> For the complete documentation index, see [llms.txt](https://cicada-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cicada-finance.gitbook.io/docs/faq/what-is-the-core-operating-mechanism-of-cicada-finance-protocol.md).

# What is the core operating mechanism of CICADA Finance Protocol?

CICADA Finance's innovative token distribution builds on its architecture via the LT-RT Rebalance Mechanism, achieving leading yield allocation. Yields buy back LT, convert to RT, and rebase to holders (boosting RT growth, LT liquidity, and price support). Outperforms dividends/buybacks in efficiency, value, depth, and stability. The Rebase-Driven Auto-Yield Engine automates yields without locking; daily allocations, no staking/claiming/operations (transparent on-chain).