# Welcome To Cygnus Cygnus Documentation ## Cygnus Network Cygnus is a modular real yield layer and the first Web3 Instagram App Layer, merging on-chain & off-chain assets to power the creator economy. Built with Cygnus LVS, onboarding the next billion users onto Web3. ## Learn More You can find out more about **Cygnus** and our offerings by reading through these docs or by visiting our website at .
## Join Our Community Website: Staking: Medium: Twitter: Telegram: Instagram: # What is Cygnus? **Cygnus** is a modular real yield layer and the first Web3 Instagram App Layer, designed to merge on-chain and off-chain assets in support of the creator economy. The network leverages the **Cygnus Omnichain Liquidity Validation System (LVS)** to provide scalable, secure, and efficient liquidity validation and staking infrastructure across EVM and non-EVM ecosystems. This framework facilitates sustainable staking yields, LVS fees, and ecosystem incentives for participants. Through the rapidly expanding **Cygnus Instagram APP Layer**, the network connects millions of Instagram users, establishing an accessible gateway into Web3. This ecosystem supports the development of a decentralized creator economy, while enabling user participation in data sovereignty initiatives and future AI-integrated applications. Cygnus lowers the barriers to Web3 adoption through seamless onboarding mechanisms, including Account Abstraction (AA) wallets, ensuring a frictionless experience for both users and creators. By integrating a comprehensive application layer with robust underlying infrastructure, Cygnus delivers a scalable solution for mainstream Web3 adoption and decentralized value creation. # Why Do We Need Cygnus? ### The Need for Secure, Scalable, and Affordable Blockchain Infrastructure — Cygnus LVS As the blockchain ecosystem expands, many **small and medium-sized networks** face critical challenges in securing their ecosystems, maintaining network integrity, and incentivizing long-term participation. Traditional validation mechanisms are often costly, inefficient, and reliant on inflationary token models that are unsustainable.The **Cygnus Omnichain Liquidity Validation System (LVS)** addresses these issues by providing a **modular, distributed validation infrastructure** that delivers: * **Affordable shared security**: Lowering the cost of securing emerging networks compared to traditional PoS models. * **Cross-chain interoperability**: Supporting both EVM and non-EVM chains, enabling seamless liquidity flow and interoperability. * **Sustainable real yield**: Generating yields from staking rewards, LVS fees, MEV, and off-chain assets (such as RWAs), ensuring consistent, non-inflationary returns. By providing scalable validation and liquidity solutions, **LVS strengthens the security and sustainability** of blockchain networks. This foundational layer supports an ecosystem where developers, validators, and users can participate with lower costs and higher incentives. ### **Bridging Web2 and Web3 — Cygnus Instagram App Layer** While Cygnus LVS secures the backend infrastructure, mass **user adoption remains the front-end challenge** for Web3. Mainstream audiences continue to engage on familiar Web2 platforms like Instagram, yet onboarding these users into Web3 has been slow due to complex processes and fragmented user experiences.The **Cygnus Instagram Layer** directly addresses this by: * Leveraging Instagram’s **massive user base** (2.5 billion+ users) to onboard Web2 participants into Web3. * Utilizing **InstaPlay Hub** as an entry point, offering gamified Web3 experiences such as collecting on-chain rings, completing daily challenges, and climbing leaderboards to unlock rewards. * Enabling seamless onboarding through **Account Abstraction (AA) wallets**, removing the need for private keys or seed phrases, and simplifying user participation in Web3. Cygnus Instagram Layer not only brings new users into the ecosystem but also **creates demand for Cygnus LVS services**, as these users interact with on-chain applications that require validation, liquidity, and security — all provided by the LVS .\ The combined implementation of LVS and the Instagram Layer exemplifies Cygnus's commitment to addressing the challenges of security, liquidity, and user adoption in the blockchain space. By offering scalable solutions that cater to both technical infrastructure and user engagement, Cygnus positions itself as a pivotal player in driving the next wave of Web3 adoption. # How Does Cygnus Work?

Cygnus Chain integrates Ethereum security, modular data availability and non-EVM liquidity

**Cygnus Network** is a modular real yield layer built on Optimistic Rollup technology, designed to deliver scalable, cost-efficient, and developer-friendly infrastructure for decentralized applications (dApps). By leveraging a modular architecture and advanced Data Availability (DA) layers, Cygnus Network enhances transaction throughput, reduces costs, and facilitates seamless integration across EVM and non-EVM ecosystems. ### **Modular Architecture for Scalability and Efficiency** Cygnus Network utilizes a modular framework that decouples execution, settlement, and data availability. This architecture ensures flexibility, scalability, and adaptability for a wide range of applications.The **Data Availability (DA) layer** includes two primary components: * **Data Storage Lane**: Optimized for long-term data persistence and scalability. * **Data Publishing Lane**: Ensures fast and reliable dissemination of data for verification and consensus. This layered approach allows Cygnus Network to significantly reduce transaction data costs, delivering a more affordable and scalable solution for developers and end users.Cygnus uses RedStone Oracles as the primary solution for crypto assets pricing.[ ](https://redstone.finance/)RedStone feeds are used as a cross-check for calculating user deposits value while minting cg-assets (cgUSD, clETH, Cygnus-stBTC…) [RedStone](https://redstone.finance/) is an Oracle provider covering a lot of yield-bearing assets including ETH and BTC LSTs/LRTs that are a major assets within Cygnus Restake. Cygnus utilizes the[ Pull](https://docs.redstone.finance/docs/get-started/models/redstone-pull) model where the data is automatically appended to user transactions. ### **Optimistic Rollup for Secure and Scalable Execution** Cygnus Network employs Optimistic Rollup as its core scaling solution. Transactions are processed off-chain and periodically submitted to the Ethereum mainnet for settlement. The optimistic design assumes transaction validity by default, enabling faster processing and lower computational overhead. Dispute resolution mechanisms ensure network security and integrity without compromising scalability.This rollup strategy allows Cygnus Network to achieve high transaction throughput, minimal latency, and reduced gas fees—providing a seamless user experience for dApps and end users. ### **Universal Circuits: Developer-Centric Design and Flexibility** Cygnus Network introduces **Universal Circuits**, a developer-friendly framework that simplifies the deployment of scalable dApps on Optimistic Rollup infrastructure.Key features include: * **Pre-built circuits** for common functionalities in DeFi, gaming, AI, and more. * **API access** for seamless integration with existing Solidity-based smart contracts. * **Optimistic Rollup-as-a-Service**, allowing projects to easily leverage Cygnus Network’s infrastructure for customized applications. This environment dramatically reduces the complexity of building scalable applications and enables faster time-to-market for developers. ### **Data Availability Empowering AI and Advanced Applications** Cygnus Network’s modular DA layer provides the infrastructure necessary to support advanced data-driven applications. High data throughput and efficient storage make it ideal for AI-driven use cases, complex analytics, and other high-performance scenarios. The scalable DA layer ensures reliable data access while maintaining cost efficiency. ### **A Growing Ecosystem and Incentive Programs** Cygnus Network fosters an inclusive and innovative ecosystem, supporting applications across DeFi, gaming, AI, and beyond. The **Cygnus Ecosystem Grants Program** encourages the development of high-impact projects by providing funding, resources, and technical support. This initiative is designed to accelerate the growth of the Cygnus ecosystem and drive adoption among both Web3 and Web2 communities. ## **Conclusion** Cygnus Network delivers a modular, scalable, and cost-efficient infrastructure based on Optimistic Rollup technology. By combining a robust DA layer with Universal Circuits and developer-centric tooling, Cygnus provides an ideal environment for deploying high-performance decentralized applications. Cygnus is positioned to become a foundational platform for scalable blockchain innovation and widespread Web3 adoption. # Cygnus Social App SDK {% content-ref url="/pages/uQ5Gv42cW47tirLimIoI" %} [Cygnus Instagram App Layer](/whitepaper/cygnus-network/cygnus-social-app-sdk/cygnus-instagram-app-layer) {% endcontent-ref %} {% content-ref url="/pages/jdn8or4RKcriQCNXe5fl" %} [Telegram Mini App for Cygnus](/whitepaper/cygnus-network/cygnus-social-app-sdk/telegram-mini-app-for-cygnus) {% endcontent-ref %} {% content-ref url="/pages/FNmsTkmYlYZVtCPbC19D" %} [Whatsapp Mini App for Cygnus](/whitepaper/cygnus-network/cygnus-social-app-sdk/whatsapp-mini-app-for-cygnus) {% endcontent-ref %} # Cygnus Instagram App Layer Cygnus, the First Web3 Instagram App Layer – onboarding the next billion users – is designed to merge on-chain and off-chain assets to power the creator economy right within Instagram. It offers a modular, real-yield solution that enables developers to build engaging, blockchain-powered experiences directly on the platform. By simplifying user onboarding and integrating seamless Web3 functionalities, the Instagram App Layer paves the way for a frictionless crypto experience, accelerating mainstream blockchain adoption and redefining the intersection of social media and crypto. ## Advantages of Cygnus Instagram Layer ### **An Officially Verified Technology Provider by Meta** Cygnus’ core team includes ex-Meta (Instagram parent company) members, with deep expertise in social engagement algorithms, ad monetization, and creator economy strategies. As Web3 adoption grows, our team understands how to leverage Instagram’s existing user behavior and platform dynamics to drive seamless blockchain onboarding.With this power, Cygnus is officially verified as a tech provider from Meta, solidifying its ability to integrate Web3 directly within the platform. This verification enables Cygnus to offer a fully embedded Web3 experience, where users can seamlessly engage with asset management, token rewards, and NFTs—all without ever leaving Instagram. By bridging the gap between social media and blockchain, Cygnus is unlocking a new era of frictionless Web3 adoption.
### **Seamless Web3 Access: Your Instagram Account = Your Web3 Wallet** Cygnus InstaPlay introduces a cutting-edge wallet system powered by advanced Account Abstraction (AA) technology, eliminating the traditional complexities of Web3 wallets. * No private keys * No seed phrases * No complicated onboarding Instead, users can simply log in with their Instagram account, instantly generating a fully functional Web3 wallet that seamlessly integrates with their Instagram identity. The result is a frictionless Web2-to-Web3 transition, ensuring that blockchain interactions seamlessly integrate with users’ social experiences on Instagram. Features like password recovery and automated key management further enhance accessibility, making Web3 interactions as easy as traditional online services.
### **Strategic Partnerships Driving Global Expansion** Cygnus has strategically expanded its presence in high-growth regions, including the Middle East and Latin America, where social media engagement is soaring, and blockchain interest is rising. By partnering with influencers and leveraging Instagram’s content-driven virality, Cygnus ensures that new users can effortlessly engage with Web3 through their favorite social platform.\
## Roadmap of the Cygnus Instagram App Layer ### **Phase 1: Engaging Instagram Users Through Education and Web3-powered games** As the first phase of the Cygnus Instagram App Layer, Cygnus InstaPlay was launched to attract users through simple and highly interactive Web3-powered mini-games. By engaging with these games, users naturally familiarize themselves with blockchain mechanics in a frictionless way. * One-click Web3 onboarding: Users log in using their Instagram credentials, instantly generating an embedded Web3 wallet without seed phrases. * Seamless interaction with blockchain content: Users can earn rewards, collect NFTs, and engage in Web3 activities without leaving Instagram. * Frictionless UX: Web3 accessibility is simplified, mirroring the ease of Web2 interactions.
### **Phase 2: Empowering the Creator Economy and Revenue Sharing** Cygnus provides crypto services that serve as a fair and transparent distribution tool for the creator economy, enabling content creators to monetize their work efficiently while fostering a decentralized value exchange ecosystem.
### **Phase 3: Data Sovereignty & AI Integration** Cygnus is revolutionizing data ownership by empowering users to monetize and control their own data. This initiative includes: * User-controlled digital identity: Cygnus enables users to own their social data, giving them full control over how it's utilized. * Decentralized AI models: Users can contribute anonymized data to AI training pools, earning rewards in return. * Tokenized engagement tracking: Every social interaction within Cygnus InstaPlay is transparently recorded on-chain, ensuring data security and fair attribution. # Telegram Mini App for Cygnus Step into a future where financial bots are not just assistants, but partners in your global transactions. It's not just a fantasy; with CygnusFinance Bot, it's a reality just minutes away. \ CygnusFinance Bot is designed to lower the barriers to payment, facilitate seamless integration with global web2 users, and drive towards mass adoption. This bot is not just a communication tool; it's a gateway to a more inclusive financial ecosystem. \ Now you can take advantage of the CygnusFinance Bot for your transactions.
1. Launch your Telegram app, search for CygnusFinanceBot, or simply click on and then tap "Open App" below.
1. Now you have the option to mint cgUSD on the Base network or mint cgUSDT on the TON network. Choose between the Base network or the TON network. Click on "Connect Wallet." This completes the wallet connection process.
3. On the Base network, you can mint $cgUSD. First, enter the amount of USDC you want to mint, then click "Approve" at the bottom. Once the transaction is confirmed in your wallet, you will have successfully minted $cgUSD. You can check the current balance of your $cgUSD in the "Balance" section.
4. On the TON network, you can mint $cgUSDT. Click "Connect Wallet" to select your preferred TON wallet. Input the amount of USDT you would like to mint, ensure you have at least 0.2 TON in your wallet, and click "Mint". After confirming your transaction, you will have successfully minted $cgUSDT. You can verify the amount of your $cgUSDT in your TON wallet.
More features of CygnusFinance Bot are coming soon! # Whatsapp Mini App for Cygnus Coming soon! # Bug Bounty *Earn up to $2,000,000 USD by finding protocol, client and bugs affecting Cygus.* ### Overview The **Cygnus Bug Bounty Program** is your opportunity to contribute to the security and resilience of one of the most innovative ecosystems in Web 3.0. By identifying and responsibly disclosing vulnerabilities, you can earn rewards of up to **$2,000,000 USD** while playing a pivotal role in safeguarding user trust and ecosystem integrity.Our program emphasizes the **proactive prevention** of critical security issues, such as: * **Loss of User Funds**: Protect the assets of Cygnus users from potential exploits or vulnerabilities. * **Denial of Service (DoS)**: Mitigate risks that could disrupt protocol functionality or accessibility. * **Governance Hijacks**: Prevent unauthorized control or manipulation of governance mechanisms. * **Data Breaches and Leaks**: Secure sensitive information and prevent unauthorized data access or exposure. Cygnus recognizes the vital contributions of ethical hackers and security researchers in maintaining the robustness of our protocol. This program isn’t just about discovering bugs—it’s about fostering collaboration with the brightest minds in cybersecurity to build a safer, more resilient ecosystem for everyone.Whether you’re an independent security expert, part of a professional team, or a passionate contributor, we welcome your expertise and encourage you to participate in making Cygnus stronger. Together, we can ensure a secure, transparent, and innovative future for Web 3.0. ### Rewards **Rewards by Threat Level**
Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System V2.2](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-2/). This is a simplified 5-level scale, with separate scales for websites/apps and smart contracts/blockchains, encompassing everything from consequence of exploitation to privilege required to likelihood of a successful exploit.All web and app bugs must come with a PoC in order to be accepted. All web and app bug reports without a PoC will be rejected with a request for a PoC.Smart Contracts Rewards Breakdowns * Smart Contracts Critical: * Loss of user funds: * 1% of assets at risk, minimum 100,000 USD, maximum 2,000,000 USD * Loss of non-user funds (e.g. treasury): * 1% of assets at risk, minimum 50,000 USD , maximum 1,000,000 USD * Smart Contracts High: * 1% of assets at risk when attack persists for 1 month * minimum 20,000 USD, maximum of 400,000 USD * Smart Contracts Medium: * 1% of assets at risk when attack persists for 1 month * minimum 5,000 USD, maximum 100,000 USD * Smart Contracts Low: * 2,000 USD Web/App Rewards Breakdowns * Web/App Critical: * 40,000 USD * Web/App High: * 7,500 USD * If attack can modify the transaction users approve so it sends funds to the wrong address: then this reward increases to a total of 40,000 USD * Web/App Medium: * 3,250 USD * Web/App Low: * 500 USD Payouts are handled by the Cygnus team directly and are denominated in USD. Payouts can be done in ETH, USDT,USDC, or Cygnus, at the decision of the bug bounty hunter. ## Cygnus Community Contribution Airdrop This form is designed to collect information from community contributors, especially those helping identify bugs and improve the protocol. Submissions will be used for the fair distribution of our airdrop. Cygnus is committed to decentralization and community-led growth — your effort in making Cygnus safer directly boosts your rewards! Click [here](https://docs.google.com/forms/d/e/1FAIpQLSfuVGJI0pYIEw9i1M9mhXOX6qzuulfp3MLN7Wag8N8VuUSxYg/viewform?usp=header) to submit your contribution and join the airdrop! # Grant Program **Unlock the Future of Innovation with Cygnus Incentive Grants** Are you ready to elevate your business and push the boundaries of what’s possible? The **Cygnus Incentive Grant Program** offers the resources, support, and network you need to accelerate growth, drive innovation, and achieve extraordinary success in the rapidly evolving Web 3.0 landscape. ### **What is the Cygnus Incentive Grant Program?** The **Cygnus Ecosystem Grant Program** is a catalyst for groundbreaking ideas and pioneering solutions. Designed to foster innovation, this program supports the development of projects that create tangible value for the Cygnus ecosystem. Whether you're building a game-changing dApp, designing cross-chain infrastructure, or crafting solutions to enhance liquidity, Cygnus is here to empower your vision. ### **Why Choose Cygnus?** * **Comprehensive Support**: From funding to mentorship, Cygnus provides end-to-end support for your project’s growth. * **Expansive Ecosystem**: Join a thriving network of developers, creators, and entrepreneurs who are shaping the future of Web 3.0. * **Modular Approach**: Leverage Cygnus’s modular real yield layer to seamlessly integrate with multiple L1s and reduce liquidity fragmentation. * **Access to a Global User Base**: Harness the power of Cygnus’s ecosystem and its connection to 1 billion+ Telegram users across L1s. ### **Who Should Apply?** We welcome applications from innovators across various sectors in Web 3.0, including: * Cross-chain interoperability and infrastructure solutions * Decentralized finance (DeFi) protocols * Real World Asset (RWA) tokenization projects * Privacy-enhancing technologies * Innovative use cases leveraging Cygnus’s Liquidity Validation System (LVS) But that’s not all! If your idea doesn’t fit into these categories, don’t hesitate to apply. We’re always on the lookout for fresh perspectives, unique solutions, and bold visions that can bring value to the Cygnus ecosystem and beyond. If your project has the potential to make an impact, we want to hear from you! #### **What You’ll Gain** * **Financial Support**: Grants tailored to your project’s needs. * **Technical Expertise**: Access to cutting-edge tools like the Telegram SDK and integration with Cygnus’s omnichain solutions. * **Community Engagement**: Visibility within the Cygnus network and beyond, with support for user acquisition and growth. ### **Your Innovation, Our Commitment** At Cygnus, we believe in the transformative power of collaboration. By participating in our Incentive Grant Program, you’re not just securing funding—you’re joining a mission to shape the future of decentralized finance and cross-chain innovation. ### **How to Apply** Ready to take the next step? Visit Cygnus Ecosystem Grants to learn more about the program and submit your application. Let’s create the future of Web 3.0 together! ## Cygnus Community Contribution Airdrop This form is for builders, creators, and contributors who are actively involved in the Cygnus ecosystem. Whether you're developing code, creating content, designing visuals, organizing events, holding Cygnus-related tokens, or actively trading — your submission will help determine your eligibility for a fair airdrop allocation. Cygnus is committed to empowering contributors through decentralization — the more value you bring, the more rewards you can earn. Click [here](https://docs.google.com/forms/d/e/1FAIpQLSfuVGJI0pYIEw9i1M9mhXOX6qzuulfp3MLN7Wag8N8VuUSxYg/viewform?usp=header) to submit your contribution and join the airdrop! # Tokenomics: CYGNUS (CGN) Cygnus Token {% content-ref url="/pages/aTNv591vmwQ5RzN5bLdL" %} [Overview](/whitepaper/cygnus-network/tokenomics-cygnus-cgn/overview) {% endcontent-ref %} {% content-ref url="/pages/3SAzR5JilhBfDVWzJcNd" %} [Supply](/whitepaper/cygnus-network/tokenomics-cygnus-cgn/supply) {% endcontent-ref %} {% content-ref url="/pages/gGdBqX0muDFC89dHKymE" %} [Distribution](/whitepaper/cygnus-network/tokenomics-cygnus-cgn/distribution) {% endcontent-ref %} # Overview ## **Cygnus Token: Utility, Value and Economic Design** ### **Introduction** The **Cygnus Token ($CYGNUS)** is the core asset powering the Cygnus Network—an Optimistic Rollup-based modular yield infrastructure designed to enable shared security, sustainable real yield, and scalable Web3 user adoption. $CYGNUS is integral to maintaining the security, functionality, and incentive structures that sustain the Cygnus ecosystem, while also serving as the primary mechanism through which users, validators, creators, and developers derive value.As the foundational token in the Cygnus Network, $CYGNUS is designed to: * Secure the network through staking and validation services. * Incentivize participants across the Liquidity Validation System (LVS) and the Instagram App Layer. * Power the creator economy and on-chain activities within Cygnus’ modular yield infrastructure. * Enable sustainable revenue generation and governance for long-term ecosystem growth. ### **The Role of $CYGNUS in the Cygnus Network** 1. **Security and Validation (LVS Staking)** * $CYGNUS is used to **stake** in the **Liquidity Validation System (LVS)**. * Stakers provide liquidity and security to emerging partner blockchains (both EVM and non-EVM chains). * In return, stakers earn **staking yields**, **LVS validation fees**, and **MEV rewards**. The staking mechanism ensures **affordable shared security** for partner chains while enabling **real yield** for participants. 