Flexibly Switch Between Liquidity and Yield
1.1 LT-RT Rebalance Mechanism
The LT-RT Rebalance Mechanism is Cicada’s core structure for decoupling liquidity and yield. By splitting an asset into two functional tokens — LT (Liquidity Token) and RT (Rebase Token), users can freely switch between holding liquidity and earning yield.- LT : Represents liquidity and is freely tradable on the market; supports composable strategies and suits short-term trading.
- RT : Represents yield entitlement; automatically receives daily rebase rewards without lock-up, ideal for long-term holding.
1.2 Trading Flow
- Users initially receive assets as LT tokens.
- Users can convert LT to RT to receive real yield.
- The protocol rebase-distributes incremental yield (ΔRT) to RT holders based on actual asset earnings.
- Users can convert RT back to LT at any time for flexible exits.
1.3 Trading Mechanism Overview
(1) RT Yield Distribution
Yield for RT holders is determined by the actual returns from underlying risk-weighted assets (RWAs). The distribution follows a yield-sharing formula.
(2) LT Token Issuance & Locking
New LT tokens are issued based on net protocol earnings and current market price. Issuance is calculated via a defined formula.
(3) Asset Rebalancing
(4) Compounding Yield
An automated compounding system continuously optimizes returns for stakeholders over time.
DA Assets — Composable Yield & Liquidity
2.1 Dual-Token Yield-Bearing Structure
DA assets in Cicada follow the LT-RT structure, allowing users to switch between yield and liquidity onchain.- LT (Liquidity Token) : Freely tradable with real-time market pricing
- RT (Rebase Token) : Yield-bearing certificate that receives automated rebase rewards via smart contracts
2.2 DA Asset Applicability
Key Features:
High flexibility : Instant switch between liquidity and yield
Market-driven pricing : Reflects value through LT/RT dynamics
Automated profit distribution : Rebase mechanism contract execution automatically
Composable : Enables other protocols to integrate DA assets as yield-generating base assets2.3 DA User Operations
- Swap : Use BTC/USDC to acquire LT tokens, representing liquidity rights
- SConvert : Exchange LT to RT 1:1 to start receiving yield; reversible anytime
- SRebase : Daily, real yield is used to buy LT, converted into RT, then proportionally rebase-distributed to RT holders
CA Assets — Stable, Institutional-Grade Yield
3.1 Institutionally Managed Yield-Bearing Assets
- CA assets are onchain representations of off-chain assets managed by institutions, with yield driven by sustainable cash flows rather than speculation.
- CA yield certificates reflect the holder’s entitlement and are redeemable at fair value with high predictability.
3.2 CA Asset Applicability
Key Features:
Stable: Yield is derived from real assets, not hype
Secure: Assets verified and held by institutions
Redeemable: Certificate exchangeable at predictable fair value
Target audience: Suitable for low-risk and stable investors
Analogy: Think of it as an onchain "crypto money market fund" yield3.3 CA User Operations
- Subscribe : Users use stablecoins (e.g., USDC/USDT) to subscribe for CI Tokens (yield-bearing certificates)
- Rebase : Daily yield is calculated and added to CI Token balance automatically
- Redeem :Redeem : Upon maturity or exit eligibility, users request redemption
- Claim :Claim : Users manually claim their principal + accrued yield
1Flexibly Switch Between Liquidity and Yield
2DA Assets-Composable Yield & Liquidity
3CA Assets-Stable, Institutional-Grade Yield