Owing to the concept of crypto staking—a unique phenomenon that has been around for a couple of years—crypto token holders can now put their assets to work in exchange for annual percentage yields [APYs]. While hundreds of protocols have been designed to incentivize token holders for committing their holdings to their platforms, Cylum Finance, a nascent sustainable protocol in the DeFi 3.0 space, has been launched to pioneer a paradigm shift in how token holders receive rewards.
A sustainable, reliable automation protocol that allows users to put their tokens to work in high-producing investment opportunities, Cylum Finance has incorporated a plethora of unique features, which, according to the founding team, gives it a competitive advantage over other DeFi 3.0 projects.
The Auto-Staking and Compounding Features of Cylum
Dedicated to developing and launching a DeFi technology that not only benefits but adds real value to Cylum token holders, Cylum Finance, through its exclusive CYM protocol, will hope to deliver a truly decentralized financial asset that rewards users with a sustainable and unique compound interest model.
Currently offering an APY of 395.677% in the first year—the highest in the market—Cylum Finance has introduced a set of unique features—auto-compounding, auto-staking, and auto-burn.
The auto-skate facet, according to the Cylum project white paper, is a pretty straightforward yet unprecedented technological advancement in the DeFi space. Tagged “Buy-Hold-Earn,” this function, as the name implies, works by simply buying $CYM tokens, holding, and earning. Introducing this advanced yet straightforward option eliminates the burdensome staking operations token holders have had to go through over the years.
Before this time, token holders will need to transfer their assets to either a staking protocol or pool to earn APY. As a groundbreaking protocol, Cylum Finance dispels the need to transfer assets. Its auto-stake feature guarantees token holders rewards in the form of payments made directly into their wallets. Prodigiously, these rewards are paid each minute.
To facilitate auto-compounding, Cylum Finance leverages a compound interest formula to enable token distributions worth 0.75% of the total $CYM amount held each minute. The reward, per the team, is shared amongst all $CYM holders on each block.
The auto-compounding feature, therefore, means that $CYM token holders will earn an annual compound interest rate of over 395% for the first year, albeit without having to withdraw any token from their wallets. At the end of the year, the compound interest rate reduces, as revealed by the Cylum Finance team.
The Automatic Burn Feature
In an attempt to create what is referred to as a “deflationary effect,” the Cylum Finance team has introduced automatic burn. To kick-start the auto burn process, Cylum has developed an algorithm that will automatically burn 2% of the current token supply immediately after launch.
This facet ensures that Cylum’s total token supply deflates continuously compared to your wallet balance. Leveraging the token burn concept—one adopted by many projects seeking to increase their token value—Cylum, through its built-in algorithm, will foster a genuine supply/demand gauge for $CYM.
The Automatic Hyper Burn program will kick off with a $1 billion reserve set aside expressly for this purpose. As a sustainable and legitimate project, Cylum Finance promises to conduct these token burn events in an automated and linear manner, thus solidifying its stance as a long-term project.
With 2% of the token supply to be burned by Cylum Finance immediately after the project launch, the nascent DeFi 3.0 project will communicate the date and time for future burn events.