2. **Utility within the Cygnus Instagram Layer** * $CYGNUS acts as the **reward and incentive token** for users and creators on the **Cygnus InstaPlay Hub**. * Instagram users earn $CYGNUS by completing on-chain activities, participating in games, and engaging with the creator economy. * Creators receive $CYGNUS as direct monetization for content and community engagement, eliminating intermediaries and maximizing earning potential. As the user base grows on Instagram and other social platforms integrated through Cygnus’ General Social SDKs, the demand for $CYGNUS increases to support **rewards, transactions, and staking**. 3. **Gas Fees and Transaction Utility** * $CYGNUS is the **native gas token** for transactions on the Cygnus Network. * It is used to pay: * **Sequencer fees** within the Optimistic Rollup Layer. * **Gas fees** for dApps built on Cygnus. * **DA layer data publication fees**, improving efficiency and scalability. This utility drives continual **token velocity** as the network scales. 4. **Governance and Protocol Evolution** * $CYGNUS holders have the ability to **propose**, **vote**, and **decide** on key governance matters, including: * Protocol upgrades and network optimizations. * Allocation of ecosystem funds and grants. * Economic parameters such as staking rewards, fees, and incentives. Governance ensures **community-led development** and alignment between token holders and the long-term success of Cygnus. ### **Value Accrual Mechanisms for $CYGNUS** 1. **Real Yield from LVS and Staking Rewards** * The **Liquidity Validation System (LVS)** provides sustainable yield sourced from: * Partner network validation fees. * MEV revenue from sequencing and validation. * Off-chain yields through tokenized RWAs and CeDeFi integrations. These rewards are redistributed to $CYGNUS stakers, driving **consistent and non-inflationary yield**. 2. **Blockspace Demand from Cygnus Instagram Layer** * As user activity increases via **Cygnus InstaPlay Hub**, demand for blockspace grows. * Increased transaction volume drives **gas fee consumption** and **sequencer utilization**, directly benefiting $CYGNUS holders through: * Higher sequencer revenue. * Increased network activity and demand for staking. 3. **Incentive Alignment Across Users, Creators, and Developers** * Users earn $CYGNUS by participating in on-chain games and community initiatives. * Creators receive $CYGNUS for producing content and driving engagement. * Developers building on Cygnus benefit from: * Ecosystem grants. * Retroactive rewards funded by $CYGNUS issuance. This **multi-stakeholder incentive alignment** ensures network activity feeds directly into **token demand and value appreciation**. 4. **Ecosystem Revenue Streams** Revenue generated within the Cygnus Network is either redistributed or contributes to token value through: * **LVS validation fees**. * **Sequencer fees and blockspace auctions**. * **DA layer publishing and storage fees**. * **MEV extraction revenue**. A portion of these revenues: * **Accrues to $CYGNUS holders and stakers**. * Funds the **Cygnus Foundation**, supporting public goods and ecosystem growth. ### **$CYGNUS Token Utility Recap** | Utility Function | Description | | -------------------- | ------------------------------------------------------------- | | Staking | Secures partner chains through LVS, generates real yield | | Gas Fees | Native token for transaction and sequencer fees | | Incentives & Rewards | Rewards users, creators, and contributors across Cygnus Layer | | Governance | Enables decentralized decision-making and protocol evolution | ### **Conclusion** The **Cygnus Token ($CYGNUS)** is more than just a utility token—it's the **economic engine** that powers Cygnus’ modular real yield infrastructure, secures its validation network, and drives Web3 adoption through the Instagram Layer.By aligning real yield, scalable validation, and mass user onboarding, $CYGNUS captures value from every layer of the Cygnus ecosystem. As demand for **shared security**, **creator monetization**, and **decentralized validation** grows, $CYGNUS plays a central role in delivering sustainable economic outcomes for all participants.
# Supply | Network | Address | | ------- | ------------------------------------------ | | Base | 0x2e6C4BD1C947e195645d2B920b827498cfAa6766 | Cygnus has established itself as the first Web3-native Instagram App Layer and a modular real yield layer, validated by millions of users engaging through gamified experiences, creator monetization tools, and seamless AA wallet infrastructure. The introduction of the **CGN token** marks a significant step forward in decentralizing the Cygnus ecosystem and accelerating its long-term vision. At its core, Cygnus is built to empower creators, communities, and blockchains with decentralized monetization, secure validation, and real yield infrastructure—natively integrated into the platforms people already use every day. | Ticker | CYGNUS (CGN) | | ------------------------- | ------------------------------------------------------------------------------------------------------ | | Maximal Supply | 10,000,000,000 CGN | | Initial Supply at the TGE | 23% | | Token Standard | ERC-20 | | Lock Up | 77% of CGN are initially locked. These tokens will unlock over 4 years per the Token Release Schedule. | # Distribution The maximum supply of CYGNUS (CGN) is 10,000,000,000 (10 billion) tokens, with an initial float of 23% CGN is implemented as an ERC-20 token on Base Mainnet.This 23% is composed of the following allocations:
* Initial Liquidity (13%): 100% of these tokens will be unlocked at TGE to provide immediate liquidity on exchanges. * Airdrop (10%): 60% of these tokens will be unlocked at TGE to reward early community participants. The remaining 40% will vest over 18 months post-TGE — 12 months cliff, then 6 months of linear monthly unlocks. * Ecosystem Growth (20% allocation): Of this allocation, 20% is unlocked at TGE, contributing an additional 4% to the circulating supply. | Token Distribution （% - Vesting） |


| | -------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | | Investors | 20% - cliff 12 months & 24 months unlocked linearly | | Team and Advisors | 22% - cliff 12 months & 36 months unlocked linearly | | Ecosystem Growth | 20% - 20% unlock at TGE, cliff 12 months & 30 months unlocked linearly | | Initial Liquidity | 13% - 100% unlock at TGE | | Airdrop | 10% - 60% unlock at TGE. The remaining 40% will vest over 18 months post-TGE — 12 months cliff, then 6 months of linear monthly unlocks. | | Foundation Treasury | 15% - cliff 12 months & 36 months unlocked linearly | ### CGN Distribution Categories | Initial Liquidity | 13.00% | | ----------------------------------- | -------- | | Airdrop | 10.00% | | Ecosystem Growth (Partially Locked) | 20.00% | | Investors (Locked) | 20.00% | | Team & Advisors (Locked) | 22.00% | | Foundation Treasury (Locked) | 15.00% | | **Total** | **100%** | ### CGN Unlock schedule
### CGN Distribution Chart
**Investors (20%)** \ 20% of CGN tokens are allocated to early investors who provided critical financial support and strategic guidance during Cygnus’ early development.Their long-term belief and capital helped lay the foundation for Cygnus’ infrastructure, protocol design, and ecosystem expansion. Tokens follow a structured release schedule to support sustainable long-term growth and investor alignment.
**Team & Advisors (22%)** \ 22% of CGN tokens are allocated to the core team and key advisors who initiated and continue to build the Cygnus ecosystem. This allocation recognizes contributions across engineering, product, growth, governance, and strategic development. All tokens follow a structured vesting and release schedule to ensure long-term commitment and protocol-aligned incentives.
**Ecosystem Growth (20%)** \ 20% of CGN tokens are reserved to support ecosystem expansion through strategic partnerships, developer grants, creator incentives, and community growth campaigns. This allocation enables Cygnus to accelerate adoption across Instagram-integrated Web3 experiences, onboarding real users and empowering Account-Fi and Creator Economy use cases.Tokens in this category follow a structured release schedule to support sustainable, long-term ecosystem growth.
**Initial Liquidity (13%)** \ 13% of CGN tokens are allocated to bootstrap initial liquidity across decentralized and centralized exchanges. This allocation ensures smooth market access, fair price discovery. Tokens will be deployed according to a structured release schedule to ensure sustainable liquidity provisioning and stability.
**Airdrop (10%)** \ 10% of CGN tokens are dedicated to airdrop campaigns that reward early supporters, active users, creators, and contributors within the Cygnus ecosystem. These airdrops are designed to promote wide and fair token distribution, incentivize meaningful participation, and deepen user engagement across social and onchain layers.Airdrop allocations follow a structured release schedule to sustain momentum and reward ongoing contributions.
**Foundation Treasury (15%)** \ 15% of CGN tokens are allocated to the Cygnus Foundation Treasury to support long-term development, operations, governance, and strategic reserves. The treasury will fund ecosystem sustainability, future grants, protocol upgrades, research, and unforeseen needs as the ecosystem matures. Tokens in this category follow a structured release schedule to ensure responsible treasury management and long-term resilience. # Research {% content-ref url="/pages/DodZW6zCtuxvSkCYkpAU" %} [Optimism](/whitepaper/cygnus-network/research/optimism) {% endcontent-ref %} {% content-ref url="/pages/MjoXwQYWrxoA8597LCLP" %} [Optimistic Rollups](/whitepaper/cygnus-network/research/optimistic-rollups) {% endcontent-ref %} {% content-ref url="/pages/eyBKAHEj9Me47plvTmJV" %} [OP Super Chain](/whitepaper/cygnus-network/research/op-super-chain) {% endcontent-ref %} {% content-ref url="/pages/ncRBZcL1KTZf59D4Oiow" %} [OP Stack](/whitepaper/cygnus-network/research/op-stack) {% endcontent-ref %} # Optimism ## What is Optimism? Optimism is an Ethereum-based Layer 2 solution designed to provide fast, stable, scalable, and cost-efficient blockchain services. By operating on top of the Ethereum main chain (Layer 1), it helps alleviate network congestion, thereby reducing transaction costs and processing times.Optimism utilizes a technology called Optimistic Rollups, which bundles multiple transactions together and processes them as a single batch on Ethereum’s main chain. This approach not only enhances transaction speed and lowers costs but also maintains Ethereum’s high security standards. Over time, the Optimistic Rollup technology was open-sourced, evolving into OP Stack, a blockchain framework released by the Optimism Collective to support broader Layer 2 development.The OP Stack serves as a one-click toolkit for launching Layer 2 chains, significantly simplifying the process of building scalable blockchain networks. These decentralized L2 chains built on OP Stack share security, communication layers, and open-source technology, forming the foundation for the vision of the OP Superchain — a seamlessly interconnected network of Optimism-powered chains. ## Unique Features of Optimism Optimism extends beyond just being a blockchain technology—it represents a collaborative ecosystem where companies, communities, and individuals unite to support public goods and promote Ethereum’s long-term sustainability. Unlike certain rollups that offer only partial access to their codebase, Optimism is fully open-source under an MIT license, allowing unrestricted use and modification.A key characteristic of Optimism is its seamless compatibility with Ethereum. Its architecture is deliberately designed to function identically to Ethereum, ensuring that developers can deploy applications without requiring additional coding adjustments or learning new languages. This reduces technical barriers and accelerates innovation on the platform.Moreover, Optimism has become the most widely forked rollup solution, fostering a strong, values-driven community consisting of developers, builders, and blockchain enthusiasts who are committed to advancing decentralized technology. ## Key Benefits Optimism Delivers Optimism offers a range of benefits, primarily encapsulated in four areas: EVM equivalence, data security, speed, and cost efficiency.While it may not be the only chain that is compatible with the Ethereum Virtual Machine (EVM), Optimism is distinguished by its enhanced commitment to EVM equivalence. It employs the Optimistic Virtual Machine (OVM), a virtual machine that is fully compatible with EVM, supporting any Ethereum application without the need for significant alterations.Developers can easily migrate any Ethereum-based decentralized applications (dApps) to Optimism with minimal changes to their architecture. This allows for Ethereum dApps to be integrated seamlessly into Optimism, enhancing user experience and developer convenience.Unlike sidechains such as Ronin, which operate independently and thus implement their own security measures, rollups like Optimism derive their security directly from the Ethereum mainnet. Transactions are processed on Optimism, but the transaction data is recorded and stored on Ethereum. This setup ensures that Optimism not only retains the robust security features of Ethereum but also improves scalability. # ZeroGravity (0G) ## 0G System **ZeroGravity (0G) is the first infinitely scalable and decentralized data availability layer with a built-in general-purpose storage layer.** That means that 0G can provide a massively scalable on-chain database for any type of Web2 or Web3 data, well-suited for a wide variety of needs, including on-chain AI. At the same time, 0G’s functionality as a data availability layer means that anyone can seamlessly verify that data has been accurately stored. Below we’ll expand on this architecture, including the key use cases that this unlocks. #### 0G’s Architecture 0G’s high scalability hinges on separating the data availability workflow into: **a) The Data Storage Lane**: Achieves horizontal scalability through well-designed data partitioning for large data transfers. For example, significant amounts of data can be stored or accessed nearly instantaneously. **b) The Data Publishing Lane**: Guarantees data availability using a quorum-based system that assumes an “honest majority”, with the quorum randomly selected via VRF. This only takes up a tiny flow of data and therefore avoids any data broadcasting bottlenecks, allowing space for the larger Data Storage Lane transfers. “0G Storage” is 0G’s on-chain database that consists of a network of Storage Nodes actively participating in a PoW-like mining process known as Proof of Random Access (PoRA). PoRA requires miners to correctly answer random queries relating to archived data, with the corresponding Storage Node rewarded accordingly. 0G focuses on rewarding nodes for their contributions rather than punishing them for misbehaviors to encourage network participation in network maintenance and ultimately improve scalability. “0G DA” is 0G’s infinitely scalable DA Layer directly built on top of 0G Storage. A quorum-based architecture is used to provide DA confirmation, using an “honest majority assumption” whereby nodes agree on data being available. A VRF is used to randomize the quorum, while GPUs accelerate the erasure coding process that’s needed to properly store data. ![](https://docs.0g.ai/~gitbook/image?url=https%3A%2F%2Fgithub.com%2F0glabs%2F0g-doc%2Fassets%2F50059816%2F7a190c2c-f9d1-4efb-8148-436a19500686\&width=300\&dpr=4\&quality=100\&sign=2c7cb864\&sv=1) #### What Does 0G Solve? The need for greater Layer 2 (L2) scalability has directly coincided with the recent rise of DA Layers, with L2s widely agreed upon as the solution to Ethereum’s scaling woes. L2s conduct transactions off-chain and settle on Ethereum for security purposes, meaning that they must post the actual transaction data somewhere so that it may be confirmed as valid. By publishing data onto Ethereum directly, its high fees are spread amongst L2 users, increasing scalability. DALs provide a more efficient means of publishing off-chain data and keeping it available for anyone to inspect. That being said, existing DALs are inadequate for supporting the exponentially increasing amount of data arriving on-chain. They are unable to store vast sums of data and have limited throughput, which is especially concerning for data-intense use cases like on-chain AI. 0G provides a 1,000x performance improvement over Ethereum’s danksharding and a 4x improvement over Solana’s Firedancer, providing the necessary infrastructure to scale Web3’s data needs on a massive scale. A major focus is AI, as 0G Storage can store vast datasets while using 0G DA to quickly AI models fully on-chain. Beyond this, other use cases include: **a) L1s / L2s**: These parties may use 0G’s AI models, or use 0G for data availability and storage. **b) Bridges**: Given that networks can easily store their state using 0G, state migration is possible between networks which facilitates secure cross-chain transfers. For example, relevant user balances can be stored as data and communicated cross-chain for fast, accurate, transfers. **c) Rollups-as-a-Service (RaaS)**: a DA option and data storage infrastructure for RaaS providers like Caldera and AltLayer. **d) DeFi**: 0G’s quick and scalable DA may support highly efficient DeFi on specific L2s & L3s due to fast settlement and storage, such as high-frequency trading. **e) On-chain Gaming**: Gaming requires vast amounts of cryptographic proof-related data that needs to be reliably stored, on top of all regular metadata such as a given player’s assets, points, actions, and more. **f) Data Markets**: It makes the most sense that Web3 data markets truly store their data on-chain, which is currently only feasible on a large scale using 0G. 0G is the scalable, low-cost, and fully programmable DA solution that’s necessary to truly bring vast amounts of data on-chain. This would not be possible without 0G’s complementary role as an on-chain data storage solution, which unlocks even more use cases (such as providing database infrastructure for any on-chain application). 0G can store any type of Web2 or Web3 data while efficiently proving its data availability. The benefit of this extends far beyond confirming Layer 2 transactions, as any type of data (large-scale datasets, a blockchain’s state, crypto. ### Leveraging 0G DA to Empower Cygnus Network Cygnus Network will achieve data scaling by integrating 0G’s modular DA to drastically reduce gas fees for users interacting with dApps within the Cygnus Network ecosystem. Cygnus Network currently uses calldata for settlement where the cost is linear to gas price on Ethereum and fluctuates according to the usage of Ethereum. Instead, 0G’s cost is sublinear to Ethereum gas price and would be significantly cheaper than the existing costs on Ethereum. While there are plans to reduce the gas costs via [EIP-4844](https://www.eip4844.com/), it would be still more expensive than the costs of 0G, and blockspace will still be an emerging issue in the future. # Optimistic Rollups Optimistic Rollups are a Layer 2 (L2) protocol designed to expand Ethereum’s processing capacity. By handling transactions off-chain, they significantly reduce the computational load on the Ethereum mainnet, leading to higher processing efficiency. Unlike sidechains and other scaling solutions, Optimistic Rollups publish transaction outcomes on-chain while storing the actual transaction data elsewhere, similar to how Plasma chains use fraud proofs for security verification.Since computation on Ethereum is both slow and costly, Optimistic Rollups enhance scalability by a factor of 10 to 100. Additionally, transactions on Optimistic Rollups are submitted to Ethereum in the form of calldata, further reducing gas fees for users by optimizing data storage on the mainnet. ## Optimistic Rollup architecture On-Chain Smart Contracts: The operations of Optimistic Rollups are governed by smart contracts deployed on Ethereum, which manage functions such as storing rollup blocks, monitoring state updates, and tracking user deposits. In this sense, Ethereum serves as the foundational layer (Layer 1) for Optimistic Rollups.\ Off-Chain Virtual Machine (VM): While the Optimistic Rollup protocol's contracts run on Ethereum, the actual computation and state storage occur in a separate virtual machine environment. This off-chain VM executes transactions and updates state independently of Ethereum’s main virtual machine, functioning as the Layer 2 execution environment that enhances scalability. ## EVM Compatibility in Optimistic Rollups One of the key advantages of Optimistic Rollups is their compatibility with the Ethereum Virtual Machine (EVM), or more precisely, their EVM equivalence. Rollups that maintain EVM compatibility adhere to the [Ethereum Yellow Paper](https://ethereum.github.io/yellowpaper/paper.pdf) specifications, ensuring seamless integration with existing Ethereum-based applications.Advantages of EVM Compatibility in Optimistic Rollups 1. Seamless Migration of Smart Contracts – Developers can migrate existing Ethereum smart contracts to Optimistic Rollup chains without significant modifications to their codebase. This greatly reduces the time and effort required to deploy decentralized applications (dApps) on Layer 2. 2. Utilization of Ethereum’s Existing Infrastructure – Development teams using Optimistic Rollups can fully leverage Ethereum’s existing ecosystem, including programming languages, code libraries, testing tools, client software, and development stacks. This minimizes the need for new tooling and infrastructure adaptation. 