Skip to content

Commit

Permalink
Update lombard.md
Browse files Browse the repository at this point in the history
  • Loading branch information
koonopek authored Jan 9, 2025
1 parent 6c39487 commit 3b07602
Showing 1 changed file with 1 addition and 1 deletion.
2 changes: 1 addition & 1 deletion docs/get-started/price-feeds/types-of-feeds/lombard.md
Original file line number Diff line number Diff line change
Expand Up @@ -27,7 +27,7 @@ To burn LBTC and unstake BTC, a user initiates the burn by sending LBTC back to

RedStone delivers LBTC/BTC fundamental price using both [pull](./../../models/redstone-pull.mdx) and [push](./../../models/redstone-push.md) models. The price is calculated as a ratio between BTC controlled by the Lombard protocol and the total supply of LBTC tokens across all supported chains. There are also adjustments for **total_unclaimed_lbtc** (LBTC tokens that are not yet minted but already have correlated BTC tokens deposited to the Lombard protocol) and **total_btc_unstakes_pending** (BTC tokens in the 7-day withdrawal period).

Currently, the value has an upper cap of 1, meaning a healthy value is 1, indicating the protocol’s stability. A value of 1 also signifies that there are as many or more BTC held by the protocol than there are LBTC tokens in circulation, ensuring full or over-collateralization. For example, if half of the BTC tokens disappear from wallets controlled by Lombard, but the LBTC supply remains the same, the ratio would drop to 0.5. Once Lombard starts generating yield, this cap will be removed, and the value will gradually increase, similar to reward bearing LST tokens like wstETH or pufETH.
Currently, the value has an upper cap of 1.005, meaning a healthy value is (1,1.005), indicating the protocol’s stability. This value also signifies that there are as many or more BTC held by the protocol than there are LBTC tokens in circulation, ensuring full or over-collateralization. For example, if half of the BTC tokens disappear from wallets controlled by Lombard, but the LBTC supply remains the same, the ratio would drop to 0.5. Once Lombard starts generating yield, this cap will be removed, and the value will gradually increase, similar to reward bearing LST tokens like wstETH or pufETH.

### Calculating LBTC/BTC fundamental price (pull model)

Expand Down

0 comments on commit 3b07602

Please sign in to comment.