PPS Model (Non-rebase real yield)

L-Tokens follow a Price-Per-Share (PPS) model to account for yield. Instead of increasing your token balance, the value of each token increases over time as the vault generates returns.

No rebasing. No claiming. No restaking loops.

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How PPS Is Calculated

PPS = Vault Net Asset Value / L-Token Supply

• Vault value increases as yield is collected.

• L-Token supply remains constant. → PPS goes up.

Your yield is reflected directly in the exchange value of the token.

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Example

Time	lyUSDC Balance	PPS	Redeemable Value
Initial Deposit	1,000 lyUSDC	1.0000	1,000 USDC
After ~3 Months	1,000 lyUSDC	1.0184	1,018 USDC
After ~12 Months	1,000 lyUSDC	1.0920	1,092 USDC

Your balance stays the same. Your claimable value increases.

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Why PPS Instead of Rebasing?

PPS Model	Rebasing Model
Value increases, balance stable	Balance fluctuates
Safe for LPs, lending, collateral	Often breaks DeFi accounting
No custom integrations needed	Requires protocol-specific support

PPS makes L-Tokens plug-and-play across DeFi.

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Withdrawals

When you withdraw:

Withdrawn USDC/EURC = L-Token Balance × Current PPS

If PPS has increased, you redeem more stablecoins than you deposited.

Withdrawals are processed using:

• On-chain liquidity buffer for instant settlements

• RWA settlement process for large requests (covered in the next section)

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Key Benefits

• Auto-compounding

• No inflation / no emissions

• Fully auditable on-chain

• Composability preserved

PPS ensures yield is clean, transparent, and portable.