# WEEK 6 @EIF 3.0

By [Kevin](https://paragraph.com/@kevin-49) · 2023-03-22

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After the birth of LSD 💊 in [week 5](https://mirror.xyz/0x662C2e2F9C98150C20DDCe35df42f17b11C671df/Hz7t3rfY4yWiwF0ztkyXxkin3w-HopG0nVq4GMZmKeQ), most of the week 6 was spend on designing how LSD will actually work!

I was looking for a way in which I can track users shares based on their investments in LSD and I found out about [ERC 4626](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/) which is a tokenized vault standard which fits perfectly for my application. Users will receive lsd tokens which will be minted based on the users investment amount and the current status of balances in the vault. They can then redeem these tokens to receive their invested matic along with the yield.

Many other design decision were brainstormed on like:

*   An option for owner to turn on/off leverage staking (helpful in cases where leverage staking ends up providing loss instead of profit)
    
*   Ideal borrow percentage to avoid liquidation (for now 30-40% but can be updated by the owner)
    
*   Formula to calculate the shares being provided on investment
    
    `(matic being invest * lsd minted) / matic balance in vault`
    
    where, the `matic balance in vault` is calculated based on the matic that will be received on settling all the investments
    

The whole design of the application was brainstormed this week and further design related decisions will be taken on the fly while building LSD 💊

Quick shout out to [@mneelansh15](https://twitter.com/mneelansh15) 🫡, he helped through certain road blocks 🚧 that I encountered while brainstorming on the design.

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*Originally published on [Kevin](https://paragraph.com/@kevin-49/week-6-eif-3-0)*