🧠DAO

Lemma token & governance

Lemma will issue LEMMA tokens to manage governance for the stablecoin. Holders will be able to set risk parameters, prioritize the roadmap and propose new features, amongst other things. A few example include:

• Deciding which cryptocurrencies should be used to back USDL as well as set debt ceilings for each one.

• Deciding which derivative dexes’ perpetual contracts should be used for USDL and set risk parameters for each one.

• Deciding how long USDL stakers have to wait in order to unstake their USDL (initially there will be a wait period of 8 hours).

• Deciding what percentage of the yield should be allocated towards the user vs. the treasury.

Treasury & insurance fund

Routing yield towards the treasury / insurance fund will help increase the security of the stablecoin & help mitigate some of the risks mentioned in the next section. As such a percentage (initially 30%) of the profits generated by the basis trading vault will be allocated to the treasury / insurance fund.