Integration with CeFi and DeFi

CeFi Integration

Cygnus seamlessly integrates with centralized exchanges (CEXs) like Binance via Ceffu's MirrorX service. Upon deposit, Cygnus transfers funds to a Ceffu Prime Wallet, mirroring them at a 1:1 ratio to a Binance MirrorX sub-account without requiring users to directly interact with the CEX. This approach is accessible to all Bitcoin holders, regardless of experience level.

Ceffu MirrorX

Ceffu MirrorX provides high-speed, efficient access to Binance's deep liquidity. This off-exchange settlement solution instantly mirrors assets between your Ceffu Prime Wallet and your designated Binance MirrorX sub-account.

• Instant Asset Mirroring: Real-time asset mirroring at a 1:1 ratio.

• Automated Settlements: Automatic, fee-free daily settlements.

• Flexible Withdrawals: Withdraw assets from Binance or Ceffu.

• Enhanced Security: Leveraging Ceffu's MPC technology and cold storage.

• Reduced Counterparty Risk: Maintaining asset custody while accessing Binance markets.

Cygnus Strategies

Cygnus partners with several professional quantitative teams, employing a stable delta-neutral strategy to generate consistent returns. Cygnus utilizes a sophisticated delta-neutral strategy to generate consistent BTC yield for users. Unlike traditional investment approaches susceptible to market volatility, our strategy minimizes price fluctuation exposure while maximizing returns. This is achieved through a dynamically adjusted portfolio maintaining a net delta of zero.

• Delta-Neutral Hedging: A core component of our strategy involves creating a delta-neutral portfolio by precisely matching long positions in Bitcoin-correlated assets with short positions in derivative contracts (e.g., perpetual swaps, futures). This dynamic hedging minimizes exposure to market volatility.

• Yield Generation: While delta-neutral hedging mitigates price risk, Cygnus generates yield through:

  • Funding Rates: Capitalizing on positive funding rates from perpetual swap contracts.

  • Basis Spreads: Exploiting favorable discrepancies between spot and derivative market prices.

  • Staking Rewards (where applicable): Integrating staking rewards from underlying assets.

Reliability

Cygnus prioritizes the security and stability of user assets. Our risk management framework focuses on:

• Minimizing Smart Contract Risk: Through rigorous audits and security best practices.

• Ensuring Operational Resilience: Diversifying across multiple exchanges and custodians.

• Maintaining Liquidity: Employing dynamic liquidity management strategies.

• Protecting Against Counterparty Risk: Implementing stringent due diligence and collateralization procedures.

• Multi-Party Management: Utilizing Ceffu's MPC technology and trusted parties for asset management.

DeFi Integration

Cygnus issues liquidity staking tokens, such as clBTC, allowing users to earn CeFi yields while simultaneously utilizing these tokens within other DeFi protocols for activities like swapping and lending. This dual approach generates additional on-chain yields. Users can redeem their LST tokens at any time, exchanging clBTC for BTC on their chosen blockchain.