What is Lumia Stream?
Unveiling Lumia: The Next Evolution in DeFi Liquidity
Lumia Stream is a B2B product that is revolutionizing the DeFi landscape by introducing a novel concept of decentralized CEX liquidity. It is one of the two key products in Lumia's DeFi suite, alongside Lumia L2.
Lumia Stream bridges the Total Value Locked (TVL) from centralized exchanges (CEXs) and offers this liquidity to any DeFi product through an in-house developed technology called Delta Neutral Liquidity Provision (DNLP).
Moreover, the integration with Lumia Stream eliminates the need for DeFi projects to bootstrap liquidity using their native tokens to reward liquidity providers (LPs)—a practice that often results in significant selling pressure. Additionally, Lumia Stream's revenue sharing model effectively mitigates impermanent loss for LPs, thereby safeguarding their investments and enhancing the stability of the DeFi ecosystem.
Lumia Stream's Proprietary Liquidity Technology
Decentralized CEXs aggregation: Lumia Stream aggregates CEX liquidity from major exchanges like Binance, OKX, and Kucoin, making it available in a fully decentralized manner for any DeFi project. Lumia Stream not only mirrors the quotes from these CEXs on a 1:1 basis but also allows a single order to be routed across multiple CEXs, achieving unprecedented pricing efficiency in DeFi. This is facilitated while ensuring that users interact only with the decentralized part of the infrastructure, directly from their non-custodial wallets.
DEXs aggregation: Lumia Stream also incorporates an advanced DEX aggregation framework, which efficiently index and aggregate liquidity pools from various decentralized exchanges. This system enhances liquidity utilization and optimizes trade execution by leveraging the dispersed liquidity across the DeFi landscape, enabling users to access aggregated liquidity from across the entire DeFi ecosystem through a single point of entry.
Delta Neutral Liquidity Provision (DNLP): DNLP is a sophisticated financial strategy employed by Lumia Stream to balance and neutralize the risk associated with price movements in the liquidity pools. In this system, liquidity providers, referred to as Liquidity Nodes, set up the DNLP software initially and then benefit from a completely automated system. They do not need to perform any further actions, allowing them to simply collect trading fees paid by users and, in the future, other real yields provided by DNLP. This setup ensures that Liquidity Nodes are not subjected to impermanent loss, maintaining stable and profitable liquidity provision throughout market fluctuations.
Atomic Swap with HTCLs bridge: Lumia Stream utilizes Hash Time Locked Contracts (HTLCs) to enable secure and efficient atomic swaps between different blockchains. This mechanism ensures that cross-chain transactions are executed in a trustless manner, enhancing interoperability and flexibility for users. The HTLCs bridge supports a seamless transfer of assets across the major EVM blockchains, broadening the scope and accessibility of DeFi services.
Virtual Order Books (VOBs): Lumia employs VOBs to simulate a consolidated order book that captures the breadth of the market. This virtual view offers users the best possible prices by computing the most efficient trading paths across various liquidity sources.
Dual Infrastructure: Spot and Perpetuals
Lumia is not limited to spot trading; it encompasses an entire suite of derivatives infrastructure. This dual nature means that Lumia is equipped to handle a broad range of financial instruments, with both infrastructures benefiting from the integration of CEX liquidity. Whether it's the immediate exchange of assets in spot trading or the complex strategies of derivatives, Lumia provides the liquidity and tools necessary for sophisticated trading on a global scale.
A Unique Proposition for Builders
Lumia's unparalleled liquidity solution is a game-changer for builders in the blockchain space. It invites developers to leverage this unique protocol that seamlessly bridges the gap between CEX and DEX liquidity. With Lumia, projects can deploy applications knowing they have access to a vast liquidity network that rivals the most prominent centralized platforms, yet operates under the trustless and transparent principles of blockchain technology.
Welcome to Lumia, where liquidity meets innovation.
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