Greetings! I’m thrilled to be here, representing the CygnusDAO protocol. Our skilled Founder, @swan_of_bodom, has built a native money-market protocol on Starknet, which is currently live on the mainnet. Today, I’m excited to engage with the community about the future of CygnusDAO on Starknet.
CygnusDAO stands as a decentralized protocol for Stablecoin Lending and Leverage Trading, tailored for LPs. Lenders have the opportunity to supply their stablecoins into isolated lending pools, earning from borrowing fees. On the flip side, Liquidity Providers can borrow Stablecoin deposits from lenders, using their liquidity as collateral. Borrowers can opt to borrow stablecoins or leverage their positions, boosting their earnings from higher trading fees and liquidity mining rewards.
This strategy offers maximum profit potential for borrowers when the underlying LP assets appreciate in value. In the event of a decrease in value, lenders are assured of loan repayment through decentralized liquidation incentives. The protocol is meticulously designed to optimize profits for both lenders and borrowers.
Lenders could experience superior stablecoin yields compared to traditional lending markets, as they lend to liquidity providers who typically enjoy much higher APYs through trading fees and pool rewards.
Liquidity Providers can access stablecoin loans or amplify their positions by using their liquidity as collateral. Since their liquidity remains in the pool, their collateral continually grows in value from trading fees and liquidity mining rewards.
Currently, on the Starknet, Cygnus supports the following protocols:
- JediSwap (Collateral)
- SithSwap (Collateral)
- zkLend (Borrowbale)
For collaterals right now on Starknet we only support CP AMM’s. On EVMs we support concentrated liquidity pools, Balancer style pools (weighted, composable, lsts) and basically any dex.
For borrowable pools, each pool has a USDC strategy in the contract to be as capital efficient as possible. since we are a stablecoin lending protocol, all borrowable strategies involve depositing unused funds into a USDC strategy, so lenders earn from Cygnus borrow rates + the strategy APR (where unused USDC is deposited). In the case of EVM, we deposit unused USDC funds into platforms such as compound, aave or stargate. In the case of Starknet, we deposit all unused USDC funds into zkLend. We plan to incorporate more USDC strategies as more protocols deploy on Starknet.
All liquidity that flows through Cygnus goes to the protocols we integrate with, nothing is held on the smart contracts themselves, benefiting the protocols and users.
Over the past year and a half, significant attention has been devoted to expanding the Starknet developer ecosystem, enhancing network performance, and establishing governance. While these endeavors form a crucial foundation, it’s imperative that we broaden the Starknet community beyond developers to foster real-world adoption.
The Starkness community has witnessed governance proposals related to wider Starknet user adoption, such as previous proposals in February/April regarding the establishment of a “Starknet Governance Fund.” We firmly believe this is a positive step, and in the spirit of advancing this dialogue, we propose the formation of a Growth Committee (“GC”) within the Starknet Foundation. As a team building on Starknet, we believe that a more defined onboarding strategy for users would be advantageous to the ecosystem and would amplify marketing efforts for individual projects.
We seek the support of the Starknet community in our endeavor to enhance our recognition among other protocols. Currently, we are one of the earliest starknet projects in the Starknet community.
Our codes are open-sourced and can be accessed here: GitHub - CygnusDAO/cygnus-starknet-cairo1: Cygnus on Starknet! (Cairo1)
Thank you for your attention, and I’m eager to hear your thoughts and suggestions!