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System Overview

At a high level, L2Pass Liquid Yield consists of:
  • A Smart Liquid Vault
  • An NFT-based position accounting system
  • A reward pipeline with weekly epochs
  • Integration with USDD PSM and JustLend
The protocol automates yield generation while keeping funds non-custodial and transparent. The system is composed of five logical layers:

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1. Finality Layer

The underlying blockchains providing consensus, security, and settlement for all transactions.
  • TRON (primary execution and yield settlement layer)
  • Ethereum (future expansion, roadmap)

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2. Transfer Layer

  • Native USDT (TRC20)
  • PSM (USDT ⇄ USDD)
  • Cross-chain intents and bridges (roadmap)

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3. User Layer

  • Frontend deposit / withdraw
  • Position analytics & transparency
  • Fiat on/off ramps + KYC (roadmap)

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4. Smart Vault Layer

  • Smart Liquid Vault
  • Vault accounting
  • Reward pipeline
  • Risk parameters
  • Liquidity rebalancing (roadmap)

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5. Yield Layer

  • JustLend (as a yield source)
  • Weekly L2Pass/JustLend incentives
  • Cross-chain Yield Optimizer (roadmap)
  1. High-Level System Architecture
+--------------------------------------------------------------+
|                          USER                                |
|                                                              |
|  Wallet (USDT)                                                |
+-----------------------------+--------------------------------+
                              |
                              v
+--------------------------------------------------------------+
|                     L2PASS FRONTEND                           |
|                                                              |
|  - Deposit / Withdraw                                        |
|  - Claim Rewards                                             |
|  - Position Analytics                                        |
+-----------------------------+--------------------------------+
                              |
                              v
+--------------------------------------------------------------+
|                  SMART LIQUID VAULT                           |
|                                                              |
|  +----------------------+   +-----------------------------+ |
|  |  Position NFT       |   |   Vault Accounting           | |
|  |  (Ownership)        |<->|   (Principal, Rewards)       | |
|  +----------------------+   +-----------------------------+ |
|              |                         |                     |
|              v                         v                     |
|       Reward Pipeline           Risk Parameters               |
+-----------------------------+--------------------------------+
                              |
                              v
+--------------------------------------------------------------+
|                      YIELD LAYER                              |
|                                                              |
|  +----------------------+   +-----------------------------+ |
|  |        PSM           |-->|         JustLend            | |
|  |  USDT ⇄ USDD         |   |   USDD → jUSDD              | |
|  +----------------------+   +-----------------------------+ |
|                                                              |
|  Weekly USDD Incentives                                       |
+--------------------------------------------------------------+
  1. Deposit Flow (USDT → Yield Position)
User
 |
 | 1. Deposit USDT (TRC20)
 v
+---------------------+
| L2Pass Frontend     |
+---------------------+
 |
 | 2. Forward to Vault
 v
+-----------------------------+
| Smart Liquid Vault          |
+-----------------------------+
 |
 | 3. Convert via PSM
 v
+-----------------------------+
| PSM (USDT → USDD)           |
+-----------------------------+
 |
 | 4. Supply USDD
 v
+-----------------------------+
| JustLend                    |
| - Mint jUSDD                |
+-----------------------------+
 |
 | 5. Mint Position NFT
 v
+-----------------------------+
| Position NFT (User-owned)   |
+-----------------------------+
  1. Reward Accrual & Weekly Streaming
JustLend
 |
 | Base Yield + Incentives
 v
+-----------------------------+
| Smart Liquid Vault          |
|                             |
|  +----------------------+   |
|  | Reward Pipeline      |<--+
|  | - Weekly Epochs     |
|  | - Snapshot Balances |
|  | - Prevent Double    |
|  |   Claims            |
|  +----------------------+
|
|  Rewards become claimable
|  at epoch boundary
 v
User (Claim USDT)
  1. Claim Rewards Flow
User
 |
 | Claim Rewards (NFT ID)
 v
+-----------------------------+
| Smart Liquid Vault          |
|                             |
|  - Verify NFT Ownership     |
|  - Check Claimable Epochs   |
|  - Calculate Rewards        |
+-----------------------------+
 |
 | Transfer USDD
 v
User Wallet (USDD)
  1. Withdraw Flow (Partial / Full)
User
 |
 | Withdraw (Amount, NFT ID)
 v
+-----------------------------+
| Smart Liquid Vault          |
|                             |
|  - Verify Ownership         |
|  - Update Position State    |
+-----------------------------+
 |
 | Redeem jUSDD
 v
+-----------------------------+
| JustLend                    |
+-----------------------------+
 |
 | Convert via PSM
 v
+-----------------------------+
| PSM (USDD → USDT)           |
+-----------------------------+
 |
 | Transfer USDT
 v
User Wallet (USDT)
  1. Position NFT Accounting Model
+--------------------------------------------------+
|               POSITION NFT                       |
+--------------------------------------------------+
| Position ID                                      |
| Owner (Wallet Address)                           |
|--------------------------------------------------|
| Principal (USDT → USDD)                          |
| jUSDD Balance                                    |
|--------------------------------------------------|
| Accrued Rewards (USDD)                           |
| Last Claimed Epoch                               |
+--------------------------------------------------+

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