OTC Deal Types & Pricing Models

Lucid supports multiple OTC structures for token sales, treasury diversification, long-term inventory, and liquidity arrangements. Each structure combines payment, allocation, settlement, and vesting in one on-chain flow.

The buyer contributes a supported quote asset in exchange for a token allocation that vests over time. The seller receives the proceeds at settlement, and both parties can independently verify the deal state on-chain.

Regardless of the structure used, the outcome remains the same:

• the buyer deposits the configured payment asset
• payment and token allocation settle atomically
• the seller receives proceeds at the configured address
• the buyer’s allocation vests over time
• settlement, vesting, and claims remain verifiable on-chain

Strategic Asset Deals

Strategic Asset deals accept assets such as:

• USDC
• USDT
• ETH

Buyers deposit these assets directly and receive discounted governance tokens vested over time.

These deals are designed for sellers seeking to:

• build treasury reserves
• accumulate strategic assets
• strengthen stablecoin reserves
• coordinate long-term liquidity growth
• improve treasury sustainability

Strategic Asset deals are commonly used for bilateral token sales, private rounds, and treasury diversification into stable or high-value assets.

Liquidity Deals

Liquidity deals can integrate with Steer Protocol and use supported LP positions as the payment asset.

Participants:

1. provide liquidity into supported LP pools
2. receive LP tokens
3. deposit LP tokens into the OTC settlement contract
4. receive discounted governance tokens vested over time

Liquidity deals are designed to:

• deepen DEX liquidity
• coordinate LP growth
• improve market depth
• support actively managed liquidity infrastructure
• strengthen trading liquidity for ecosystem assets

Because liquidity provisioning is coordinated through Steer Protocol, LP positions can be actively managed and rebalanced depending on market conditions.

TVL Deals

TVL deals are designed to direct liquidity into DeFi infrastructure such as:

• lending markets
• vaults
• yield protocols
• on-chain liquidity systems

Participants deposit supported assets or protocol receipts such as:

• aUSDC
• vault deposits
• yield-bearing positions

and receive discounted governance tokens vested over time.

TVL deals are designed to:

• increase protocol TVL
• coordinate long-term liquidity deposits
• support ecosystem capital efficiency
• strengthen DeFi infrastructure participation
• improve liquidity retention across protocols

Fixed-Price Strategy

Fixed-price deals sell tokens at a predefined constant price for the entire participation window.

Characteristics:

• manually configured pricing
• fixed token valuation
• predictable token cost
• constant discount structure
• no external price dependency

This model is designed for:

• simple market coordination
• transparent pricing structures
• predictable participant experience
• straightforward negotiated sales or private rounds

Participants always receive the same pricing conditions regardless of when they enter during the deal window.

Sequential Dutch Strategy

Sequential Dutch deals use an internal Dutch auction mechanism where pricing gradually decreases over time.

Characteristics:

• pricing adjusts incrementally
• no external oracle dependency
• market-driven price discovery
• demand-based participation
• dynamically evolving pricing

Pricing typically:

• starts at a higher valuation
• decreases gradually over time
• encourages participants to determine entry timing themselves

This model enables organic market pricing based entirely on participant behaviour and demand dynamics.

Sequential Dutch deals are particularly useful for:

• open market price discovery
• flexible auction-based sales
• sellers seeking non-oracle price discovery

Oracle-Fixed Strategy

Oracle-Fixed deals use external oracle pricing to determine the initial token price or agreed discount.

Once launched:

• pricing remains fixed
• the discount remains constant
• the market price reference does not update

For example:

• a deal may launch at a constant 5% discount relative to the oracle price at launch time

This model combines:

• oracle-based market alignment
• predictable participant pricing
• transparent discount coordination
• stable deal conditions

Oracle-Fixed deals are designed for counterparties seeking:

• market-aligned pricing
• reduced pricing volatility
• consistent user experience
• simpler participation conditions

Oracle-Sequential Strategy

Oracle-Sequential deals combine external oracle pricing with sequential auction adjustments over time.

Characteristics:

• periodic oracle price updates
• dynamic discount adjustments
• sequential Dutch auction behaviour
• adaptive market pricing
• continuously evolving pricing conditions

The pricing model:

• references external market pricing
• updates at predefined intervals
• adjusts discounts dynamically depending on market conditions

This structure balances:

• market responsiveness
• participant fairness
• pricing flexibility
• capital efficiency

Oracle-Sequential deals are designed for transactions whose pricing should evolve alongside market conditions.

Dutch Auction Model

Sequential Dutch pricing models follow a Dutch auction structure where:

• pricing begins at a higher level
• pricing decreases gradually over time
• participants choose when to enter
• price discovery occurs dynamically through market participation

This structure introduces:

• competitive market timing
• dynamic participant behaviour
• flexible liquidity coordination
• transparent price discovery

Participants must decide whether to:

• enter early at higher pricing
• wait for larger discounts
• risk market capacity being filled before lower pricing becomes available

Pricing Strategy Comparison

Strategy	Pricing Source	Price Behaviour	Oracle Dependency	Best For	Buyer Experience
Fixed-Price	Negotiated seller price	Constant	No	Bilateral sales or private rounds	Stable and consistent pricing
Sequential Dutch	Internal market logic	Decreases gradually over time	No	Demand-driven price discovery	Dynamic entry timing and auction participation
Oracle-Fixed	External oracle	Fixed after launch	Yes	Stable market-aligned pricing	Transparent discount relative to market pricing
Oracle-Sequential	External oracle	Dynamically updated over time	Yes	Adaptive market-linked execution	Pricing evolves alongside market conditions