Dubai, United Arab Emirates, December 17th, 2024,
Chainwire
Flare, the blockchain for data, has announced the launch of
Cyclo, a novel decentralized protocol for leveraging
digital assets. Cyclo’s liquidation-free model allows users to
leverage their holdings without the traditional risks associated
with margin trading, with sFLR (Liquid Staked FLR) starting as the
first supported asset.
The introduction of cysFLR – a tokenized representation of
leveraged sFLR – allows users to unlock capital efficiency while
maintaining flexibility in terms of position management. Users can
lock their sFLR to mint cysFLR on a 1:1 basis, representing the
dollar value of their staked assets. These tokens can then be
traded on decentralized exchanges such as SparkDEX on Flare,
facilitating innovative trading strategies without risking
liquidation.
For example, with Cyclo users can lock sFLR to mint cysFLR, sell
cysFLR for stablecoins like USDC, deploy those funds elsewhere, and
later repurchase cysFLR to reclaim their original sFLR. cysFLR's
design enables it to trade within a bounded range of $0 to $1,
depending on market demand for leverage, offering new opportunities
for DeFi traders.
Cyclo thrives on Flare's robust ecosystem, underpinned by the
Flare Time Series Oracle (FTSO). The FTSO provides decentralized
and reliable price feeds critical for maintaining the integrity of
cysFLR mints. Unlike external oracle solutions, Flare’s native
oracles operate at the network level, ensuring accurate and
resilient price data with minimal vulnerability to manipulation or
failure.
The FTSO’s unique architecture relies on a network of
approximately 100 independent data providers, selected through
delegated staking by Flare users. This decentralized design
guarantees economic disincentives for misbehavior, ensuring
unparalleled security and stability. Moreover, the permanent
backing oracle ensures cysFLR can operate permissionlessly and
immutably, reducing the risk of failures or systemic issues.
Cyclo users can continue to earn rewards through FlareDrops,
delegation, and staking while locking their sFLR. Additionally,
users are eligible for rFLR incentives, creating
further opportunities for yield generation.
The launch of Cyclo sets the stage for additional leverage
opportunities as Flare expands its range of tokenized assets. With
the forthcoming rollout of FAssets – tokenized versions of
non-smart contract assets like BTC and XRP – Cyclo is positioned to
introduce cyBTC and cyXRP. These assets will replicate the leverage
capabilities of cysFLR, maintaining bounded price movements while
eliminating the risk of liquidation.
By combining the efficiency of Flare’s enshrined oracles with a
liquidation-free model, Cyclo redefines onchain leverage, offering
a user-friendly alternative to traditional margin trading. This
innovative design unlocks new opportunities for traders, investors,
and DeFi participants, driving broader adoption of decentralized
financial services.
About Flare
Flare is the blockchain for data: an EVM smart
contract platform specifically designed to support data intensive
use cases, including Machine Learning/AI, RWA tokenization, gaming
and social. With decentralized, enshrined oracles secured at the
network layer, Flare is the only smart contract platform optimized
for decentralized data acquisition: price & time series data,
blockchain event & state data, and web2 API data. By giving
developers trustless access to the broadest range of data and data
proofs at scale and for minimal cost, Flare expands the utility of
blockchain and supports the development of new and improved use
cases.
Contact
Sam
Kramer
sam@marketacross.com