# 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**