMM price, lending rates, or oracle variations.\
It depends only on **cash flows entering the system**, reflected in PPS.

***

#### Emergency Controls

If anormal conditions are detected (contract attack, unexpected price behavior, off-chain disruption), the protocol can be temporarily paused:

* **Deposits and withdrawals freeze**
* Capital is *not moved automatically*
* Council initiates investigation and coordination
* Normal operations resume once confirmed safe

This mechanism is strictly defensive — **it does not allow reallocating or seizing user funds.**


# V1

<figure><img src="/files/aqMNw2wSrgdCzACZCz8C" alt=""><figcaption></figcaption></figure>

HACKEN AUDIT

<https://hacken.io/audits/ledgity/sca-ledgity-rwa-feb2024/>


# Team

**Pierre-Yves Dittlot — Founder & CEO**

Expert in private banking and wealth management with more than 13 years of experience across asset management firms, private banks, and family offices.\
Specialized in financial markets, structured products, and digital asset infrastructure. Pierre-Yves founded Ledgity to bring institutional-grade financial standards to on-chain yield and RWA management.

**Areas of Expertise:** Asset Management, Private Banking, Portfolio Structuring, Compliance, Crypto Finance\
**Links:**\
LinkedIn • Twitter

***

**Jean-Baptiste Sicard — President & Executive Director**

Financial entrepreneur with multiple exits and senior leadership roles.\
Brings strategic direction, corporate oversight, and institutional partnerships scaling experience to Ledgity.

**Areas of Expertise:** Corporate Strategy, M\&A, Governance, Institutional Partnerships\
**Links:**\
LinkedIn

***

**Grégoire Jouaneau — Business Development & Web3 Strategy**

Leads Ledgity Web3 strategy since 2023, ecosystem growth, DAO structuring, and multi-chain expansion efforts.\
Coordinates partnerships with DeFi protocols, infrastructure providers, and institutional liquidity partners.

**Areas of Expertise:** On-chain Growth, Token Strategy, Partnerships, Ecosystem Architecture\
**Links:**\
LinkedIn • Twitter • Telegram: @Metacasper

***

**Victor (Blackwhale) — CTO Web3**

Senior blockchain engineer specialized in smart contract architecture, security, and multi-chain systems.\
Leads core protocol engineering, vault logic, veLDY governance mechanics, and DeFi integrations.

**Links:**\
GitHub: <https://github.com/vblackwhale>

***

**Cyril Colinet — CTO Web2**

Software architect responsible for infrastructure reliability, Web2–Web3 interfacing, custody workflows, and account abstraction systems.\
Ensures application scalability, security, and seamless onboarding infrastructure.

***

**Ingrid — Compliance & Legal Oversight**

Manages regulatory monitoring, KYB/KYC procedures, AML frameworks, and operational risk controls.\
Ensures alignment between PSAN requirements, SARR Fund compliance, and DAO transparency.

***

#### Advisors & Board Members

Ledgity benefits from strategic financial, regulatory, and market structuring advisors with experience across:

Frederic Espirat \
Chistophe Priem \
eljaboom\
ogle \
singularity dao \
chainlink \
Frederic bonelli (cointribune)&#x20;


# Company

Ledgity is a financial technology company specializing in **digital asset yield infrastructure**.\
Our mission is to make **secure, transparent, and sustainable yield** accessible to individuals, institutions, and decentralized organizations, by bridging stablecoins with regulated real-world asset strategies.

Ledgity operates at the intersection of **traditional finance** (RWA portfolio management, regulated investment structures) and **Web3** (self-custody, open governance, programmable yield).

***

#### RWA Investment Infrastructure

The off-chain portfolio is managed through a dedicated **Luxembourg-regulated investment vehicle** (SARR Fund) which allocates capital into **short-duration, cash-flow-based real-world assets**.

This setup ensures:

| Property                               | Result                             |
| -------------------------------------- | ---------------------------------- |
| Bankruptcy-remote structuring          | User capital remains segregated    |
| Institutional-grade asset oversight    | Third-party reporting & controls   |
| Predictable yield                      | Based on recurring repayment flows |
| Full audit and governance traceability | DAO + regulatory oversight         |

***

#### Coincil Alignment

Ledgity Yield introduces a **dual-layer governance system**:

| Layer                           | Responsibility                                             |
| ------------------------------- | ---------------------------------------------------------- |
| **Ledgity SAS**                 | Regulatory compliance, risk controls, RWA infrastructure   |
| **Ledgity DAO (veLDY holders)** | Protocol parameters, fee distribution, strategic alignment |

This ensures:

* **Regulatory safety**
* **Community ownership**
* **Transparent decision-making**

with clear separation of roles.

