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:
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
≤ 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:
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:
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
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