Every trade finance deal that Litial settles triggers a two-part on-chain mechanism: permanent liquidity injection and automatic SMESH buyback-and-burn. No human intervention required.
When SMESH holders stake tokens into the StakingVault, they define how much Litial can deploy into trade finance. Litial only deploys USDC up to the dollar-equivalent of total staked SMESH — backed 1:1 by Foundation reserves held on-chain. More staking = more deal capacity. Verifiable by anyone, at any time.
Litial Consulting FZ LLC (UAE) deploys capital into short-duration trade finance deals — invoices, letters of credit, commodity finance, supply chain. Deal terms: 30–120 days, 7–10% annualised yield in USDC.
When deals are repaid, USDC yield is sent to YieldReceiverV2 — a smart contract on Base. A permissionless distributeYield() call splits it automatically: 70% to liquidity, 30% to buyback-and-burn. No human discretion.
LiquidityManagerV2 pairs 70% of yield USDC with SMESH from the Ecosystem wallet and injects both into the Aerodrome pool as Protocol-Owned Liquidity. This is permanent — the LP position cannot be removed. Pool depth compounds with every deal cycle.
BuybackBurnerV2 uses the remaining 30% of yield USDC to buy SMESH from the open market on Aerodrome and sends it to the dead address permanently. Supply shrinks every cycle. Fixed 1B cap, no minting ever.
When V4 launches, every trade settled through the protocol will trigger a 5% burn — sourced from the Ecosystem wallet, not circulating supply.
Settlement burns are governance-controlled: 300M SMESH supply floor, 1M SMESH per-trade cap, 5% annual cap. All subject to staker vote. Settlement burn contracts deploy in V4.
More trade volume → more protocol fees → deeper liquidity pool + more supply burns → scarcer SMESH → more OTC capacity → more capital deployed → more trade volume.
No trust required. Smart contracts enforce both engines. Anyone can audit on-chain.