DecenBank - CNBM

Complete Guide to DecenBank Concepts

DecenBank CNBM | Smart Vault and CNUSD Issuance Authority

DecenBank is a smart contract built on the DVTM model, responsible for issuing the ecosystem's base currency: CNUSD.

Each issuance happens at a strict 1:1 ratio against volatile on-chain assets, and simultaneously generates a second token called RC (Residual Claim), representing the remaining volatile portion of the underlying asset.

In the CNBM ecosystem, an independent instance of DecenBank is deployed on each supported blockchain.

The minting process is restricted to holders of PD tokens (Primary Dealers), who are considered core stakeholders and stability enforcers of the system. However, redemption of CNUSD is open to all users, regardless of their status.

Core Functions of DecenBank

1. Minting CNUSD and RC Tokens (Fee-Free)

Upon deposit of a volatile asset, DecenBank issues:

1 CNUSD (fixed-value token)
1 RC (reflecting residual volatile value)

The minting process is completely free of charge.

2. Redemption of Collateral (Fee-Free)

Users can return one CNUSD together with its corresponding RC token to redeem the underlying asset. Redemption is also fully fee-free.

3. Fee Calculation and Distribution from CNUSD Transfers

DecenBank calculates and distributes transfer fees of CNUSD on each active blockchain. The distribution is as follows:

70% to RC token holders
30% to PD token holders

                    DecenBank's primary function is to issue CNUSD and lock real on-chain collateral under the transparent and auditable DVTM model.
                

Advanced Capabilities of DecenBank

1. RC Debt Issuance (Open to All RC Holders)

RC Debt Issuance allows any RC holder to borrow interest-free and without expiry, using their RC as collateral. The RC token remains locked in the user's wallet via smart contract control until full repayment.

The maximum loan-to-value (LTV) ratio is determined at the moment each DecenBank is deployed and fixed forever (e.g., 0.99 or 0.999). It is immutable after deployment.

2. AutoLoop (Exclusive to PD Holders)

AutoLoop is an advanced feature allowing PD token holders to automate the repetitive cycle of:

minting CNUSD
receiving RC
borrowing against RC
reinvesting the base asset

PDs can choose to:

run AutoLoop until no more debt can be drawn, or
specify a fixed number of loops (e.g., 10 or 20 iterations)

AutoLoop Example: Minting vs. Locked Collateral

Assuming a PD starts with 1 RCSOL and the LTV is set at 0.99:

After 10 loops: 9.466 CNUSD minted | 0.904 RCSOL remaining | 9.561 RCSOL locked
After 25 loops: 21.995 CNUSD minted | 0.778 RCSOL remaining | 22.218 RCSOL locked
After 50 loops: 39.104 CNUSD minted | 0.605 RCSOL remaining | 39.499 RCSOL locked
Full AutoLoop (until max): 99 CNUSD minted | 0.00000001 RCSOL remaining | 99.999 RCSOL locked

                    In this model, debt becomes not just a liquidity tool but a live, secured form of collateral that strengthens the monetary system's integrity.
                

Summary

Key Takeaways

Each volatile asset is split into two: fixed CNUSD + variable RC
CNUSD is only redeemable when paired with its corresponding RC
All minting, redemption, and burning processes are non-custodial and fully on-chain
Only PDs can mint CNUSD; redemption is open to all users
CNUSD transfer fees are distributed between RC and PD holders
RC Debt and AutoLoop features allow capital efficiency while maintaining overcollateralization
Each blockchain has its independent DecenBank instance with local PDs and parameters
The only common element across chains is CNUSD, maintaining its universal value and functionality
The maximum loan ratio (LTV) is fixed at the time of each DecenBank's creation and immutable thereafter

                    DecenBank isn't just a stablecoin issuer — it is the starting point of a decentralized monetary system built on transparent rules, real assets, and programmable trust.
                