Key Terms and Explanations

Below you will find a comprehensive list of important keywords related to Lucid and their explanations.

INFO

For OTC deal guidance, see the Lucid OTC overview.

Organisation

Represents an entity or community within Lucid, configured with governance, treasury, and operational modules. It enables structured management of multi-chain operations and decentralised decision-making.

Module

A functional building block that adds specific features to an organisation. Examples include Bonding Engine, Multi-Bridge, Safe Treasury, and Protocol Upgrades. Modules provide modular capabilities for governance, treasury, liquidity management, and more.

Lucid OTC

Lucid’s on-chain settlement and vesting infrastructure for token deals. It binds the buyer’s payment and token allocation in one atomic transaction, routes proceeds to the seller, and enforces the buyer’s unlock schedule by smart contract.

OTC Deal

A configured exchange between a seller and one or more eligible buyers. Its on-chain terms can include the price or discount, payment and payout assets, capacity, minimum ticket, per-wallet limits, participation rules, cliff, and vesting schedule.

Atomic Settlement

Settlement in which payment and allocation execute together as one transaction. Either both legs succeed or neither does, so one party does not have to perform first and wait for the other.

Quote Token

The asset a buyer deposits to settle an OTC deal, such as USDC, USDT, ETH, a supported LP token, or a supported vault position.

Payout Token

The token allocated to the buyer at settlement and released according to the deal’s vesting schedule.

Cliff

A period at the beginning of a vesting schedule during which no tokens are claimable. After the cliff, tokens unlock according to the configured schedule.

Allowlist

A list of wallet addresses permitted to participate in a restricted OTC deal. Deals may instead be bilateral with one counterparty or open to wider participation.

Governance

The decision-making process within an organisation, typically involving proposals and voting. Governance modules include 1 Token 1 Vote, Quadratic Voting, Pre-Vote Veto, and Pre-Execution Veto. This facilitates democratic and decentralised control over an organisation’s operations.

1 Token 1 Vote

A governance model where each token represents one vote. It ensures proportional influence based on token holdings.

Quadratic Voting

A governance model where voting power increases at a slower rate compared to token holdings, reducing the dominance of large token holders. It promotes fairness and prevents disproportionate influence in governance.

Pre-Execution Timelock and Veto

Veto Functionality

A governance feature that enables community-elected multi-sig wallets to block proposals before voting (Pre-Vote Veto) or before execution (Pre-Execution Veto). It is a critical security measure for protecting the organisation’s operations.

Pre-Vote Veto and Vote Delay

Pre-Vote Veto is a veto mechanism that allows proposals to be blocked before the voting phase. It prevents potentially harmful proposals from entering the voting stage. If the Pre-Vote Veto module is selected, the Vote Delay setting is linked to the veto functionality. The number of days chosen for the vote delay corresponds to the time available to veto a proposal through the Pre-Vote Veto module. This action can be performed via the organisation’s summary page.

Pre-Execution Veto and Timelock

A veto mechanism that allows proposals to be blocked after voting but before execution. It provides a final safeguard against undesirable actions. The Pre-Execution Timelock correlates with the Pre-Execution Veto module. The time selected for the timelock defines the window during which a proposal can be vetoed before execution.

Multi-Bridge

A module enabling secure cross-chain messaging and asset transfers using multiple blockchain bridges. It ensures redundancy and security in cross-chain transactions by requiring consensus across multiple bridges.

Safe Treasury

A module for managing an organisation’s treasury across multiple chains. It tracks inflows and outflows and provides tools for secure multi-sig wallet operations. It is an essential module for decentralised treasury management and governance transparency.

Protocol Upgrades

A module that facilitates upgrades to contracts, UI elements, and other organisational components. It enables seamless updates to protocols while maintaining operational continuity.

Bonding Engine

A technical module underlying Lucid OTC. It exchanges a quote asset for a vested payout-token allocation and supports strategic asset, liquidity, and TVL deal structures with configurable pricing and vesting.

Quadratic Threshold

A hybrid governance model, combining 1 Token 1 Vote and Quadratic Voting. Up to a specified percentage of the token supply, voting follows the 1 Token 1 Vote mechanism. Beyond this threshold, Quadratic Voting is applied.

For example, if a user holds 10% of the total token supply and the organisation sets a quadratic threshold of 5%, then:

• The first 5% of tokens follow 1 Token 1 Vote.
• The remaining 5% are calculated using Quadratic Voting, reducing the influence of large token holders (whales).

This feature is designed to ensure fairness and reduce the disproportionate impact of large token holders on governance outcomes.

Bond (Legacy Contract Term)

Some deployed contracts and interfaces use “bond” for the buyer’s vested allocation. In current product language, this is an OTC deal or OTC position: the buyer deposits a quote token, receives a payout-token allocation, and claims it according to the configured vesting schedule.

Working Group

A module for creating multi-sig wallets and managing collaborative tasks within an organisation. It supports decentralised collaboration for specific operational needs like marketing or event planning.

Refund Mechanism

A feature that reimburses users for transaction fees incurred during their governance participation. It encourages participation in on-chain governance by eliminating cost barriers.

Vesting

A process where tokens are distributed to recipients gradually over a predefined schedule. It ensures long-term alignment between the organisation and its stakeholders.

Asset Transfer Portals

A module for managing cross-chain token transfers with minting and burning capabilities. It facilitates efficient and secure movement of assets across different blockchains.

Gitcoin Passport Integration

An optional feature for identity verification and sybil-resistance. It enhances governance security, especially in Quadratic Voting models.

Multi-Sig Wallet

A wallet that requires multiple approvals (signatures) to execute transactions. It increases security and decentralisation in decision-making.

Timelock

A delay mechanism that postpones the execution of proposals or transactions. It provides a buffer period for review and potential veto.

Snapshot

A lightweight off-chain voting tool for governance that integrates with on-chain execution mechanisms through oracles. It allows organisations to hold low-cost governance votes while maintaining decentralised integrity.

Tally

A governance analytics and delegation platform integrated with on-chain governance modules. It tracks proposal history, voter participation, and delegation activities, providing detailed insights for governance stakeholders.

Cross-Chain Governance

Governance actions that span multiple blockchain networks. It ensures unified decision-making in multi-chain organisations.

Minimum Bridge Requirement

A threshold for the number of bridges needed to approve a cross-chain transaction. It enhances security by requiring consensus from multiple bridges.