Cygnusfinance Cygnusfinance cgUSD
Cygnus issues cgUSD v1 on Base, backed by short-term U.S. Treasury bills. cgUSD balances reflect distributed Treasury interest through rebasing; wcgUSD is the wrapped form for DEX and cross-chain use.
Updated
- Portfolio composition
- The v1 asset portfolio includes off-chain U.S. Treasuries, on-chain stablecoins, and asset interest.
- Supply synchronization
- Cygnus aligns total cgUSD supply with the portfolio’s net asset value on each New York banking day.
Token form by use
| Use | Token form and applicable limits |
|---|---|
| Holding on Base | cgUSD v1 reflects distributed Treasury interest through balance increases. The rebasing token remains on Base. |
| Decentralized-exchange use | wcgUSD provides the wrapped form for DEX use. The v1 mechanics identify rebasing cgUSD as incompatible with decentralized exchanges such as Uniswap. |
| Cross-chain use | The documented v1 route uses wcgUSD and Axelar. The v1 Wrap mechanics specify fees in the source chain’s native token, while the Bridge table lists stablecoins. These documents do not establish which payment asset applies. |
Interest and redemption units
wcgUSD is non-rebasing: rewards accrue automatically in the underlying cgUSD without increasing the wcgUSD token count. Unwrapping returns cgUSD reflecting those accumulated rewards; holders do not need a separate reward claim. For cgUSD, distributed Treasury interest increases token balances as the portfolio’s net asset value grows.
Cygnus’s v1 documentation describes a conversion basis of 1 cgUSD for 1 USDC. Applicable withdrawal fees and significant Treasury-price fluctuations can reduce the claimable amount. For wcgUSD withdrawals, the v1 FAQ describes automatic unwrapping, with requests denominated in cgUSD. The 1:1 conversion basis therefore concerns cgUSD, not wcgUSD. Submitted tokens stop earning rewards, and users claim USDC once the request becomes claimable.
Wrapping and transaction timing
Cygnus’s cgUSD v1 Wrap mechanics allow users to wrap cgUSD and initiate a cross-chain action within a single transaction. This combined option concerns cross-chain use; the separate New York banking-day schedule governs cgUSD supply synchronization.
