VEO Types & Pricing Models
Lucid supports multiple VEO structures designed to help ecosystems coordinate liquidity, treasury growth, and long-term capital alignment through vested governance token distribution.
Each VEO type allows participants to contribute liquidity, strategic assets, or protocol deposits in exchange for discounted governance tokens vested over time.
Regardless of the structure used, the outcome remains the same:
- participants contribute capital or liquidity
- governance tokens are distributed at a discount
- token distribution is vested over time
- ecosystems receive long-term aligned liquidity
Strategic Asset VEOs
Strategic Asset VEOs accept strategic assets such as:
- USDC
- USDT
- ETH
Participants bond these assets directly and receive discounted governance tokens vested over time.
These VEOs are designed for ecosystems seeking to:
- build treasury reserves
- accumulate strategic assets
- strengthen stablecoin reserves
- coordinate long-term liquidity growth
- improve treasury sustainability
Strategic Asset VEOs are commonly used by ecosystems looking to build protocol-controlled reserves of stable or high-value assets.
Liquidity VEOs
Liquidity VEOs are integrated with Steer Protocol and focus on coordinated liquidity provisioning.
Participants:
- provide liquidity into supported LP pools
- receive LP tokens
- bond LP tokens into the VEO
- receive discounted governance tokens vested over time
Liquidity VEOs 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 VEOs
TVL VEOs 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 VEOs 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 VEOs sell governance tokens at a predefined constant price for the entire duration of the offering.
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 liquidity campaigns
Participants always receive the same pricing conditions regardless of when they enter during the VEO duration.
Sequential Dutch Strategy
Sequential Dutch VEOs 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 VEOs are particularly useful for:
- open market price discovery
- flexible liquidity campaigns
- ecosystems seeking non-oracle pricing coordination
Oracle-Fixed Strategy
Oracle-Fixed VEOs use external oracle pricing to determine the initial token price.
Once launched:
- pricing remains fixed
- the discount remains constant
- the market price reference does not update
For example:
- a VEO 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 offering conditions
Oracle-Fixed VEOs are designed for ecosystems seeking:
- market-aligned pricing
- reduced pricing volatility
- consistent user experience
- simpler participation conditions
Oracle-Sequential Strategy
Oracle-Sequential VEOs 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 VEOs are designed for ecosystems that require pricing to evolve continuously 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 | Manual protocol pricing | Constant | No | Predictable liquidity campaigns | 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 liquidity coordination | Pricing evolves alongside market conditions |