What is Lucid Finance? Lucid Finance is a project in the LSD Finance segment that is attracting market attention at this time. Helps users control and manage their positions as well as use assets such as LST and LPT to lower Stablecoin loans.
So what is Lucid Finance? Lucid Finance’s operating model? Let’s find out in this article!
To understand more about LSDfi, you can read the articles below:
- What is Lybra (LBR)? Overview of Lybra Cryptocurrency
- What is Tenet Protocol (TENET)? Tenet Protocol Cryptocurrency Overview
- What is Tapio Finance? Overview of Cryptocurrencies Tapio Finance
- Rodeo Finance – The Next Important Piece for LSDfi
What is Lucid Finance?
Overview of Lucid Finance
Lucid Finance is a CDP protocol, allowing collateral of ETH LST or LPT to borrow Stablecoin DUSD. The project helps unlock liquidity for the DeFi market, increase the applicability of LST and LPT assets, and help participants earn more profits.
DUSD is a USD-pegged stablecoin that is overcollateralized to accumulate passive interest in your wallet. DUSD is Omnichain and powered by real yield. It’s always growing even if you’re keeping it in your wallet.
People who mint or borrow DUSD will not pay any fees or interest rates. That means they can borrow Stablecoin DUSD at zero interest rate.
Highlights of Lucid Finance
- Lucid offers rebasing returns on minted DUSD, which can be borrowed against your complete ETH portfolio including LST and main ETH LP tokens on leading protocols.
- DUSD is always growing using rewards earned from collateral deposited into the protocol.
- DUSD is completely omnichain allowing you to participate in the explosive ecosystem on Ethereum L2 while staking on L1.
- Lucid continuously stabilizes the returns earned on your assets from volatile assets to stablecoins, allowing you to profit regularly.
- Minting digital USD receives no interest or fees and can always be exchanged for $1 worth of assets.
Mechanism of action
Minting DUSD is a simple process: Start by adding your preferred collateral, you can deposit a mix of allowed collateral and borrow against them at the same time. You can mint up to a certain amount, ensuring that your collateral ratio (CR) is always above the minimum of 150% for deposited LST and 200% for deposited LP tokens .
Mechanisms to protect stability for DUSD:
- Redeem rewards: DUSD holders can exchange 1 DUSD for 1 USD worth of underlying collateral at any time. A 0.5% conversion fee is charged for this conversion and users can redeem with ETH or LST of their choice.
- Liquidation: Anyone can liquidate an excessive debt position, they just need to return the amount of DUSD that the borrower borrowed and receive collateral.
- Decentralized LP: Lucid will establish LPs on top DEXs combining DUSD with other stablecoins such as USDC or USDT. To establish deep liquidity on these LPs, a portion of the protocol token supply will be dedicated to farming and establishing the ecosystem, through staking rewards and bribes.
- Stable Pool: Lucid will introduce a stable pool mechanism for DUSD liquidation, allowing DUSD holders to commit capital upfront to purchase liquidated LST and LP token collateral at a discount.
Development Roadmap
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Core Team
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Investors
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Tokenomics
Overview information about Lucid Finance Token
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Token Allocation
- 80% for the community, of which: 70% distributed to DUSD Mining, 18% distributed to depositors and 12% distributed to Farm.
- 10% as a team reward.
- 4.8% goes to ecosystem, bribes to Pool DUSD liquidity providers on Dex.
- 4% sold IDO.
- 1% of the total supply will be combined with the funds raised in the IDO to create protocol-owned liquidity.
Exchanges
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Lucid Finance’s Information Channel
- Website: https://lucideth.fi/
- Twitter: https://twitter.com/lucid_fi
- Discord:
Summary
Lucid Finance stands out from other protocols in the LSDfi category by supporting LPT assets and enhancing stability for DUSD.
So I have clarified what Lucid Finance is? Lucid Finance cryptocurrency overview. Hope this article provides you with a lot of useful knowledge!