【Cygnus】Modular real-yield layer that integrates liquidity from multiple chains / Built its own LVS (Liquidity Validation System) system / Raised $20M in pre-seed / @CygnusFi

Also one of the largest initial funding rounds ever raised in the ZK-based Layer 2 sector.

Good morning.
Mitsui from web3 researcher.

Today I researched "Cygnus".

🟢What is Cygnus?
⚙️Technical Structure
🤖Use Case and CompetitionComparison, brief summary
💬Off-chain operational gains move on-chain

🟢What is Cygnus?

Cygnus is a new DeFi infrastructure project developed as a "modular real yield layer" that aims to integrate and share revenue (yield) across EVM compatible chains such as Ethereum and non-EVM blockchains such as Bitcoin Layer 2 and TON.The aim is to integrate and share yields across EVM compatible chains such as Ethereum and non-EVM blockchains such as Bitcoin Layer 2 and TON.

As described in detail below, the company has announced a $20 million pre-seed funding in February 2025, which is one of the largest initial funding rounds ever raised in the ZK-based Layer 2 field, and Cygnus' unique "real yield layer + modular ZK roll-up"Cygnus' unique architecture of "Real Yield Layer + Modular ZK Rollup" is attracting attention.

Cygnus is primarily characterized by

1. Real Yield Layer with Multi-Chain Support
   In traditional DeFi, liquidity is fragmented across chains such as Ethereum, Polygon, BSC, Solana, etc., resulting in poor capital efficiency and the risk of bridge hacking.Cygnus attempts to solve the fragmentation problem by managing liquidity across multiple chains and providing a mechanism to generate yield (real yield).Cygnus is attempting to solve the fragmentation problem by providing a mechanism (real yield) to manage liquidity across multiple chains in bulk.

2. Omnichain Liquidity Validation System (LVS)
   Cygnus' own keystone mechanism is the "LiquidityValidation System).It is a comprehensive framework that verifies collateral assets staked in multiple chains, distributes incentives to operators in multiple networks, and performs slush judgment.Users can obtain cross-chain scale yields by depositing their assets, and the network has the advantage of attracting secure verifiers (operators).

3. Cooperation with RWAs
   While traditional DeFi has tended to be limited to on-chain virtual currencies, Cygnus offers stable coins (cgUSD) linked to real world assets such as short-term US Treasury bonds (T-Bills) and tokens that add off-chain investment yield to bitcoin (clBTC).Bills) and other real-world assets, as well as a token that adds off-chain investment yield to bitcoin (clBTC), Cygnus offers a stable revenue stream on-chain.

4. Applications in the social apps and games space
   Integration between EVM/non-EVM blockchains like Ethereum and TON as well asWe are also developing SDKs for integration with existing social networking services such as Telegram.This is part of our strategy to promote web3 to the general public, and Cygnus' real-yield infrastructure is also being utilized in the so-called "SocialFi" and "GameFi" areas.

◼️Founding Team and Transition

Cygnus was launched in 2023 with support from the ARKS Labs Foundation.The Founder and CEO is Eric H. Harris, who is the founder of AARKS Labs.Founder and CEO is Eric Cheung, who has a multifaceted background that includes investment management in traditional finance and participation in projects in the web3 area.Wyoming CityDAO, among others.

Also, CTO "Pie"(handle)has a long history of R&D experience in the field of Zero Knowledge Proofing (ZK) and natural language processing, and is reportedly leading Cygnus' technology strategy.In addition, officials from OKX Ventures and Optimism Foundation, as well as several staking businesses, are listed as advisors, and the team is regarded as having a strong background in both DeFi and infrastructure development.

Below is the history of the project to date.

1. 2023 - Project Launch
   The core development of Cygnus was launched with the vision to "eliminate the fragmentation of the blockchain and create a real yield hub connecting on-chain andCygnus core development was launched with the vision of "creating a real-yield hub connecting off-chain and on-chain".Initially, we were in the process of developing a prototype of the US Treasury-backed stablecoin cgUSD, with the Base chain as the primary stage.

2. Late 2023 - early 2024 - cgUSD launch LVS pilot
   Interest-bearing stablecoin backed by short-term US TreasuriescgUSD backed by short-term US Treasury bills launched on the Base chain and started working with multiple DeFi protocols.In parallel, the Omnichain Liquidity Validation System (LVS) across Ethereum, TON, and other L2s was tested, with the first validator registration and cross-chain asset transfer implemented.

3. Mid-2024 - Multi-chain expansion and increased collaboration
   Cygnus is working with SynFutures and otherWorking with derivatives projects, Cygnus has opened a market that utilizes cgUSD and wcgUSD as a margin/trading pair.Furthermore, in collaboration with HashKey and other custody companies, released clBTC, which on-chains bitcoin with an investment yield, to accelerate multiAccelerate chain support.
   We also incorporated Telegram SDKandThe "Telegram SDK was incorporated to test a social phi-like functionality that allows users to perform staking and money transfers on social networking sites.

4. February 2025 - Major Funding Announcement and LVS Fully Operational
   OKX Ventures, MiranaVentures, Optimism Foundation, and othersraised $20 million in pre-seed funding, andCygnus' reputation has grown significantly, and LVS is entering a phase where it can offer liquidity providers a variety of options, including supporting multiple networks and accepting liquid staking tokens such as cgETH and clBTC as collateral assets, as well as LSD from other companies.

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⚙️Technical Mechanism

The details of how it works are then explained.