Lendvest Token
LV Tokenomics & Distribution
Earned distribution. No VC, no presale. The team is last in line.
Pre-TGESymbol
LV
Total supply
1,000,000,000
Network
Ethereum
Addresses
At TGE
Purpose
Billions of dollars sit idle in DeFi lending protocols. Higher utilization between lenders and borrowers produces better rates for both sides. Higher utilization of collateral produces lower downside risk. Lendvest Smart Staking matches deposits from lenders, borrowers, and stakers to improve the upside and reduce the downside for both staking and DeFi lending.
The Lendvest Prover Network brings the zkEVM upgrade to DeFi before it's implemented at the protocol level. It does what Ethereum-based markets can't do today, while following the rules of markets on Ethereum, and it improves utilization beyond what's currently possible. Lendvest builds Ethereum-first, on-chain, and decentralized. The prover network is purpose-built for DeFi. Participants stake LV to provers who provide verified data the community requests, linking the value of the data to the participants who fund it.
As utilization improves and the network grows, the LV token captures a portion of the value it creates.
What the LV token does
LV is a governance token with two main functions.
1. Rewards protocol participation
Matched depositors (stakers, lenders, collateral providers) whose capital is actively working inside the protocol earn LV through liquidity mining. Unmatched deposits earn nothing. Reward amounts are calculated using Chainlink price feeds locked at each epoch snapshot. They can't be changed after the fact.
2. Exposure to the prover network
Participants stake LV to provers who provide verified data the protocol relies on: collateral pricing, vault state, and historical rate comparisons against Aave. The prover network uses zk-proofs to read Aave's rates daily, mark-to-market throughout each term, and produce a cryptographic guarantee that Lendvest delivered better yields than the alternative. This creates the historical data layer that Ethereum itself doesn't have. Smart contracts can only read roughly 1 hour into the past, but the prover network makes the full term verifiable on-chain through Chainlink oracles. As the prover network improves utilization for DeFi and improves intrinsic yields, it captures a portion of the value it creates.
Lendvest's first Smart Staking contract (docs)
The first Lendvest contract is a three-sided matching engine that creates leveraged Ethereum staking positions. One button to execute. The yields come from Ethereum staking rewards, the transaction fees the network pays validators.
The contract matches three types of participants in fixed-term epochs every 14 days.
Stakers deposit ETH. The contract converts it to wstETH and creates a leveraged staking position (up to 8x) by recursively borrowing WETH against the collateral. Instead of manually looping on Aave, the Smart Staking contract handles all of it. Higher utilization means stakers pay less for the spread, which returns better yields and lower borrowing costs.
Lenders deposit ETH. Their capital is lent to matched stakers at the protocol rate. If unmatched, funds automatically earn on Aave. Lenders never earn less than Aave.
Collateral providers deposit staked ETH (wstETH) as principal protection, covering 50% of borrowed debt. This keeps the liquidation threshold at roughly a 33% drawdown at 8x leverage, comparable to 3x on Aave but with 8x yields. In return, collateral providers earn yield on their staked ETH that exceeds the borrowing cost for the same asset on Aave, plus LV tokens.
Each role earns better yields than the equivalent strategy on Aave. The matching engine creates a utilization flywheel where matching produces better economics for everyone.
Open Smart Staking AppEarned distribution
Every LV token is earned. No VC allocation, no presale, no investor schedule. The first tokens to actually enter circulation go to security researchers who found and reported bugs before launch, paid out of the Community Grants pool. The team built the protocol and they're last in line. Their tokens are locked for the first year, then vest linearly over three more years. 30% of total supply sits in a governance-controlled reserve for protocol insurance and long-term ecosystem needs.
