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