Vault

CygnusX1 Vault receives part of the rewards from lending pools plus all USDC reserves.

The Vault is connected to both the core and periphery contracts. Cygnus uses a reserve factor (similar to AAVE or Compound Finance) which keeps a part of the interest earned from borrows as reserves. The reserves are sent to the vault for users to claim.

Tokens except USDC: When vaults are reinvested, 3% of all rewards is given to the user who signs the transaction, 22% to the vault and the other 75% reinvested.

USDC: When interest is accrued, the contracts mints CygUSD to the DAO reserves contract. Anyone on the network can force a redeem from the reserves of these CygUSD shares, which transfers all the USDC to the vault, thus all reserves flowing back to users.