Liquid
Liquid Protocol
Yield-bearing bridge tokens and the xLUX master vault
Liquid Protocol provides yield-bearing wrapped assets on Lux Network. Users hold bridge tokens (LETH, LBTC, LUSD) that accrue value from bridge fees, or stake LUX into the xLUX vault to earn protocol-wide revenue.
Token Overview
| Token | Underlying | Yield Source | Contract |
|---|---|---|---|
| LETH | ETH | Bridge fees, lending | LiquidToken (ERC-3156) |
| LBTC | BTC | Bridge fees | LiquidToken (ERC-3156) |
| LUSD | USDC/USDT | Bridge fees, stablecoin pools | LiquidToken (ERC-3156) |
| xLUX | LUX | All protocol fees + validator rewards | LiquidLUX (ERC-4626) |
Architecture
Bridge Tokens (LETH, LBTC, LUSD) xLUX Vault
┌──────────────────────────┐ ┌──────────────────────────┐
│ Whitelisted mint/burn │ │ DEX, Bridge, Lending, │
│ ERC-3156 flash loans │ │ Perps, NFT fees │
│ Sentinel emergency pause │ │ Validator rewards (0%) │
│ Fee → feeRecipient │ │ 10% perf fee → treasury │
└──────────────────────────┘ └──────────────────────────┘Yield Model
- Bridge tokens earn from flash loan fees and protocol integrations. Minting and burning are restricted to whitelisted addresses (vaults, bridges).
- xLUX collects fees from every protocol in the Lux DeFi stack. A 10% performance fee goes to the treasury; validator rewards are exempt from performance fees.
Key Properties
- All liquid tokens use role-based access:
ADMIN_ROLEandSENTINEL_ROLE. - Flash loans follow ERC-3156 with a configurable fee (minimum 1 basis point).
- xLUX uses ERC20Votes for checkpointed, flash-loan-resistant governance power.
- Slashing reserve absorbs validator losses before socializing to holders.