Yield design.
LUSG's yield lives in the B20 multiplier, not in a vault share and not in new tokens. That choice came from comparing three B20-native designs against products already live, then measuring how often the multiplier can step.
Three designs considered
| Design | How yield reaches holders | Precedent | Verdict |
|---|---|---|---|
| A. The token grows itself | Raw balances fixed; the multiplier rises to the basket's value per token | Coinbase's tokenized stocks on Base (B20): dividends raise the multiplier | Chosen |
| B. $1 token, yield minted | Price held at $1; daily batchMint of new tokens to each holder | BlackRock BUIDL (daily payouts), Franklin BENJI ($1, daily accrual) | Cost grows with holders; unfair to DeFi pools |
| C. Payout in BTC | B's daily yield routed to a chosen asset | LIUM's own mainnet WBTC converter; Pendle's principal and yield split | Deferred: BTC payouts are not needed now |
Why not a vault share (lyUSD)
LIUM's Ethereum product holds Ondo USDY in a vault and issues a separate, non-transferable share, lyUSD. On B20 that layer is unnecessary: the issuer controls the token, so the token itself can carry the value. One token replaces a vault, a share token and a converter, and gas stays flat however many holders there are.
How often the multiplier steps
The multiplier can only change in steps. Between steps it holds still, then the whole interval's yield lands at once. Faster steps track the true curve more closely and cost more gas.
| Step every | Updates a day | Cost a day, Base mainnet | Share of yield | Jump on $5.92M |
|---|---|---|---|---|
| Day | 1 | $0.001 | ~0% | $573.65 |
| Hour | 24 | $0.02 | 0.004% | $23.90 |
| Minute (chosen) | 1,440 | $1.10–1.60 | 0.2–0.3% | $0.40 |
| 2 s, Base's block time | 43,200 | $32–47 | 6–8% | $0.013 |
Costs use the measured 63,434 gas per tick() on Vibenet, Base mainnet gas of 0.006 gwei and ETH at $2,282 (2026-11-03). Per-second steps are not possible: Base block timestamps move in 2-second jumps.
Why a minute and not a day
- No jump to game. A daily step adds $573.65 at midnight; someone can buy just before it and sell just after. A minute's step is 0.0000067%.
- A sharper price for lenders. The token's value is never more than a minute stale.
- Cheap enough. Under 1% of yield for any basket above about $1.6M.
- Small wallets still read smoothly. A $1,000 holder gains a cent every two or three hours, so the app computes the per-second figure locally from the lots.