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
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
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.
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
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
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
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