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DropLit (LIT)- Droplit Token

DropLit token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Lit's peg to 1 Binance USD (BUSD) token in the long run. Note that LIT actively pegs via the algorithm, it does not mean it will be valued at 1 BUSD at all times as it is not collateralized. Droplit is not to be confused with a crypto or fiat-backed stablecoin.

Golden Drip Share (GDS)- Droplit Shares

Droplit Shares (GDS) are one of the ways to measure the value of the Droplit Protocol and shareholder trust in its ability to maintain LIT close to peg. During epoch expansions, the protocol mints LIT and distribute it proportionally to all GDS holders who have staked their tokens in the Water Bucket(boardroom). GDS holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Droplit money ecosystem. GDS has a maximum total supply of 65050 tokens distributed as follows:
  1. 1.
    Drip Wallet Allocation: 4000 GDS vested linearly 12 months
  2. 2.
    Team Allocation: 4000 GDS vested linearly over 12 months
  3. 3.
    Remaining 30000 GDS are allocated for incentivizing Liquidity Providers in two shares pools for 12 months

LitBond (LBOND) - Droplit Bonds

Droplit Bonds (LBOND) primary job is to help incentivize changes in LIT supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of LIT falls below 1 BUSD, LBONDs are issued and can be bought with LIT at the current price. Exchanging LIT for LBOND burns LIT tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 BUSD. These LBOND can be redeemed for LIT when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for LIT when it is above peg, helping to push it back toward 1 BUSD. Contrary to early algorithmic protocols, LBONDs do not have expiration dates. All holders are able to redeem their LBOND for LIT tokens as long as the Treasury has a positive LIT balance, which typically happens when the protocol is in epoch expansion periods.​