Cygnus
  • 👋Welcome To Cygnus
  • Cygnus Network
    • What is Cygnus?
    • Why Do We Need Cygnus?
    • How Does Cygnus Work?
    • Cygnus Social App SDK
      • Cygnus Instagram App Layer
      • Telegram Mini App for Cygnus
      • Whatsapp Mini App for Cygnus
    • Bug Bounty
    • Grant Program
    • Cygnus Token
    • Research
      • Optimism
      • Optimistic Rollups
      • OP Super Chain
      • OP Stack
  • Cygnus Omnichain Liquidity Validation System (LVS)
    • Introduction
    • Collateral Mechanism & Asset Management
    • Vault Delegation & Restaking Framework
    • Network Coordination & Security Layer
    • Operator Registration & Incentive System
    • Resolver Governance & Dispute Resolution
    • Cygnus LVS Integration
      • cgETH
        • What is cgETH?
        • Core Features and Mechanics of cgETH
        • Security, Transparency, and Risk Management
      • clBTC
        • What is clBTC？
        • How clBTC Works？
        • Integration with CeFi and DeFi in Cygnus Network
        • Security, Transparency, and Risk Management
      • cgUSD v1
        • What is cgUSD v1
        • Why Cygnus Finance
        • Risk Warning
        • Protocol Mechanics
          • Mint
          • Wrap
          • Bridge
          • Redemption
        • Token and Contract
          • cgUSD
            • Comparison to Stablecoins
            • How it Works
            • On-Chain Price Oracle
          • wcgUSD
            • Comparison to cgUSD
            • How it Works
          • Smart Contract Audits
        • FAQ
          • Mint
          • Wrap
          • Withdrawals
      • cgTON
    • Cygnus Pool SDK
  • legal
    • Privacy Policy
    • Interface Terms of Use
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  1. Cygnus Omnichain Liquidity Validation System (LVS)
  2. Cygnus LVS Integration
  3. cgUSD v1
  4. Token and Contract
  5. cgUSD

How it Works

PreviousComparison to StablecoinsNextOn-Chain Price Oracle

Last updated 1 year ago

Through the rebase mechanism, cgUSD conveys the pure interest returns of U.S. Treasury bills for users. As interest is distributed, the balance of cgUSD increases accordingly. The total issuance of cgUSD remains consistent with the net value of its asset portfolio (on-chain stablecoins, the market value of U.S. Treasury Bills and interest) every New York banking day, ensuring that Cygnus Finance always supports a 1:1 redemption ratio of cgUSD to USDC. The detailed calculation formula is as follows:

Y(i) represents the initial total issuance of cgUSD minted by user(i)

C represents USDC tokens in the US Treasury Assent Pool

T represents USDB represents the market value of US Treasury-Bills

R represents the rebased total issuance of cgUSD

M represents USDC tokens to receive

S(i) represents transaction fees