Lucidity FinanceNavigating Borrow Rates Trends in DeFi: Insights from the AAVE & Compound Ecosystem
The evolving landscape of decentralized finance (DeFi) continues to draw both intrigue and investment from the broader cryptocurrency community. Among the myriad developments, one trend that stands out is the increasing borrowing rates of DeFi assets across lending protocols. This shift has implications for investors, borrowers, and the DeFi ecosystem at large. In this blog, we'll delve into the reasons behind these rising rates, compare various assets on the Ethereum network, and analyz...
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2024 started strong for DeFi, with a mix of events through the first month. Restaking was one of the strongest narratives within the sector witnessing over $1.7B worth of inflows.Source: DeFiLlamaThere were multiple developments within the leverage landscape throughout the month.Starting with MakerDAO passing two executive votes, with the key highlight being an increase of Spark’s DAI debt ceiling from 800M to 1.2B.Morpho labs continued to ship, with Blockanalytica together with B.protocol co...
Leverage liquidity layer of the DeFi stack.
Lucidity FinanceNavigating Borrow Rates Trends in DeFi: Insights from the AAVE & Compound Ecosystem
The evolving landscape of decentralized finance (DeFi) continues to draw both intrigue and investment from the broader cryptocurrency community. Among the myriad developments, one trend that stands out is the increasing borrowing rates of DeFi assets across lending protocols. This shift has implications for investors, borrowers, and the DeFi ecosystem at large. In this blog, we'll delve into the reasons behind these rising rates, compare various assets on the Ethereum network, and analyz...
Lucidity FinanceState of Personalization [Web2 v/s Web3]
Personalization has been a driving force behind the success of Web2 platforms, shaping user experiences and setting new standards for digital interaction. Whether it's the curated playlists on Spotify, product recommendations on Amazon, or the tailored content feeds on social media, personalization drives engagement to the extent that we almost take it for granted. However, such personalization is fundamentally absent in the web3 ecosystem, despite the wealth of available on-chain data. ...
Lucidity FinanceState of DeFi Leverage: Jan'24
2024 started strong for DeFi, with a mix of events through the first month. Restaking was one of the strongest narratives within the sector witnessing over $1.7B worth of inflows.Source: DeFiLlamaThere were multiple developments within the leverage landscape throughout the month.Starting with MakerDAO passing two executive votes, with the key highlight being an increase of Spark’s DAI debt ceiling from 800M to 1.2B.Morpho labs continued to ship, with Blockanalytica together with B.protocol co...
Leverage liquidity layer of the DeFi stack.
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Today marks a significant milestone in our journey together. We are thrilled to announce the launch of Lucidity's Alpha v1, a culmination of dedication, innovation, and community collaboration.
The inception of Lucidity stemmed from a shared vision to revolutionize the fragmented leverage landscape.
With 400+ protocols building across networks, Lucidity aims to enable end users to make sense of the varied activities and operate per their risk appetite, while allowing other stakeholders across the landscape (lending protocols, yield aggregators, risk curators, etc.) to collaborate on-chain to make the ecosystem more accessible and palatable for the next wave of DeFi users.
What is Alpha v1
Lucidity’s Alpha v1 launch is the first step towards our vision of stitching the leverage landscape together. Some key pointers about the product:
It is a private-access launch on the Ethereum mainnet. The application is only available to our waitlisted subscribers. If you didn’t subscribe but still wish to use the app, head over to our discord.
The protocol also supports a Simulation mode for those who don’t wish to interact with Ethereum mainnet markets.
Alpha v1 smart contracts have been thoroughly audited by Peckshield.
Users would need to create dedicated Gnosis Safe wallets on Lucidity’s app to interact with markets. These smart accounts would enable users to batch transactions, and in the future, run automations, backtest their strategies, and optimally perform complex cross-chain actions.
Users can discover new markets for their assets, originate positions across integrated protocols, and manage them all through a single dashboard.
The first set of integrations includes Aave v2/v3, Compound v2/v3, and Morpho Aave/Compound optimizers. MakerDAO and Liquity integrations will be added next (within a couple of weeks).
All available markets are scored by our discovery engine - currently, a statistical model that runs on real-time data. The model will evolve into an AI algorithm for more robust scoring and risk assessment.
The Discovery engine’s score gives a relative comparison of available markets based on the optimization parameters. It is not an absolute measure of risk, and users are advised to do their research before deploying capital into any market.
The goal of the Alpha launch is to invite DeFi power users to stress test what we’ve built. This allows us to understand what the ecosystem needs and gives us a direction to build towards.
Check out our Docs to learn more.
Next Steps for us
Alpha v1 will be run for a limited time and then will be opened for a broader user base.
In the meantime, the team’s key focus will be on the following:
Work on incremental feedback through the course of Alpha
Integrations across the L2 ecosystem. Watch out for the first L2 expansion.
R&D on the discovery engine AI algorithm
Research and iterate on cross-chain architecture and UX
Conclusion
We envisioned a platform that would empower users with clarity, control, and convenience while engaging within the leverage landscape. A product that would be the central hub connecting stakeholders operating within this landscape across chains - all powered by the AI engine built in-house. And Lucidity’s Alpha v1 is the first step towards that vision.
