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What is LUSDC?

LUSDC is the Lemma yield bearing version of USDC

LUSDC represents your underlying principle (the current USDC value of the ETH you deposited) plus the yield Lemma has generated by basis trading your deposited assets.

Why did I receive LUSDT instead of LUSDC?

In the testnet version of Lemma, you will receive LUSDT instead of LUSDC.

Why did I receive LUSDC instead of LETH?

Currently, decentralized derivatives exchanges only accept USDC as collateral and all the gains are denominated in USDC. It is therefore is much easier for Lemma to initially also represent your principle and generated yield in USDC based tokens. On the main Lemma landing page, the deposited assets and earnings in the "Withdraw" tab are both ETH denominated. We do so by using the current price of ETH and the number of LUSDC you possess to approximate what your current earnings correspond to.

How is LUSDC priced?

The price of LUSDC is dictated by the following equation:
p=m/np = m/n
where:
    p is the price of LUSDC
    n is the number of LUSDC in circulation
    m is the amount of USDC Lemma has
Generally this has a few implications:
    LUSDC price is not affected by deposits or withdrawals
    You will initially receive less LUSDC than USDC as its price will be higher than one USDC
Here is an example of the rules above in practice (without taking into account gas fees and Lemma fees):
    The first user on Lemma deposits 1000 USDC and receives 1000 LUSDC back as its price is currently $1
    After a while, yield is generated and the number of USDC in Lemma increases by 100, but the number of LUSDC in circulation has stayed constant, so the price increases to $1.1
    A second user deposits 500 USDC into Lemma and receives 454.54 LUSDC back as the LUSDC price has increased
    After a while, yield is generated again and the number of USDC in Lemma increases by 200, but the number of LUSDC in circulation has stayed constant, so the price increases to $1.23
    The second user decides to withdraw all of the USDC available to them, they burn the 454.54 LUSDC they received and get back 570 USDC, making 70 USDC in profit
Event
n
m
p
First user deposits USDC
1000
1000
1
Yield generated
1100
1000
1.1
Second user deposits USDC
1600
1454.54
1.1
Yield generated
1800
1454.54
1.23
Second user withdraws USDC
1230
1000
1.23
Last modified 5mo ago