As we approach the end of the year, the Cyclos team would like to share an update on our development of the v2 smart contracts. There have been fundamental changes made in the shift from Cyclos v1 to v2, which we will highlight in this article.
Platform Native Liquidity
Cyclos mainnet will launch with our own native liquidity pools. Launching our own liquidity pools enables us to take full control over all parameters of our platform’s development and opens the door too much more rapid expansion of specialized use cases and integrations not possible on the first version of the product.
LPs will choose from different fee tiers according to their risk appetite. Traders will benefit from lower trading fees and LPs will enjoy a higher margin on their liquidity. All this is possible because we have made the switch to protocol native liquidity pools. As such, we will work hand-in-hand with our partner projects to bootstrap this liquidity sustainably over time. Because Cyclos allows liquidity to be placed exactly where it is needed, we aim to position ourselves as the most cost-effective partner for projects in the Solana ecosystem to bootstrap their own tokens.
Cyclos v2 includes decentralized oracles for all tokens on the platform. Our time-weighted average price (TWAP) oracles provide a reliable average price that excludes short-term price fluctuations and manipulations. This is an essential component for future integrations on top of Cyclos. Projects can easily pull price data from the protocol to build their own products on top.
While Cyclos has its native TWAP oracles, this does not exclude the need for integrations with other oracle service providers. TWAP is just one indicator among others that serves to expand the composability of the platform.
Leveraging the Community for Growth
There are two major community-led initiatives Cyclos will utilize for the benefit of the platform.
Community Bug Bounty
As we approach the launch of mainnet, we will announce the details of a bug bounty, led by the community of Solana developers. We will incentivize external developers to participate in auditing our new v2 smart contract code, as a means to safely and efficiently prepare the platform in devnet mode for mainnet deployment. Further details of this will come with the official announcement.
Cyclos’ platform native concentrated liquidity opens the door to a myriad of new use cases. Following mainnet launch, we will unveil the details of a developer grant for anyone interested in building new products on top of Cyclos. We are looking for teams interested in helping rapidly expand the use cases for the protocol, and will jump-start this initiative via grants. If you are interested in building on top of Cyclos, feel free to reach out to us.
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