LTV protocol

LTV: Curatorless Leveraged Tokenized Vault with a Constant Target Loan-To-Value Ratio

Abstract:

The proposed system is a Curatorless Leveraged Tokenized Vault (LTV) with a Constant Target Loan-To-Value (LTV) ratio. This vault operates without a central curator and allows users to deposit and withdraw funds while receiving tokenized shares representing their holdings. The architec- ture is based on two interconnected EIP4626 vaults. To ensure alignment with the target LTV, an auction-based stimulus system is employed, which incentivizes users to participate in rebalancing actions through rewards or fees. This approach also integrates basic level of MEV protection to guard against frontrunning and maintain system integrity.