LUA

Lumi Finance's native store of wealth is the LUA token.

This token is partially collateralized, volatile, and metastable. Its price is supported by a rising floor, underpinned by a diversified collection of stablecoins. As a result, while the LUA token can trade above this floor, it cannot trade below it, offering limited downside risk and unlimited upside potential.

Yield generation for LUA occurs through staking rewards. LUA holders can choose to stake their tokens with the protocol and earn LUA Option reward tokens periodically. These LUA Option tokens serve as options to purchase additional LUA at the prevailing floor price.

Converting LUA Option tokens to acquire more LUA for staking results in a compounding APY, as the rewards are reinvested into the user's principal balance.