Swansong — Last update to the Cygnus Protocol before launch and migration guide.
This is a CYG migration guide for existing holders before the whole protocol goes live. The new CYG token is built on LayerZero’s latest technology, designed specifically for a future where blockchains communicate seamlessly.
The Cygnus protocol began in February of 2022. After months of planning, we began working on the Ethereum code base in June 2022 and by September 2022 we already had a working product.
Right from the get-go, the Cygnus protocol was built to operate across multiple chains. We initially focused on EVMs, but we also simultaneously ventured into developing on Starknet (non-EVM). Our mission has always been clear: to create a hub where DeFi Liquidity Providers can leverage their liquidity for easy access to capital.
Since we started developing the protocol, we have seen the same issue with bridges time and time again:
- February 2022: Wormhole drained $375 million
- March 2022: Ronin Bridge suffered a $624 million loss
- August 2022: Nomad Bridge saw $190 million vanish
- September 2022: Wintermute took a hit of $160 million
- June 2023: Multichain faced a $103 million loss
The scale and frequency of these hacks underscore the growing concern around compromised bridges.
After discussions with the LayerZero team, we’ve concluded that the smart move for the protocol and our community is to transition CYG to LayerZero. This shift aligns perfectly with our goal of embracing an Omnichain future, safeguarding the protocol from any single point of failure.
Cygnus V1 (CYG)
In July of 2023 we conducted an airdrop where over 200 users claimed the CYG token. Right as we did the airdrop, more news regarding the Multichain bridge hack started coming out. The bridge ended up being suspended, leaving a lot of users affected. Specifically, the Fantom blockchain (which we are big fans of) was the one impacted the most since a lot of the FTM tokens relied on Multichain. This convinced the team we had to move away from our old plan.
After the airdrop, we were ready to deploy the whole protocol to Polygon so users could start lending and borrowing on Cygnus. The final stage of deploying the protocol is for the owner of the CYG token (0xhyoga at the moment) to give ownership of the token to another contract which would become the sole minter of CYG. Once this transfer of ownership is finished it is impossible to revert, and CYG would start being minted immediately for the next 4 years. As mentioned earlier, we decided to abandon this plan and move to a new architecture for our token using LayerZero.
The ownership of the old CYG token was never granted to the minter contract, and it is still owned by the deployer (0xhyoga). Once we begin the migration, the ownership will instead be given to the burn address (0x0) instead of the minter contract, forever freezing the total supply of the token up to this point.
The old CYG token was deployed only on Polygon, and can be found here. The total minted supply is 52,675 and this will be the max ever supply.
Cygnus V2 (CYG) — Layer Zero
The new CYG token is built on LayerZero’s OFT, which is capable of communicating across chains seamlessly, without relying on any third party bridge.
The supply, name, ticker are all the same. The difference won’t be noticeable to the end user, but we will now be able to send CYG across all chains, relying on LayerZero messaging instead of bridges. The new CYG token is identical to the old:
Name: CygnusDAO
Ticker: CYG
Max Supply: 2,500,000 CYG
The contract for the new CYG token can be found here.
CYG V1 to CYG V2 Migration
Since we did the airdrop on Polygon, there is a total supply of 52,675 CYG V1 tokens. We will create a migration contract where users can redeem for the new CYG token at a one-to-one exchange rate. After migration is finalized, the owner of the CYG V1 token (0xHyoga) will transfer ownership of the old CYG token to the burn address, meaning the old CYG token will cease to exist.
The migration will commence this week, and will have a deadline of 6 months. We initially opted for no deadline, but adding a deadline will incentivize users to migrate ASAP and keep things more organized.
Migration start: 18th of August 2023.
Migration end: 18th of January 2024.
Migration contract will be posted on our next medium article today or tomorrow and added below.
CYG OFT: {TBA}
CYG MIGRATION: {TBA}
OLD CYG TOKEN: https://polygonscan.com/token/0xc115521dc2d0f950ad5d3589d0a4b22239c56a1b
Thank you,
CygnusDAO
