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Collateral & Settlement

LVMON Staking ​

https://app.leverup.xyz/LVMON/

LVMON Staking allows LVMON holders to participate in the underlying MON staking yield through the sLVMON vault.

LVMON is the MON-linked asset in LeverUp’s liquidity layer. It represents the MON side of LeverUp’s collateral system and follows the same design direction as LVUSD in the USDC-based system.

When users stake LVMON, they deposit LVMON into the sLVMON vault and receive sLVMON shares. sLVMON represents a share of the vault’s total LVMON assets, not a fixed 1:1 claim.

Core Mechanism ​

The staking flow is:

LVMON deposited → sLVMON minted → MON delegated → validator rewards → sLVMON share value grows

The protocol delegates underlying MON through MONStakingVault to Monad validators. The staking yield generated from MON delegation is reflected back into the LVMON staking system.

Users who hold LVMON directly remain LVMON holders. Users who stake LVMON receive sLVMON and participate in the vault’s asset growth.

sLVMON Vault ​

sLVMON follows an ERC4626 vault model.

The key relationship is:

sLVMON share value = total LVMON assets in vault / total sLVMON supply

When the vault’s LVMON assets increase relative to sLVMON supply, each sLVMON becomes redeemable for more LVMON.

New deposits mint sLVMON based on the current share value. This means new stakers enter at the current vault ratio instead of diluting existing stakers at a fixed 1:1 rate.

Yield Distribution ​

LVMON staking yield is distributed through sLVMON share value growth.

The simplified relationship is:

underlying MON staking rewards / participating LVMON

Not every LVMON holder is required to stake. Therefore, staking yield is allocated to users who participate in the sLVMON vault, rather than being distributed equally across all LVMON holders.

As staking participation changes, the yield rate for sLVMON holders may also change.

APY Calculation ​

LVMON Stake APY is a dynamic estimate, not a fixed-rate commitment.

It is affected by:

  • underlying MON staking rewards
  • the amount of LVMON participating in staking
  • sLVMON vault asset growth
  • reward inflow timing
  • changes in staking participation

In practice, APY is the annualized expression of sLVMON share value growth.

vault assets grow faster than sLVMON supply
→ each sLVMON redeems for more LVMON
→ share value growth is annualized as APY

On-chain Transparency ​

LVMON Staking is designed around transparent on-chain accounting.

Users can independently check:

1. sLVMON totalAssets()
2. sLVMON totalSupply()
3. sLVMON previewRedeem(1 sLVMON)
4. MONStakingVault delegated MON balance

These values correspond to vault assets, share supply, current redeemable value, and the scale of underlying MON delegation.