Lucid OTC
Lucid OTC is an on-chain settlement and vesting layer for token deals. It moves pricing, payment, settlement, allocation, and vesting into one governed smart-contract flow.
Buyer and seller agree the commercial terms off-chain, then configure those terms in Lucid. The buyer deposits the agreed quote asset, settlement executes atomically, proceeds route to the seller’s treasury, and the buyer’s tokens unlock according to the configured schedule.
Once a deal settles, neither side can back out or change its terms. No custodian, escrow agent, or trusted intermediary is required to coordinate delivery.
How an OTC Deal Works
- Agree terms off-chain. Buyer and seller negotiate the allocation, price or discount, payment asset, vesting period, cliff, capacity, and participation rules.
- Configure the deal. The seller selects the chain, assets, pricing model, vesting schedule, capacity, and eligible participants in the Lucid app.
- Approve and deploy. The deal follows the organisation’s approval process, including multisignature approval where configured. After deployment, the terms are immutable.
- Deposit and settle. The buyer deposits the quote asset. Payment and token allocation settle together in one atomic transaction.
- Vest and claim. Allocated tokens unlock on schedule and can be claimed through the dashboard.
- Verify on-chain. Both parties—and their auditors or LPs—can independently verify deposits, settlement, vesting progress, and claims.
Configurable Deal Terms
Each OTC deal is configured to match the terms negotiated by its participants.
| Term | Supported configuration |
|---|---|
| Pricing | Fixed price, auction pricing, or oracle-linked pricing and discounts |
| Vesting | Linear, fixed-term, fixed-expiry, cliff-based, milestone-based, or custom schedules where supported |
| Capacity | Total allocation, minimum ticket size, and maximum allocation per wallet |
| Participation | A single counterparty, an allowlist of approved wallets, or open participation |
| Payment | Assets such as USDC, USDT, ETH, LP tokens, or supported vault positions |
| Governance | Multisignature approval, role-based permissions, and immutable terms after launch |
Oracle-linked deals can reference Chainlink, Uniswap, or Lucid pricing infrastructure. Available options depend on the chain and deal configuration.
Atomic Settlement
Traditional OTC execution can require legal agreements, custody or escrow, manual token delivery, unlock calendars, and repeated reconciliation. Lucid binds payment and allocation in a single transaction:
- seller tokens are committed before the buyer settles
- buyer funds route to the configured treasury address
- neither side has to move first and wait for the other
- vesting is enforced by the contract rather than by manual distributions
- both parties share the same verifiable on-chain record
The smart contract coordinates settlement; Lucid and deal facilitators do not take custody of participant assets.
Deal Structures
Lucid supports several payment-asset structures within the same OTC framework:
- Strategic asset deals accept assets such as USDC, USDT, or ETH and are commonly used for strategic token sales and treasury diversification.
- Liquidity deals accept supported LP positions, enabling long-term inventory and liquidity arrangements.
- TVL deals accept supported protocol deposits or yield-bearing positions to direct capital into DeFi infrastructure.
These structures can be bilateral, allowlisted, or open, and can use fixed, oracle-linked, or auction pricing.
Who Lucid OTC Is For
Lucid OTC is designed for participants across the token-deal lifecycle:
- Foundations and issuers can sell strategic allocations with provable lockups and route proceeds directly to treasury.
- Funds can receive discounted vested allocations whose entry price and unlock schedule are independently verifiable.
- Treasuries can diversify into stable reserves while releasing sold tokens gradually and visibly.
- Market makers can structure long-term inventory or liquidity deals using supported payment assets.
- OTC desks and brokers can negotiate and facilitate deals without taking custody or inheriting settlement risk.
Common Use Cases
- strategic token sales with an enforced cliff and vesting schedule
- discounted vested allocations linked to a negotiated or oracle-based price
- long-term market-maker inventory and liquidity positions
- treasury diversification without an immediate supply release
- private token sales with identical terms for allowlisted participants
- broker-facilitated OTC deals without broker custody
Security and Operational Model
Deal deployment follows the organisation’s configured governance process. Once live, commercial terms are fixed; roles govern who can administer permitted lifecycle actions, not who can rewrite the deal.
Smart contracts reduce counterparty and operational risk, but they do not eliminate smart-contract or market risk. Review the Security documentation and the relevant OTC contract addresses before transacting.
Continue to OTC Deal Types & Pricing Models for the available structures, or How To Create an OTC Deal for the deployment flow.