Being an aggregator, the key contributor to our progress is and will be the partnerships and community involvement. As we strive to build for the ultimate cross-chain leverage experience, we encourage and appreciate all feedback and will ensure our early users/testers are adequately rewarded.
About Lucidity
Lucidity is a cross-chain leverage aggregator that integrates with a series of lending/CDP protocols to stitch together the fragmented leverage landscape. The protocol is powered by an in-house AI-powered discovery engine running on real & historical data, clubbed with automations and testing frameworks to allow stakeholders to optimally discover and manage multi-chain leverage positions.
Lucidity's goal is to serve as the playground to build use cases such as aggregated credit risk, cross-chain liquidations marketplace, unified risk assessment layer, etc., with a vision of becoming the leverage liquidity layer of the DeFi stack.
We would again like to invite you all to join us on this journey.
Join us👇
🤍Website: https://lucidity.finance
🤍Access Lucidity alpha v1: https://app.lucidity.finance/
🤍 Discord: https://discord.gg/AsKAQqAm8P
🤍 Twitter: https://twitter.com/LucidityFinance
Explore Lucidity, share feedback, and help shape the future of AI-powered DeFi Leverage.
Onwards!
Today marks a significant milestone in our journey together. We are thrilled to announce the launch of Lucidity's Alpha v1, a culmination of dedication, innovation, and community collaboration.
The inception of Lucidity stemmed from a shared vision to revolutionize the fragmented leverage landscape.
With 400+ protocols building across networks, Lucidity aims to enable end users to make sense of the varied activities and operate per their risk appetite, while allowing other stakeholders across the landscape (lending protocols, yield aggregators, risk curators, etc.) to collaborate on-chain to make the ecosystem more accessible and palatable for the next wave of DeFi users.
What is Alpha v1
Lucidity’s Alpha v1 launch is the first step towards our vision of stitching the leverage landscape together. Some key pointers about the product:
It is a private-access launch on the Ethereum mainnet. The application is only available to our waitlisted subscribers. If you didn’t subscribe but still wish to use the app, head over to our discord.
The protocol also supports a Simulation mode for those who don’t wish to interact with Ethereum mainnet markets.
Alpha v1 smart contracts have been thoroughly audited by Peckshield.
Users would need to create dedicated Gnosis Safe wallets on Lucidity’s app to interact with markets. These smart accounts would enable users to batch transactions, and in the future, run automations, backtest their strategies, and optimally perform complex cross-chain actions.
Users can discover new markets for their assets, originate positions across integrated protocols, and manage them all through a single dashboard.
The first set of integrations includes Aave v2/v3, Compound v2/v3, and Morpho Aave/Compound optimizers. MakerDAO and Liquity integrations will be added next (within a couple of weeks).
All available markets are scored by our discovery engine - currently, a statistical model that runs on real-time data. The model will evolve into an AI algorithm for more robust scoring and risk assessment.
The Discovery engine’s score gives a relative comparison of available markets based on the optimization parameters. It is not an absolute measure of risk, and users are advised to do their research before deploying capital into any market.
The goal of the Alpha launch is to invite DeFi power users to stress test what we’ve built. This allows us to understand what the ecosystem needs and gives us a direction to build towards.
Check out our Docs to learn more.
Next Steps for us
Alpha v1 will be run for a limited time and then will be opened for a broader user base.
In the meantime, the team’s key focus will be on the following:
Work on incremental feedback through the course of Alpha
Integrations across the L2 ecosystem. Watch out for the first L2 expansion.
R&D on the discovery engine AI algorithm
Research and iterate on cross-chain architecture and UX
Conclusion
We envisioned a platform that would empower users with clarity, control, and convenience while engaging within the leverage landscape. A product that would be the central hub connecting stakeholders operating within this landscape across chains - all powered by the AI engine built in-house. And Lucidity’s Alpha v1 is the first step towards that vision.
Being an aggregator, the key contributor to our progress is and will be the partnerships and community involvement. As we strive to build for the ultimate cross-chain leverage experience, we encourage and appreciate all feedback and will ensure our early users/testers are adequately rewarded.
About Lucidity
Lucidity is a cross-chain leverage aggregator that integrates with a series of lending/CDP protocols to stitch together the fragmented leverage landscape. The protocol is powered by an in-house AI-powered discovery engine running on real & historical data, clubbed with automations and testing frameworks to allow stakeholders to optimally discover and manage multi-chain leverage positions.
Lucidity's goal is to serve as the playground to build use cases such as aggregated credit risk, cross-chain liquidations marketplace, unified risk assessment layer, etc., with a vision of becoming the leverage liquidity layer of the DeFi stack.
We would again like to invite you all to join us on this journey.
Join us👇
🤍Website: https://lucidity.finance
🤍Access Lucidity alpha v1: https://app.lucidity.finance/
🤍 Discord: https://discord.gg/AsKAQqAm8P
🤍 Twitter: https://twitter.com/LucidityFinance
Explore Lucidity, share feedback, and help shape the future of AI-powered DeFi Leverage.
Onwards!
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