Tokenized Positions
Like the pools in other borrowing and lending protocols, such as AAVE or Benqi, the positions in the super vaults are tokenized, constantly accruing interest and other rewards from interoperated platforms.
The tokenized positions are called LS tokens, short for Lending Switch tokens. They so named because the interoperated protocols for extra basic rewards are switchable if one's yield becomes significantly higher. For example, upon inception, the interoperated protocols can be switched between AAVE and Benqi.
When you contribute the underlying crypto assets into the super vaults, an equivalent amount of the LS tokens will be automatically transferred to your address, representing the corresponding share of the pool.
Due to the non-loss nature of the super vaults as lending pools, the exchange rate of the LS tokens to the underlying tokens will be ever-increasing.
Last modified 1yr ago