LEND Token
Everything you need to know about Lendle's native token
Last updated
Everything you need to know about Lendle's native token
Last updated
$LEND is the native token of Lendle, deployed on the Mantle Network with a maximum supply of 100,000,000 tokens. It is designed to complement Lendle by incentivizing the supply and borrowing of assets within the protocol’s markets. Users can acquire $LEND through public purchase or by mining it through liquidity provision.
LEND token holders benefit directly from Lendle’s revenue-sharing mechanism. Protocol revenue is distributed to $LEND stakers, who share in the earnings generated by platform activities. This structure rewards long-term participation and aligns users' incentives with the platform’s success. Additionally, users receive $LEND rewards vested over a three-month period, enhancing user commitment to the ecosystem.
Fee Distribution Structure
Revenue is generated from multiple sources: flash loans, liquidations, borrowing fees, and the 50% penalty fee from early reward unlocking. The protocol fees are allocated as follows:
50% as supply APY for the asset, supporting liquidity.
40% distributed to investors whose $LEND tokens are vesting, staked, or locked.
10% as protocol revenue, divided between development funding (5%) and reserves (5%).
The $LEND token flow incorporates a strategic vesting mechanism. Users who wish to unlock their rewards before the end of the three-month vesting period face a 50% penalty, which is redistributed to those who lock their $LEND. This encourages long-term commitment and helps maintain liquidity stability within the protocol.
The total $LEND supply of 100,000,000 tokens is allocated as follows:
Private Sale: Pre-minted and sold under a six-month linear vesting.
Initial Liquidity Event: 3 million tokens available for public sale, priced at $0.1 per token initially, transitioning to a reverse Dutch auction for fair price discovery.
Partnerships and Community: Pre-minted and secured by a multisig.
Liquidity Incentives: Distributed via MultiFeeDistribution contracts.
Reserve Treasury: Secured by a multisig.
Team: Three-month cliff, vesting over 24 months.
Airdrops: 2% of the supply for community incentives with a vesting schedule.
Held on launchpad.lendle.xyz, the event launched on August 31, 10:00 AM UTC, lasting 24 hours with a hard cap of $500,000 raised. Tokens are priced using a reverse Dutch auction model, ensuring equitable distribution and transparent price discovery.
The Reverse-Dutch Auction Model: A New Model for Fair Token Distribution
Introducing our innovative model, designed to level the playing field and provide everyone an equal opportunity to acquire tokens without the usual price volatility concerns associated with token listings. Our primary goal with this model is to ensure that each participant has an equal chance to secure tokens before they hit the open market.
Transparent Price Determination
So, how is the token price determined? Let’s break it down:
The fair launch auction kicks off with a set Fully Diluted Valuation (FDV).
Tokens are initially priced at a minimum of $0.1 per $LEND token.
Once the auction raises a predefined amount of $300,000, the intriguing phase of price discovery begins.
Price Discovery: The Heart of Reverse Dutch Auctions
During the price discovery phase, the price of each token continuously adjusts with every purchase made. This groundbreaking mechanism ensures that the price remains equitable, reflecting the evolving market demand. The formula is elegantly simple:
Price = Total Amount Raised / Liquidity Event Circulating Supply
It’s worth noting that every participant in the liquidity event, including whitelisted addresses, will be awarded tokens at the same final price. This price is based on the concluding valuation of the auction, guaranteeing a level playing field for all.
Lendle has allocated 2% of the total $LEND supply for airdrops to early adopters and active community members. Airdrop recipients face the same vesting schedule as other $LEND rewards and can choose to pay the 50% penalty to unlock their tokens early or wait for the full vesting period while sharing in protocol revenue. More details on locking, staking, and earning blue-chip assets through $LEND are available in the Real Yield panel.
