Saros Spotlight #8: Everything you need to know about Cykura (CYS)
Welcome back to Saros Spotlight! In this episode, we will take a closer look into Cykura - a decentralized AMM on Solana focusing on the concept of concentrated.
What is Cykura about?
Cykura is a decentralized AMM platform that utilizes concentrated liquidity, developed on Solana. Cykura solves the problem of capital inefficiency and maximizes returns for LPs by allowing LPs to choose the price ranges at which their liquidity is active. Specifically, LPs will predict the range in which the trade will actually occur, instead of providing for the entire range.
Cykura was originally known as Cyclos. The project changed its name in early March 2022 as it reached the development phase of the V2 version, according to the project.
How does Cykura works?
While most AMMs are forks of Uniswap V2, Cykura distinguishes itself with the concentrated liquidity functionality pioneered by Uniswap V3. Concentrated liquidity enables Uniswap V3 LPs to provide liquidity with up to 4000x capital efficiency against Uniswap v2, resulting in a greater return on initial capital.
Cykura's advantage over Uniswap V3 is that it is built on Solana instead of Ethereum, therefore, users will not be affected by network congestion or excessive transaction fees. Cykura's distinctive features are described below.
Maximizing capital efficiency
LPs "concentrate" their liquidity by placing their assets at price intervals of their choosing. Concentrated liquidity offers LPs complete control over how their liquidity is distributed and rewards them for meeting market demand.
More fees for LPs
Trading fees are paid to LPs based on how much of their liquidity is utilized. The tighter their price interval around an asset's current or future trading price, the more fees they earn on Cykura.
Multiple Fee Tiers
LPs choose their fee tier according to their risk tolerance. On Cykura, there are 3 fee tiers, corresponding to different levels of risk: 0.05%, 0.3%, and 1%. Fees are paid in greater proportion to LPs who create trading on more volatile, exotic pairs.
66.66% of the fees are directly distributed to LPs. 22.2% are utilized for CYS buy and burn from the market. Finally, 11.1% goes to the Cykura treasury to cover costs and expenses.
Gamification of Liquidity Provision
Trading fees and liquidity incentives are used to compensate LPs for making markets. Fees and rewards are divided based on the percentage of the pool that they control. There are numerous opportunities for LPs to fulfill demand in underserved sections of pools.
Fast and low-cost transactions
Built on Solana, Cyclos is powered by almost instant transactions and low gas fees. This removes a significant barrier to reaching the full potential of concentrated liquidity and optimized liquidity curves.
CYS Key Metrics
- Token Name: Cykura Token
- Ticker: CYS
- Blockchain: Solana
- Token Standard: SPL
- Contract: BRLsMczKuaR5w9vSubF4j8HwEGGprVAyyVgS4EX7DKEg
- Token type: Utility, Governance
- Total Supply: 100,000,000 CYS
- Circulating Supply: 11,632,000 CYS
CYS Token Allocation
- Liquidity Rewards: 35%
- Ecosystem: 20%
- Team: 17%
- Seed Sale: 6.2%
- Marketing: 5%
- Initial Liquidity: 5%
- Strategic Sale: 4.2%
- Serum Staking: 3.6%
- Advisors: 3%
- Public Sale: 1%
How to buy CYS Token
CYS Token can be bought through Saros.finance DEX and other CEX such as MEX Global, Gate.io, LATOKEN and Raydium.
CYS Token Use Cases
- Utility: Long-term holders who lock the token will receive % of trading fees. LPs can access a lower fee tier by staking tokens prior to providing liquidity.
- Governance: A percentage of trading fee profits is used to execute market buybacks and burns.
How you can maximize your CYS holdings with Saros
CYS/USDT farming pool
Liquidity providers will be able to stake their CYS/USDC LP tokens on SarosFarm to earn extra rewards in the form of $CYS, in addition to the pair trading fee.
To start farming, please firstly provide liquidity for the pair CYS/USDC on Liquidity page. Currently the CYS farming pool is at top 6 TVL on Saros.
Then go to the SarosFarm page and search for “CYS”; you’ll see corresponding farming pool, where you can stake your CYS/USDC LP tokens.
Check out detailed guide: How to farm on Saros
CYS Staking pool
Beside CYS - USDC Farming Pool, you can also stake CYS to earn CYS on Saros. Maximizing returns without impermanent loss!
Tutorial on how to Stake on Saros here.
Team, Investors and Partners
Team
Cykura is led by a team with significant experience in the crypto space, including:
- Daniel: A member of Binance Research since 2019, bringing many high-quality projects to the community through Binance Launchpad or direct listing.
- Shardul: A multi-award winner in Hackathons, notably ETH-Denver 2021 (winner for Chainlink), Golem factory (first prize), and NFT Hack 2021 for Near Protocol (first prize).
Investors
Cykura is supported by the top-tier strategic investors in the Solana Ecosystem:
- Solana Capital: A venture capital firm based in the United States, focuses on building and developing crypto apps for decentralized apps and marketplaces.
- Coin98 Ventures: The investment arm of Coin98 Finance, offering financial capital and resources to enable financial innovations in the DeFi space.
- Huobi Ventures: A venture capital that specializes in blockchain technology, crypto assets, and digital currency.
Along with many other investment funds such as CMS, Hashkey, YoubiCapital, Gate.io…
Roadmap & Updates
Cykura plans for Q1 and Q2 2022 for scaling the Cykura platform are described below:
Cykura Network Community
- Twitter: https://twitter.com/cykurafi
- Telegram: https://t.me/cykuraofficialchat
- Discord: https://discord.com/invite/gyaK56UreX
- Medium: https://cykura.medium.com
Final thoughts
We hope that after this post, you have gained a better understanding of Cykura. Hope that the article helped you to gain valuable information about the project.
Disclaimer: The information provided is given only for educational purposes, and it should not be considered as financial advice. Saros is not liable for any financial losses or other damages incurred as a result of utilizing the aforementioned initiatives, platforms, or cryptocurrencies.
About Saros Finance
Saros Finance is the ultimate DeFi platform native to Solana, with trading, staking, and yield farming services. Built by Coin98 Labs, Saros Finance aims to adopt millions of users to DeFi.