Dear Lucidao Community,
In a joint endeavor, Arcanum Capital and the Lucidao core team are pleased to present a strategic proposal aimed at strengthening the Lucidao ecosystem; we stand united in our commitment to enhance the value of the LCD token and to cultivate a vibrant community around the Lucidao suite of products.
We at Arcanum Capital have been working closely with the Lucidao team and community, striving to add value wherever possible. Despite the token price depreciation in line with the broader market, we remain steadfast in our conviction in the success of the DAO and the dApps it will foster into the Web3 universe. As you will have seen, the first dApp in the Lucidao ecosystem, Altr, launched successive functionalities in the past months and is going from strength to strength solidifying its offer and reputation as a prominent player in the realm of luxury collectibles.
In May, Altr achieved a significant milestone by unveiling its platform during the F1 Monaco Grand Prix, accompanied by the captivating sight of a Ferrari F40 being hoisted onto a yacht. This event marked the public launch of both the Altr brand and platform and garnered widespread attention. Notably, it gained prominent coverage from leading PR outlets specializing in luxury collectibles, finance, and technology. It is worth mentioning that the platform had previously undergone testing through the sale of a Rolex Daytona 6265 fragmented among a select group of family and friends.
In August, Altr introduced its collectibles digitization platform at a distinguished car collector’s event in Marbella. This platform empowers users to efficiently manage their collections while benefiting from Altr’s robust price indexing structure. Additionally, it serves as a pivotal stepping stone for the forthcoming lending platform, set to be launched throughout Q4 2023 and Q1 2024. This lending platform will enable users to leverage their digitized asset certificates as collateral for loans, creating a unique financial opportunity for collectors.
The caliber of individuals and organizations involved in the project such as the oracles and various collectors is truly unparalleled, and we are extremely proud of the team for pulling together what is set to become a huge success.
Initially, the DAO bootstrapped the Quickswap liquidity pool which gave the community the chance to buy and farm the LCD token. Now, thanks to the community, there is sufficient liquidity in the pool to allow the consideration of the removal and better use of the initial DAO liquidity for the following reasons:
Capital Efficiency: making more efficient use of the DAO’s capital, which will be deployed across avenues that will provide greater value for the community.
Community Grants: the funds will be used to set up a grant system to encourage community members to contribute directly to the project through development, marketing, and other means.
Enhanced Trading Rewards: by removing the initial DAO liquidity, community members could potentially enjoy higher returns from trading activities, as they constitute a larger share of the liquidity pool.
Our proposal is to reallocate 70% of the current liquidity that, using today’s values, translates to roughly 179,000 Matic and 21,455,000 LCD. This adjustment will leave an overall token liquidity of around 77,256 Matic and 9,195,000 LCD, a figure we have thoughtfully considered to maintain market health relative to the LCD market cap.
The LCD tokens will be returned to the Lucidao treasury, while the Matic tokens will be managed and overseen by the Lucidao team to fulfill the strategic objectives of both Arcanum Capital and Lucidao.
This liquidity adjustment is a calculated decision; however, we maintain a vigilant stance. If the market signals the need, we are prepared to reinject a measured amount of DAO-controlled liquidity to sustain market confidence and stability.
This proposal is part of a broader initiative aimed at catering to the community’s needs and expanding the user base of the platform through a series of initiatives, starting with the overhaul of the LCD token and Lucidao websites’ branding and then including a consistent schedule of AMAs across social platforms, the deployment of AI-driven tools to optimize marketing outreach, and the introduction of gamification to enhance and reward community engagement.
Further details about the utilization of the capital will be provided in due course, as we plan meticulously to ensure it is deployed most effectively.
Enjoy a sneak peek of the two aforementioned upcoming milestones:
- ALTR LENDING PLATFORM
- LUCIDAO REBRANDING
We hope you share our vision of continuing to scale the DAO and its dApps and expand an ever more inclusive, vibrant, and dynamic community. Your feedback on this proposal is invaluable, and we eagerly anticipate your thoughts and approval.
Arcanum Capital & Lucidao Core Team
- In Favour of the Quickswap Liquidity Removal Proposal