Target Users

All actors in the Cyclic AI ecosystem.

1. Lenders

Lenders earn passive yield coming through interest charged from leveraged Liquid Restaking strategies.

Lenders provide the ETH that is used to perform carry trades. By depositing ETH, lenders can mint lpETH which can be used across DeFi to earn points and yield. lpETH stakers are earning the borrowing interest charged from Cyclers.

2. Cyclers

Cyclers earn actively leveraged restaking yield by performing carry trades.

Cyclers borrow ETH from the protocol for an interest to buy yielding collateral (e.g., Pendle LRT LP tokens) with it. If the yield of the collateral is greater than the interest charged, they have a successful carry trade and their Net Position Value increases over time. The higher the Cyclic AI Factor, the more capital is borrowed in comparison to their provided principal.

The interest charged for borrowing ETH is distributed among dLP lockers and lpETH stakers (Lenders). By locking >5% of their Total Cycled Position Size in the dLP, Cyclers unlock Cyclic AI emissions to reduce their borrowing cost.

3. dLP Lockers

dLP Lockers govern over the protocol, earn passive yield and unlock Cyclic AI emissions to aligned users.

The dLP describes the liquidity provider token of Cyclic AI, consisting of 80% Cyclic AI and 20% lpETH. Protocol revenue generated not only goes to lpETH stakers but also to dLP Lockers. The lock can be for either one, three, six, nine, or twelve months; the longer the lock, the greater the boost the user will receive to their voting power and real yield.

By granting Cyclic AI emissions only to Cyclic AI liquidity providers, the full potential of the Cyclic AI flywheel is gated to the most protocol aligned users while guaranteeing deep liquidity for the native token.