Allocation*
| Category | % | Tokens | Recipients |
|---|---|---|---|
| Future emissions | 30.0% | 300M | Protocol insurance + reserve (governance) |
| Team | 23.5% | 235M | Founders, contributors, advisors |
| Liquidity mining | 21.0% | 210M | Matched deposits in vaults |
| Provers | 18.0% | 180M | Staking to prove protocol data |
| Foundation | 5.0% | 50M | Future legal entity (inactive) |
| Community grants | 2.5% | 25M | Bug bounties, audits, community |
| Total | 100% | 1,000M |
*Allocations can change before TGE based on community feedback.
How to earn LV
At launch, the only way to earn LV is by depositing ETH into the protocol, where matched deposits earn protocol yields and liquidity mining rewards.
1. Liquidity mining rewards
One of the purposes of the liquidity mining allocation is to solve the cold start problem for a three-sided market. Stakers, lenders, and collateral providers all need to deposit before the matching engine can run an epoch. LV token rewards bridge the gap between each role's base yield and the target rate, compensating early participants for bootstrapping the strategy. As matching improves and base yields rise, the token bonus tapers.
You deposit into a Lendvest vault, your order enters a matching queue. Every 14 days, the matching engine pairs lenders with borrowers. If your deposit gets matched, you earn LV. If it doesn't, you earn nothing. Unmatched deposits may still earn yield elsewhere (Aave, for example), but LV is only for capital that's actually matched and working inside the protocol. Reward amounts come from Chainlink price feeds (ETH/USD, stETH/USD) locked at the moment of each epoch snapshot. The numbers can't be changed after the fact.
2. Prover staking rewards
Lendvest has a proof-agnostic prover network verified by Chainlink oracles. Addresses that stake capital to prove collateral valuations, redemption rates, and vault state earn LV from a separate pool. Provers are recognized Lendvest contracts or whitelisted addresses. Prover staking won't be available at launch.
People use the protocol, deposits get matched, matched deposits earn LV. Reward rates are set by on-chain parameters locked at snapshot time. No retroactive changes.
What it looks like at each milestone
| Milestone | LM | Team | Found. | Comm. | Provers | Fut. Em. | Total | % |
|---|---|---|---|---|---|---|---|---|
| TGE | 0 | 0 | 50M | 25M | 0 | 0 | 75M | 7.5% |
| 6 mo | 41.4M | 0 | 50M | 25M | 35.5M | 60M | 211.9M | 21.2% |
| 1 yr | 84M | 1.1M | 50M | 25M | 72M | 120M | 352.1M | 35.2% |
| 2 yr | 147M | 80.5M | 50M | 25M | 126M | 210M | 638.5M | 63.9% |
| 4 yr | 210M | 235M | 50M | 25M | 180M | 300M | 1,000M | 100% |
At 1 year: 352M emitted (35.2%), team at 1.1M. By year 2: team at 80.5M. Year 4: fully vested at 1,000M (100%). Foundation's 50M can't move. Future Emissions held in Distributor, deployed only by governance vote.
On-chain enforcement
Every schedule above is enforced by smart contracts, not legal agreements:
- Vesting curves computed on-chain. No way to accelerate release.
- Team tokens can't be claimed before the cliff timestamp.
- Pool allocations are immutable after initialization (can only be called once).
- Epoch pricing from Chainlink snapshots locked at capture time. No retroactive modification.
- Community Grants use delegate-only governance. The owner is explicitly excluded.
- Surplus withdrawal can only touch tokens above what is owed.
Summary
LV rewards go to people who use the protocol: matched depositors and provers. Passive holders don't earn anything. The first tokens in circulation go to security researchers through the bug bounty program. Every allocation has enforced vesting, and the team has the strictest schedule. Community Grants run through delegate-only governance with no admin override. 30% of supply is held as protocol insurance. It's all on-chain.
Every LV token is earned. The team is last in line.
Token and contract addresses will be shared at TGE.
For more on Smart Staking, visit the docs. Follow @lendvest_io on X for announcements, or join the Telegram for discussion.
This is informational only. Not a solicitation or offer to buy or sell securities. Not legal, tax, or investment advice. Numbers are estimates from on-chain smart contract parameters. Things may change. Lendvest and its contributors aren't liable for any of it.