xLUX Vault
Stake LUX, earn protocol-wide revenue, and participate in governance
xLUX (LiquidLUX) is the master yield vault for the Lux Network. It receives fees from every DeFi protocol in the stack and distributes them to depositors as increasing share value.
Deposit and Withdraw
// Deposit LUX, receive xLUX shares
uint256 shares = liquidLux.deposit(luxAmount);
// Withdraw LUX by burning xLUX
uint256 lux = liquidLux.withdraw(xLuxShares);
// Check exchange rate (LUX per xLUX, scaled 1e18)
uint256 rate = liquidLux.exchangeRate();The first depositor receives shares 1:1 with LUX. As fees accumulate, each xLUX share represents more LUX.
Fee Sources
| Source | Performance Fee | Description |
|---|---|---|
| DEX fees | 10% | AMM swap fees |
| Bridge fees | 10% | Cross-chain transfer fees |
| Lending fees | 10% | Interest from Markets protocol |
| Perps fees | 10% | Perpetual futures trading fees |
| Liquid fees | 10% | Flash loan fees from LETH/LBTC/LUSD |
| NFT fees | 10% | LSSVM marketplace fees |
| Validator rewards | 0% | Exempt from performance fee |
Performance fees go to the treasury. The remaining 89-90% increases the vault balance.
Slashing Protection
A configurable reserve buffer (default 1% of incoming fees) absorbs validator slashing losses before they affect holders. If a slashing event exceeds the reserve, remaining losses are socialized across all xLUX holders proportionally.
Governance
xLUX uses ERC20Votes for checkpointed voting power, making it resistant to flash loan governance attacks. Combined with DLUX, it forms vLUX (Voting LUX):
vLUX = xLUX + DLUXEmergency Controls
| Role | Action |
|---|---|
EMERGENCY_ROLE | Pause deposits/withdrawals |
GOVERNANCE_ROLE (Timelock) | Unpause, set performance fee, set treasury |
DEFAULT_ADMIN_ROLE | Add/remove fee distributors and validator sources |