CYX

CYX is a synthetic basket token that aggregates the top 50 native cryptocurrencies into a single, diversified asset. Built on Rootstock (RSK) using Solidity, CYX fetches Chainlink oracles for real-time price and market capitalization data, calculates its Net Asset Value (NAV), and processes minting and burning operations. The token’s governance is planned to be managed by a decentralized autonomous organization (DAO), with 50% of resources earmarked for Research & Development in distributed systems, cryptography, P2P protocols, computing, and general science.

Features

• Diversified Exposure:
  CYX represents a basket of 50 native cryptocurrencies, non-stablecoins, reducing unsystematic risk and offering broad market exposure in one token.

• Real-Time Data via Chainlink:
  The contract fetches price and market cap data from Chainlink oracles to ensure that NAV calculations reflect the latest market conditions.

• Dynamic Weighting and Rebalancing:
  Each asset's contribution is determined by its market capitalization. A weight cap (e.g., 20%) is enforced to prevent any single asset from dominating the index. Excess weight is redistributed proportionally among uncapped assets, maintaining overall diversification.

• Minting and Burning Mechanics:

  • Minting: Users can mint CYX tokens by depositing assets. The number of tokens minted is based on the deposit amount divided by the current NAV.
  • Burning: Users can redeem their CYX tokens by burning them; the redemption value is calculated as the number of tokens burned multiplied by the current NAV.

• Governance:
  A DAO will oversee protocol upgrades, rebalancing strategies, and fund allocation (including the 50% for R&D), ensuring transparent and community-driven decision-making.

Contract Architecture

Key Components

1. Chainlink Oracle Integration:

   • Price Feeds: Fetches the current price $(P_i(t))$ for each of the 50 assets.
   • Market Cap Feeds: Retrieves up-to-date market capitalization data $(\text{MC}_i(t))$ for each asset.

2. NAV Calculation: The NAV is computed using the formula:

$$ {NAV}_{{CYX}}(t) = \sum{i=1}^{50} w_i(t) \times P_i(t) $$

where $(w_i(t))$ is the weight of asset $(i)$ calculated from its market cap.

4. Weight Management:
   • Preliminary weight for each asset:

$$ w'_i = \frac{{MC}i}{\sum{j=1}^{50} {MC}_j} $$

• Apply a cap (e.g., 20%) and redistribute any excess weight proportionally to uncapped assets, ensuring:

$$ \sum_{i=1}^{50} w_i = 1 $$

5. Minting and Burning Functions:
   • Minting:

$$ \Delta \text{CYX} = \frac{D}{\text{NAV}_{\text{CYX}}(t)} $$

Where $(D)$ is the deposit amount.

• Burning:

$$ \text{Redemption Value} = \Delta \text{CYX} \times \text{NAV}_{\text{CYX}}(t) $$

Where $(\Delta \text{CYX})$ is the number of tokens burned.

Usage

• Minting CYX:
  Users deposit assets via the mint function. The contract fetches the latest data, calculates the NAV, and mints tokens proportionally.

• Burning CYX:
  Users redeem their tokens by calling the burn function, receiving an asset value based on the current NAV.

• Rebalancing:
  The contract’s rebalancing logic periodically recalculates weights and NAV, ensuring the basket remains diversified and aligned with market dynamics.

Governance and Future Enhancements

CYX is designed to be governed by a DAO that will oversee:

• Protocol upgrades and rebalancing strategies.
• Allocation of 50% of resources to R&D.
• Community-driven proposals and voting mechanisms.

Future updates may include enhanced off-chain computation, advanced scaling solutions (e.g., zk-rollups), and tighter integration with decentralized finance (DeFi) platforms.

Security Considerations

• Smart Contract Audits:
  All contracts are to be audited by reputable security firms to prevent vulnerabilities.

• Oracle Data Integrity:
  The integration with Chainlink ensures decentralized and tamper-resistant data feeds.

• Fail-Safe Mechanisms:
  Implement emergency stop functions and fallback protocols in case of data discrepancies or unexpected events.

License

This project is licensed under the MIT License.

Contributing

Contributions are welcome! Please refer to CONTRIBUTING.md for guidelines on submitting pull requests and bug reports.

Contact

For further inquiries or support, please contact 40230@pm.me.