The meta of LSD stablecoins will fuel the LSDfi narrative.
$LBR did a 4000% run up in 20 days.
One that could do better and make waves:
🎯Not a fork
🎯Yield bearing loans
🎯Omni-chain
🎯Building on top of @pendle_fi
Unravelling what I found🧵
1/ In this thread, I will cover how @lucid_fi will tap onto many assets + the @pendle_fi ecosystem to rev up the LSD stablecoin space.
1️⃣ LSDfi landscape
2️⃣ About @lucid_fi
3️⃣ LSD stablecoin as core design
4️⃣ Tokenomics
5️⃣ Roadmap
6️⃣ Thoughts & Alpha
2/
1️⃣ LSDfi landscape
Before we get into the meat, let's look over some bullish metrics that's shaping up LSDs.
Investors want to put their LSDs to work as the amount staked ETH continues to rise.
3/ Earning safe yields around interest bearing stables sound really attractive with the LSD stablecoin season.
They have seen significant growth and Lybra comes in at the top.
4/
2️⃣ About @lucid_fi
Lucid is a LSD focused borrowing protocol with:
👉Yield-bearing loans
👉Leverage LSD, LP token & Pendle collaterals
👉Minting of LSD stable coins called Digital USD (DUSD)
5/
3️⃣ LSD stablecoin as core design
$DUSD is @lucid_fi LSD backed stablecoin, where it is
👉 Over-collateralized
👉 Rebase yield to holders
👉 Interest free borrowing
👉 Holders earn protocol emissions
6/ You can borrow/mint $DUSD with collaterals such as blue-chip LSTs:
$stETH
$rETH
$frxETH)
$cbETH)
$BETH
and ETH-backed LP token pairs from:
• Curve
• Balancer
• Yearn Finance
7/
🔹Earning boosted yields
Rewards are structured to aligned the best outcomes for the protocol and users.
You will earn rewards through 3 actions:
👉Minting DUSD
👉Depositing Collateral
👉Governance
8/ $DUSD minters earns:
• $esLUCID protocol emissions
• A cut of the yield generated from all deposited collateral as daily rebase
• Liquidity mining incentives
9/ Collateral depositors earns:
• $esLUCID protocol emissions
• Majority of staking yield from underlying LST and LPT collateral
• Protocol boosts
On Lucid, depositors get back majority of yield. Deposits with higher yields get more rewards to ensure fairness
10/ A cut of the yield generated from all deposited collateral is given to $DUSD holders as daily rebases.
$DUSD balance grows daily by just holding holding it in wallet, or even when deposited in supported LPs.
11/
4️⃣ Tokenomics
$LUCID
• reward token
• vest esLUCID for 30 days to get equivalent worth of $LUCID
$esLUCID
• protocol emissions
• governance
• earns protocol fees
12/
5️⃣ Roadmap
2 things which got me excited:
👉 Leveraged strategies
This would mean that the underlying collaterals earns more boosted yields through auto-compounding.
Simplifying this whole process into a single click helps a lot with onboarding more TVL to the platform.
13/ 👉 Going omnichain
There's much talk about an omni-chain future with @LayerZero_Labs
Lucid's plan, to go with chain expansion onto the popular L2s, is a good start such as @arbitrum, @optimismFND, @0xPolygonLabs.
Though this could change depending on market flavour.
14/
6️⃣ Thoughts & Alpha
✅ Onboard more assets for collateral
We all saw how @pendle_fi fuelled the growth of @Equilibriafi and @Penpiexyz_io.
Something cooking between Lucid <> Pendle...
15/ So @lucid_fi will be supporting Pendle PT assets at launch, this means people can use their Pendle portfolio to take out $DUSD loans.
Assets with deep liquidity will make sense for them to be collateralized at a min 150%.
16/ ✅ Usage of perps
Even beyond LSD, if other core assets can be integrated, Lucid could create DN strategies with the usage of perps.
Underlying collaterals can claim to generate "safe yields" for the mint of DUSD and might not need such a high collateral ratio.
17/ Congrats if you have read the thread till the end, because you are in for a surprise.
Join the community and if you like my content follow my stuff for you will be in for a WL treat, whenever that happens.
Bookmark it so you don't lose it!!
Reference: https://twitter.com/arndxt_xo/status/1674459004691705856