# What is cgUSD v1 Cygnus is the first native stablecoin protocol on the Base chain. It uses short-term U.S. Treasury Bills as collateral to issue interest-bearing stablecoin cgUSD and allows users to mint using multi-chain assets.\ \ Cygnus mints an interest-bearing stablecoin called cgUSD on Base, collateralized by short-term U.S. Treasuries, and plans to allow users to mint cgUSD using multiple asset classes on multiple chains. cgUSD shares pure interest income from U.S. Treasuries with users through the rebase mechanism. As the interest is distributed and the net asset value increases, cgUSD's balance increases accordingly. On each New York banking day, the total supply of cgUSD is synchronized with the net value of its asset portfolio, which includes off-chain U.S. Treasuries, on-chain stablecoins, and asset interest. This ensures that Cygnus Finance will always support the redemption of USDC with cgUSD at a 1:1 ratio. Cygnus also supports the wrapping of cgUSDs into wcgUSDs with full chain availability. wcgUSDs will ensure value consistency with their wrapped cgUSDs by underpinning the price movement. wcgUSD holders will also be able to take advantage of the corresponding interest distribution. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wiki.cygnus.finance/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/what-is-cgusd-v1.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.