$LUCY is a proposed new stablecoin-based, multi-source yield optimisation PowerVault that automatically harvests yield from multiple sources on the Liquity over-collaterised ETH $LUSD stablecoin, including ‘defensive’ collateral liquidation premia, more frequent in ‘down’ markets when ETH prices can fall quickly. The $LUCY PowerVault fully utilises the Balancer v2 custom pool architecture, Aave lending pools, Liquity internal yield options and liquidation services from B.Protocol, all under the control of the new Power Agent v2 decentralised automation network. Liquidations yield rises when ETH prices fall, usually in down markets, meaning that $LUCY yields can rise in down markets.
$LUSD TVL is growing rapidly in the wake of problems with USD fiat-backed stablecoin USDC, and pure ETH-based investors/savers will be looking for ‘defensive’ yield options that benefit when ETH prices drop suddenly.
Based on PowerPool Research/Labs simulations and backtesting of the StableSwap model with an arbitrage agent modeled on on-chain data, $LUCY can offer ~15% yield without additional rewards, i.e. this yield is generated without “token printing”-style liquidity incentives. Additionally, the yield doesn’t require the liquidity provider to hold/lock other assets (besides $LUSD) in advance to generate the yield. In summary, $LUCY is canonical structured ETH DeFi, providing ‘defensive, multi-source yield on ETH-based over-collateralised stablecoin like $LUSD.
We plan to launch $LUCY ($LUSD+a-bb-USD Balancer v2 pool) as soon as possible with a collaborative multi-protocol approach to awareness and marketing. $LUCY in launch form is a Balancer Boosted pool built on top of bb-a-USD and involving LUSD. It’s a stablecoin pool that pairs $LUSD with a three-pool of USDC/DAI/USDT, similar to the LUSD-3CRV pool on Curve. The main difference is that the stablecoins in the pool also harness additional yield sources leading to enhanced native yields for liquidity providers.
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This is a very short synopsis of $LUCY. For a much more detailed overview of the opportunity and go-to-market planning, and how all DAO members can contribute, please see the Project Wiki:
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