Overview

Lucidly makes issuance of structured credit instruments modular and programmable. This is a marketplace with 2 kinds of users:

1. Liquidity Providers - Market participants that are looking to deploy capital with certain terms in exchange for incentives.

2. Credit Issuers - Market participants that are looking to access capital with certain terms and have incentives to offer in exchange.

This has 3 key benefits:

1. A fair market to negotiate for liquidity.

2. Credit becomes liquid and could be integrated across defi.

3. More visibility allows specialised underwriting, tiered debt pricing etc

Lucidly has 2 core components -

1. Mastervault - This is a vault that accepts LP deposits and is programmed to allocate those wherever required. LPs receive MVTs (MasterVault Tokens) that denote their share of the credit issued.

2. Liquidity Exchange - MVTs minted are structured as Ask and listed on an open marketplace. Parties on the other hand can choose to Bid on this instrument at whatever price they want.

A normal flow is supposed to be like this -

Curve LLAMALEND has a CRV long market where one can deposit CRV tokens as collateral and borrow CRVUSD as debt. Open interest obviously fluctuates in this market and hence the supply rate is volatile.

An user looking to open a CRV long for some fixed period, taking 3 months as an example here. They can structure an Ask on Lucidly asking for LPs to

• deposit 10m CRVUSD on the supply side

• for a period of 3 months

• in exchange of 750k USD worth of CRV tokens at current price

LPs in the open market can deposit capital, i.e, buy positions in this market or negotiate for more incentives. Any exchange method can be built on this exchange venue - Auctions, Limit Orders, Interest Rate Swaps etc

We're looking at certain market to launch Lucidly right now -

1. Onchain liquidity for liquid restaking and liquid staking tokens.

2. Onchain liquidity for stablecoins.

3. AVSs<>Stakers stake commitment contracts.

Lucidly can structure credit for a large amount of crypto assets. This will allow a wide range of financial instruments to be created with better risk management, more transparency and more tailored.