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# System prepended metadata

title: Lucidly Finance Data Room

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# Lucidly Finance Data Room

### What does this contain
1. What is Lucidly Finance 
2. On-Chain Data Analysis 
3. How InstaCurve Product Works ?

## What is Lucidly Finance 

We're building a suite of products to improve liquidity provision for long-tail assets like LSDs and yield bearing stablecoins. We're calling our first product "instaCrv" that is a tokenised ETH vault to farm and autocompound crv and cvx tokens by optimally providing liquidity to multiple whitelisted curve pools.


### On-Chain Data Analysis 

We have gathered on chain analysis on various curve AMM pools which are LSD/ETH pools. 


1. [frxETH/ETH](https://dune.com/kraznik77/frxeth-pool-on-curve)
2. [rETH/frxETH](https://dune.com/kraznik77/reth-pool)
3. [cbETH/ETH](https://dune.com/kraznik77/cbeth-pool-curve)
4. [ETHx/ETH](https://dune.com/kraznik77/ethx-pool-curve)
5. [stETH/frxETH](https://dune.com/kraznik77/steth-frxeth)
6. [yETH/ETH](https://dune.com/kraznik77/yeth-eth)

After doing analysis on their TVL, Volume and Crv Emissions we concluded that 

1. Protocols are paying for liquidity when they don't that much. 
2. Most of the LP in these pools are from off Chain (loans). In case of ETHx_ETH pool their 92% of the pool TVL is from institutional lending company.
3. Due to lack of trading volume, protocols have to incentivise with their governance token to make up the oppournity cost of a LP. 
4. Their is a clear mismatch in what a lot of protocols end up paying and what on-chain liquidity providers are demanding.
5. Cost of rebalancing a LP position every week can be gas heavy costing anywhere between 3,750,000 - 5,000,000 gas units.

![cbETH_ETH_TVL](https://hackmd.io/_uploads/rJ29FhDHa.png)
![cbETH_ETH_Volume](https://hackmd.io/_uploads/rJAcYhwrT.png)
![frxETH_ETH_TVL](https://hackmd.io/_uploads/BkGjKnvHT.png)
![frxETH_ETH_Volume](https://hackmd.io/_uploads/ryVsthwHT.png)
![stETH_frxETH_TVL](https://hackmd.io/_uploads/r1DsK2DH6.png)
![stETH_frxETH_Volume](https://hackmd.io/_uploads/HyKoFnDrT.png)
![yETH_wETH_TVL](https://hackmd.io/_uploads/HJAoF2DST.png)
![yETH_ETH_Volume](https://hackmd.io/_uploads/rk3oKnvBp.png)

![crv_emissions_2023](https://hackmd.io/_uploads/HknhF3vr6.png)





### How InstaCrv Product Works ?

We raise funds through perpetual bonds, deploying them into multiple LSD/ETH pools for market-making purposes. Because the bonds are perpetual, they provide long-term sticky liquidity essential for these protocols.

Our rebalancing liquidity function follows the veCRV gauge weight every week to efficiently act as an LP in the system. We only deploy sufficient capital to each pool to avoid diluting yields for our depositors.

We rely on a network of solvers to rebalance each week when veCRV gauge weights change. Our smart contracts are highly optimized contracts to ensure that the gas cost per rebalance is significantly lower than the extra yield gained through the rebalance.
