Introduction

Access liquidity without disrupting your investments.

CygnusDAO is a decentralized Stablecoin Lending and Leverage Trading protocol for LPs.

Lenders can supply their stablecoins in isolated lending pools earning from borrowing fees. Liquidity Providers on the other hand can borrow Stablecoin deposits from lenders using their liquidity as collateral.

Borrowers can choose to borrow stablecoins or leverage to increase their earnings from higher trading fees and liquidity mining rewards. If the underlying LP assets start rising in value, this strategy can provide maximum profit for borrowers as they owe a static debt against their appreciating LP Token value. If underlying LP assets start decreasing in value, lenders are guaranteed their loan repayment via decentralized liquidation incentives.

The protocol is designed to reach profit maximization for both lenders and borrowers.

• Lenders enjoy higher stablecoin yields than traditional lending markets as they are lending their stablecoins to liquidity providers, who typically enjoy a much higher APYs through trading fees and pool rewards.

• Liquidity Providers can borrow stablecoin loans or leverage their positions using their liquidity as collateral. Since their liquidity is never removed from the pool, their collateral is constantly increasing in value from trading fees and liquidity mining rewards.

When users leverage, they are converting the stablecoin loan into more liquidity tokens. Safe under-collateralized loans are possible in this context as the protocol owns the debt. This means that if a user chooses to leverage, the user never has custody of the loan (as it is used to buy more liquidity). If they wish to withdraw their funds, they must first de-leverage (pay back the loan). Furthermore, the user doesn't need to disrupt his investments to have access to a loan, as they never have to leave the Liquidity Pool they are already providing liquidity in (for more info on this check here).

All transactions involving digital assets involve substantial risks. You should therefore carefully consider whether using CygnusDAO is suitable for you in light of your financial condition. The price or value of digital assets can change rapidly, decrease, and potentially even fall to zero. Past performance is not an indicator of future performance. You acknowledge that CygnusDAO is not responsible for any loss of your digital assets resulting from theft, loss, or mishandling of digital asset private keys outside our control.