FAQs

Frequently Asked Questions

• How are underlying funds deployed from a syToken vault?

All allocation decisions are taken by the Lucidly team. Every syToken vault is designed to return a risk-on yield in a medium-to-long term timeline. We strive to maintain the highest level of transparency in all the yield products. All strategy deployments can be viewed on the Lucidly UI and can be verified on a third party DeFi portfolio indexer like DeBank.

• What are the risks?

Lucidly Yields deploy funds to DeFi primitives like lending and yield trading protocols to provide yield, there might be loss of funds due to depegs and impermanent loss. Although there is due diligence done before adding a new strategy, 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 depositing in syTokens?

No. All base yields + exogenous incentives are compounded and reflect in the syToken exchange rate.

• How are redemptions are handled?

Redemptions are asynchronous and processed through a withdrawal queue. An off-chain system batch processes withdrawal requests periodically and the withdrawn asset is transferred to users' addresses. This schedule is different for different syTokens. The redemption wait time for syUSD is 24hrs.