Phylax Systems is excited to partner with Cygnus Finance, a trailblazer in real-world asset-backed stablecoins. Together, we’re setting a new benchmark for proactive, verifiable security in decentralized finance by integrating Phylax’s Credible Layer to protect Cygnus’s cgUSD stablecoin.

Enhancing cgUSD's Security Framework

cgUSD is an interest-bearing stablecoin collateralized by short-term U.S. Treasury bills and rebased daily to reflect accrued yield. Rebasing is an innovative way of distributing yield but is also prone to some inherent vulnerabilities. 

As a key component of Cygnus's liquidity validation system, cgUSD bridges real-world assets with decentralized finance, but this introduces unique security risks. By integrating the Credible Layer, we address these risks at their root, ensuring cgUSD remains resilient against evolving threat vectors. Remember: defining the “hacked state” is magnitudes easier than attempting to protect against nearly infinite attack vectors. 

Why this matters: 

Proactive Attack Prevention:
Custom security assertions define “hacked states,” proactively blocking exploits like protocol parameter manipulations and flash loan attacks before they occur.

Enhanced Trust and Transparency:
Liquidity providers and investors gain confidence knowing cgUSD operates within a verifiable security framework. This isn’t just a marketing claim—users can explore the Transparency Dashboard to review Cygnus’s active assertions and see real-time logs of any attempted exploits.

Optimized Capital Efficiency:
By reducing systemic risks, the integration supports cgUSD’s secure growth, enabling efficient capital deployment while ensuring assets remain protected.

A Paradigm Shift in Stablecoin Security

Traditional security measures often react to threats after they materialize. In contrast, the Credible Layer embeds verifiable assertions directly into the blockchain's base layer, dictating immutable security rules that eliminate both known and unknown attack vectors. This approach fosters a more deterministic and trustless security model, aligning with the foundational principles of decentralized finance and making stablecoins, one of the best products we have created as an industry, more impermeable to hacks. 

Next Steps

This is just the start. Here’s how we’re bringing cgUSD security from concept to reality:

  1. DevNet Launch: Cygnus will be among the first to test the Credible Layer on our upcoming DevNet.
  2. Testnet: We’ll rigorously test cgUSD-specific assertions on a dedicated testnet to ensure flawless integration.
  3. Going Live: Once optimized, cgUSD will go live with proactive, verifiable protection at its core.

About Cygnus

Cygnus is a modular real yield layer, backed by industry pioneers such as OKX Ventures, Optimism Foundation, Manifold etc. Cygnus enables any blockchain to easily customize its own restaking network and achieve shared security. As the end game of real yield, assets from both on-chain and off-chain can be restaked into Cygnus LVS to serve as liquidity validation, driving seamless coordination and economic security.

Learn more: 

Website | Docs | X | DefiLlama | Medium | Telegram | Warpcast

‍

And if you’re interested in leveraging REAL hack prevention to protect your protocol, reach out to us here.