LemmaSwap will (in the future) issue LEMMA tokens to manage governance for the stablecoin. Holders will be able to set risk parameters, prioritize the roadmap and propose new features, amongst other things. A few example include:
- Deciding which derivative DEXs’ perpetual contracts should be used for LemmaSwap and set risk parameters for each one
- Deciding what percentage of the yield should be allocated towards the user vs. the insurance fund vs. the treasury
- Deciding how much to charge for spot swaps
Routing yield towards the treasury / insurance fund will help mitigate risks for liquidity providers. As such, a percentage (initially 30%) of the profits generated by the basis trading vault will be allocated to the treasury / insurance fund.