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Complete Definition of RC Token (Residual Claim Token)

Introduction

The RC Token (Residual Claim Token) is one of the fundamental innovations introduced by the Dual Value Tokenization Model (DVTM) within the CNBM ecosystem.

It revolutionizes traditional collateralization in decentralized finance (DeFi) and forms the structural backbone of CNBM's issuance, stability, and revenue logic.

How RC Tokens Are Created

Token Creation Process

When users deposit digital assets (such as ETH, BTC, or tokenized real-world assets) into the DecenBank smart contract, two tokens are simultaneously minted:

  • CNUSD: A stablecoin pegged to $1.
  • RC Token: A dynamic token representing the remaining value of the asset, absorbing all price volatility.
Example:

Deposit 1 ETH valued at $2,000 → Receive 1 CNUSD (worth $1) + 1 RCETH (worth approximately $1,999).

Core Roles and Use Cases of RC Tokens

Key Functions
  1. Volatility Absorption
    RC tokens absorb all price fluctuations of the underlying asset, ensuring CNUSD remains fully stable.
  2. Access to Residual Value
    RC holders retain exposure to the price movements of the underlying asset as if they were still holding the original asset.
  3. Revenue Participation
    RC holders are structurally entitled to 70% of all CNUSD transaction fees generated on the same blockchain where the RC was issued.
  4. Liquidity and Tradability
    RC tokens are freely tradable across DeFi markets, enabling trading, staking, collateralization, and participation in broader financial opportunities.

Exclusive Collateral in RC Debt Issuance

Debt Issuance System

RC tokens are the only accepted collateral in the RC Debt Issuance system.

In this system:

  • Users lock RC tokens and receive a portion of the base asset without paying any interest or facing maturity dates.
  • Upon repayment of the borrowed amount, the locked RC tokens are fully unlocked.
Example:

Lock 1 RCSOL → Receive 0.99 SOL → Repay 0.99 SOL → Retrieve 1 RCSOL.

Key Insight: This mechanism introduces a new model of Living Debt Collateralization — allowing assets to remain "alive" and accessible, without the traditional freezing of collateral.

Redemption Process

Asset Redemption

To fully reclaim the original deposited asset, users must return both:

  • 1 CNUSD
  • 1 corresponding RC token
Example:

Return 1 CNUSD + 1 RCETH → Retrieve 1 ETH.

Unique Features of RC Tokens

Key Features
  • Directly represent real asset value (not synthetic tokens)
  • Maintain full exposure to asset volatility
  • Participate in CNBM's structural revenue-sharing
  • Highly liquid and freely tradable across DeFi markets
  • Establish a new foundation for live, dynamic collateral models

Frequently Asked Questions (FAQ)

Final Summary

Conclusion

The RC token is not just a supporting tool — It is the structural foundation of CNBM's financial architecture: ensuring stability, enabling liquidity, sharing revenues, and powering the ecosystem's economic loop.

RC is not a companion; RC is the condition.

Simple Flowchart

Asset Deposit → CNUSD + RC Token Minted → Trade/Use RC → CNUSD + RC Returned → Asset Redemption

Additional Note

Future Enhancement

A future enhancement may include creating dedicated RC markets for each underlying asset (RCETH, RCBTC, RCSOL, etc.), optimizing the user experience across different asset classes.