What is Cyclo?

Cyclo is a decentralized protocol on the Flare Mainnet that provides liquidation-free leverage for supported collateral assets. It allows users to lock collateral such as sFLR (liquid staked FLR) or WETH to mint corresponding cy* tokens (e.g., cysFLR or cyWETH), which can then be sold or traded on the open market to access additional capital.

The system operates through three core actions: locking collateral to mint cy* tokens along with receipt tokens tied to the lock-up price, trading cy* tokens freely within the Flare ecosystem where their price fluctuates between $0 and $1 based on leverage demand, and burning cy* tokens plus receipts to unlock the original collateral.

Users benefit from leveraged exposure without liquidation risks, continued earning of underlying rewards (such as FLR staking yields and FlareDrops for sFLR), zero minting/burning fees, non-custodial operations, and no governance requirements.