Cyclo cyARB

Cyclo rethinks leverage from first principles.

Instead of following the traditional DeFi pattern of lending pools, interest rates, and liquidations, Cyclo creates a simple primitive: the ability to lock collateral (like WETH) and mint cy* tokens (like cyWETH) that can trade between $0 and $1.

This design leads to a natural market for leverage. When demand for leverage is high, users lock their collateral and sell cy tokens, increasing supply and lowering its price. When traders want to unwind positions, they buy back cy tokens to unlock their collateral, creating demand that drives the price up.

This cycle repeats naturally without any governance decisions, interest rates, or forced liquidations.