FAQ

• Is Lucidly Vault and indexing/liquidity aggregation protocol?

  • No, it is a liquidity management protocol. It is configurable, aggregates and redeploys liquidity based on volumes and allows permissionless rebalances, making it easy to monitor risk and increase base yields.

• How does it benefit asset issuers?

  • Protocols issuing bond-like assets (stablecoins, liquid staking assets etc) can source liquidity using Lucidly Vault as the interfacing protocol and liquidity providers get to view different risk profiles and risk premiums in one single place.

• What are the fees?

  • Users are charged one time at a deposit, there are no recurring or performance fee. The protocol charges a fee everytime there is a rebalance, which goes to the liquidity providers, increasing base yield.

• What are the risks?

  • The vault deploys funds to DeFi primitives like AMMs and margin protocols to maintain liquidity, there might be loss of funds due to impermanent loss. Although there is due diligence done before adding a new liquidity position, users should be informed about underlying protocols. Lucidly Labs maintains a high standard for security amongst all the products that we build.

• Do users miss out on protocol incentives while deploying through Lucidly Vaults?

  • No. All base yields + fees from rebalances + exogenous incentives are reflected in users' earnings.