Strategy Allocation

Ledgity’s yield is generated from a diversified portfolio of short-duration, cash-flow-producing real-world financial instruments, combined with a controlled on-chain liquidity component.

The allocation framework is designed to balance:

• Yield stability

• Liquidity availability

• Risk diversification

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Target Allocation Model

Allocation Segment	Approx. Weight	Role	Characteristics
Short-Duration Revenue Financing	~80%	Core yield source	Recurring repayments, diversified issuers, non-speculative
On-Chain Structured Yield (Low Risk)	~15%	Liquidity optimization & composability	Non-leveraged lending, institutional-grade DeFi partners
Liquidity Buffer (On-Chain)	~5%	Supports instant withdrawals	Dynamic, monitored & rebalanced

This allocation model may evolve based on market conditions, liquidity needs, and governance oversight.

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1) Short-Duration Revenue Financing (~80%)

This segment provides the majority of yield.

• Companies repay financing in recurring cash flows (monthly/weekly)

• Maturities are short (typically <12 months)

• Positions are diversified across sectors and issuers

• Documentation, collateral, and reporting follow institutional standards

This ensures the yield is predictable, repeatable, and linked to real economic activity — not speculation.

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2) On-Chain Structured Yield (~15%)

Exposure to conservative, battle-tested DeFi strategies, used only when:

• Collateral is transparent and verifiable

• No leverage loops are required

• Counterparty risk is understood and monitored

Typical examples:

• Lending to over-collateralized borrowers

• Liquid, non-speculative yield markets

• Institutional-grade DeFi protocols only

This segment provides composability and additional liquidity mobility.

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3) Liquidity Buffer (~5%)

Maintained on-chain to process instant withdrawals and operational rebalancing.

• Adjusted dynamically based on vault inflows/outflows

• Ensures day-to-day liquidity availability

• Reduces reliance on forced unwinds of longer-duration positions

This prevents liquidity mismatch, a common failure mode in RWA protocols.

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Why This Allocation Works

Risk Dimension	Ledgity Approach	Outcome
Duration Risk	Short-duration repayment cycles	Predictable liquidity
Credit Risk	Diversified issuers + strict underwriting	Stable performance profile
Liquidity Risk	Dedicated on-chain buffer	Instant withdrawals for standard usage
Volatility Risk	No yield dependence on token incentives	Sustainable return profile