3. Proven and Audited Development Tools – The ability to use well-established tools is crucial, as these tools have undergone extensive audits, testing, and refinements over the years. This also removes the learning curve for Ethereum developers, eliminating the need to adopt an entirely new development environment. ## Advantages of Optimistic Rollup | Advantages | | -------------------------------------------------------------------------------------------------------------------------------------------- | | Significantly improves scalability without compromising security or trust assumptions. | | Transaction data is stored on Layer 1, enhancing transparency, security, censorship resistance, and decentralization. | | Fraud proofs ensure finality even with untrusted parties and allow a small group of honest participants to secure the chain. | | Computation fraud proofs are open to regular L2 nodes, unlike ZK-rollups, which require specialized hardware for validity proofs. | | Rollups benefit from 'trustless liveness,' allowing anyone to enforce progress by executing transactions and publishing assertions. | | Optimistic Rollups use well-designed cryptoeconomic incentives to enhance chain security. | | EVM and Solidity compatibility allows developers to migrate Ethereum-native smart contracts to rollups or use existing tools to build dApps. | # OP Super Chain ## What is OP Superchain? A Superchain is a multi-chain network architecture built on Layer 2 (L2) technology, designed to address the challenges of horizontal scalability in traditional blockchain systems. Conventional multi-chain architectures often struggle with coordination complexities and high operational costs. The Superchain model overcomes these limitations by treating multiple chains as interchangeable computational resources, effectively commoditizing blockchain infrastructure. This approach allows developers to build cross-chain applications without introducing additional systemic risks. ## The Structure of a Superchain In the Superchain framework, individual chains (such as OP Chains) are standardized and integrated into a unified network managed by the Optimism Collective. These chains share security, a common communication layer, and an open-source technology stack, enabling seamless interaction between different networks. By unifying infrastructure, the Superchain allows developers to focus on building applications across the entire network rather than dealing with the complexities of individual chains. ## The Evolution of OP Stack into the OP Superchain This architectural vision also redefines the concept of blockchain itself, making it more abstract and interoperable. Instead of viewing blockchains as isolated systems, developers can treat the Superchain as a single, unified environment to build and deploy solutions more efficiently. This not only optimizes resource utilization but also opens new possibilities for the future of blockchain scalability and adoption. # OP Stack ## What is OP Stack? According to the official explanation from [OP Stack Docs](https://stack.optimism.io/#the-op-stack-powers-optimism), **the OP Stack is the standardized, shared, and open-source development stack that powers Optimism, maintained by the Optimism Collective.**The OP Stack is the set of software that powers Optimism — currently in the form of the software behind Optimism Mainnet and eventually in the form of the Optimism Superchain and its governance.With the advent of the Superchain concept, it has become increasingly important for Optimism to easily support the secure creation of new chains that can interoperate within the proposed Superchain ecosystem. As a result, the OP Stack is primarily focused around the creation of a shared, high-quality, and fully open-source system for creating new L2 blockchains. By coordinating on shared standards, the Optimism Collective can avoid rebuilding the same software in silos repeatedly.Although the OP Stack today significantly simplifies the process of creating L2 blockchains, it’s important to note that this does not fundamentally define what the OP Stack is. The OP Stack is all of the software that powers Optimism. As Optimism evolves, so will the OP Stack.**The OP Stack can be thought of as software components that either help define a specific layer of the Optimism ecosystem or fill a role as a module within an existing layer.** Although the current heart of the OP Stack is infrastructure for running L2 blockchains, the OP Stack theoretically extends to layers on top of the underlying blockchain including tools like block explorers, message passing mechanisms, governance systems, and more.Layers are generally more tightly defined towards the bottom of the stack (like the Data Availability Layer) but become more loosely defined towards the top of the stack (like the Governance Layer). ## Three Core Design Principles of the OP Stack The OP Stack is designed for building L2 blockchain ecosystems, developed by the Optimism Collective. The construction of the OP Stack adheres to three main principles: Utility, Simplicity, and Extensibility, each crucial for the stack's effectiveness and alignment with the goals of the Optimism platform. **Utility** Software must significantly benefit the Optimism Collective to be included in the OP Stack. It should support and enhance the capabilities of the platform, such as a robust open-source block explorer that allows users to inspect the Superchain. Moreover, there's a focus on encouraging innovative and bold ideas that might not immediately seem practical but contribute to a vibrant and dynamic ecosystem. **Simplicity** Simplicity in the OP Stack helps minimize engineering overhead, allowing developers to focus more on innovation rather than complexity. The use of battle-tested components, such as Geth for execution, underscores this principle. A simpler codebase reduces potential errors and makes it easier for external contributors and auditors to engage with and improve the system. **Extensibility** OP Stack’s strength is its open and collaborative nature, facilitating shared development efforts and reducing redundant work. The code is designed to be extensible, adhering to open-source norms with permissive licensing, clear APIs, and modular design to encourage other developers to extend and enhance its functionality. ## OP Stack Layers ### **Data Availability** The Data Availability Layer is essential for determining where and how raw input data for an OP Stack-based chain is published. This layer allows for the integration of one or multiple Data Availability modules, which crucially influences the chain's security model. The choice and functionality of these modules play a pivotal role in the chain's ability to maintain security and synchronization. In instances where data becomes inaccessible, it can significantly disrupt the chain's synchronization process, highlighting the importance of informed module selection to ensure the system's overall robustness and security. ### **Ethereum Data Availability (DA)** The Ethereum Data Availability (DA) module is a prominent choice within the OP Stack. It utilizes various data sources available on the Ethereum blockchain, such as Ethereum calldata, events, and 4844 data blobs. This module is extensively used due to its versatility and comprehensive data support, making it a vital component of the OP Stack. The popularity of the Ethereum DA module also reflects its high effectiveness and seamless integration with the broader Optimism ecosystem, enhancing the functionalities of OP Stack-based chains.[Source Code](https://github.com/ethereum-optimism/optimism/tree/develop/op-batcher) is here. ### **Sequencing** The Sequencing Layer is crucial for managing the collection and publication of user transactions on an OP Stack chain, particularly concerning the Data Availability Layer modules in use. In the standard Rollup configuration, a Sequencer entity typically handles this responsibility. The Sequencing Layer’s design ensures that transactions are timely processed by imposing limits on the Sequencer’s authority to prevent transaction withholding beyond a specified period. This setup is intended to be modular, giving chains the flexibility to select or change their Sequencing mechanisms to suit evolving needs, thus enhancing adaptability and efficiency within the OP Stack ecosystem. ### **Single Sequencer** The default configuration for OP Stack employs a Single Sequencer, where a designated actor is responsible for sequencing. This role is regulated by a transparent governance mechanism that helps ensure the system’s security and integrity, with community oversight or designated authorities deciding who fills this essential role. ### **Multiple Sequencer** An extension of the Single Sequencer model is the Multiple Sequencer approach, where the Sequencer role can be filled by one of several pre-approved actors. This model allows individual OP Stack-based chains to define their own criteria for Sequencer eligibility and selection, providing additional customization and flexibility in the Sequencing process. ### **Derivation** The Derivation Layer processes the raw data from the Data Availability Layer, converting it into processed inputs that are then sent to the Execution Layer via the standard [Ethereum Engine API](https://github.com/ethereum/execution-apis/blob/94164851c1630ff0a9c31d8d7d3d4fb886e196c0/src/engine/README.md). This layer is essential for interpreting and transforming raw data, ensuring that the input data aligns with the current system state as defined by the Execution Layer. The flexibility of the Derivation Layer allows it to adapt its processing mechanisms to various data sources, making it a fundamental component in the OP Stack’s architecture for facilitating efficient data interaction and processing. # Introduction Cygnus Omnichain Liquidity Validation System Cygnus LVS is a decentralized security protocol that acts as a streamlined coordination layer, allowing network developers to autonomously manage and customize their staking or restaking mechanisms without requiring permission.

Cygnus LVS

The protocol’s innovative and neutral design offers distinct advantages for network participants: ### **Modular Flexibility** Networks have full control over their (re)staking implementation, managing all aspects such as supported collateral assets, node operator selection processes, reward structures, slashing protocols, and resolution mechanisms. Participants can seamlessly opt in and out of shared security frameworks coordinated through Cygnus. ### **Capital Efficiency** With a permissionless, multi-asset, and network-agnostic approach, the protocol enables scalable and capital-efficient sourcing of economic security. Additionally, an evolving cross-network reputation system centered on operators will further optimize capital efficiency for network developers. ### **Risk Limitation** By employing non-upgradeable core contracts on Ethereum and TON, the protocol eliminates external governance risks and single points of failure. This straightforward yet adaptable contract design minimizes risks associated with the execution layer. \ Cygnus is composed of five interconnected components. Each of these components works together to provide a secure, flexible, and efficient ecosystem: ### **Collaterals** In Cygnus, collaterals serve as the security foundation. It’s an abstraction that represents various underlying on-chain assets, agnostic to specific chains or asset types. This collateral can include any on-chain assets, without restrictions based on the blockchain they reside on.**Vaults**Vaults form the (re)staking layer of Cygnus, managing the delegation of collateral to operators across networks. These vaults can be tailored by entities such as liquid (re)staking providers or institutional holders, and can delegate to operator-specific vaults. ### **Operators** Operators in Cygnus are the entities that manage the infrastructure of various networks. They are typically staking providers with a well-established presence across multiple networks. Cygnus' protocol registers these operators, allowing them to join networks and receive economic support from restakers via vaults. ### **Resolvers** Resolvers are tasked with approving or rejecting slashing penalties against operators on networks they service. They are agreed upon by vaults (the economic security providers) and the networks. Resolvers can be fully automated or operate as slashing committees and external dispute resolution frameworks, acting as neutral third parties to arbitrate penalties. ### **Networks** Networks in Cygnus are protocols requiring a decentralized group of node operators to offer trust-minimized services like decentralized transaction sequencing, consensus on off-chain data, or automation of protocol functions. Cygnus enables network creators to design, manage, and modify their methods for onboarding, incentivizing, and penalizing operators and collateral providers. # Collateral Mechanism & Asset Management ## **Introduction** To maximize capital efficiency and unlock scalability, Cygnus Network introduces a flexible collateral framework. This design allows assets securing the Cygnus ecosystem to remain productive outside the protocol, such as being actively deployed in DeFi strategies or staked in external networks. By enabling collateral to be sourced and maintained externally, Cygnus expands liquidity utilization while maintaining network security. ## **Key Principles of Cygnus Collateralization** 1. **External Asset Utilization with Secure Collateralization** Cygnus supports the use of external assets as collateral without requiring them to be locked directly within the network. Assets can continue to generate yield in DeFi protocols, providing users with additional opportunities while still contributing to Cygnus network security. 2. **Risk Mitigation via Slashing Enforcement Mechanisms** While assets remain external, Cygnus implements enforcement mechanisms that ensure slashing penalties can be executed if validators or participants violate network rules. Rather than directly managing underlying assets, Cygnus uses control contracts capable of executing predefined penalty actions when necessary. 3. **Representation Through Omni-Chain Collateral Tokens** Collateral positions in Cygnus are represented by **Omni-Chain Collateral Tokens (OCTs)**, which function as standardized assets across different chains. These tokens include embedded governance parameters and conditional logic that allow them to participate in staking, validation, and risk management operations. ## **Collateral Security Enforcement: How Slashing Works** To uphold the integrity of the Cygnus Network, slashing mechanisms are designed to function across multiple chains and asset types: * For **Liquid Staking Derivatives (LSDs)**, collateral enforcement may involve contracts that facilitate token withdrawal or lockup, ensuring the protocol can penalize misbehavior when necessary. * **Governance tokens** used as collateral may implement slashing mechanisms via designated smart contracts that send the slashed portion to non-recoverable addresses, removing them permanently from circulation. These mechanisms do not require the asset to be held natively on Cygnus; rather, they rely on cross-chain logic and smart contracts integrated with the asset's home chain. ## **Collateral Examples in Cygnus** 1. **Liquid Staking Tokens (LSTs)** 1. LSTs deposited as collateral can be enforced by slashing contracts that interact with the original staking network to withdraw or burn the stake if penalties apply. 2. **Governance Tokens** 1. Native governance tokens can act as collateral with slashing executed via smart contracts directing tokens to non-recoverable wallets or "sink" addresses. 3. **Tokenized Real-World Assets (RWAs)** 1. RWAs integrated into Cygnus can implement slashing through off-chain oracles and on-chain representations, ensuring compliance with the collateral terms and enforcement of penalties. ## **Benefits of Cygnus Collateral Design** * **Enhanced Capital Productivity**: Assets continue to earn yield outside Cygnus while contributing to network security. * **Cross-Chain Flexibility**: Omni-Chain Tokens provide seamless collateralization across diverse ecosystems. * **Customizable Risk Controls**: Protocol-level enforcement ensures trustless and verifiable slashing, regardless of asset location. Cygnus Network’s collateral architecture introduces a flexible, scalable approach to securing decentralized infrastructure. By decoupling collateral custody from protocol security, Cygnus enables efficient capital deployment while maintaining robust slashing and risk management processes. # Vault Delegation & Restaking Framework The Vault Mechanism in the Cygnus LVS serve as the core management layer for delegation and restaking processes. These vaults play a crucial role in the Cygnus economy by managing three key aspects: **Accounting, Delegation Strategies, and Reward Distribution**. Here’s an overview: ## Key Functions of Vaults: 1. **Accounting**: Vaults manage deposits, withdrawals, and slashing of collaterals, handling the underlying assets associated with them. 2. **Delegation Strategies**: Vault deployers or owners define strategies for delegating and restaking collateral to operators across Cygnus networks. Networks need to opt into these strategies. 3. **Reward Distribution**: Vaults are responsible for distributing staking rewards from networks to those who have deposited collateral. ## Types of Vaults: 1. **Operator-Specific Vaults**: Designed for specific operators, allowing them to restake collateral across different networks. 2. **Curated Multi-Operator Vaults**: These vaults offer curated configurations of restaked networks and operators, with customizable slashing limits. 3. **Immutable Pre-Configured Vaults**: These vaults are deployed with fixed rules that cannot be changed, providing extra security for users. ## Modules: 1. **Accounting**: All accounting operations are managed within the vault itself. 2. **Slashing Logic**: Managed by a separate module called the **Slasher**. This module ensures slashing requests are valid, including checking that operators are opted into the vault and network. 3. **Limits and Delegation Logic**: Managed by a **Delegator** module, which sets limits on operator and network stakes, ensuring that these limits are adhered to during restaking and slashing events. ## Epoch and Withdrawal Process: 1. The vault operates on an epoch-based system, where deposits increase the active balance immediately, while withdrawals involve a request and claim process that spans multiple epochs. 2. Slashing incidents reduce the active balance proportionally across all users. ## Slashing Mechanics: 1. Slashing is enforced through the Slasher module and involves either **Instant Slashing** or **Veto Slashing** (which includes a veto phase before execution). ## Limits and Delegation: 1. Two types of delegators exist: **FullRestakeDelegator** (for restaking across operators and networks) and **NetworkRestakeDelegator** (focused on preventing restaking within the same network). ## Rewards Distribution: 1. **Staker Rewards**: Calculated based on active shares at specific timestamps. 2. **Operator Rewards**: Managed by the delegator module, based on the operator's stake in the network. This comprehensive system of vaults ensures secure and efficient management of collateral, delegation, and rewards in the Cygnus protocol. # Network Coordination & Security Layer In Cygnus, a **network** refers to any protocol that relies on a decentralized infrastructure network to offer services within the crypto economy. These services could include enabling developers to launch decentralized applications, providing off-chain data to applications, or guaranteeing cross-network interactions. ### Decentralized Infrastructure Networks: 1. **Flexible Security Sourcing**: Networks can utilize the Cygnus protocol to source security in the form of operators and economic backing, adapting to their specific requirements. 2. **Modular Design**: The Cygnus protocol allows developers to define the rules of engagement for these networks, including the ability to manage multiple sub-networks with distinct roles. ### Technical Components of a Network in Cygnus: 1. **Network Address**: Each network is represented by a unique address, which could be either on Ethereum or TON. 2. **Middleware Contract**: This contract is crucial as it incorporates custom logic, including slashing logic, which is a fundamental feature of Cygnus. It is responsible for enforcing rules, managing the operator set, and distributing rewards. ### **Epoch**: 1. **Network Epoch**: The `NETWORK_EPOCH` is the operational period during which a set of operators, based on the captured stake, work for the network's benefit. This epoch must align with the vault's veto and execute phases to ensure that withdrawals do not negatively impact the captured stake. ### **Staking Process**: 1. **Stake Allocation**: The vault allocates stakes by setting limits for both networks and operators. This is done through the delegator module (`D`) and the slasher module (`S`). The actual stake is captured based on the active balance of the vault and predefined limits. 2. **Staking Lifecycle**: 1. The network registers using `NetworkRegistry.registerNetwork()`. 2. Operators register via `OperatorRegistry.registerOperator()`. 3. Operators opt into both the vault and the network. 4. Stakers deposit funds into the vault. 5. The network sets a maximum stake limit through `D.setMaxNetworkLimit()`. ### **Slashing**: 1. Networks can slash operators if they are opted into the vault and the network. The slashing process involves validating guarantees and calculating cumulative slashings. Networks initiate slashing by calling the appropriate function in the slasher module. ### **Rewards**: 1. **Staker Rewards**: Distributed based on the staked amount and the network's reward distribution logic. 2. **Operator Rewards**: Distributed by the network based on predefined or calculated rules, which could involve off-chain calculations, Merkle trees, or on-chain middleware processes. ### Summary: Cygnus's network concept allows for a highly customizable and secure infrastructure that is flexible enough to accommodate various protocols within the crypto economy. The modular nature of the protocol ensures that networks can manage their operators, handle slashing events, and distribute rewards efficiently. # Operator Registration & Incentive System Operators in the Cygnus ecosystem are entities responsible for running the infrastructure necessary to support decentralized networks, both within Cygnus and beyond. These operators are registered in the Cygnus protocol, which logs their interactions and maintains a comprehensive registry of operators. This registry includes metadata provided by the operators themselves and data generated through their interactions with the Cygnus protocol. ### **Registry and Metadata**: 1. Operators register through the Cygnus protocol, which stores various data points including the networks they are involved with, the vaults they are associated with, and their historical interactions like slashing events. 2. This metadata helps build a detailed profile for each operator, which can be useful for future networks looking to select operators based on reputation and other factors. ### **Interaction with Vaults**: 1. Operators must opt into networks and vaults to participate in staking and infrastructure provision. This is done by calling the `optIn()` method in the `NetworkOptInService` and `VaultOptInService`. 2. Once opted in, the operator’s stake becomes active and can be allocated by calling `D.setOperatorNetworkLimit()`, which is controlled by the `OPERATOR_NETWORK_LIMIT_SET_ROLE`. ### **Slashing and Timelocks**: 1. Once an operator opts into both a network and a vault, their stake becomes subject to slashing. The slashing process is managed by the `S` module within the protocol. 