Described as one of the most promising sections of the world’s financial industry, decentralized finance [DeFi], as the name suggests, aims at dispelling the need for a central authority system in the financial sector. Introducing a wide range of unique concepts ranging from lending to borrowing, staking, and farming, DeFi has evolved, giving way to DeFi 3.0, a nascent decentralized finance structure that centers around education, global adoption, transparency, and development.
Not surprisingly, several of these DeFi 3.0 projects have been designed and launched to help drive the growth of the budding market. One of such protocols is Cylum Finance.
A sustainable, reputable, and rewarding automation protocol that allows token holders to put their assets to work in a plethora of high-profit investment opportunities, Cylum Finance will leverage its patented CYM protocol to deliver a sustainable financial asset that rewards users based on a compound interest model.
Cylum Finance has introduced a set of new features, some of which, according to the team, puts it on a higher pedestal.
Features of Cylum Finance
The Cylum Cylinder
The Cylinder is Cylum’s backup reserve or cold storage facility that holds a specific amount of BNB. The idea behind this feature is that it would help manage price declines caused by the expeditious sale of tokens by holders.
Per the project team, the Cylum Cylinder is instituted to safeguard investors by eliminating flash crashes through price stability and assuring them of Cylum’s long-term expansion and sustainability plans. Additionally, the storage reserve will lower the downsides of investing in a DeFi project.
Auto-staking as a core facet of Cylum Finance will help solve a significant sticking point in the DeFi space. Ordinarily, token holders seeking to stake or commit their assets to protocols will have to transfer their holdings to either a staking protocol or pool—a back-breaking task.
Cylum’s auto-staking will dispel this problem.
Through Cylum Finance’s “Buy-Hold-Earn” model, potential token holders will only need to purchase a certain number of $CYM tokens, hold for a period, and immediately start earning annual percentage yields [APYs]. No transfer of any sort is required. In essence, by simply holding $CYM tokens, you receive rewards directly sent to your wallet.
Working in pari passu with auto-staking is the auto-compounding feature. Cylum Finance is piggybacking on a compound interest formula to enable the seamless payment of token distribution worth about 0.75% of the total $CYM amount.
The compound interest formula, therefore, means that $CYM holders will earn over 395% in the annual compound interest rate for the first year, although without having to withdraw any token from their wallets. Once the 12 months period elapses, the compound interest rate reduces automatically.
Automatic Token Burn
Cylum has designed a token burn algorithm that will burn 2% of the total token supply immediately after the project launch. As revealed by the team, automatic burn is introduced to create a deflationary effect, thus taking more $CYM out of the market and driving its increase in value.
Over the years, token burning has been adopted by a plethora of crypto projects as an impressive catalyst to token value appreciation. Cylum Finance, like most of the others, has implemented this feature, only that this time it is automated. Aimed at bolstering the project’s token supply chain, Cylum as a legitimate and long-term protocol will conduct these burn operations in an organized and automated manner.
With future token burn operation dates to be announced by the Cylum Finance team, these features not only cement its position as a leader of this new space but give it an edge over existing competitors.