FBank and CNCurrency Layer

1. Central CNUSD Reserve Vault

The CNUSD Reserve Vault serves as the backbone of the entire FBank ecosystem. It plays a critical role by:

Ensuring the stability of CNCurrencies against market volatility
Acting as the liquidity source for essential banking activities

Banking Activities

Crypto-collateralized lending
Staking operations
Liquidity pool provisioning for CNCurrency/CNUSD pairs

2. Dedicated Whitepapers for Each FBank

Each FBank is accompanied by its own specific whitepaper, detailing:

Whitepaper Contents

The source of FX rates and types of integrated oracles
Redemption models and operational parameters
Financial and risk management policies
Liquidity management strategies
Revenue generation mechanisms and fee structures

                    Publication and approval of the whitepaper is mandatory prior to the official launch of every FBank, ensuring full transparency for users.
                

3. Specialized Governance via CNC DAO

Given the sensitive financial and security nature of the FBank layer, all major decisions are governed by the CNC DAO under a special mandate.

Key Roles of CNC DAO

Designing, approving, and maintaining FBank contracts
Managing the central CNUSD reserve shared by all FBanks
Implementing protocol upgrades, financial policy changes, and oracle updates through a decentralized governance process
Ensuring continuous stability and growth of the FBank layer

4. Inherent Stability of CNCurrencies

The stability of CNCurrencies is driven by two fundamental factors:

Stability Factors

Unified backing by CNUSD: All CNCurrencies derive their value from the same stable asset (CNUSD)
Systematic pairing with CNUSD in liquidity pools: The protocol automatically creates liquidity pairs, enhancing trading stability

                    This combination creates natural resistance to sudden selling pressures and rapid self-correction of prices through market-based arbitrage.
                

5. FBank as the Official Minting Authority

FBank smart contracts serve as the exclusive minting authority for CNCurrencies. This structure:

Minting Authority Benefits

Guarantees that each CNCurrency minted is fully backed and accountable
Stabilizes CNCurrency prices in the liquidity pools against CNUSD
Leverages organic arbitrage opportunities to naturally eliminate price discrepancies

Forex DeFi Market Development

With the introduction of CNCurrencies, the CNBM ecosystem is uniquely positioned to create a Decentralized Global Forex Market (Forex DeFi).

Forex DeFi Market Features

Users can directly swap between CNCurrencies (e.g., CNAED to CNEUR) without intermediaries
FX conversions occur on-chain without routing through USD, avoiding unnecessary fees
Transactions are conducted non-custodially, trustlessly, and transparently

                    This innovation brings the global forex market into the DeFi space, enabling 24/7 decentralized currency trading that is faster, more cost-effective, and completely independent from traditional banking systems.
                