From 3b076023b7955afba286700c8f02c9c83ae82542 Mon Sep 17 00:00:00 2001 From: Michal_Konopka Date: Thu, 9 Jan 2025 10:37:06 +0100 Subject: [PATCH] Update lombard.md --- docs/get-started/price-feeds/types-of-feeds/lombard.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/get-started/price-feeds/types-of-feeds/lombard.md b/docs/get-started/price-feeds/types-of-feeds/lombard.md index c71555f..f6a4edf 100644 --- a/docs/get-started/price-feeds/types-of-feeds/lombard.md +++ b/docs/get-started/price-feeds/types-of-feeds/lombard.md @@ -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)