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 Finance 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 Finance will not impose any fees.

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