2. A timelock can be applied when allocating a stake to provide additional guarantees to the operators, delaying the activation of the stake until the timelock expires. ### **Future Vision**: Cygnus aims to enhance its protocol to include more verifiable data and curated credentials about operators. This will allow networks to implement reputation-based operator selection mechanisms, increasing capital efficiency and security. This vision includes operators being able to attract diverse stakes from multiple partners, without needing to set up isolated infrastructure for each one. # Resolver Governance & Dispute Resolution ## **Overview** To enhance fairness and security in its validation and collateral systems, Cygnus introduces a flexible **Dispute Resolution Framework**. This framework is designed to manage and adjudicate slashing events that arise from operator misconduct or protocol violations.Rather than relying solely on automated slashing mechanisms, Cygnus incorporates **Independent Resolution Entities (IREs)**—which may include smart contracts, external committees, or decentralized arbitration protocols—to ensure slashing decisions are transparent, verifiable, and fair. ## **How It Works** **1. Independent Resolution Entities (IREs)** In Cygnus, **IREs** function as governance or adjudication layers that review slashing proposals initiated by the network. These entities have the capacity to: * Approve the execution of slashing penalties. * Veto or reject slashing requests if they are found to be unjustified. * Require additional evidence or initiate arbitration in the case of disputes. **2. Flexible Dispute Management** Operators and vaults providing collateral have the flexibility to define how their stakes are protected or exposed to slashing risk: * Some collateral allocations may operate without any external review, relying entirely on automated enforcement. * Others can be safeguarded by one or multiple IREs, which act as oversight layers before slashing is finalized. * For example, a vault might designate: * 20% of its collateral under direct automated slashing. * 50% protected by IRE Committee A, responsible for a specific network segment. * 30% reviewed by IRE Committee B, covering broader protocol activities. **3. Decentralized Arbitration Options** Cygnus supports the integration of decentralized arbitration protocols such as: * **Reality.eth**, **Kleros**, **UMA**, or any other governance mechanism compatible with the Cygnus framework. These systems can serve as dispute resolvers to adjudicate contentious slashing cases, enhancing neutrality and trust within the ecosystem. **4. Multi-Signature and Quorum Models** For additional security and decentralization, Cygnus enables multi-resolver setups where: * A quorum of independent entities may be required to approve or veto slashing decisions. * This ensures that no single party has unilateral control over slashing outcomes and provides stronger protection for participants. ## **Benefits of the Cygnus Dispute Resolution Framework** * **Transparent Governance**: Slashing decisions are subject to review and oversight, promoting fairness. * **Configurable Risk Exposure**: Vaults can customize their collateral protection strategies according to risk tolerance and economic goals. * **Decentralized Oversight**: Leverages established arbitration protocols for impartial dispute resolution. * **Enhanced Security**: Quorum-based resolution mechanisms minimize risks of abuse or unilateral slashing decisions. \ Cygnus’ Dispute Resolution Framework offers a highly adaptable and secure approach to managing slashing events. By integrating independent review layers and decentralized arbitration options, Cygnus ensures network integrity while fostering trust and fairness across its modular yield and validation ecosystem. # Cygnus LVS Integration Liquid yield tokens of BTC, TON and ETH LRT will soon be incorporated. Cygnus LVS provides services for any system that requires its own distributed validation semantics for verification, such as sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments. {% content-ref url="/pages/PkKvsDBIEvAkYPGcfnQ8" %} [cgETH](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgeth) {% endcontent-ref %} {% content-ref url="/pages/vESilqlo98SZxFQ3IsnF" %} [clBTC](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/clbtc) {% endcontent-ref %} {% content-ref url="/pages/cVU8uMcld50prlyfUiFA" %} [cgUSD v1](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1) {% endcontent-ref %} {% content-ref url="/pages/K56PDDXVYSFuzEgeukmm" %} [cgTON](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgton) {% endcontent-ref %} # cgETH {% content-ref url="/pages/CStd4q16uIr796GsTbNh" %} [What is cgETH?](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgeth/what-is-cgeth) {% endcontent-ref %} {% content-ref url="/pages/a3qyF7QNm32Kn44AtW0M" %} [Core Features and Mechanics of cgETH](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgeth/core-features-and-mechanics-of-cgeth) {% endcontent-ref %} {% content-ref url="/pages/39vbXHKcCs2MUZ4ofQjX" %} [Security, Transparency, and Risk Management](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgeth/security-transparency-and-risk-management) {% endcontent-ref %} # What is cgETH? ## **Understanding Staking Challenges and the Solution of Liquid Staking** Ethereum’s transition to a Proof-of-Stake (PoS) consensus mechanism has unlocked numerous opportunities for token holders to participate in the validation of transactions and earn rewards. However, traditional staking comes with significant limitations that restrict many users from fully capitalizing on these opportunities. The challenges include: 1. **Knowledge Base**: Staking on Ethereum requires a deep understanding of PoS principles and blockchain architecture. This complexity significantly reduces the addressable market, as many token holders lack the technical expertise needed to engage with the staking process effectively. 2. **Technical Requirements**: Running a validator node demands high-performance hardware, constant uptime, and system administration resources. Users must also have experience managing such systems, making staking inaccessible for a vast majority of Ethereum holders. 3. **Significant Stake Requirements**: To independently run a validator node, a user must stake 335 ETH, a barrier that is prohibitively high for most retail investors. Even joining a staking pool often requires a minimum of 10 ETH, limiting broader participation. 4. **Illiquidity**: Staking typically locks up assets for extended periods, during which users cannot access their funds. While “staking as a service” providers address some of these issues, the assets remain illiquid throughout the staking period, reducing flexibility and hindering the ability to explore other opportunities in decentralized finance (DeFi). ## **Liquid Staking as the Solution** Liquid staking protocols like Cygnus’ cgETH address these challenges by offering: * **Accessibility**: Users can easily stake smaller amounts of ETH without the need for technical expertise or expensive hardware. * **Liquidity**: By issuing liquid staking tokens (cgETH), users retain the ability to trade, transfer, or deploy their staked assets in other DeFi protocols, maintaining full control of their liquidity. * **Enhanced Returns**: cgETH holders can participate in blockchain validation rewards while also generating additional returns by leveraging cgETH in DeFi activities such as yield farming and liquidity mining. The Cygnus platform simplifies staking, allowing Ethereum holders to deposit their ETH and receive cgETH tokens in return. These tokens are stored in the user’s wallet and can be freely used within the DeFi ecosystem, eliminating the traditional tradeoff between staking rewards and liquidity. # Core Features and Mechanics of cgETH Cygnus’ liquid staking solution stands out for its intuitive design and focus on user empowerment. Here are the primary features that define cgETH: 1. **User-Friendly Interface:** Cygnus’ application is designed to make staking as straightforward as possible. Users no longer need to possess a deep technical knowledge base or operate validator nodes. With just a few clicks, they can deposit ETH and begin earning staking rewards. This accessibility encourages widespread adoption of Ethereum staking among both retail and institutional investors. 2. **No Minimum Stake Requirements:** Unlike traditional staking, Cygnus has no minimum ETH requirement for staking. While users can stake any amount, it’s recommended to stake at least 10 ETH to optimize the cost-efficiency of transactional fees, which can impact the annual percentage yield (APY). 3. **Liquidity Preservation:** One of cgETH’s most critical advantages is its ability to preserve liquidity. By issuing cgETH tokens, Cygnus ensures that users’ assets remain productive and tradable. cgETH can be freely transferred, traded, or deployed within DeFi protocols, allowing users to maintain financial flexibility while earning staking rewards. 4. **Enhanced Yield Opportunities:** Cygnus is actively developing new products and partnerships to maximize the utility of cgETH within the DeFi ecosystem. By using cgETH in liquidity pools, governance participation, and yield farming, users can generate additional returns on their assets while retaining staking rewards. ## **How cgETH Works** 1. **Staking**: Users deposit ETH through the Cygnus application. Upon confirming the transaction, they receive cgETH tokens representing their share in the ETH pool. The exchange rate between cgETH and ETH is determined by a smart contract algorithm based on the total value of the pool. 2. **Validation**: Cygnus pools the deposited ETH and distributes it among participating validator nodes. HashKey Cloud, a trusted and high-performance validator operator, is the key partner responsible for validating Ethereum transactions and securing rewards. These rewards are automatically added back to the ETH pool after deducting Cygnus’ service fee, increasing the pool’s value and the cgETH/ETH exchange rate. 3. **Unstaking**: Users can initiate the unstaking process at any time. After a cooldown period of 36 to 72 hours, cgETH tokens are exchanged for ETH based on the current exchange rate. Users can claim their ETH, including the accumulated rewards, once the cooldown expires. ## **cgETH Pricing and Value Growth** The value of cgETH is dynamically determined by the performance of the ETH pool. It is calculated as follows: > `cgETH price = (ETH_pool + staking_reward - Cygnus_fee) / ETH_pool` `ETH_pool` – ETH tokens in the pool `staking_reward` – Cygnus validation rewardsAs the staking rewards are continuously added to the pool, the cgETH price naturally increases over time, reflecting the compounding growth of staking yields. This growth rate aligns with the Ethereum blockchain’s staking yield, minus Cygnus’ 20% service fee on staking rewards. Importantly, cgETH is fully backed by the ETH pool, ensuring there is no risk of a fundamental depeg within the Cygnus application. # Security, Transparency, and Risk Management Cygnus is committed to ensuring the security, reliability, and transparency of its staking platform. By leveraging state-of-the-art technology and industry-leading collaboration with Hashkey Cloud, Cygnus offers users a safe and seamless staking experience. ## **Security Measures** 1. **Validator Collaborator: HashKey Cloud** 1. Cygnus’ collaboration with HashKey Cloud, a renowned validator node operator, ensures that all ETH staking activities are handled with maximum efficiency and security. HashKey Cloud employs rigorous operational standards and cutting-edge infrastructure to optimize staking yields while safeguarding user assets. 2. HashKey Cloud’s expertise in node validation minimizes risks such as slashing penalties or downtime, providing users with peace of mind and reliable returns. 2. **Smart Contract Audits** 1. Cygnus’ smart contracts are rigorously audited by top-tier security firms to eliminate potential vulnerabilities. Regular assessments and adherence to best practices ensure the reliability of the platform’s core infrastructure. 3. **Asset Security** 1. The ETH pool is managed through multi-party computation (MPC) and other advanced custody solutions to prevent unauthorized access. All user funds are held securely within the Cygnus ecosystem, backed by the integrity of the HashKey Cloud-operated validator nodes. ## **Transparent Operations** Cygnus maintains full transparency by providing regular updates and detailed reports on staking activities, rewards distribution, and fee structures. Users can access these reports via the Cygnus application or dataroom to track the performance of their staked assets. ## **Robust Risk Management** 1. **Liquidity Management**: cgETH tokens are designed to retain liquidity even during volatile market conditions. The smart contract guarantees that users can unstake their assets at any time after the cooldown period, ensuring flexibility and confidence in cgETH’s liquidity. 2. **Market Price Dynamics**: cgETH’s market price is driven by supply and demand on external exchanges. Any deviation from its fundamental value creates arbitrage opportunities, which help stabilize the market price. 3. **Counterparty Risk Mitigation**: Cygnus conducts comprehensive due diligence on all collaborators, including HashKey Cloud, to mitigate counterparty risks and ensure the robustness of its staking operations. ## **Continuous Improvement** Cygnus actively collaborates with industry leaders to adopt emerging technologies and enhance its staking solutions. The integration of cgETH into new DeFi protocols and the expansion of staking collaborations are ongoing priorities aimed at maximizing user value. # clBTC {% content-ref url="/pages/O6iMNzUIC6bSwOwPMwJN" %} [What is clBTC？](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/clbtc/what-is-clbtc) {% endcontent-ref %} {% content-ref url="/pages/dKE9KwsDFIJSYPNJSiFF" %} [How clBTC Works？](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/clbtc/how-clbtc-works) {% endcontent-ref %} {% content-ref url="/pages/wN9HHZPtxjxywcoY9brD" %} [Security, Transparency, and Risk Management](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/clbtc/security-transparency-and-risk-management) {% endcontent-ref %} # What is clBTC？ ## clBTC clBTC is an innovative token designed to bridge Bitcoin's value with the dynamic yield opportunities of decentralized finance (DeFi), collaboration with reputable finality providers such as HashKey Cloud, Nano Labs, ensuring that all BTC collaterals are handled with maximum security. Unlike traditional approaches, clBTC provides users with enhanced capital efficiency and flexibility, seamlessly integrating with the Cygnus CeDeFi platform. clBTC operates as a value-accrual mechanism that aggregates benefits from both custodial and on-chain ecosystems, offering users a compounded and scalable yield experience.Bitcoin holders have long faced challenges when attempting to capitalize on the expanding DeFi landscape. From liquidity constraints on the Bitcoin network to limited yield-generation opportunities, these barriers have hindered broader participation. Cygnus and clBTC address these issues by enabling Bitcoin liquidity staking and introducing a multi-layered yield mechanism that combines the strengths of centralized finance (CeFi) and decentralized finance (DeFi), enabling participation in DeFi mining, liquidity provision, governance, and other yield-generating activities.. | Chain | Address | | ------------ | ------------------------------------------- | | Base | 00x8d2757ea27aabf172da4cca4e5474c76016e3dc5 | | Arbitrum One | 0x1792865d493fe4dfdd504010d3c0f6da11e8046d | | Optimism | 0x1792865d493fe4dfdd504010d3c0f6da11e8046d | | Ethereum | 0xe7ae30c03395d66f30a26c49c91edae151747911 | ### Key Features of clBTC 1. **Value Accrual Mechanism:** clBTC is not a simple 1:1 pegged representation of Bitcoin. Instead, it operates as a value-accrual token that captures and compounds yield from multiple sources. This mechanism allows clBTC holders to benefit from custodial yield strategies, on-chain staking, and DeFi ecosystem integrations. 2. **Seamless Integration with DeFi Ecosystems:** Designed as an ERC-20 compatible token, clBTC can be deployed across various DeFi protocols for activities such as liquidity mining, governance, and yield farming. This enables Bitcoin holders to unlock layers of yield without compromising the security of their original assets. 3. **Enhanced Liquidity:** By leveraging liquidity staking, clBTC ensures that user assets remain productive within the ecosystem. Users can freely circulate their clBTC tokens while their underlying Bitcoin remains securely held under Cygnus's custodial framework. 4. **Cross-Chain Compatibility:** clBTC supports deposit and withdrawal across major blockchains, including Bitcoin, Ethereum, and Binance Smart Chain, with plans to expand to additional EVM-compatible networks in the future. This ensures users have maximum flexibility and accessibility. ## # How clBTC Works？ clBTC's unique value-accrual mechanism differentiates it from traditional pegged tokens. While 1:1 pegged tokens mirror the value of Bitcoin without modification, clBTC is designed to accumulate and grow its value through integrated yield strategies. This section outlines the critical aspects of clBTC's value dynamics and its broader implications for Bitcoin holders. ### Core Mechanism 1. **Custodial Yield Strategies:** clBTC captures yields generated through proven quantitative strategies executed on CeFi platforms such as Binance. These strategies leverage market arbitrage opportunities, ensuring stable returns without requiring users to actively manage their assets. 2. **On-Chain Staking and DeFi Yields:** Upon minting clBTC, users gain access to on-chain liquidity staking opportunities. This allows their clBTC tokens to be deployed across DeFi protocols, generating additional yield through staking, liquidity provision, and governance participation. 3. **Dynamic Value Adjustment:** The value of clBTC evolves based on the performance of its underlying yield strategies. This dynamic accrual ensures that holders benefit from the compounded returns generated by Cygnus's integrated CeDeFi model. 4. **Flexible Asset Utilization:** clBTC can be freely circulated within the DeFi ecosystem, enabling users to participate in multiple yield-generating activities simultaneously. Meanwhile, the underlying Bitcoin assets remain secure within Cygnus's custodial framework. ### Benefits of Value Accrual * **Enhanced Capital Efficiency:** By combining custodial and on-chain yields, clBTC maximizes the productivity of user assets, ensuring that Bitcoin holders achieve higher returns compared to traditional holding or staking methods. * **Scalable Yield Opportunities:** The multi-layered yield mechanism of clBTC provides users with diversified and scalable income streams, making it an ideal solution for both individual and institutional investors. * **Long-Term Value Growth:** As clBTC accumulates value over time, it offers a sustainable and growth-oriented solution for Bitcoin holders seeking to participate in the DeFi ecosystem without sacrificing security. # Integration with CeFi and DeFi in Cygnus Network ## **CeFi Integration** Cygnus extends its cross-chain liquidity framework by providing seamless access to centralized exchange (CEX) liquidity pools through its **Institutional Custody & Off-Exchange Settlement Layer**. This system is designed for both institutional and retail users, offering simplified access to deep liquidity while maintaining asset custody and reducing exposure to centralized risks. ### **Ceffu MirrorX Integration in Cygnus** Through a direct integration with **Ceffu MirrorX**, Cygnus enables users to efficiently access liquidity on platforms like Binance without requiring direct deposits or interaction with centralized exchanges. Assets deposited within **Cygnus Custody Vaults** are reflected 1:1 in **MirrorX sub-accounts**, ensuring seamless settlement and execution for trading or liquidity operations. **Key Capabilities of Cygnus MirrorX Integration:** * **Real-Time Asset Reflection**: Assets in Cygnus Prime Custody are instantly mirrored to Binance MirrorX sub-accounts, allowing participants to engage in trading activities with deep liquidity pools while assets remain securely held. * **Automated Daily Settlement**: Balances are automatically reconciled on a daily basis without requiring manual intervention, streamlining the liquidity provisioning process. * **Flexible Asset Withdrawal**: Users maintain flexible options to retrieve assets either from Cygnus Custody or via the MirrorX framework, depending on liquidity needs. * **Institutional-Grade Security**: Leveraging **Ceffu’s MPC (Multi-Party Computation) architecture**, Cygnus ensures all assets remain under strict cryptographic custody and secure cold storage. * **Minimized Counterparty Risk**: By keeping user funds in segregated custody wallets and eliminating direct on-exchange exposure, Cygnus reduces counterparty and operational risk while providing immediate market access. This integration allows Cygnus participants to engage with CeFi infrastructure in a permissionless and risk-managed environment, bridging the gap between decentralized asset management and centralized liquidity. ## **DeFi Integration** Cygnus complements its CeFi offering with a robust DeFi strategy, allowing participants to unlock capital efficiency through **Omnichain Collateral Tokens (OCTs)**. These tokens represent users’ assets and provide flexibility to engage in DeFi protocols—such as lending, borrowing, and yield farming—while simultaneously earning from CeFi strategies. #### **DeFi Utility and Mechanisms** * **Omnichain Collateral Tokens (OCTs)**: Tokenized representations of collateralized assets within Cygnus, allowing seamless cross-chain deployment and composability in DeFi ecosystems. * **Restaking Across Protocols**: OCTs can be deployed in multiple DeFi protocols to optimize yield strategies while maintaining the underlying assets' role in securing Cygnus-validated networks. * **Hybrid Yield Aggregation**: Cygnus aggregates yield opportunities from both CeFi integrations (e.g., MirrorX) and DeFi ecosystems, creating a dual-layer revenue stream for participants. ## **Cygnus Yield Strategies** Cygnus optimizes liquidity through a **multi-layered strategy**, balancing both CeFi and DeFi returns while minimizing exposure to volatile markets. #### **Core Yield Generation Techniques:** 1. **Delta-Neutral Hedging Strategies** 1. Balancing long and short positions to neutralize market exposure. 2. Applied across derivative markets, including perpetual swaps and futures, ensuring stable yield. 2. **CeFi-DeFi Arbitrage** 1. Exploiting pricing inefficiencies between centralized and decentralized liquidity pools. 2. Generating revenue through funding rate differentials and basis spreads. 3. **Liquidity Mining and Staking Incentives** 1. Participating in DeFi liquidity pools and validator programs to maximize passive rewards. 2. Compounding yields via automated reinvestment protocols. # Security, Transparency, and Risk Management Cygnus prioritizes the security and stability of clBTC through a robust risk management framework. This ensures that user assets remain protected while maintaining high levels of operational efficiency and reliability. ## Key Security Measures 1. **Multi-Party Asset Management:** Utilizing Ceffu's MPC (Multi-Party Computation) technology, Cygnus ensures secure and efficient asset custody. This advanced solution combines decentralized key management with trusted custodial practices, offering unparalleled asset protection. 2. **Minimizing Smart Contract Risk:** Cygnus employs rigorous audits and adheres to industry best practices to mitigate potential vulnerabilities in smart contract deployment. Regular assessments and collaborations with top-tier security firms further enhance contract reliability. 