What is 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.

Does Lucidity have a whitepaper?

Yes, Here.

How can I benefit from using Lucidity?

Lucidity offers several benefits for DeFi leverage users:

  • Optimal leverage discovery: Lucidity integrates with multiple lending/CDP protocols in the background, allowing you to easily discover and evaluate available markets based on your risk appetite.

  • Simplified Position Management: Manage your DeFi positions across different protocols from a single interface. No more juggling multiple platforms chains and logins.

  • Stay on top of our latest features by joining our discord.

How secure is Lucidity?

Lucidity smart contracts have been audited by PeckShield. Also, smart contracts have been written in a very minimalistic and secure way to reduce complexity and reduce the risk of attacks. The latest audit report can be found here.

While Lucidity strives to minimize these risks through careful design, rigorous testing, and thorough security audits, users should be aware of these potential risks, use the protocol responsibly and do their research.

How does Lucidity aggregate liquidity across different chains?

Lucidity itself doesn't directly manage user’s positions. Lucidity integrates with multiple lending/CDP protocols in the background that users can engage with directly from a single interface. Lucidity also supports the seamless discovery of optimal leverage sources through the flagship discovery engine built in-house, which runs on realtime and historical data.

What is the revenue model of Lucidity?

Alpha v1 doesn’t charge any fees.

In future, Lucidity will introduce a fee for certain complex actions that users perform on the app, including cross-chain fund routing, automations, etc. that is powered by the discovery engine.

Alpha V1

Which chain(s) is Lucidity Alpha v1 launched on?

Lucidity Alpha v1 is currently live on Ethereum mainnet.

For those who don’t wish to engage on the mainnet, the product also has a Simulation mode. The protocol will soon expand integrations across the EVM L2 ecosystem.

What protocols does Lucidity currently support?

  • Current integrations - AAVE v2/v3, Compound v2/v3, Morpho Aave/Compound Optimisers on Ethereum mainnet

  • Next integrations: MakerDAO, Liquidity on Ethereum mainnet

Lucidity will constantly keep expanding integrations across the EVM ecosystem.

How do I access the Alpha v1

Alpha v1 is currently in a private-access mode, accessible exclusively to our 1500+ waitlist subscribers. If you don’t have access but still wish to use the product, head over to our discord.

Is the Alpha v1 launch incentivised?

Alpha v1 product contains two environments for the users to engage:

  • Ethereum mainnet

  • Simulation mode (that runs on the Testnet)

We will be retroactively incentivising early users, testers and contributors of the product on both Ethereum mainnet and the Simulation.

More details on the retroactive rewards will be shared in the near future.

How do I switch to the Simulation mode?

Lucidity Alpha v1 supports interactions on both Ethereum mainnet and through a Simulation mode. Users can switch between these modes directly on the app.

  • Click on the “Ethereum” button on top to open a dropdown.

  • You will see the Simulation option in the dropdown.

What can I do in the Simulation mode?

The Simulation mode’s goal is to allow users to try the product and provide feedback without having to engage on Ethereum mainnet. Here you can experience Lucidity and explore our features without concern for mainnet gas prices. Supported simulation actions:

  • Discover available markets

  • Open new positions across available markets

  • Import position recipe - dummy positions will be automatically created once you switch to Simulation

  • Manage all open positions through the dashboard.

  • Visit our user guide for more details.

Note: The ​​simulation mode is powered by Tenderly. The simulation mode might experience failing of transactions sometimes - this is mainly based on Tenderly’s bandwidth support. If any transaction fails, we request you to try again.

How do I get test assets to use in the Simulation mode?

You will automatically receive some assets to use in the simulation:

  • Simulated Tokens

    • 10 ETH

    • 100 DAI

  • Dummy Positions

    • Aave-V3 aUSDC: 10 aEthUSDC

    • Compound-V2 cUSDC: 10 cUSDC

What if I run out of the simulation assets?

Request for more simulation assets in our discord.

Can I provide feedback or suggest improvements for Lucidity? Also, does Lucidity offer customer support?

Absolutely! We encourage and appreciate all feedback and suggestions.

  • Join our Discord and drop your feedback/suggestions in the #feedback-and-suggestions channel, OR

  • Submit through the feedback form.

What happens if an integrated protocol experiences issues or goes down?

While we strive to integrate with reliable and secure protocols, the possibility of unforeseen issues with individual protocols cannot be eliminated. In such cases, user positions opened/managed on Lucidity’s interface are subject to the same risks borne by the direct users of those protocols. Additionally, Lucidity will keep users informed of any developments and provide timely updates on the situation.

In future, the discovery engine will be able to help users automate refinancing actions depending on the risk adjustments of the underlying protocols.


What is the discovery engine and how does it work?

The discovery engine is aimed to help you find optimal opportunities in the DeFi leverage space. The first version of the discovery engine is a statistical model that runs on real-time data to score available markets per user’s risk preferences. Learn more here.

Subsequent versions will feature more sophisticated and evolved ML models trained on historical data sets to help users evaluate protocol risks.

Why do I need to create a new Safe account on Lucidity?

Users need to create dedicated Gnosis Safe wallets on Lucidity’s app to interact with markets. These smart accounts enable users to perform batched transactions optimally.

In the future, run automations, backtest their strategies, and optimally perform complex cross-chain actions. Read how to create Lucidity Safes in our user guide.

Can I use Lucidity Safe directly outside Lucidity protocol?

No, currently Lucidity safe is being only used as an internal SCW to facilitate various functionalities like batch transactions, flashloans and automations. The plan is to extend the scope of Safe in Lucidity.

Can I migrate positions from Lucidity Safe back into the EOA wallet?

Not yet. We will introduce the “Export positions” flow soon.

Which positions can I import into Lucidity?

Users can import normal leverage positions from the integrated protocols into Lucidity.

The following positions are not supported for import at the moment:

  • If flashloan is not available for debt asset from underlying flashloan provider(s)

  • Aave v3 Cross E-Mode: If the user holds an E-mode position in Aave v3

  • Aave v3 Isolation mode: Import can’t be done if the user has borrowed against a collateral asset in isolation mode on Aave v3

  • Aave v2/v3 Stable interest loan: import can’t be processed if the assets are borrowed under stable mode

Once I open a new position on Lucidity, can I manage it directly from the underlying protocol?

No. Your new position is held in your Safe, which is recommended to be managed from Lucidity’s interface only at this stage.

How does Lucidity handle gas fees and optimize transaction costs for users?

With the help of your smart accounts, complex action transactions are batched together i.e. a single transaction to open positions across multiple protocols. Hence, the overall flow and associated gas expenses are optimised by minimising redundant contract interactions, such as repeated approvals, separate supply and borrow transactions, etc.

In future iterations, these optimisations will be extend to cross-chain position management actions also.

Can users interact with Lucidity dApp using multiple wallets?

Currently, we support MetaMask and WalletConnect and we will expand the list as we grow. In subsequent iterations, we will update the user onboarding journey to make it more elaborate.

How does Lucidity handle user wallet private keys? (Does it store them?)

Lucidity is a non-custodial DeFi protocol. We won’t ever ask for or store user’s private keys.

Does Lucidity support automated DeFi strategies?

Yes, Lucidity will soon support automation strategies such as auto-refinance, auto-liquidation protection, etc. All such strategies will be powered by the discovery engine.

Can I set custom parameters or alerts for managing my DeFi positions within Lucidity?

Yes, users will be able to set alerts, optimise risk parameters, set protocol preferences, and automate multiple management actions. These features will be launched in subsequent versions.

Does lucidity have a token?

We don’t have a token.

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