LUAUSD, issued by LumiFinance, has been deployed on Arbitrum Curve for 43 days, and the Total Value Locked (TVL) is currently maintained in the range of 6 to 8 million dollars.
Lumi Finance serves as an investment platform focused on sustainable wealth preservation. Its core token, LUA, represents a novel asset class with the following features:
Limited risk via partial collateralization: The LUA token’s value cannot drop to zero, and its floor price increases progressively with demand.
Extremely low-risk support value through a diversified stablecoin, known as LUAUSD reserves.
Strong diversification in LUA safeguards its holders from the devastating effects of stablecoin depegging.
Regenerative returns achieved through a distinctive call-option incentive scheme.
The Lumi Finance APY is guided by market forces and correlates with investment risk, fostering a lasting mechanism for substantial returns.
Genuine liquidity owned by the protocol itself.
The entire liquidity of LUA is held by the Lumi Finance protocol, offering a seamless route for establishing or liquidating positions. The protocol acts as the counterparty for each transaction, eliminating dependence on external market makers.
Describe the proposed asset(s), the corresponding protocol(s), and historic prices of the token (price must come from the source of highest liquidity).
Explain why this pool needs incentivization
To deepen on-chain LUAUSD liquidity, to ensure more efficient swaps and to further grow demand for the token.
We plan to put aside a portion of our fee to consistently purchase CRVs for voting purposes
Please answer in a short and clear manner.
- Governance: Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain.
We will launch a DAO within the next six months and transfer all permissions to the DAO.
- Audits: Provide links to audit reports and any relevant details about security practices.
- Centralization vectors: Is there any component of the protocol that has centralization vectors? E.g. if only 1 dev manages the project, that is a centralized vector. If price oracles need to be updated by a bot, that is a centralized vector. If liquidations are done by the protocol, that is also a centralization vector.
The pricing mechanism of the LumiFinance protocol is currently decentralized. The Lumi team can only update certain parameter indicators and issue LUAOP and LUAG tokens, but this does not affect LUAUSD. LUAUSD is backed by a 1:1 collateralization with 2CRV.
- Market History: Has the asset observed severe volatility? In the case of stablecoins, has it depegged? In the case of an unpegged asset, have there been extreme price change events in the past? Provide specific information about the Curve pool: how long has it been active, TVL, historical volume?
The majority of the liquidity for LUAUSD currently comes from the Curve pool, and there has not been any decoupling observed thus far.
And LumiFinance provides a 1:1 collateralization with 2CRV at the underlying level.