3. **Operational Resilience:** To ensure consistent performance, Cygnus diversifies its operations across multiple exchanges and custodians. This approach minimizes dependency on any single platform, reducing the risk of systemic failure. 4. **Dynamic Liquidity Management:** By implementing adaptive liquidity management strategies, Cygnus maintains optimal levels of liquidity for clBTC, ensuring seamless user interactions and minimizing the risk of market disruptions. 5. **Counterparty Risk Protection:** Cygnus conducts stringent due diligence and enforces robust collateralization procedures for all counterparties. This safeguards user assets from potential defaults or mismanagement. ## **Transparent Operations** Cygnus maintains full transparency by providing regular updates and detailed reports on collaterals, rewards distribution, and fee structures. Users can access these reports via the Cygnus application or dataroom to track the performance of their staked assets. ## Continuous Improvement * **Proactive Monitoring:** Cygnus leverages advanced monitoring systems to detect and address potential risks in real time. This includes tracking market dynamics, user activity, and system performance to ensure uninterrupted operations. * **Transparent Reporting:** Regular transparency reports provide users with insights into clBTC's performance, security measures, and risk management activities. This fosters trust and confidence among the Cygnus community. * **Collaborative Innovation:** Cygnus actively collaborates with leading security experts and industry partners to adopt emerging technologies and enhance the security of clBTC and its underlying infrastructure. # cgUSD v1 {% content-ref url="/pages/DPh80Mu6TYzWzoHfzu0q" %} [What is cgUSD v1](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/what-is-cgusd-v1) {% endcontent-ref %} {% content-ref url="/pages/FwyGZQxp9do4nwRVkFtc" %} [Why Cygnus](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/why-cygnus) {% endcontent-ref %} {% content-ref url="/pages/JyzGuJVBSj6DEGcmB1qg" %} [Risk Warning](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/risk-warning) {% endcontent-ref %} # What is cgUSD v1 Welcome to Cygnus Finance 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. # Why Cygnus Tether and Circle, the current providers of the industry's dominant stablecoins, USDT and USDC, are sitting on hundreds of billions of dollars of liquidity and taking in more than a billion dollars a quarter from real-world investments, but holders of USDT and USDC don't get to share even a single cent of that. The U.S. Treasury rate is one of the most important interest rate parameters in the world, and for holders of U.S. dollar-denominated assets, the U.S. Treasury rate is also the base rate to which they should refer.Cygnus provides an entry point for all on-chain USD asset holders to enjoy the yield rights of U.S. Treasuries while holding stablecoins. Unlike other RWA project parties, Cygnus uses the rebase mechanism to match off-chain earnings based on the characteristics of smart contracts, which ensures that all users can participate in the mint and redemption of cgUSD at $1. It is not necessary to calculate the holding cost and income because of the complicated price change mechanism. Since cgUSD is based on short-term U.S. Treasury issues also have a natural advantage in terms of reserve transparency. The cgUSD's reserves are made up of a few very simple and easy to understand components: ## **T-BILL** cgUSD uses short-term U.S. Treasuries (T-Bills) with an average maturity of no more than 90 days as its main reserve asset. U.S. Treasuries are considered the safest dollar-denominated asset. Cygnus' potential holdings of short-term U.S. Treasuries (T-Bills) consist of only the following specific assets: * Treasury bills or bonds that are close to maturity. * A money market fund that invests in short-term U.S. Treasuries. * Treasury ETF. * A reverse repurchase agreement (repo) collateralized by U.S. Treasuries. More specific investment requirements are listed below: * Final maturities limited to 397 days or less * U.S. dollar-weighted average maturity not to exceed 90 days and U.S. dollar-weighted average duration not to exceed 365 days * not purchase any securities that are not daily liquid assets unless, immediately after such purchase, at least 10% of its Total Asset Value will be invested in daily liquid assets and unless, immediately after such purchase, at least 30% of its Total Asset Value will be invested in weekly liquid assets, the Fund will not purchase any securities that are not weekly liquid assets. * Mutual funds; index-tracking securities, including ETFs * Invest at least 99% of its total assets in cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury, and repurchase agreements secured by such obligations or cash. 1. Repurchase Agreements 2. U.S. Treasuries 3. U.S. Government Risk Money Market Funds and ETFs * Avoid NRA withholding tax by investing 97% or more of your assets in qualified interest income (QII) through a RIC ## **Assets in Transit** Due to the unique nature of RWA investments, when cgUSD is minted or redeemed directly through the Cygnus platform, it is inevitable that there will be assets "in transit" for a short period of time. Although Cygnus is committed to minimizing the transit time of these funds, force majeure factors such as waiting for fiat currency exchange, waiting for partner banks, partner brokers and other financial institutions to open up fiat currency transfers, and waiting for the market to open up, will still result in the transit time not being determined by Cygnus. Assets in transit typically represent a small percentage of reserve assets, and Cygnus will minimize the time in transit and non-market risk while ensuring that assets are safe and low depletion. ## **On-chain liquid assets** In order to protect all users' needs for quick redemption, a small portion of the assets will stay on the chain as liquid assets. In order to reduce the interest rate risk and the risk of fluctuation of stablecoin value brought by this part of necessary liquidity, the protocol will choose risk-free liquidity mining and other defi operations in the market to obtain a certain amount of safe interest; all the interaction behaviors of this part of the assets will be guaranteed by the form of interaction data on the chain of announcements to ensure transparency. After the subsequent introduction of DAO governance, the right to use this part of the asset will all be voted by DAO. ## **Collateralized Buffer Assets** In order to protect cgUSD holders from interest rate risk and the Federal Reserve's unconventional policies, cgUSD will use an overcollateralization system to some extent. This overcollateralization serves as share protection and can offset, to some extent, changes in the value of the underlying asset due to further increases in interest rates. Once overcollateralization has a certain amount of reserves, Cygnus Finance will identify, through community voting or otherwise, one or more insurance partners to further protect against extreme market conditions by purchasing asset insurance and reinsurance. # Risk Warning cgUSD aims to be the safest RWA stablecoin in cryptocurrency. This page will provide information about the risks that may be involved and the mitigation strategies that Cygnus may take to reduce those risks. This will help current and potential cgUSD holders understand its level of risk compared to other on-chain and off-chain alternatives. Users should conduct their own research when deciding to purchase any digital asset. If you have any questions about these risks, please contact us at \[email address]. ## **U.S. debt default** As a result of the continued turmoil in the global political and economic situation, rating agencies such as Moody's have taken risk-correction measures such as rating downgrades for different sovereigns. Although United States Treasuries are considered to be the least risky dollar-denominated assets, they are nonetheless dependent on the assumption that the United States Government will continue to service its debt. While this is a systemic risk that is unavoidable with most modern financial products and instruments, we are still informing you that the likelihood of it happening is not mathematically zero. Cygnus has chosen a portfolio of near probable short maturities, which are among the lowest risk tiers even among U.S. Treasuries, and which will go a long way toward protecting the interests of all cgUSD holders. ## **Interest rate changes** Movements in the interest rate markets are unpredictable, and the Federal Reserve's interest rate regulation policies may cause fluctuations in the fair value of the asset portfolio, which may affect the market value of the collateral. Cygnus endeavors to minimize this risk through excellent duration management and will have a certain amount of overcollateralization and insurance protection to ensure the adequacy of the collateral assets. ## **Market risk** Based on the unlicensed and highly composable nature of cgUSD and wcgUSD as ERC tokens, we predict that cgUSD and wcgUSD may form trading pairs or liquidity pools with other tokens on multiple decentralized or centralized trading venues. On these occasions, the pricing of cgUSD and wcgUSD, for example, in a particular secondary trading market, may differ from fair value due to liquidity pricing, trading algorithmic bias such as AMM, speculative operations by arbitrageurs or market makers such as trades in liquidity pools, technical risk, and prognosticator operational attacks. Our team will push for other protocols to adopt cgUSD and wcgUSD. However, this does not imply that Cygnus is committed to the security of such protocols. Users should conduct their own research before interacting with any protocol outside of Cygnus' official website channels. While Cygnus may conduct joint marketing campaigns with other protocols, these campaigns should not be viewed as a guarantee of Cygnus' commitment to the security of such protocols. # Protocol Mechanics {% content-ref url="/pages/dOOUKde3eyaZfLner5Uh" %} [Mint](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/protocol-mechanics/mint) {% endcontent-ref %} {% content-ref url="/pages/ESWtMAN9X9F2Jas2G2ph" %} [Wrap](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/protocol-mechanics/wrap) {% endcontent-ref %} {% content-ref url="/pages/nGGYe8vMrP2POAH3CP3U" %} [Bridge](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/protocol-mechanics/bridge) {% endcontent-ref %} {% content-ref url="/pages/gNtfgmKujLozmJytyj8n" %} [Redemption](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/protocol-mechanics/redemption) {% endcontent-ref %} # Mint Users can mint cgUSD by using assets from multiple chains, with cgUSD existing solely on the Base chain. For more detailed information about cgUSD, please refer to: Supported assets for minting cgUSD are as follows:
NetworkWaiting TimeTokenContract Address
BaseZeroUSDC0xCa72827a3D211CfD8F6b00Ac98824872b72CAb49
Ethereum 20 minsUSDC/USDTPending
Arbitrum30 minsUSDC/USDTPending
Optimism30 minsUSDTPending
Currently, Cygnus utilizes Axelar Network for cross-chain communication, allowing users to mint cgUSD with stablecoins from chains other than the Base chain. The minting fee for users is 0%, meaning the amount of stablecoins used for minting cgUSD is equivalent to the cgUSD received. For detailed information about fees, please refer to: However, if users choose to mint cgUSD using stablecoins from chains other than the Base chain, they will need to pay Axelar Network a certain fee in the native token of the source chain. Details of the minting fees are as follows:
NetworkWaiting TimeFee ComponentsPayment Currency
Ethereum20 minsCross-Chain FeesUSDC/USDT
Arbitrum30 minsCross-Chain FeesUSDC/USDT
Optimism30 minsCross-Chain FeesUSDC
Users can also send a small amount of ETH to the Base chain for gas while conducting cross-chain minting. # Wrap cgUSD can only exist on the Base chain due to its rebase mechanism, and it is not compatible with cross-chain operations or use in decentralized exchanges (DEx) like Uniswap. When users wish to use cgUSD in such scenarios, they need to wrap it into wcgUSD. For more detailed information about wcgUSD, please refer to \[[wcgUSD](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/token-and-contract/wcgusd)]. Users can wrap and perform cross-chain actions in a single transaction. Currently, Cygnus utilizes Axelar Network for cross-chain communication, and users are required to pay Axelar Network a certain fee in the native token of the source chain. For detailed information about cross-chain fees, please refer to \[[Bridge](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/protocol-mechanics/bridge)]. # Bridge Users can transfer wcgUSD between different chains. Currently, Cygnus utilizes Axelar Network for cross-chain communication, and when users engage in cross-chain transactions, they are required to pay Axelar Network a certain fee in the native token of the source chain. Here are the details of the cross-chain fees:
NetworkWaiting TimeFee ComponentsPayment Currency
Ethereum20 minsCross-Chain FeesUSDC/USDT
Arbitrum30 minsCross-Chain FeesUSDC/USDT
Optimism30 minsCross-Chain FeesUSDC
# Redemption Users have the option to burn cgUSD and recast it as USDC on the Base chain. There are two modes for recasting: "Recast Application" and "Aggregate Exchange." **Recast Application:** After submitting a recast application, users transfer cgUSD to the application queue contract for destruction. Simultaneously, they receive an NFT that represents the recast application. This NFT records the position of the application in the entire queue and the quantity of cgUSD requested for recasting. The Cygnus team, based on the current on-chain USDC/USDT balance of the receiving contract and the outstanding recast applications, exchanges a certain quantity of off-chain US Treasury bonds into USDC and deposits them into the receiving contract. This process typically takes 2-5 days. When the next oracle update occurs, the following events take place: 1. The USDC held in the receiving contract is moved to the application queue contract. 2. The maximum tokenId of the currently claimable state NFTs is updated to be just below the cumulative transferred USDC amount. 3. In this update, a batch of claimable state NFTs is added. A portion of cgUSD is destroyed within the application queue contract, with the quantity being equal to the total number of NFTs in the batch for recast applications. When users hold claimable state NFTs, they can destroy the NFTs and receive the corresponding quantity of USDC. During the early stages of the promotion, Cygnus will not impose any fees. # Token and Contract {% content-ref url="/pages/tzhqX6ehyuzE5m365s1q" %} [cgUSD](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/token-and-contract/cgusd) {% endcontent-ref %} {% content-ref url="/pages/SAtVIYwa0bcHFWTmK2qc" %} [wcgUSD](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/token-and-contract/wcgusd) {% endcontent-ref %} {% content-ref url="/pages/9TpxlFnCtB5kLhRIesoF" %} [Smart Contract Audits](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/token-and-contract/smart-contract-audits) {% endcontent-ref %} # cgUSD ## **Introducing cgUSD** \ The cgUSD token, an ERC20 rebasing token, is backed by US Treasury bills. Every New York banking day, the total issuance of cgUSD aligns with the net value of its asset portfolio, encompassing on-chain stablecoins, the market value of U.S. Treasury Bills, and accrued interest. This mechanism ensures that Cygnus Finance consistently maintains a 1:1 redemption ratio between cgUSD and USDC. In the secondary market, similar to other fiat-backed stablecoins, we anticipate a 1:\~1 correlation in price, driven by arbitrage opportunities. Token Name: Cygnus USD Token Symbol: cgUSD Contract Address: 0xCa72827a3D211CfD8F6b00Ac98824872b72CAb49 \ \ Below are the basic properties of our cgUSD token: 1. It is a rebasing token whose price is always $1. Users’ holding amount will grow continuously as the interest from the treasury accrues. 2. Its rebasing happens once a day for every workday. 3. It is issued on Base. 4. It is permissionless. 5. Users can mint cgUSD with USDC . The minting price will always be $1, if fees are excluded. 6. Users can redeem cgUSD for USDC. The redemption price will always be $1, if fees are excluded. # Comparison to Stablecoins Throughout history, money has traditionally maintained 3 key attributes: 1. A store of value 2. A stable unit of account 3. A medium of exchange While fiat-pegged stablecoins backed by fiat provide a stable unit of account and an effective medium of exchange, they are a poor store of value. Cygnus Finance aims to create a better currency through cgUSD that fulfills the three conditions of an ideal currency. cgUSD will thrive within the growing crypto economy as an instantaneous medium of exchange. As a USD-pegged stablecoin, cgUSD stands as a stable unit of account. However, unlike the US dollar or stablecoins pegged 1:1 to a currency, cgUSD will serve as a genuine store of value, backed by the U.S. Treasury Bills, and distributing returns to holders to offset devaluation of its pegged currency. cgUSD integrates the operability of a stablecoin with the enduring value preservation and returns of U.S. Treasury Bills, offering an all-in-one solution to uphold purchasing power amid turbulent market conditions. Cygnus USD | Real Yield | Backed by U.S. Treasury Bills Cygnus USD = Better Money # How it Works 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*** # On-Chain Price Oracle The price feed service plays a pivotal role in consolidating and distributing financial market data to our on-chain price oracles. Its core responsibility involves accurately computing token prices and relaying this data onto the on-chain price oracle. The integrity of this feed is maintained through the price guard mechanism. On TON and BSquared Cygnus Finance has integrated [RedStone](https://redstone.finance/) Price Feeds in order to ensure the stability of cgUSD's peg to the US Dollar. # wcgUSD Acknowledging the complexities of handling rebasing tokens in the DeFi ecosystem, the wcgUSD contract serves as a wrapped token, simplifying integration while preserving stability. The wcgUSD contract is an **ERC-4626** (following the [tokenized vault standard](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/), leveraging the [OpenZeppelin implementation](https://docs.openzeppelin.com/contracts/4.x/erc4626)), enabling users to deposit cgUSD in exchange for wcgUSD tokens. The cgUSD tokens are rebasing, whereas the wcgUSD tokens are non-rebasing, making wcgUSD easier to integrate into DeFi protocols. Rebasing tokens have known integration challenges with protocols that assume constant `balanceOf` for tokens (such as Uniswap, 1Inch and Sushiswap). This can lead to daily rewards being captured by players other than the cgUSD holders in protocols. The stETH issuer, Lido, has [documented this phenomenon here](https://help.lido.fi/en/articles/5231836-what-is-wrapped-steth-wsteth). To solve this problem and ensure cgUSD holders have full compatibility with DeFi without giving up their rewards, the Cygnus Finance team has built a wrapper on cgUSD which is called wcgUSD. Such wrapper is very similar to Lido's wstETH, a product that is already familiar to the digital asset ecosystem. Token Name: Wrapped Cygnus USD\ Token Symbol: wcgUSD Contract Address: 0x5AE84075F0E34946821A8015dAB5299A00992721 \ wcgUSD is a non-rebasing token that can be converted to cgUSD or the other way around. Below are the basic properties of our wcgUSD token: 1. It is a non-rebasing token. So the amount will not increase, but its price will increase over time. 2. wcgUSD and cgUSD can be converted into each other without any fees. They are equivalent mathematically. 3. It is permissionless. The purpose of wcgUSD is to enable Cygnus Finance to be incorporated into existing DeFi protocols as most of the DeFi protocols do not support rebasing tokens. # Comparison to cgUSD 1. Quantity Stability: Unlike cgUSD, which is a rebasing stablecoin with its balance increasing to reflect accrued interest, wcgUSD maintains a consistent supply without increasing balances. This stability makes it more suitable for certain DeFi protocols and investment strategies where a non-volatile asset is preferred. 2. Adaptability: Due to its non-rebasing nature, wcgUSD's value increment is reflected in its price over time. This characteristic allows for better integration within various decentralized financial ecosystems that do not accommodate rebasing tokens, providing greater flexibility for users and applications. 3. Interoperability: wcgUSD's interoperability with cgUSD, enabling seamless conversion between the two tokens without any associated fees, fosters a more cohesive DeFi environment. This feature allows users to navigate between these stablecoins based on their specific requirements or market conditions efficiently. 4. Permissionless Functionality: Being permissionless, wcgUSD offers users the freedom to engage with Cygnus Finance and other compatible protocols without any constraints or requiring authorization. This inclusivity promotes broader access and participation within the decentralized financial landscape. # How it Works ## w**cgUSD contract overview** \ When wrapping cgUSD to wcgUSD, the desired amount of cgUSD is locked on the WcgUSD contract balance, and the wcgUSD is minted according to the share bookkeeping formula. When unwrapping, wcgUSD gets burnt and the corresponding amount of cgUSD gets unlocked. Thus, the amount of cgUSD unlocked when unwrapping is different from what has been initially wrapped (given a rebase happened between wrapping and unwrapping cgUSD). ## **wcgUSD shortcut** Note, that the WcgUSD contract includes a shortcut to convert ether to wcgUSD under the hood, which allows you to effectively skip the wrapping step and stake ether for wcgUSD directly. Keep in mind that when using the shortcut, the staking rate limits still apply. ## **Rewards accounting** Since wcgUSD represents the holder's share in the total amount of Cygnus-controlled ether, rebases don't affect wcgUSD balances but change the wcgUSD price denominated to cgUSD. ## **Basic example** User wraps 1 cgUSD and gets 0.9803 wcgUSD (1 cgUSD = 0.9803 wcgUSD) A rebase happens, the wcgUSD price goes up by 5% User unwraps 0.9803 wcgUSD and gets 1.0499 cgUSD (1 cgUSD = 0.9337 wcgUSD) # Smart Contract Audits Our smart contracts have successfully completed audits from some of the leading firms in the industry. You can find our audit reports linked below: [December 2023 Peckshield Audits](https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-Cygnus-v1.0.pdf) # FAQ {% content-ref url="/spaces/weuLwjDL7zSEZUQkOVEm/pages/FAv3TvNB1fhFboMDkhIs" %} [Mint](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/faq/mint) {% endcontent-ref %} {% content-ref url="/spaces/weuLwjDL7zSEZUQkOVEm/pages/7AxeTZ7i6rbMqlunY4Ro" %} [Wrap](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/faq/wrap) {% endcontent-ref %} {% content-ref url="/spaces/weuLwjDL7zSEZUQkOVEm/pages/2a19YpySMG4x6XxyIqkT" %} [Withdrawals](/whitepaper/cygnus-omnichain-liquidity-validation-system-lvs/cygnus-lvs-integration/cgusd-v1/faq/withdrawals) {% endcontent-ref %} # Mint 1. What is Cygnus? 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.
