Underlying Asset Types
The goal of Cytus is to provide every DeFi user with opportunities to access high quality yield products backed by RWA to overcome the current DeFi yield crisis.
We offer investment solutions in three major asset classes:
- US Treasury
- Corporate Bonds
- Private Credit (starting with over-collateralized real estate debt)
These 3 asset classes will satisfy different risk appetites:
- US treasury is the asset type with the lowest risk. In today’s rate hiking environment, investing in US treasury is an extremely attractive opportunity especially for those whose wealth is not in USD. Currently, 1 year US treasury is providing an APR of 4.2% which is much higher than yield farming APR in AAVE, Compound and Curve. The investment opportunity in these DeFi protocols are obviously suboptimal. Even if you are just yield farming for their token, you will be better off by investing in the US treasury and using the interest to buy their tokens.
- Corporate bonds are slightly more risky than US treasury bonds, but the risk of default is still minimal given that we only select AAA rating bonds by large public US corporations such as Google/Apple, etc..
- Private Credit is the most risky one among the three. Cytus has an experienced team in operating private credit especially in US real estate debts. We only focus on those fully backed by high quality assets such as land in prime locations in first-tier US cities such as NY instead of those purely based on credit. Even if the loan defaults, Cytus will recover the investment by selling the collateral given the extremely low LTV ratio - around 65%.