Governance

There are 3 important players in Cytus DAO: delegate, governor and arranger.

Delegates are who receive voting powers from veCTS stakers and actively participate in governance. veCTS stakers can delegate the voting power to delegates they prefer. Delegating system is to improve the participation of voting.

Governors are who perform all sorts of due diligence and management. For instance, they are responsible for validating the application of arrangers. Governors must have deep experience and knowledge in RWA and DeFi. Governors are incentivized by the revenue generated from protocol treasury.

Arrangers are entities which actually handle the loans. Once approved by Cytus DAO, an arranger will be given a credit line. They need to do due diligence for every project they want to lend money to and present the due diligence report to Cytus DAO which will finally decide if the project is qualified. For application process of an arranger is as follow:

  1. Arrangers apply with required materials including track record, team member information and risk management method.

  2. Governors will do due diligence on the materials from arrangers and compile due diligence reports.

  3. All veCTS stakers will vote if this arranger is qualified. Arrangers make profit from earning the interest rate spread. Besides passing the approval of Cytus DAO, arrangers also need to lock CTS which is equivalent to 1% of the total credit line they are given. For instance, an arranger is given a 100m credit line. It will lock $1 million dollar worth of CTS for 6 months. Every 6 months, all the arrangers will be reevaluated based on their performance. Any behavior violated the terms will lead to the confiscation of the locked CTS. This requirement will not only align the interest between arranagers and Cytus DAO but also increase the demand for CTS tokens.

See detailed relation graph as below:

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