Smart Contract Architecture

Asset Tokenization Module

The asset tokenization module facilitates the conversion of real-world assets (RWA) and on-chain native assets into Rebase Tokens (RT). Smart contracts govern the assets’ properties and behaviors, ensuring transparency and traceability. During the asset-on-chain process, RWAs are mapped to the blockchain, and RT tokens are generated based on precise asset valuations. Oracle and validator nodes verify asset authenticity, maintaining integrity throughout the process.

Liquidity Management Module

The liquidity management module oversees the issuance, locking, and unlocking of Liquidity Tokens (LT). Smart contracts dynamically regulate LT supply to maintain market liquidity. New LT issuance is determined by protocol revenue and prevailing market conditions, with a portion of LT locked to enhance protocol stability. LT is unlocked under predefined conditions to release liquidity as needed.

Yield Distribution Module

The yield distribution module automates yield allocation and rebalancing for RT and LT holders. Smart contracts execute these processes seamlessly, calculating user yields based on the underlying assets’ actual income. Returns are automatically distributed to RT holders, enabling a compounding effect. Users can convert between RT and LT to optimize capital efficiency.

Security and Compliance Module

Cicada’s smart contract architecture incorporates a robust security and compliance framework to ensure adherence to regulatory standards. Comprehensive code audits, formal verification, and external security assessments safeguard the integrity and resilience of the contracts.

Decentralized Governance Module

The decentralized governance module empowers community-driven decision-making through a transparent DAO framework. This ensures equitable and accountable protocol management, fostering trust and fairness across the ecosystem.