Cycles is a new approach to private and capital-efficient finance. Our mission is to:
Clear the most debt, for the most people, with the least money
Cycles is designed to unlock sources of savings, yield, and growth that aren't otherwise accessible. The design is based on a core insight: liquidity resides within cycles in the payment network’s structure and can be accessed via settlement flows optimized to reduce debt.
Cycles changes the framing from a bilaeral, transactional view of the world to a multilateral, network-based one. This unlocks entirely new forms of capital-efficiency and applications that leverage it.
Cycles takes a first-principles approach. It recognizes that the economy is not a multi-asset spot market, but rather a network of balance sheets. Cycles begins not from coins, but from obligations and acceptances, which are commitments to debts in the past and in the future. These are the stuff from which the mystical magic of liquidity emerges. Liquidity is a topological structure of the graph.
Respect the graph.
We’re excited by what kinds of applications people can build with the Cycles model.
For a brief overview of the concepts underlying Cycles, see Concepts.
You may also consult the glossary.
For a set of python notebooks on how to put the concepts to work in new kinds of financial applications like discount latters and multilateral DeXs, see notebooks