2. How does Cygnus work? Through the rebase mechanism, cgUSD conveys the pure interest returns of U.S. Treasury bills to 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 always supports a 1:1 redemption ratio of cgUSD to USDC.
3. What are the risks of investing in Cygnus? When investing using liquidity protocols, there are indeed some potential risks to consider: * Smart contract security: There is a risk that the protocol's smart contracts could have vulnerabilities or bugs. To mitigate this risk, Cygnus typically undergo extensive code audits and have bug bounty programs in place to encourage the community to identify and report any security issues. * cgUSD price risk: When investing in Cygnus, users receive cgUSD in exchange for their USDC. The value of these cgUSD can be influenced by various factors such as market demand and liquidity restrictions. Users risk an exchange price of cgUSD which is lower than inherent value due to withdrawal restrictions on Cygnus, making arbitrage and risk-free market-making impossible.
4. What is cgUSD APR for Base? cgUSD APR for Base = Protocol APR \* (1 - Protocol fee) Protocol APR — US Treasury Bills Protocol fee — Transaction Fee and Management Fee of 35 basis points More about cgUSD APR for Base you can find on the Docs.
5. What fee is applied by Cygnus? What is this used for? The Transaction Fee will mainly cover the operational costs of maintaining the US Treasury Bills across on-chain and off-chain venues The Management Fee is collected by the Cygnus protocol for the management of the cgUSD and the US Treasury-Bills portfolio.
6. What is cgUSD? cgUSD is a transferable rebasing utility token and rebases daily
7. How can I get cgUSD? You can get cgUSD in many ways, including interacting with the smart contract directly.
8. How can I use cgUSD? You can use your cgUSD as collateral, for lending, and more.
9. How can I withdraw cgUSD? You can use our Withdrawals Request and Claim tabs to withdraw cgUSD and receive USDC at a 1:1 ratio. Under normal circumstances, withdrawal periods can take anywhere between 5-7 days. After that, you can claim your cgUSD using the Claim tab. # Wrap 1. What is wcgUSD? wcgUSD (wrapped cgUSD) is a non-rebasing version of cgUSD. Unlike the cgUSD balance, which updates every day and communicates your share of rewards, the wcgUSD balance stays the same while the cgUSD balance updates inside the wrapper daily.
2. How can I get wcgUSD? You can wrap your cgUSD tokens using Wrap & Unwrap staking widget
3. How can I use wcgUSD? wcgUSD is useful across other DeFi protocols, which are based on constant balance tokens.
4. Do I get my investing rewards if I wrap cgUSD to wcgUSD? Yes, wrapped cgUSD gets investing rewards at the same rate as regular cgUSD. When you keep your cgUSDin a wrapper you can not see your daily investing rewards. However, when you unwrap your wcgUSD your new cgUSD balance will have increased relative to the pre-wrapped amount to reflect your received rewards.
5. Do I need to claim my staking rewards if I wrap cgUSD to wcgUSD? No, investing rewards accrue to wcgUSD automatically.
6. How could I unwrap wcgUSD back to cgUSD? You can unwrap your wcgUSD tokens using Wrap & Unwrap staking widget.
7. Do I need to unwrap my wcgUSD before requesting withdrawals? No, you can transform your wcgUSD to cgUSD using the Withdrawals Request and Claim tabs. Note that, under the hood, wcgUSD will unwrap to cgUSD first, so your request will be denominated in cgUSD. # Withdrawals 1. What are withdrawals? Users can redeem theircgUSD or wcgUSD through withdrawals. Upon redeeming cgUSD, they will receive USDC at a 1:1 ratio. When redeeming wcgUSD, the unwrapping process will take place seamlessly in the background.
2. How does the withdrawal process work? The withdrawal process is simple and has two steps: * Request withdrawal: Lock your cgUSD/wcgUSD by issuing a withdrawal request. The requested withdrawal amounts will be aggregated and fulfilled through the sale of US Treasury-Bills held in the custodian account. This process may take up to two business days.The sales proceeds in USD from the US Treasury-Bills sale will be converted back into USDC and transferred to the Asset Pool to satisfy any outstanding withdrawal requests. This process may require up to three business days. * Claim: Claim your USDC after the withdrawal request has been processed.
3. How do I withdraw? Press the Request tab, choose an amount of cgUSD/wcgUSD to withdraw, then press ‘Request withdrawal’. Confirm the transaction using your wallet and press ‘Claim’ on the Claim tab once it is ready.
4. Can I transform my cgUSD to USDC? Yes. Stakers can transform their cgUSD to USDC 1:1 using the Reques[t](https://stake.lido.fi/withdrawals/request) and Claim tabs.
5. Can I transform my wcgUSD to USDC? Yes. You can transform your wcgUSD to USDC using the Request and Claim tabs. Note that, under the hood, wcgUSD will unwrap to cgUSD first, so your request will be denominated in cgUSD.
6. When I try to withdraw wcgUSD, why do I see the cgUSD amount in my request? When you request to withdraw wcgUSD, it is automatically unwrapped into cgUSD, which then gets transformed into USDC. The main withdrawal period is when cgUSD is transformed into USDC. That's why you see the amount pending denominated in cgUSD. 7. How long does it take to withdraw? Under normal circumstances, the cgUSD/wcgUSD withdrawal period can take anywhere between 5-7 days. After that, you can claim your USDC using the Claim tab.
8. What are the factors affecting withdrawal time? • The amount of cgUSD in the queue • Performance of the validator poolside • during weekends and U.S. banking holidays • Demand for investing and redeeming
9. Do I still get rewards after I withdraw? No. After you request a withdrawal, the cgUSD/wcgUSD submitted for unstaking will not receive staking rewards on top of your submitted balance.
10. Is there a fee for withdrawal? YES.There’s withdrawal fee of of 35 basis points
11. Why is the claimable amount different from my requested amount? The amount you can claim may vary from your initial request due to significant fluctuations in the price of US Treasury bills For these reasons, the total claimable reward amount could be reduced.
12. Is there any minimum or maximum amount of cgUSD/wcgUSD I can withdraw? No. You can freely decide the amount.
13. What is **Cygnus** NFT? Each withdrawal request is represented by an NFT: the NFT is automatically minted for you when you send a request. You will need to add it to your wallet to be able to monitor the request status. When the request is ready for the claim, the NFT will change its appearance. 14. How do I add **Cygnus** NFT to my wallet? Different wallets have specific functionality for adding and working with NFT. Most often, you need to find the specific NFT Address and Token ID. These parameters you can find on Base. Visit Basescan, add your wallet, and locate the NFT transaction. Once located, open the NFT transaction, and you will see the Address and Token ID.
15. What could be the reason why my NFT's view did not update even though my request was ready to be claimed? Maybe your wallet doesn’t support the automatic changing of the NFT view. To renew the NFT, you can import the Address and Token ID of your NFT, and it could change it's appearance to a new “Ready to claim” one. # cgTON Coming soon! # Cygnus Pool SDK ### Bitlayer bfBTC Pool | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-bfBTC | 0x5A5cFe27E0fc3916AaDa62b481f910b0D58f64a8 | | RestakingVault | 0x8243CC0c892630f499169E7E38b0d9c8B055F653 | | bfBTC | 0xcdfb58c8c859cb3f62ebe9cf2767f9e036c7fb15 | ### Bitlayer SolvBTC.m Pool | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-solvBTC | 0x387e2a62b0f7fB75F36F1312EF8d6b60569674cA | | RestakingVault | 0xD4a90C85cd602aF645015FeE43354120D5eC4102 | | solvBTC.m | 0xe04d21d999faedf1e72ade6629e20a11a1ed14fa | ### Bitlayer stBTC Pool | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-stBTC | 0x4884521dc53f8D746Fdc6D8E1279c4B1EEE019b2 | | RestakingVault | 0x971B1c1048aDBB63f23ef333215587623F292b57 | | stBTC | 0xf6718b2701d4a6498ef77d7c152b2137ab28b8a3 | ### Bitlayer uniBTC Pool | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-uniBTC | 0x0055dc86970Ce62E160bc5579A8D44f6EAc3CE17 | | RestakingVault | 0xf587B7116879a529353Cc71eE959cD69FD5CAE48 | | uniBTC | 0x93919784c523f39cacaa98ee0a9d96c3f32b593e | ### Bitlayer BLBTC Pool #### Contract Address | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-BLBTC | 0x62a92d143f4a496399f44555bb75b6ccba2bba3b | | RestakingVault | 0x8d2757EA27AaBf172DA4CCa4e5474c76016e3dC5 | | BLBTC | 0x4e0dd7c16d2bbf873335cc21c72663b3eae23014 | ### Bitlayer wBTC Pool #### Contract Address | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-wBTC | 0xaA553f2E836CD0Fc9A33E7aC188d8B4fC1083395 | | RestakingVault | 0x1792865D493FE4DFdD504010D3c0f6da11E8046D | | wBTC | 0xff204e2681a6fa0e2c3fade68a1b28fb90e4fc5f | ### B² Network uBTC Pool #### Contract Address | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-uBTC | 0xf410A0d866831fbA8056abbc05a53B90757f58B1 | | RestakingVault | 0x7551aEa51588AaCe99B89c3FaC3CFc4108DB8094 | | uBTC | 0x796e4D53067FF374B89b2Ac101ce0c1f72ccaAc2 | ### B² Network uniBTC Pool #### Contract Address | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-uniBTC | 0xA558f245c93f5f7eC99E239d7Aab247985D429fD | | RestakingVault | 0xBc323bA4bbf2559417C3Ca47A75e2Ea341Cf8320 | | uniBTC | 0x93919784C523f39CACaa98Ee0a9d96c3F32b593e | ### B² Network stBTC Pool #### Contract Address | Name | Address | | -------------- | ------------------------------------------ | | Cygnus-stBTC | 0x80E3c92119DAC35b4E56346C3149D88c5D54C472 | | RestakingVault | 0x0Ce45dd53affbb011884EF1866E0738f58AB7969 | | stBTC | 0xf6718b2701d4a6498ef77d7c152b2137ab28b8a3 | # Privacy Policy This Privacy Policy ("Policy") describes how Cygnus Finance( "we," "us" or "our") may collect, use and disclose information, and your choices regarding this information. Please read this Policy carefully and contact us with questions at [services@cygnus.finance](mailto:eric_cygnus@outlook.com).​ ## Applicability of This Policy​ This Policy applies to our services, which include the services we provide on our platform, user interface to the Protocol or any other websites, pages, features, mobile applications, or content we own or operate (collectively, the "Sites") or when you use any Cygnus Finance API or third party applications relying on such an API, and related services (collectively, the "Services"). If you do not agree with the terms of this Policy, do not access or use the Services, Sites, or any other aspect of our business.​ ## What We Collect​ When you interact with our Services, we may collect:​ * Contact Information, such as your email address.​ * Financial Information, such as your Ethereum address, cryptocurrency wallet information, transaction history, and associated fees paid.​ * Transaction Information, such as information about the transactions you make on our Services, such as the type of transaction, transaction amount, and timestamp.​ * Correspondence, such as your feedback, questionnaire and other survey responses, and information you provide to our support teams, including via our help chat.​ * Online Identifiers, such as geo location/tracking details, browser fingerprint, operating system, browser name and version, and/or personal IP addresses.​ * Usage Data, such as user preferences and other data collected via cookies and similar technologies.​ * Information We Get from Others. We may get information about you from other sources as required or permitted by applicable law, including public databases, credit bureaus & ID verification partners. We may combine the information collected from these sources with the information we get from this Site in order to comply with our legal obligations and limit the use of our Services in connection with fraudulent or other illicit activities.​ * Information from cookies and other tracking technologies. We, and third parties we authorize, may Sites and mobile apps, and collect information about the use of the Services, as well as about our interactions with you. This information may include internet protocol (IP) addresses, browser type, internet service provider (ISP), referring/exit pages, operating system, date/time stamp, and clickstream data, and information about your interactions with the communications we send to you. We may combine this automatically collected log information with other information we collect about you. You may choose to set your web browser to refuse cookies, or to alert you when cookies are being sent. If you do so, please note that some parts of our Services may not function properly.​ ## How We Use Information​ We use your information in accordance with your instructions, including any applicable terms in the Terms of Use, and as required by applicable law. We may also use the information we collect for:​ ### Providing Services and Features​ We may use the information we collect to provide, personalize, maintain, and improve our products and Services, including as we described in the Terms of Use. This includes using information to:​ * operate, maintain, customize, measure, and improve our Services, and manage our business;​ * process transactions; * send information, including confirmations, notices, updates, security alerts, and support and administrative messages; and​ * ​to create de-identified or aggregated data.​ ### Safety and Security​ We may use your information to help maintain the safety, security, and integrity of you and our Services, including to:​ * protect, investigate, and deter against fraudulent, unauthorized, or illegal activity;​ * monitor and verify identity or service access, combat spam, malware or security risks;​ * perform internal operations necessary to provide our Services, including to troubleshoot software bugs and operational problems; * ​enforce our agreements with third parties, and address violations of our Terms of Use or agreements for other Services; and * ​comply with applicable security laws and regulations.​ ### User Support​ We may use information we collect to provide support, including to:​ * direct questions to the appropriate support person;​ * investigate and address user concerns; and * ​monitor and improve our customer support responses and processes.​ ### Research and Development​ We may use the information we collect for testing, research, analysis, and product development to improve your experience. This helps us to improve and enhance the safety and security of our Services, improve our ability to prevent the use of our Services for illegal or improper purposes and develop new features and products relating to our Services.​ ### Legal and Regulatory Compliance​ We may verify your identity by comparing the personal information you provide against third-party databases and public records. We may use the information we collect to investigate or address claims or disputes relating to use of our Services, or as otherwise allowed by applicable law, or as requested by regulators, government entities, and official inquiries.​ ### Direct Marketing​ We may use the information we collect to market our Services to you. This may include sending you communications about our Services, features, promotions, surveys, news, updates, and events, and managing your participation in these promotions and events. If you do not want us to send you marketing communications, please opt out by selecting "unsubscribe" to any marketing email sent by us or by contacting us at [services@cygnus.finance](mailto:eric_cygnus@outlook.com).​ ## How We Share & Disclose Information​ We may share your information in the following circumstances:​ * With Your Consent. For example, you may let us share personal information with others for their own marketing uses. Those uses will be subject to their privacy policies.​ * To Comply with Our Legal Obligations. We may share your information: (A) to cooperate with government or regulatory investigations; (B) when we are compelled to do so by a subpoena, court order, or similar legal procedure; (C) when we believe in good faith that the disclosure of personal information is necessary to prevent harm to another person; (D) to report suspected illegal activity; or (E) to investigate violations of our User Agreement or any other applicable policies.​ * With Service Providers. We may share your information with service providers who help facilitate business and compliance operations such as marketing and technology services. Our contracts require these service providers to only use your information in connection with the services they perform for us.​ * During a Change to Our Business. If we engage in a merger, acquisition, bankruptcy, dissolution, reorganization, sale of some or all of our assets or stock, financing, public offering of securities, acquisition of all or a portion of our business, a similar transaction or proceeding, or steps in contemplation of such activities, some or all of your information may be shared or transferred, subject to standard confidentiality arrangements.​ * Aggregated or De-identified Data. We may share aggregated and/or anonymized data with others for their own uses.​ ## Data Retention​ To view or update your information, contact us at [services@cygnus.finance](mailto:eric_cygnus@outlook.com). We store your information throughout the life of your use of the Protocol and retain your information for a minimum of five (5) years to comply with our legal obligations or to resolve disputes. If you cease using the Protocol, we will neither use your information for any further purposes, nor sell or share your information with third parties, except as necessary to prevent fraud and assist law enforcement, as required by law, or in accordance with this Policy.​ ## Security​ We maintain administrative, technical and physical safeguards designed to protect the personal information we maintain against unauthorized access or disclosure. No system can be completely secure. Therefore, although we take steps to secure your information, we cannot guarantee that your information, searches, or other communication will always remain secure. You are responsible for all activity on the Protocol relating to any of your Ethereum network addresses and/or cryptocurrency wallets.​ ## Age Limitations ​To the extent prohibited by applicable law, we do not allow use of our Services and Sites by anyone younger than the legal age in the jurisdiction in which the user resides. If you learn that anyone younger than the legal age has unlawfully provided us with personal data, please contact us at [services@cygnus.finance](mailto:eric_cygnus@outlook.com) and we will take steps to delete such information, close any such accounts, and, to the extent possible, prevent the user from continuing to use our Services.​ ## Changes to This Policy ​If we make any changes, we will change the Last Updated date above. We encourage you to review this Policy to stay informed. If we make material changes, we will provide additional notice, such as via the email specified in your account or through the Services or Sites. ## ​Online Tracking Opt-out Guide ​Like many companies online, we use services provided by Google and other companies that use tracking technology. These services rely on tracking technologies-such as cookies and web beacons-to collect directly from your device information about your browsing activities, your interactions with websites, and the device you are using to connect to the Internet. There are a number of ways to opt out of having your online activity and device data collected through these services, which we have summarized below:​ * Blocking cookies in your browser. Most browsers let you remove or reject cookies, including cookies used for interest-based advertising. To do this, follow the instructions in your browser settings. Many browsers accept cookies by default until you change your settings. For more information about cookies, including how to see what cookies have been set on your device and how to manage and delete them, visit [www.allaboutcookies.org](http://www.allaboutcookies.org/).​ * Blocking advertising ID use in your mobile settings. Your mobile device settings may provide functionality to limit use of the advertising ID associated with your mobile device for interest-based advertising purposes. Using privacy plug-ins or browsers. You can block our websites from setting cookies used for interest-based ads by using a browser with privacy features. * Platform opt-outs. The following advertising partner offers opt-out features that let you opt-out of use of your information for interest-based advertising - Google: [https://adssettings.google.com](https://adssettings.google.com/). Advertising industry opt-out tools. You can also use the opt-out options set forth below to limit use of your information for interest-based advertising by participating companies. Note that because these opt-out mechanisms are specific to the device or browser on which they are exercised, you will need to opt out on every browser and device that you use. Digital Advertising Alliance: [http://optout.aboutads.info](http://optout.aboutads.info/) Network Advertising Initiative: ## Notice to California Residents - CCPA Scope and Exclusions​ This California Consumer Privacy Act of 2018 (CCPA) Notice, including the description of our Privacy Practices and your Privacy Rights, apply only to California residents whose interactions with us are limited to:​ * visiting our consumer websites; and * ​signing up for email alerts; and This CCPA Notice does not apply to the personal information we collect, use or disclose about:​ * individuals who provide information to us to initiate or complete the process of interacting with our platform, which are subject to the notice set forth in the Additional Disclosure section of this Policy.; or​ * representatives of businesses that seek to obtain our products or services, or to provide products or services to us.