Lumi Smart Contract Overview
Last updated
Last updated
LumiVault’s smart contract infrastructure is designed to ensure seamless tokenization of gold reserves, efficient staking mechanisms, and a secure DeFi-driven rewards system. The $LVT token is fully backed by physical gold reserves, with its value pegged at 1.6g of gold per token. This structure enables token holders to gain fractional ownership of 80 tonnes of insured gold, securely stored in multi-signature vaults.
The tokenization process is executed through smart contracts deployed on Ethereum Layer 2, ensuring cost efficiency and scalability. When gold reserves increase, new $LVT tokens are minted, maintaining the 1:1.6g backing ratio. Conversely, when users redeem their tokens for physical gold, the smart contract burns the corresponding $LVT supply, ensuring that the circulating token supply always reflects the actual gold reserves held in custody. This mint-burn mechanism is governed by on-chain proof-of-reserves (PoR), with real-time auditing via decentralized oracles to provide transparency and security to investors.
LumiVault’s staking contract operates on Cosmos SDK, leveraging its interoperability and cross-chain capabilities to enhance liquidity and staking efficiency. Users can stake their $LVT tokens in tiered pools, earning compounded yield rewards based on fixed lock-in durations. The staking contract autonomously tracks deposits, distributes rewards, and calculates APY in real-time. When users withdraw, the contract automatically computes the rewards based on their staking tier and releases them accordingly.
Additionally, LumiVault’s reward pool contract dynamically adjusts APY rates, ensuring sustainable yield distribution over time. The protocol reserves flexibility to update staking incentives through governance mechanisms, allowing community-driven optimizations while maintaining gold-backed liquidity integrity. Through this decentralized smart contract ecosystem, LumiVault ensures a fully transparent, immutable, and gold-backed investment platform that integrates seamlessly with DeFi markets and cross-chain staking networks.