***


# Media Kit

### **A full Ledgity Yield brand kit is available on** [**this Figma file**](https://www.figma.com/file/3mNBCY2vCTLM8bGmFaRz3b/%F0%9F%92%BB-Ledgity-Yield---Media-KIT-%2F-Design-Guide?type=design\&node-id=1-660\&mode=design)**.**

For those who aren't familiar with Figma, here are the main assets of the brand kit.

<div><figure><img src="/files/yEFsuL1OYVjCfYKl2OVu" alt=""><figcaption><p>Big Icon Light</p></figcaption></figure> <figure><img src="/files/IpZeR04IggcUZbrCHT3P" alt=""><figcaption><p>Big Icon Dark</p></figcaption></figure></div>

<div><figure><img src="/files/4frd1mBxdkPx98QjzRj3" alt=""><figcaption><p>Icon Light</p></figcaption></figure> <figure><img src="/files/2rUEa4wABuQe66Cf1pGn" alt=""><figcaption><p>Icon Dark</p></figcaption></figure></div>

<figure><img src="/files/XbibDh5M2l1U4VZG3Gds" alt=""><figcaption></figcaption></figure>

<div data-full-width="false"><figure><img src="/files/HHsCb56lA6j5UdOtQli5" alt=""><figcaption><p>$LDY Token</p></figcaption></figure></div>

<figure><img src="/files/jetut3lrVSb2J1DGYQQI" alt=""><figcaption></figcaption></figure>


# Partnership

Ledgity is actively building a **global ecosystem** of strategic partners across Web3, wealth management, and institutional finance.

Our approach is collaborative:\
We don’t believe yield should exist in isolation — it should be **integrated**, **shared**, and **built into financial infrastructure**.

***

### **Where We Are Today**

We currently maintain **500+ active partnership discussions** across:

| Category                             | Examples of Partners                                        | Value Created                                                  |
| ------------------------------------ | ----------------------------------------------------------- | -------------------------------------------------------------- |
| **Crypto Treasuries & DAOs**         | DeFi protocols, liquidity providers, governance collectives | Runway extension, reserve yield, treasury diversification      |
| **Family Offices & Wealth Managers** | Multi-asset advisory, private banks, CGPs                   | Yield offering integrated into discretionary mandates          |
| **Web3 Startups & Foundations**      | Projects holding stable reserves post-fundraising           | Passive yield on operating treasury                            |
| **RWA & Infrastructure Providers**   | Custodians, issuance platforms, credit originators          | Pipeline access + collateral transparency                      |
| **DeFi Integrations**                | DEXs, lending platforms, aggregators                        | Composability of L-Tokens in liquidity & collateral frameworks |

These discussions range from **simple integrations** to **custom treasury mandates** and **co-branded vault deployments**.

***

**Strategic Advantages for Partners**

Partnering with Ledgity enables organizations to:

* Offer **real yield** to their users or clients
* **Extend treasury runway** without compromising liquidity
* Integrate **yield-bearing stablecoins (lyUSDC / lyEURC)** into their system
* Launch **white-label yield vaults** with regulatory support
* Access **stable, non-speculative return streams**

All while maintaining:

✔ Self-custody\
✔ On-chain auditability\
✔ Short-duration liquidity profile

### **Shared Success Model**

Ledgity partners benefit directly from:

* **Co-marketing & ecosystem exposure**
* **Shared incentives & performance participation**
* **Dedicated onboarding & product support**
* **Custom reporting & institutional workflows**

Our goal is **not to replace existing infrastructure**,\
but to **plug real yield into it.**

***

### **How to Partner With Us**

We provide **personal onboarding** and a structured integration review.

To discuss:

* Product partnerships
* Co-branded vaults
* Treasury deployment
* Integrations
* Custody / compliance workflows

→ **Email**: <gregoire@ledgity.com>\
→ **Telegram**: @metacasper

→ X: <https://x.com/metacasper0_0>\
→ **Discord**: Open a ticket **(could be long)**


# Important Links

Stay up to date with the latest news about Ledgity Yield and join an exciting DeFi community:

* **Website:** <https://www.ledgity.finance/>
* **Discord:** <https://discord.gg/ledgityyield>&#x20;
* **Twitter:** <https://twitter.com/LedgityYield>
* **Github :** <https://github.com/LedgityLabs/LedgityYield>
* **Telegram:** <https://t.me/ledgityapp>
* **Coingecko:** <https://bit.ly/3KIypQQ><br>

Contact investor / Institutionnal : <jb@ledgity.com>&#x20;

Contact web3: <gregoire@ledgity.com> \
\
General : <Contact@ledgity.com>&#x20;

### Most of our community activities take place in Telegram, so [join us now!](https://discord.gg/ledgityyield)