The global decentralized finance (DeFi) economy has been on the receiving end of a lot of innovation over the last couple of years, something that is showcased by its expanding total value locked (TVL) since last year. To put things into perspective, since Q1 2023, the TVL of the DeFi market has risen from $49 billion to approx. $87 billion, thus showcasing a growth of 77.5%.
Amid this surge, CIAN, a decentralized automation platform designed to help clients onboard complex crypto delta-neutral yield strategies via a simple transaction, has emerged as a popular solution for DeFi investors worldwide. In fact, since the project’s inception back in July 2022, its USD TVL has increased dramatically, standing at a sizable $102 billion (as of Feb 2024).
As part of this article, users can get a detailed understanding of the key technicalities associated with the CIAN protocol. So, without any further ado, let’s jump straight into the heart of the matter.
CIAN enables users to create, manage, and enhance multi-protocol strategies using their cryptocurrencies, offering protection against liquidation risks with its automation features. By focusing on liquid staking tokens (LST/LSD), liquid re-staking tokens (LRT), and real-world assets (RWA), Cian aims to maximize returns for ETH, AVAX, Matic holders, etc., allowing clients to earn passive income without locking up their assets.
CIAN uses multichain vaults, offering delta-neutral yield strategies for various assets. Each vault is designed for holders of specific tokens like ETH, sDAI, wBETH, and wstETH, enabling users to leverage financial methodologies that can amplify liquid staking yields on platforms like Spark, Venus BSC, and AAVE V3. The delta-neutral yield strategies aim to optimize annual percentage yields (APYs) — ranging from 4% to 16.38% — while minimizing risks, thereby catering to both specific tokens and networks. Key offerings include:
CIAN’s vaults allow users to enhance their returns through a leveraged staking strategy known as ‘recursive staking.’ The distinction lies in the smart contract architecture utilized. Unlike automated strategies that employ smart-contract wallets for executing individual user positions independently, vaults facilitate asset pooling among users. This collective approach allows for shared fees and profits, enhancing user-friendliness and efficiency in the investment process.
CIAN’s introduction of liquid and leveraged staking practices marks a significant innovation within the DeFi landscape since the approach not only simplifies the staking process but also amplifies the potential yields through a host of carefully calibrated strategies. By employing LSDs in tandem with various lending protocols, Cian enables its users to significantly enhance the returns from their staked assets — all without having to engage directly in the complexities and risks traditionally associated with the staking process. Lastly, the protocol comes replete with a suite of advanced automation tools designed to mitigate the risk of liquidation and to facilitate seamless position adjustments in real-time.
At CIAN’s helm is its CEO, Luffy He, a Delft alumnus who previously also worked as a software engineer for Intel as well as a strategy consultant for professional services giant Accenture.
CIAN’s partnerships span major financial entities, including Matrixport, a company offering a suite of crypto financial services; Stader Labs, a firm specializing in decentralized finance (DeFi) solutions and investment products; AAVE, a decentralized lending protocol; Loopring, a protocol for building decentralized exchanges; Ava Labs, the company behind the Avalanche ecosystem and Trust Wallet, a secure, multi-cryptocurrency storage solution, among several others.
From a security and safety perspective, it should be noted that CIAN has undergone a total of five security audits from renowned firms like Peckshield, Omniscia, and Paladin. The investigations were carried out between April 2022 and May 2023, with the results of all five reports having been made available online.
As the crypto ecosystem continues to evolve and grow, projects like CIAN stand ready to transform the burgeoning digital finance landscape. Most recently, Rivo — a DeFi platform combining a smart-contract wallet with a DeFi Yield marketplace — integrated CIAN’s wstETH vault.
The vault recursively borrows ETH on AAVE and converts it to wstETH, thus amplifying one’s Ethereum staking yields and offering a sustainable method to earn higher returns. With a risk level rated ‘A,’ it represents a strategic choice for investors aiming to benefit from increased on-chain activity while managing additional lending risk — marking a pivotal step towards simplifying and enhancing yield generation for cryptocurrency investors all over the world.
Product updates, DeFi tutorials and insights from our community
