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Lucidity Finance

Lucidity Finance

Leverage liquidity layer of the DeFi stack.
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State of DeFi Leverage: April'24

April was yet another rollercoaster of a month for the leverage landscape. Bitcoin halving was the biggest event of the month for the broader web3 ecosystem.
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AAVE X Maker Feud: Data-Backed Analysis

In the fast-paced realm of decentralized finance (DeFi), clashes between major players like AAVE and Maker can send shockwaves throughout the ecosystem. The recent feud between Aave and MakerDAO over ethena has not only captured attention but also raised pertinent questions about risk management and sustainability. In this follow-up analysis, we delve into the data behind the conflict to uncover its true impact and implications for the broader DeFi landscape.
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Unveiling Lucidity Alpha v1

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.

Aave X Maker Feud and The Turn of Events

In the chaotic world of decentralized finance (DeFi), where innovation is rampant and risks are always around, recent events in the Aave ecosystem have sparked intense debate and scrutiny. In this blog, we want to break down what's been happening and make it easier for you to understand what's going on with two of the biggest players in the leverage landscape.

State of DeFi Leverage: March'24

March witnessed a flurry of activity in the decentralized finance (DeFi) space, with groundbreaking developments and significant updates shaping the landscape. From innovative upgrades to exciting airdrops, the month showcased the resilience and dynamism of the DeFi ecosystem.

Navigating 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 analyze the overall trend and its potential impact on the DeFi market for AAVE V3 and Compound markets.

Exploring the Frontier: The Evolution of Smart Risk Assessment in DeFi

The decentralized finance (DeFi) landscape is continually evolving, with new methodologies for assessing and mitigating risks. Traditional financial models often fall short in addressing the unique challenges posed by the volatile and permissionless nature of blockchain-based assets. In response, several DeFi protocols have developed smart risk assessment techniques that leverage on-chain data and advanced mathematical models. Among these, B Protocol's smart Loan-to-Value (LTV) ratio, Gauntlet's Value at Risk (VaR), and Morpho's risk layer stand out for their novel approaches to managing risk. This blog post delves into these methodologies, assessing their strengths, applications, and determining which metric might be best suited for different types of users or platforms.

State of DeFi leverage: Feb’24

February was an action-packed month for DeFi in general. The DeFi TVL crossed its 18-month high, well enroute towards an all-time high backed by multiple headwinds. The biggest drivers of this growth continue to be the restaking and rollup narratives. EigenLayer is now at $10B+ TVL, growing over 450% in Feb alone.
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Understanding DeFi leverage: Overview

DeFi has revolutionized the way we think about finance by offering innovative solutions that are transparent, accessible, and decentralized. One such innovation is leverage, which allows users to increase their exposure to assets to amplify gains.