Introduction
Last updated
Last updated
Lydian is a decentralised treasury management protocol based on the LDN token on the Stacks Blockchain. Each LDN token is backed by multiple assets (e.g. USDA) in the Lydian treasury, giving it an intrinsic value. Lydian also brings to the table valuable economic and game theory dynamics in the market via staking and bonding.
Lydian is inspired by the designs of the groundbreaking DeFi protocols that have seen success these last few years. Some of these inspirational protocols are Olympus, Wonderland and Keeper DAO.
Active management of the treasury by the DAO is a key aspect of Lydian, allowing participants to have high quality investments without having to micro-manage them.
For an in-depth explanation of how Lydian works, you can read these docs that are based on the documentation of Olympus DAO.
There are two main strategies for market participants: staking and bonding. Stakers stake their LDN tokens in return for more LDN tokens, while bonders provide tokens in exchange for discounted LDN tokens after a fixed vesting period.
Governance participants can get involved on our forum and through discussions on our community discord. We are always looking for new community members to contribute!
The main benefit for stakers comes from supply growth. The protocol mints new sLDN tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their compounding balances.
As the Lydian Treasury farms yield, it is added to the treasury and used to fuel future rebases. Should the LDN token fall below the treasury-backed value then the treasury can be used to repurchase LDN tokens, guaranteeing a floor value for LDN.
The goal of Lydian is to become a Guild of Farmers and explore strategies within the Stacks ecosystem. Lydian will deploy its treasury to farm yield on Stacks and distribute that to token holders. It will create added value through its size and sophistication.
Lydian is developed by a team of pseudonymous programmers and Stacks enthusiasts.
No one. Lydian is DAO-governed. All decisions are formed by community members (Guild) on Discord and made by token holders through snapshot voting.
