Asset & Tokenization Model

Smart Contract Architecture for Gold Pegging

LumiVault ensures that its 80-tonne gold reserve is securely tokenized and fully backed by its total 50 million $LVT token supply. Each $LVT represents a fractional ownership claim over the gold reserves, ensuring a 1:1.6g gold peg, where every token corresponds to 1.6 grams of physical gold. This mechanism guarantees that $LVT maintains intrinsic value, offering investors an asset that is secure, verifiable, and redeemable.

The tokenization of these gold reserves is governed by on-chain proof-of-reserves (PoR) mechanisms, which link stored gold reserves to a multi-signature vault system managed by third-party custodians. These reserves undergo periodic audits, with reserve data continuously updated on-chain using blockchain oracle feeds. Through these smart contract-verifiable reserves, LumiVault ensures transparency and tamper-proof proof-of-backing for every issued token.

Beyond investment utility, $LVT token holders can redeem their digital assets for physical gold through LumiVault’s gold redemption smart contract. This mechanism allows users to burn their $LVT tokens in exchange for an equivalent gold weight, provided they meet the minimum redemption threshold of 1,000 $LVT. This safeguard ensures logistical feasibility while preserving reserve integrity and liquidity stability.

LumiVault’s Staking Rewards System (16% APR Model)

To encourage long-term holding and provide sustainable DeFi yield opportunities, LumiVault integrates an on-chain staking contract that allows users to stake their $LVT tokens and earn passive rewards. The staking mechanism is designed to optimize capital efficiency while preserving the gold-backed stability of the LumiVault ecosystem. Stakers benefit from predefined lock-in periods that provide tiered APR incentives, rewarding those who commit their assets for longer durations.

LumiVault’s staking contract automates the reward distribution process, allocating staking yields from a designated rewards pool. Users can choose between different staking tiers, each offering distinct Annual Percentage Yields (APY) based on their lock-in period. Short-term stakers in the Basic Pool (30 days) earn 5% APY, mid-term stakers in the Advanced Pool (90 days) receive 10% APY, while long-term Elite Stakers (180+ days) enjoy the maximum 16% APY. This tiered structure ensures that long-term liquidity providers benefit from higher rewards, reinforcing network stability and economic sustainability.

The staking smart contract follows a compound interest model, ensuring that rewards accrue efficiently based on the following formula:

where R is the final staking reward, P represents the initial staked amount, r is the annual interest rate, n represents the compounding periods per year, and t is the staking duration in years.

For instance, if a user stakes 10,000 $LVT in the Elite Pool, with an annual yield of 16%, they will receive a total of 1,600 $LVT in rewards after 12 months, or 400 $LVT per quarter if the rewards are distributed on a quarterly basis.

LumiVault’s staking mechanism ensures an attractive yield model, allowing investors to earn passive income from their gold-backed assets while contributing to network liquidity and financial stability. Through decentralized and trustless smart contract execution, LumiVault offers an institutional-grade staking solution that combines DeFi yield strategies with real-world asset security.