Cygnus Finance introduces a stablecoin protocol based on short-term U.S. Treasury bills, minting cgUSD on the Base platform, which provides holders with an interest-bearing asset tied to one of the world's most significant financial benchmarks. The protocol offers a unique way for USD asset holders to gain exposure to U.S. Treasury yields through stablecoins. Cygnus uses a dual-token model where cgUSD adjusts daily based on U.S. Treasury values and accrued interest, while wgUSD facilitates easier integration into DeFi platforms by being non-rebasing. Although currently lacking a formal governance structure, plans are underway to establish this component.
Value Proposition:
Cygnus Finance is a RWA stablecoin protocol built on pure, short-term U.S. Treasury billsCygnus Finance mints an interest-bearing stablecoin called cgUSD on Base, collateralized by short-term U.S. Treasuries. 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 Finance provides an entry point for all on-chain USD asset holders to enjoy the yield rights of U.S. Treasuries while holding stablecoins.
Governance:
Cygnus Finance currently doesn't have a governance mechanism in place and plans to introduce this in the coming months.
Tokenomics:
Cygnus Finance has a two token model. Firstly cgUSD, is an interest-bearing stablecoin, collateralized by short-term U.S. Treasuries.cgUSD shares pure interest income from U.S. Treasuries with users through the rebase mechanism. 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. Secondly, wgUSD is an ERC-4626 token that allows 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.
Previous Funding:
Cygnus Finance has not raised any external funding and is completely self bootstrapped.
