LGO Redemption
How does it work?
🔸Q1: When can I redeem LGO for Treasury assets?
Every 2 weeks there is a 2-day redemption window to allow LGO holders to redeem their LGO against the Treasury
🔸Q2: If I redeem my LGO, how much will I get?
With the exception of 20% reserved for protocol development, 80% of the existing cash balance (in form of our Senior LLP) within the Treasury is available for redemption on a pro-rata basis. The surrender value of 1 LGO token will be calculated based on the circulating supply of LGO tokens and fixed at the beginning of each 2-day redemption window.
Any LVL tokens in the Treasury are excluded from the current redemption process design.
🔸Q3: What happens to the redeemed LGO tokens?
All surrendered LGO tokens are burned.
Assume that the Treasury owns the following assets:
- 10 BTC
- 50 ETH
- 200 BNB
- 100,000 BUSD
- 50,000 USDT
- 500,000 LVL
With 10 LGO in circulation, the pro-rata surrender value of 1 LGO will be:
- 0.8 BTC (=10 BTC*80%*(1/10))
- 4 ETH
- 16 BNB
- 8,000 BUSD
- 4,000 USDT
- 0 LVL
Last modified 26d ago