DLUX (Decentralized LUX) is a rebasing governance token backed by protocol revenue. Users stake LUX to receive DLUX. Protocol fees from all Lux DeFi primitives (AMMs, lending, perpetuals, bridge) flow into the DLUX staking contract, increasing the LUX-per-DLUX exchange rate. DLUX holders participate in governance and earn a share of all protocol revenue.
Users deposit LUX to mint DLUX:
dluxMinted = luxDeposited * dluxTotalSupply / luxInContract
At genesis, the exchange rate is 1:1.
Protocol fees from across the Lux DeFi stack are periodically deposited into the DLUX contract:
Revenue is converted to LUX (via DEX) and deposited, increasing luxInContract.
The DLUX-to-LUX exchange rate increases as revenue accrues:
exchangeRate = luxInContract / dluxTotalSupply
This is a non-rebasing mechanism (like xSUSHI) -- the DLUX balance stays constant but each DLUX is redeemable for more LUX over time.
Users burn DLUX to receive LUX:
luxReturned = dluxBurned * luxInContract / dluxTotalSupply
A 7-day cooldown period applies to prevent flash-loan governance attacks. During cooldown, DLUX is locked and does not earn additional revenue.
1 DLUX = 1 governance vote (at current exchange rate in LUX terms). DLUX voting power is used in:
Revenue is distributed weekly:
1. Fee collector aggregates fees from all sources
2. Fees are swapped to LUX via intent router (LP-050)
3. LUX is deposited into the DLUX contract
4. Exchange rate increases automatically
1. Flash loan governance: 7-day cooldown on unstaking prevents flash-minting DLUX for governance votes.
2. Revenue dependency: DLUX value depends on protocol fee generation. In low-activity periods, the yield may be minimal.
3. Exchange rate manipulation: the exchange rate is purely a function of contract LUX balance and DLUX supply. Direct LUX deposits to the contract increase the rate for existing holders.
github.com/luxfi/standard/contracts/governance/ |DLUX.sol |FeeCollector.sol |Copyright (C) 2024-2026, Lux Partners Limited. All rights reserved.
Licensed under the MIT License.