CANTO ecosystem overview

The Canto ecosystem is a community-driven decentralized finance (DeFi) environment, built on the core principles of accessibility, neutrality, and free public infrastructure (FPI). By providing a set of open and free dApps and core DeFi services, it aims to offer basic financial tools while avoiding common rent-seeking behaviors in traditional financial systems. This unique approach has fostered a thriving ecosystem, attracting active participation from users, developers, and community members in its expansion and innovation.

The Canto ecosystem consists of three main components: native DeFi applications (including decentralized exchange DEX, lending market Lending Market, and stablecoin NOTE), community-built dApps, and cross-chain interoperability with other networks (especially Cosmos and Ethereum). The combination of these elements provides users with a complete DeFi experience and allows developers to expand platform functionality through decentralized and permissionless applications.

Complementing the core infrastructure, the Canto ecosystem continues to grow through a growing community of dApps and projects. Its open, permissionless platform encourages developers to create applications that complement free public infrastructure, giving rise to a rich variety of decentralized applications that not only enhance the user experience, but also expand the reach of DeFi.

CANTO DEX, lending market and products

Canto Decentralized Exchange (DEX)

Canto DEX is a zero-fee automated market maker (AMM) platform that allows users to trade, exchange, and provide liquidity with no transaction costs. Designed to remove barriers to trading that are common on both traditional and centralized exchanges, Canto DEX is part of Canto's commitment to "free public infrastructure" to ensure that all users can easily trade.

• Zero Transaction Fee TradingUnlike most decentralized exchanges that charge fees for trading or providing liquidity, Canto DEX is completely fee-free. Users can trade tokens without worrying about additional costs, making it attractive to both small and large traders.
• Automated Market Maker (AMM): DEX operates on the AMM model, facilitating transactions through liquidity pools. Users can provide funds to the liquidity pool and earn rewards based on the pool's trading volume, thereby encouraging a community-driven liquidity model.
• Incentivized Liquidity ProvisionBy providing liquidity for DEX, users can receive rewards in the form of CANTO tokens. This incentive mechanism increases liquidity, ensuring users have a smooth trading experience.

Canto Loan Market (CLM)

The Canto Lending Market (CLM) is a decentralized, permissionless lending protocol based on the Compound v2 framework. As a foundational DeFi service, CLM allows users to earn interest by lending assets or borrowing assets by providing collateral, all in a decentralized, zero-fee environment.

• Decentralized lendingIn CLM, users can earn interest by providing loans by depositing assets into the lending pool. Borrowers can obtain funds by collateralizing their assets without relying on centralized intermediaries.
• Unauthorized AccessCLM is a completely permissionless platform, which means that anyone who owns assets can participate in lending activities without approval or going through the KYC process.
• Mortgage loan: Borrowers must provide collateral that exceeds the loan amount to reduce risk and ensure the safety of the loan. The collateral process helps protect the lending pool and ensures that lenders receive their principal and interest.
• Zero fees: Following the FPI concept of CANTO, CLM does not charge any fees for lending activities, allowing users to access these financial services at no cost.

CLM provides zero-fee decentralized lending options, supporting Canto's mission of economic inclusion, allowing users from different backgrounds to participate in the DeFi economy.

CANTO's stable asset collateral

NOTE is the native accounting unit and stable asset of the Canto ecosystem, serving as a reliable medium of exchange within the ecosystem. NOTE adopts a fully collateralized mechanism and is softly pegged to the US dollar, allowing users to participate in DeFi activities on Canto without relying on external stablecoins.

• Stable Trading Medium: NOTE is pegged to the US dollar to provide users with stable assets for trading and DeFi activities. This stability enables users to avoid the common volatility of other cryptocurrencies.
• Decentralized CollateralUsers can mint NOTE by collateralizing assets such as USDC and USDT in the Canto Lending Market. This decentralized collateralization method ensures that NOTE is backed by assets within the ecosystem, rather than relying on reserves from centralized entities.
• The unit of account for Canto DeFiAs a stable asset, NOTE is the main accounting unit in the CANTO ecosystem. It facilitates borrowing, lending, and other DeFi activities, providing a consistent value standard for the platform.
• Free to useLike Canto's other products, NOTE is available within the ecosystem at no additional cost, in line with Canto's commitment to "free public infrastructure".

Contractual Income Guarantee (CSR): Tokenized cost sharing mechanism for Canto developers

One of the highlights of the Canto ecosystem is the Contract Secured Revenue (CSR), which provides a tokenized fee-sharing mechanism for developers building on Canto. CSR incentivizes developers by allowing them to earn a portion of the transaction fees generated by their smart contracts, aligning their interests with the success of the ecosystem.

CSR enables developers to tokenize the transaction fees generated from their smart contracts. These tokenized fees represent a share of the income secured by the contract and can be held, transferred, or traded. By establishing a direct connection between contract activities and developer rewards, CSR supports sustainable dApp development and incentivizes innovation.

The main features of CSR

CSR allows developers to earn economic rewards from the activities of their smart contracts - as long as the contract is being used, continuous rewards can be obtained. Developers can convert their share of income into tradable CSR tokens, thereby providing liquidity and increasing the value of their contracts.

CSR has established a symbiotic relationship between developers and the Canto ecosystem, allowing developers to directly benefit from their contributions to the network. When users interact with smart contracts, a portion of the transaction fees will be allocated to the relevant CSR tokens.

Developers receive CSR tokens representing their share of income, which can be held, traded, or used as collateral in DeFi applications. As long as the contract remains active and generates transactions, developers can earn a stable source of income through CSR tokens.