​ ### Privacy Rights​ The CCPA grants individuals the following rights:​ * Information. You can request information about how we have collected, used and shared your personal information during the past 12 months. For details about the personal information we have collected over the last 12 months, including the categories of sources, please see the What We Collect section of this Policy. We collect this information for the business and commercial purposes described in the How We Use Information section of this Policy. We share this information with the categories of third parties described in the How We Share and Disclose Information section of this Policy.​ * Access. You can request a copy of the personal information that we maintain about you.​ * Deletion. You can ask us to delete the personal information that we collected or maintain about you.​ Please note that the CCPA limits these rights by, for example, prohibiting us from providing certain sensitive information in response to an access request and limiting the circumstances in which we must comply with a deletion request. We will also respond to requests for information and access only to the extent we are able to associate with a reasonable effort the information we maintain with the identifying details you provide in your request. If we deny your request, we will communicate our decision to you. You are entitled to exercise the rights described above free from discrimination. ### ​How to Submit a Request ​To request access to or deletion of personal information to [services@cygnus.finance](mailto:eric_cygnus@outlook.com).​ ### Identity Verification​ The CCPA requires us to verify the identity of the individual submitting a request to access or delete personal information before providing a substantive response to the request. We will ask you to verify your identity when you submit a request.​ ### Authorized Agents ​California residents can empower an "authorized agent" to submit requests on their behalf. We will require the authorized agent to have a written authorization confirming that authority.​ ## Additional Disclosure for Our Consumers and Customers​ This Additional Disclosure governs our collection, use and sharing of personal information that users provide to us to initiate or complete the process of interacting with the Protocol. To the extent there are conflicting provisions between this Additional Disclosure and other sections of the Privacy Policy, the Additional Disclosure will govern.​ The types of personal information we collect and share can include:​ * Contact details​ * Transaction history * Cryptocurrency balances and wallets When you are no longer our customer, we continue to share your information as described in this notice.​​ ### Reasons We Can Share Your Personal Information​ We need to share users' personal information to operate certain aspects of the Protocol and our business. Below, whether we share your personal information, the reasons we share your personal information and whether you can limit this sharing​ * We share users' personal information for our everyday business purposes, such as to process and match your orders and respond to court orders and legal investigations. You cannot limit our sharing of this information.​ * We share users' personal information for our marketing purposes, such as to offer our products and services to you. You cannot limit our sharing of this information.​ * We do not share users' personal information for joint marketing with financial companies.​ * We do not share users' personal information for our affiliates' everyday business purposes.​ * We do not share users' personal information for our affiliates to market to you. * We do not share users' personal information for nonaffiliates to market to you.​​ "Affiliates" refer to companies related by common ownership or control; "nonaffiliates" refer to companies no related by common ownership or control; and "joint marketing" refers to a formal agreement between nonaffiliated financial companies that together market financial products or services to you. ### ​How Does Cygnus Finance Protect My Personal Information? ​To protect your personal information from unauthorized access and use, we use security measures that comply with applicable law. These measures include computer safeguards and secured files and buildings.​ ### How Does Cygnus Finance Collect My Personal Information?​ We collect your personal information, for example, when you deposit Digital Assets in the Protocol, make transactions using the Protocol, or withdraw Digital Assets from the Protocol. We may also collect your personal information from other companies.​ ## Contact Us​ Please contact us if you have any questions about this Policy or if you are seeking to exercise any of your statutory rights. Subject to applicable laws, we will respond within a reasonable timeframe. You may contact us at [services@cygnus.finance](mailto:eric_cygnus@outlook.com). # Interface Terms of Use Welcome to the Cygnus Finance website and Cygnus Finance Interface. The Following Terms of Use govern user access to and use of [ ](https://cygnus.finance/)and [app.cygnus.finance ](https://app.cygnus.finance/)(collectively, the “Interface”). **1. Acceptance of the Terms of Use** These terms of use are entered into by and between you (the “User”) and Cygnus Finance(“we,” or “us”). The following terms and conditions, together with any documents they expressly incorporate by reference (collectively, “Terms of Use”), govern User’s access to and use of the Interface located at [app.cygnus.finance](https://app.cygnus.finance/), including any content, functionality, subpages, and services offered on or through the Interface. The Interface provides access to the Cygnus Finance protocol that facilitates a novel decentralized method for decentralized peer-to-pool crypto-asset liquidity provision (the “Protocol”), including an ability for Participants to serve in certain capacities or perform certain functionalities when interacting with the Protocol. User must read the Terms of Use carefully before it starts to use the Interface. By using the Interface, or by clicking to accept or agree to the Terms of Use when this option is made available to the User, the User accepts and agrees to be bound and abide by these Terms of Use and our Privacy Policy, incorporated herein by reference. If the User does not want to agree to these Terms of Use, the Privacy Policy, or any documents applicable to them that are incorporated herein by reference, the User must not access or use the Interface. To the extent that there is a conflict between these Terms of Use and any applicable additional terms, these Terms will control unless expressly stated otherwise. If the User does not agree with these Terms of Use, that User may not visit or use the Interface. This Interface is offered and available to users who are 18 years of age or older. By using this Interface, the User represents and warrants that the User is at least the higher of legal age to form a binding contract with the Company in the User’s applicable jurisdiction or eighteen (18) years of age, and meet all of the foregoing eligibility requirements. If the User does not meet all of these requirements, the User must not access or use the Interface. User and Company shall undertake in good faith with respect to each other’s rights and undertake with the other to do all things reasonably that are necessary or desirable to give effect to the spirit and intent of this Agreement. **2. Changes to the Terms of Use.** We may revise and update these Terms of Use from time to time in our sole discretion. All changes are effective immediately when we post them and apply to all access to and use of the Interface thereafter. The User’s continued use of the Interface following the posting of revised Terms of Use means that the User accepts and agrees to the changes. The User is expected to check this page each time it accesses this Interface, so it is aware of any changes, as they are binding on the User. Notwithstanding the above, we will seek your consent to future modifications to the Terms of Use to the extent we are required to do so by law. **3. Electronic Communication** We may be required or choose to provide certain communications to User in written form. By agreeing to the Terms of Use, User consents to the delivery of those communications in electronic form, including e-mail or other electronic message. User agrees that all terms and conditions, disclosures, or agreements provided by Company electronically satisfy any legal requirement such communications would satisfy if they were provided in non-electronic writing. User waives any rights to require an original, wet, non-electronic signature, to the extent that such waiver is not prohibited under applicable law. **4. Accessing the Interface and User Security.** We reserve the right to withdraw or amend this Interface, and any service or material we provide on the Interface, in our sole discretion without notice. We will not be liable if for any reason all or any part of the Interface is unavailable at any time or for any period. From time to time, we may restrict access to some parts of the Interface, or the entire Interface, to those who access the Interface (“Participants”). The User is responsible for both: * Making all arrangements necessary for the User to have access to the Interface. * Ensuring that all persons who access the Interface through the User’s internet connection are aware of these Terms of Use and comply with them. To access the Interface or some of the resources it offers, the User may be asked to utilize certain Web3 capabilities, such as MetaMask or another crypto-asset wallet capable of interacting with the User’s web browser (“Web3 Utilities”). It is a condition of the User’s use of the Interface that all the information only operate such Web3 Utilities with a private key(s) that the User created or has the direct, explicit permission of the party who created the relevant private key(s). The User agree that all information it provides to interact with the Interface or otherwise, including, but not limited to, through the use of any interactive features on the Interface, is governed by our Privacy Policy, and the User consents to all actions we take with respect to the User’s information consistent with our Privacy Policy. If the User utilizes a Web3 Utility that relies on a username, password, private key, or any other piece of information as part of its security procedures, the User must treat such information as confidential, and the User must not disclose that information to any other person or entity. The User also acknowledges that any identity linked to its Web3 Utility is personal to the User and agrees not to provide any other person with access to such identity while using this Interface or portions of it using its Web3 Utility. The User also agrees to ensure that it will lock or otherwise prevent its Web3 Utility from unauthorized use on this Interface at the end of each session. The User should use particular caution when accessing the Interface from a public or shared computer so that others are not able to view or record the User’s password, private key, or other personal information. We have the right to disable any identity associated with a Web3 Utility (such as that represented by a public address) on the Interface or to block any IP address from accessing the Interface at any time in our sole discretion for any or no reason, including if, in our opinion, the User or that identity has violated any provision of these Terms of Use. **5. Intellectual Property Rights.** The Interface and its entire contents, features, and functionality (including but not limited to all information, software, text, displays, images, video, and audio, and the design, selection, and arrangement thereof) are owned by the Company, its licensors, or other providers of such material and are protected by United States and international copyright, trademark, patent, trade secret, and other intellectual property or proprietary rights laws. Subject to the terms and conditions of the Terms of Use, we grant the Users a limited, non-transferable, non-sublicensable, non-exclusive, revocable license to use the Interface for personal use until such time as the Terms of Use terminate or expire or the User’s right to use or access the Interface is terminated. The User must not reproduce, distribute, modify, create derivative works of, publicly display, publicly perform, republish, download, store, or transmit any of the material on our Interface, except as follows: * The User’s computer may temporarily store copies of such materials in RAM incidental to the User’s accessing and viewing those materials. * The User may store files that are automatically cached by the User’s web browser for display enhancement purposes. * The User may print or download one copy of a reasonable number of pages of the Interface for its own personal, non-commercial use and not for further reproduction, publication, or distribution. * If we provide desktop, mobile, or other applications for download, the User may download a single copy to its computer or mobile device, provided the User agrees to be bound by our end user license agreement or other similar applicable agreement for such applications. The User must not: * Modify copies of any materials from this Interface. * Use any illustrations, photographs, video or audio sequences, or any graphics separately from the accompanying text. * Delete or alter any copyright, trademark, or other proprietary rights notices from copies of materials from this Interface. If the User wishes to make any use of material on the Interface other than that set out in this section, it should address its request to: [services@cygnus.finance](mailto:eric_cygnus@outlook.com). If the User prints, copies, modifies, downloads, or otherwise uses or provides any other person with access to any part of the Interface in breach of the Terms of Use, the User’s right to access the Interface will stop immediately and the User must, at our option, return or destroy any copies of the materials the User has made. No right, title, or interest in or to the Interface or any content on the Interface is transferred to the User, and all rights not expressly granted are reserved by the Company. Any use of the Interface not expressly permitted by these Terms of Use is a breach of these Terms of Use and may violate copyright, trademark, and other laws. **6. Trademarks.** The Company name, the terms “Cygnus Finance” and “Cygnus Finance DAO,” and all related names, logos, product and service names, designs, and slogans are trademarks of the Company or its affiliates or licensors. You must not use such marks without the prior written permission of the Company; provided, however, User is hereby granted permission and license to use the terms “Cygnus Finance” and “Cygnus Finance DAO” and any related names (excluding the Company name), logos (excluding the Company logo), product and service names, designs, and slogans in any way that they see fit so long as such usage is not done in a way that: (1) is deceitful, fraudulent, or manipulative, (2) implies any relationship between user and the Company beyond that reasonably typical of the administrator of an interface and its users, or (3) to cause confusion in any way to gain assets or crypto-assets of, or personal information about, another party other than that intended by the protocol (for example, you may not use the foregoing marks to execute phishing attacks, spearphishing attacks, social engineering, or in any way that may cause a party to transmit assets or crypto-assets to an unintended recipient or to reveal private information, like a private key or password). All other names, logos, product and service names, designs, and slogans on the Website and Interface are the trademarks of their respective owners. **7. Prohibited Uses.** The User may access or use the Interface only for lawful purposes and in accordance with these Terms of Use. The User agrees not to use or access the Interface: * In any way that violates any applicable federal, state, local, or international law or regulation (including, without limitation, any laws regarding the export of data or software to and from the US or other countries). * For the purpose of exploiting, harming, or attempting to exploit or harm minors in any way by exposing them to inappropriate content, asking for personally identifiable information, or otherwise. * To transmit, or procure the sending of, any advertising or promotional material, including any “junk mail,” “chain letter,” “spam,” or any other similar solicitation. * To impersonate or attempt to impersonate the Company, a Company employee, another user, or any other person or entity (including, without limitation, by using email addresses, screen names, similarly named or commonly misspelled URLs, or blockchain identities associated with any of the foregoing). * To engage in any other conduct that restricts or inhibits anyone's use or enjoyment of the Interface, or which, as determined by us, may harm the Company or Participants, or expose them to liability. * If they are a citizen or resident of or are otherwise accessing the Interface from the Crimea, Donetsk, or Luhansk regions of Ukraine or the nations of Iran, North Korea, Cuba, Syria, Sudan, or if the User is otherwise subject to economic sanctions or listed as a Specially Designated National by the United States Office of Foreign Asset Control (OFAC). * If doing so is in violation of any laws or regulations according to the User’s applicable jurisdiction(s). Additionally, the User agrees not to: * Attempt to deceive or defraud any person, or actually deceive or defraud any person, including (without limitation) provide any false, inaccurate, or misleading information with the intent to unlawfully obtain the property of another. * Promote any illegal activity, or advocate, promote, or assist any unlawful act. * Cause annoyance, inconvenience, or needless anxiety or be likely to upset, embarrass, alarm, or annoy any other person. * Impersonate any person, misrepresent the User’s identity, or misrepresent its affiliation with any person or organization. * Engage in any activity or behavior that violates any applicable law, rule, or regulation concerning, or otherwise damages, the integrity of trading markets or the Protocol, including (without limitation) tactics commonly referred to as spoofing, pump-and-dump schemes, and wash trading. * Give the impression that they emanate from or are endorsed by the Company or any other person or entity, including Pool Delegates, if this is not the case. * Use the Interface to execute any transactions that may be considered a securities transaction or otherwise requires registration with the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Commodities Futures Trade Commission, the US Financial Crimes Enforcement Network, or any other global, federal or state regulator or agency or applicable self-regulatory organization. * Use the Interface in any manner that could disable, overburden, damage, impair, or interfere with any other party's use of the Interface, including their ability to engage in real time activities through the Interface. * Use any robot, spider, or other automatic device, process, or means to access the Interface for any purpose, including monitoring or copying any of the material on the Interface. * Use any manual process to monitor or copy any of the material on the Interface, or for any other purpose not expressly authorized in these Terms of Use, without our prior written consent. * Use any device, software, or routine that interferes with the proper working of the Interface. * Introduce any viruses, malware, Trojan horses, worms, logic bombs, malicious code, or other material that is malicious or technologically harmful. * Attempt to gain unauthorized access to, interfere with, damage, or disrupt any parts of the Interface, the server on which the Interface is stored, or any server, computer, or database connected to the Interface, including any underlying blockchain. * Violate the legal rights (including the rights of publicity and privacy) of others or contain any material that could give rise to any civil or criminal liability under applicable laws or regulations or that otherwise may be in conflict with these Terms of Use and our Privacy Policy. * Attack the Interface via a denial-of-service attack or a distributed denial-of-service attack. * Otherwise attempt to interfere with the proper working of the Interface. **8. Monitoring and Enforcement; Termination.