> For the complete documentation index, see [llms.txt](https://docs.ledgity.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ledgity.finance/overview/yield-sources-and-proof-of-reserves.md). # 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.ledgity.finance/overview/yield-sources-and-proof-of-reserves.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.