👋Introduction
Lemma is a decentralized finance (DeFi) protocol with two products: a "leveraged" basis trading vault and USDL, a stablecoin that is fully decentralized, 100% capital efficient and USD pegged.
Why use Lemma?
How does it work at a high level?
Users can deposit USDC, USDT, USDL, or ETH on Lemma
Lemma takes the USDC and USDT & sells it for ETH
Lemma moves the ETH to a decentralized derivatives exchange
Lemma uses the ETH as collateral to short itself with no leverage
Lemma mints USDL, a USD pegged stablecoin, against this market neutral position
If a user only wanted to mint a stablecoin then USDL is returned
If a user deposited assets into the basis trading vault, then the minted USDL is staked to access the profits and losses from fees generated (via funding rate payments) on the short position described above
Join our Communities
Last updated