Introduction

1.Overview

This whitepaper mainly introduces Cyclic Protocol and its core functions, aiming to provide a clear and comprehensive overview of the protocol and how it solves liquidity problems in the decentralized finance (DeFi) ecosystem through innovative lending mechanisms. This document will detail the design concept, technical architecture, economic model, market strategy and future development path of Cyclic Protocol.

The whitepaper mainly includes the following parts:

• System Overview: Describes the main functions and working principles of Cyclic Protocol.

• Core Features: Detailed introduction to the key features of the protocol, such as liquidity pledge, lending pool mechanism, asset return, etc.

• Technical Architecture: Explains the technical architecture of the protocol, including the design of smart contracts, security measures, etc.

• Tokenomics: Analyzes the distribution, revenue model and token appreciation strategy of CYC governance tokens.

• Roadmap: Shows the future development plan and phased goals of the protocol.

• Conclusion: Summarizes the core advantages and future vision of Cyclic Protocol.

2. What is Cyclic Protocol?

Cyclic Protocol is a decentralized lending protocol that aims to provide users with liquidity through innovative liquidity and collateral mechanisms. By using locked liquidity tokens (LP) as collateral with other tokens, users can quickly obtain funds. When users repay their loans, Cyclic Protocol will ensure that the corresponding pledged assets are returned.

Unlike traditional lending platforms, Cyclic Protocol provides a more flexible and transparent way of lending. Users do not need to go through centralized financial institutions, but interact directly with the protocol through smart contracts. This mechanism not only improves the liquidity of funds, but also ensures the security and fairness of assets.

3. Why Choose Cyclic Protocol?

The reason for choosing Cyclic Protocol lies in its multiple innovative features and unique advantages for users:

1. Decentralization and transparency: Cyclic Protocol is completely decentralized, and all transactions and lending behaviors are automatically executed through smart contracts, ensuring that users can operate funds in a completely transparent environment.

2. Flexible liquidity: Users can quickly obtain funding support by staking their own liquid assets (such as LP) and tokens without having to sell their assets completely. The repayment process of funds is also flexible, ensuring that users can obtain the required liquidity under different market conditions.

3. Secure asset management: All lending and asset management operations are executed by smart contracts, ensuring that there is no third-party intervention, and all operations have clear rules and traceable records. In addition, the protocol has built-in security measures to prevent malicious attacks and misconduct.

4. Community governance and sustainability: The core of Cyclic Protocol is community governance, and the CYC governance token will give token holders decision-making power over the protocol. Through the token reward mechanism, users can not only participate in protocol governance, but also receive continuous returns from economic activities within the protocol, ensuring the long-term sustainability of the platform.

5. Innovative lending mechanism: Unlike traditional lending protocols, the lending mechanism provided by Cyclic Protocol is more flexible. Users can not only obtain funds in the protocol, but also ensure that their collateral assets are fully returned after the loan is repaid, thus avoiding the common risks of insufficient liquidity and asset loss.