By default, your entire blockchain transaction history and balances are public. Anyone who knows that you own a particular address can quickly view your payments, trace the source of your funds, calculate your holdings, and analyze your on-chain activity. Cyclone is built to address these problems.
Cyclone Protocol is a cross-chain, non-custodial, universal privacy-preserving protocol for DeFi with the decentralized governance. Cyclone applies zkSNARKs to enable transactional privacy for all DeFi components by breaking the on-chain link between depositor and recipient addresses. Cyclone Protocol has been successfully launched on IoTeX blockchain — a fast, EVM-compatible blockchain with an active community on January 2021, and achieved 3M USD TVL within a few days, according to https://cyclone.xyz/analytics!
Today, we are launching the Cyclone Protocol with upgraded economics on Binance Smart Chain (BSC) — the parallel Binance chain to enable smart contracts that serve millions of users with trillions of on-chain assets.
Deposit Start at 3/15 10:00 PM UTC
Anonymity/Liquidity Mining Start at 3/16 10:00 PM UTC
Genesis Anonymity Pools on BSC: $BNB, $BUSD, BSC-pegged $IOTX
Liquidity Mining Pair: $CYC/$BNB
preliminary audit report by shieldchain. full audit report by shieldchain and slowmist are coming.
Cyclone Protocol Is Simple
A user deposits crypto into an anonymity pool and later withdraws from the same pool, obfuscating the deposited tokens’ history via zkSNARKs. zkSNARKs allows this to happen without revealing which exact deposit corresponds to this secret. The smart contract checks the proof and transfers the originally deposited funds to the address specified for withdrawal. An external observer will be unable to determine which deposit this withdrawal links to.
Cyclone Protocol Is Effective
zkSANRKs is a powerful tool but cannot provide a sufficient degree of privacy for users unless the anonymity pool has
- Enough deposits staying in the pool
- Enough withdraws happen all the time
To “hide” the actual deposit-and-withdraw behavior from a privacy-seek user.
To this end, we have specifically designed Anonymity Mining v2 (AMv2) for users, which ensures
- The longer the asset stays in the pool, the more CYC anonymity providers obtains;
- Set a life span of an anonymity pool (usually 90 days) to encourage anonymity providers to shuffle their assets and deposit into a new pool to improve the degree of privacy further. This is because a pool with long-term deposits but lacks short-term deposits/withdraws offers a limited privacy degree.
Besides, to stabilize the CYC price, liquidity mining is also part of Cyclone Protocol — CYC and BNB can be supplied to Pancake to produce CYC-BNB Pool Token, which can be further staked to a smart contract for liquidity mining. The daily liquidity reward now sets to 25 CYC, which all liquidity miners share.
CYC Initial Supply on BSC
With the community’s support, 202.1 CYC (yes, 2021!) are newly minted on BSC (in addition to ~6,000 CYC minted on IoTeX) when we deploy the contracts on BSC. These CYCs are locked in this address and reserved for the following:
- 2.1 CYC — initial liquidity provision on Pancakeswap
- 100 CYC — reservation for airdropping to BSC users (We will provide details soon)
- 50 CYC — reservation for rewarding early participants on IoTeX (We will provide details soon)
- 50 CYC — reservation for marketing and growth
- 50 CYC — reservation for the development of the protocol
Cyclone Protocol Is The Future
After the BSC launch, there are many exciting milestones ahead which we would like to accomplish in 2021.
- Open anonymity pools for new assets based on community vote
- Launch on Ethereum, which is coming in 2021 Q2
- Activation of the governance DAO in 2021 Q2
- Launch cross-chain yielding-aggregated anonymity pools in 2021 Q3. Cyclone protocol is the world-first protocol that supports anonymity pools compositing with yield-generating DeFi components, and it is the universal privacy-enhancement layer for all DeFi apps.
For our full roadmap, please refer to https://docs.cyclone.xyz/cyc-token-roadmap.
Where to Find Us?
Email: support (at) cyclone.xyz