** We have the right to: * Take appropriate legal action, including without limitation, referral to law enforcement, for any illegal or unauthorized use of the Interface. * Terminate or suspend a User’s access to all or part of the Interface for any or no reason, including without limitation, any violation of these Terms of Use. Without limiting the foregoing, we have the right to cooperate fully with any law enforcement authorities or court order requesting or directing us to disclose the identity or other information of anyone using or accessing the Interface. THE USER WAIVES AND HOLDS HARMLESS THE COMPANY AND ITS AFFILIATES, LICENSEES, AGENTS, AND SERVICE PROVIDERS FROM ANY CLAIMS RESULTING FROM ANY ACTION TAKEN BY ANY OF THE FOREGOING PARTIES DURING, OR TAKEN AS A CONSEQUENCE OF, INVESTIGATIONS BY EITHER SUCH PARTIES OR LAW ENFORCEMENT AUTHORITIES. However, we cannot review interactions or activities before they are executed through the Interface, and, given the nature of blockchain and smart contract activity, cannot ensure prompt removal or rectification of objectionable interactions or activities after they have been executed. Accordingly, we assume no liability for any action or inaction regarding transmissions, communications, transactions, blockchain operations, or content provided by any Participant or third party. TO THE FULLEST EXTENT PROVIDED BY LAW, WE HAVE NO LIABILITY OR RESPONSIBILITY TO ANYONE FOR PERFORMANCE OR NON PERFORMANCE OF THE ACTIVITIES DESCRIBED IN THIS SECTION, NOR FOR ANY HARMS OR DAMAGES CREATED BY OTHERS’ INTERACTIONS WITH ANY BLOCKCHAIN UNDERLYING THE INTERFACE. **9. Reliance on Information Posted.** The information presented on or through the Interface is made available solely for general information purposes. We do not warrant the accuracy, completeness, or usefulness of this information. Users should not take or refrain from taking any action based on any information contained on the Interface or any other information available, including but not limited to community calls, social media posts, articles, links to third-party content, Discord communications, or tutorials. All community communications from contributors to the ecosystem around the Company are independent of the Company, and we will not have and do not assume any responsibility for their actions or omissions. Any reliance the User places on such information is strictly at the User’s own risk, and as is common in the blockchain space, the User is assuming a high amount of risk related to others or technical harms when operating via the Interface. We disclaim all liability and responsibility arising from any reliance placed on such materials by the User or any other visitor to the Interface, by anyone who may be informed of any of its contents, or by the actions (or omissions) of others interacting with any underlying blockchain. This Interface may include content provided by third parties, including materials provided by other users, bloggers, and third-party licensors, syndicators, aggregators, and/or reporting services. All statements and/or opinions expressed in these materials, and all articles and responses to questions and other content, other than the content provided by the Company, are solely the opinions and the responsibility of the person or entity providing those materials. These materials do not necessarily reflect the opinion of the Company. We are not responsible, or liable to the User or any third party, for the content or accuracy of any materials provided by any third parties. **10. Changes to the Interface.** We may update the content, design of, or functionalities available through this Interface from time to time, but the Interface is not necessarily complete or up-to-date. Any of the material on the Interface may be out of date at any given time, and we are under no obligation to update such material. **11. Information About The User and The User’s Visits to the Interface.** All information we collect on this Interface is subject to our Privacy Policy. By using the Interface, the User consents to all actions taken by us with respect to the User’s information in compliance with the Privacy Policy. **12. No Professional Advice.** All information or content provided or displayed by the Interface is for informational purposes only and should not be construed as professional advice (including, without limitation, tax, legal, or financial advice). The User should not take, or refrain from taking, any action based on any information or content displayed or provided on the Interface. The User should seek independent professional advice from an individual licensed and qualified in the area appropriate for such before the User makes any financial, legal, or other decisions involving the Interface. The User acknowledges and agrees that, to the fullest extent permissible by law, it has not relied on the Company or any other Participant for any professional advice related to its use of the Interface or interactions with the Protocol. **13. WARRANTY DISCLAIMER.** The User understands that we cannot and do not guarantee or warrant that files available for downloading from the internet or the Interface will be free of viruses or other destructive code. The User is responsible for implementing sufficient procedures and checkpoints to satisfy the User’s particular requirements for (1) an appropriate Web3 Utility; (2) anti-virus protection and accuracy of data input and output; and (3) maintaining a means external to our site for any reconstruction of any lost data. TO THE FULLEST EXTENT PROVIDED BY LAW, WE WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY A DISTRIBUTED DENIAL-OF-SERVICE ATTACK, VIRUSES, OR OTHER TECHNOLOGICALLY HARMFUL MATERIAL THAT MAY INFECT THE USER’S COMPUTER EQUIPMENT, COMPUTER PROGRAMS, DATA, OR OTHER PROPRIETARY MATERIAL DUE TO THE USER’S USE OF THE INTERFACE OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE INTERFACE OR TO THE USER'S DOWNLOADING OF ANY MATERIAL POSTED ON IT, OR ON ANY WEBSITE LINKED TO IT. THE USER’S USE OF THE INTERFACE, ITS CONTENT, AND ANY OF ITS SERVICES IS AT THE USER’S SOLE RISK. THE INTERFACE IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. TO THE FULLEST EXTENT LEGALLY PERMISSIBLE, WE, NOR ANY PERSON ASSOCIATED WITH THE COMPANY, MAKES, AND WE EXPLICITLY DISCLAIM, ANY AND ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND RELATED TO THE INTERFACE (AND THE PROTOCOL), WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING (WITHOUT LIMITATION) THE WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE. NEITHER THE COMPANY NOR ANY PERSON ASSOCIATED WITH THE COMPANY MAKES ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE COMPLETENESS, SECURITY, RELIABILITY, QUALITY, ACCURACY, OR AVAILABILITY OF THE INTERFACE. THE COMPANY AND ANY PERSON ASSOCIATED WITH THE COMPANY DOES NOT REPRESENT OR WARRANT THAT: (1) ACCESS TO THE INTERFACE WILL BE CONTINUOUS, UNINTERRUPTED, TIMELY, WITHOUT DELAY, ERROR-FREE, SECURE, OR FREE FROM DEFECTS; (2) THAT THE INFORMATION CONTAINED OR PRESENTED ON THE INTERFACE IS ACCURATE, RELIABLE, COMPLETE, CONCISE, CURRENT, OR RELEVANT; (3) THAT THE INTERFACE WILL BE FREE FROM DEFECTS, MALICIOUS SOFTWARE, ERRORS, PRIVATE, OR ANY OTHER HARMFUL ELEMENTS, OR THAT ANY OF SUCH WILL BE CORRECTED; OR THAT THE INTERFACE WILL MEET THE USER’S EXPECTATIONS. NO INFORMATION OR STATEMENT THAT WE MAKE, INCLUDING DOCUMENTATION OR OUR PRIVATE COMMUNICATIONS, SHOULD BE TREATED AS OFFERING ANY WARRANTY CONCERNING THE INTERFACE (OR AS A REPRESENTATION REGARDING THE PROTOCOL). WE DO NOT ENDORSE, GUARANTEE, OR ASSUME ANY LIABILITY OR RESPONSIBILITY FOR ANY CONTENT, ADVERTISEMENTS, OFFERS, STATEMENTS, OR ACTIONS BY ANY THIRD PARTY EITHER REGARDING OR THROUGH THE INTERFACE. THE FOREGOING DOES NOT AFFECT ANY WARRANTIES THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW. **14. LIMITATION OF LIABILITY.** TO THE FULLEST EXTENT PROVIDED BY LAW, IN NO EVENT WILL THE COMPANY, ITS AFFILIATES, AGENTS, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR DAMAGES OF ANY KIND, UNDER ANY LEGAL THEORY, ARISING OUT OF OR IN CONNECTION WITH THE USER'S USE, OR INABILITY TO USE, THE INTERFACE, THE PROTOCOL, ANY WEBSITES LINKED TO IT, ANY CONTENT ON THE INTERFACE OR SUCH OTHER WEBSITES, INCLUDING ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY, PAIN AND SUFFERING, EMOTIONAL DISTRESS, LOSS OF REVENUE, LOSS OF PROFITS, LOSS OF BUSINESS OR ANTICIPATED SAVINGS, LOSS OF USE, LOSS OF GOODWILL, LOSS OF DATA, AND WHETHER CAUSED BY TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT, OR OTHERWISE, EVEN IF FORESEEABLE. THIS DISCLAIMER OF LIABILITY EXTENDS TO ANY AND ALL DAMAGES CAUSED BY ANY THIRD PARTY OR ANY FAILURE OF THE PROTOCOL OR THE UNDERLYING BLOCKCHAINS. THE FOREGOING DOES NOT AFFECT ANY LIABILITY THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW. **15. Nature of Blockchain; Assumption of Risk; Waiver of Claims.** Blockchains and smart contracts are still emerging technologies that carry a high amount of foreseeable and unforeseeable risk from security, financial, technical, political, social, and personal safety standpoints. The mere access to and interaction with blockchains and smart contracts requires a high degree of skill and knowledge to operate with a relative degree of safety and proficiency. Crypto-assets are highly volatile in nature due to many diverse factors, including (without limitation) use and adoption, speculation, manipulation, technology, security, and legal and regulatory developments and application. Further, the speed and cost of transacting with cryptographic technologies (such as blockchains) is variable and highly volatile. Moreover, the transparent nature of many blockchains means that any interactions the User has with the Protocol may be publicly visible and readable in human form. By accessing and using the Interface, the User acknowledges the foregoing and agrees and represents that it understands such and other risks involved with blockchains and the Protocol. The User further represents that it has all knowledge sufficient to work, and is informed of all foreseeable risks, and the possibility of unforeseeable risks, associated with blockchains, crypto-assets, crypto mining, Web3 Utilities, smart contracts, and the Protocol. The User further acknowledges that any crypto-assets the User places or uses within the Protocol may increase or decrease in value rapidly while they are involved with the Protocol, or be obtained by other parties or otherwise lost in ways the User may or may not currently foresee (possibly to the User’s severe harm or detriment). The User agrees that the Company is not responsible for any of these (or related) risks, does not own or control the Protocol, and cannot be held liable for any resulting harms, damages, or losses incurred by or against the User experiences while accessing or using the Interface. Accordingly, the User acknowledges the foregoing, represents its understanding of the foregoing, and agrees to assume full responsibility for all of the risks of accessing and using the Interface and interacting with the Protocol, whether mentioned in this section or otherwise. The User further expressly waives and releases us from any and all liability, claims, causes of action, or damages arising from or in any way relating to the User’s use of the Interface and the User’s interaction with the Protocol. If the User is a California resident, the User waives the benefits and protections of California Civil Code § 1542, which states: “\[a] general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” **16. No Fiduciary Duties.** This Agreement, and the provision of the Interface, is not intended to create any fiduciary duties between us and the User or any third-party. To the fullest extent permissible by law, the User agrees that neither the User’s use of the Interface or the Protocol causes us or any Participant to owe fiduciary duties or liabilities to the User or any third party. Further, the User acknowledges and agrees to the fullest extent such duties or liabilities are afforded by law or by equity, those duties and liabilities are hereby irrevocably disclaimed, waived, and eliminated, and that we and any other Participant shall be held completely harmless in relation thereof. The User further agrees that the only duties and obligations that we or any Participant owes the User, and the only rights the User has related to this Agreement or the User’s use of the Interface or the Protocol, are those set out expressly in this Agreement. **17. Provisions Specific to Certain Types of Participants.** The Interface and the Protocol enable Participants to serve in certain capacities or perform certain functionalities when interacting with the Protocol. In order to serve in some of these capacities or otherwise perform these functionalities, the User may have been required to enter into other agreements or documents, each of which is hereby incorporated for reference. The types of Protocol capacities or functionalities available to Participants, and the provisions and restrictions applicable to Participates serving in such capacities or performing such functionalities, via the Interface include the following, and the User expressly agrees to be bound by any such applicable provisions and restrictions if it serves in any such capacity and/or performs any such functionality: * If the User is a Cygnus Finance Holder: There exist certain risks or harms related to staking crypto-assets generally and staking Cygnus Finance tokens specifically, including (without limitation) risks of harm related to lock-ups, vulnerabilities in underlying smart contracts, crypto-asset price volatility, private key compromise or loss, blockchain transaction fees, or user-errors in crypto-asset transmission. The User also represents its understanding that certain risks or harms exist related to governance, including the possibility of vote manipulation or voter collusion, lack of notice related to ongoing voting matters, fixed periods where a Cygnus Finance holder may vote, the failure for Cygnus Finance holders to collectively achieve consensus to vote or to reach a conclusion, and other similar governance-related risks. The User acknowledges the foregoing, represents its understanding of the foregoing, and agrees to assume full responsibility for all of the risks related to its status as a Cygnus Finance Holder (including, without limitation, the User’s use of the Interface to perform certain Cygnus Finance holder functionalities), whether mentioned in this paragraph or otherwise. The User acknowledges the risk of complete loss of Cygnus Finance through staking or otherwise. **18. Compliance.** The Interface may not be available, appropriate, or legal for use in some jurisdictions. By accessing or using the Interface, the User agrees that it is solely and entirely responsible for compliance with all laws and regulations under any jurisdiction applicable to the User. This includes responsibility for taxes—the User is solely responsible for any and all taxes or assessments now or hereafter claimed or imposed by any government authority or regulator associated with the User’s use of the Interface. The User may not use the Interface if the User is a citizen, resident, or member of any jurisdiction or group that is subject to economic sanctions by the United States (including those listed in Section 7), or if the User’s use or access of the Interface would be illegal or otherwise violate any applicable law. **19. Links from the Interface.** If the Interface may contain links to other sites and resources provided by third parties, these links are provided for convenience only. This includes links contained in advertisements, including banner advertisements and sponsored links. We have no control over the contents of those sites or resources, and accept no responsibility for them or for any loss or damage that may arise from the User’s use of them. If the User decides to access any of the third-party websites linked to this Interface, the User does so entirely at its own risk and subject to the terms and conditions of use for such websites. **20. Indemnification.** The User agrees to defend, indemnify, and hold harmless the Company, its affiliates, licensors, agents, and service providers, and its respective officers, directors, employees, contractors, agents, licensors, suppliers, successors, and assigns from and against any claims (including claims by any government agency or body), liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys’ fees) arising out of or relating to: (1) the User’s violation of these Terms of Use; (2) the User’s use of the Interface, including, but not limited to, the User’s interactions with the Protocol, use of or reliance on the Interface's content, services, and products other than as expressly authorized in these Terms of Use; (3) the User’s use or reliance on of any information obtained from the Interface; or (4) any other party’s access and use of the Interface or Protocol with the User’s assistance or by using any device or account that the User owns or control. **21. Governing Law and Jurisdiction.** All matters relating to the Interface and these Terms of Use, and any dispute or claim arising therefrom or related thereto (in each case, including non-contractual disputes or claims), shall be governed by and construed in accordance with the internal laws of the State of Colorado without giving effect to any choice or conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction). **22. Arbitration; Class Arbitration Waiver.** Any dispute, controversy or claim arising out of, relating to or in connection with the User’s use of the Interface or the Protocol, or in connection with this Agreement, including disputes arising from or concerning their interpretation, violation, invalidity, non-performance, or termination, shall be finally resolved by binding arbitration by the American Arbitration Association under its Rules of Arbitration. The tribunal shall have the power to rule on any challenge to its own jurisdiction or to the validity or enforceability of any portion of the agreement to arbitrate. The parties agree to arbitrate solely on an individual basis, and that these Terms of Use do not permit class arbitration or any claims brought as a plaintiff or class member in any class or representative arbitration proceeding. The arbitral tribunal may not consolidate more than one person's claims and may not otherwise preside over any form of a representative or class proceeding. In the event the prohibition on class arbitration is deemed invalid or unenforceable, then the remaining portions of the arbitration agreement will remain in force. **23. Class Action and Jury Trial Waiver.** Without limiting Section 22, any disputes related to User’s use of the Interface or the Protocol must be brought in an individual capacity and not as a plaintiff in or member of any purported class action, collective action, private attorney general action, or other representative proceeding. This provision applies to any court action, action in front of a mediator, or class arbitration. The Parties agree to waive the right to demand a trial by jury. ALL USERS ACKNOWLEDGE AND AGREE THAT THE USER AND COMPANY ACKNOWLEDGE AND AGREE THAT BOTH PARTIES ARE EACH WAIVING THE RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING. To opt-out of arbitration, within 30 days of your use of the Interface, you must notify us in writing of your intent to opt-out of the Arbitration provisions by providing your first and last name and clear statement of your intent to opt out. The written intent to opt-out should be sent to [services@cygnus.finance](mailto:eric_cygnus@outlook.com). **24. Injunctive Relief Waiver.** To the maximum extent permitted by law, the User agrees that the User will not be permitted to obtain an injunction or other equitable relief of any kind, such as any court action that may prevent the development or operation of the Interface. **25. Limitation on Time to File Claims.** ANY CAUSE OF ACTION OR CLAIM THE USER MAY HAVE ARISING OUT OF OR RELATING TO THESE TERMS OF USE OR ITS USE OF THE INTERFACE MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES; OTHERWISE, SUCH CAUSE OF ACTION OR CLAIM IS PERMANENTLY BARRED. **26. Waiver and Severability.** No waiver by the Company of any term or condition set out in these Terms of Use shall be deemed a further or continuing waiver of such term or condition or a waiver of any other term or condition, and any failure of the Company to assert a right or provision under these Terms of Use shall not constitute a waiver of such right or provision. If any provision of these Terms of Use is held by a court or other tribunal of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such provision shall be eliminated or limited to the minimum extent such that the remaining provisions of the Terms of Use will continue in full force and effect. **27. Entire Agreement.** The Terms of Use and any documented incorporated by reference herein constitute the sole and entire agreement between the User and the Company regarding the Interface and supersede all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, regarding the Interface. **28. Comments and Concerns** This Interface is operated by Cygnus Finance. All other feedback, comments, requests for technical support, and other communications relating to the Interface should be directed to: [services@cygnus.finance](mailto:eric_cygnus@outlook.com).