LP-0094Finalxluxvaultyieldliquidstaking

LP-094: xLUX Master Yield Vault

Abstract

Defines xLUX, the master yield vault token for Lux Network. xLUX aggregates multiple yield sources: sLUX staking rewards (LP-093), protocol fee revenue (LP-081), and DEX trading fees. Users deposit LUX and receive xLUX shares. The vault auto-compounds all yield sources, maximizing returns without manual intervention. xLUX is the canonical yield-bearing LUX representation.

Specification

Contract


contract LiquidLUX is ERC4626 {
    function deposit(uint256 assets, address receiver) external payable returns (uint256 shares);
    function redeem(uint256 shares, address receiver, address owner) external returns (uint256 assets);
}

Yield Sources

| Source | Mechanism | Estimated APY |

|--------|-----------|---------------|

| Staking rewards | Vault deposits into StakingPool (sLUX) | 6-10% |

| Protocol fees | FeeSplitter routes 30% of fees to vault (LP-081) | 2-5% |

| DEX fees | Vault-owned liquidity in WLUX pairs | 1-3% |

| Total | Auto-compounded | 9-18% |

Strategy Allocation

The vault allocates deposited LUX across strategies:

| Strategy | Allocation | Risk |

|----------|-----------|------|

| sLUX staking | 70% | Low (validator slashing) |

| Protocol fee capture | 20% | None (passive income) |

| DEX liquidity provision | 10% | Medium (impermanent loss) |

Allocations are rebalanced weekly by the strategy manager (governance-appointed, no withdrawal access).

Exchange Rate


xLUX_rate = totalAssets() / totalSupply()

xLUX exchange rate only increases (barring slashing events). All yield is auto-compounded into the vault, increasing totalAssets.

Properties

| Property | Value |

|----------|-------|

| Name | Liquid LUX |

| Symbol | xLUX |

| Decimals | 18 |

| Standard | ERC-4626 |

| Management fee | 2% annual (deducted from yield, not principal) |

| Withdrawal delay | 14 days (inherited from sLUX unbonding) |

Security Considerations

1. The strategy manager can reallocate but cannot withdraw. Withdrawal requires the ERC-4626 redeem flow.

2. The 2% management fee is capped. Governance cannot increase it above 5%.

3. Slashing in the underlying sLUX reduces xLUX exchange rate. Users bear this risk.

4. DEX liquidity provision carries impermanent loss risk, mitigated by the 10% allocation cap.

Reference

| Resource | Location |

|----------|----------|

| LiquidLUX vault | github.com/luxfi/standard/contracts/staking/LiquidLUX.sol |

| Strategy manager | github.com/luxfi/standard/contracts/staking/StrategyManager.sol |

| sLUX pool | LP-093 |

Copyright

Licensed under the MIT License.