FAQs
Frequently Asked Questions
How does fixed rate convertible notes work for the stables USD strategy without having YTs?
Lucidly USD Basic (lUSDb) - ERC4626 Vault.
3 PT/SY markets will be available. 1 index vault (StableUSD) for aggregating above LPT markets. Deposits into StableUSD will be periodically allocated to PT/SY markets of lUSDb.
StableUSD is an index of - (USDC, lUSDb, lUSDb LPTs)
Our strategy - Buying PT-lUSDb
Pool - SY-lusdb + PT-lusdb
Deposit asset X (USDC)
Swap USDC to lUSDb
Wrap lUSDb to SY-lUSDb
Mint PT-lUSDb + YT-lUSDb
Sell YT-lUSDb into the pool for PT-lUSDb.
Add PT-lUSDb into Pool Liquidity.
Is Lucidly Yields an 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 Yields as the interfacing protocol and liquidity providers get to view different risk profiles and risk premiums in one single place.
What are the risks?
Lucidly Yields deploy 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 Yields?
No. All base yields + fees from rebalances + exogenous incentives are reflected in users' earnings.
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