📄Litepaper CLTV

Introduction to CLTV cToken: Pioneering Non-Custodial Banking on Bitcoin

Revolutionizing DeFi with CLTV's Non-Custodial Smart Wallet Banking CLTV is spearheading a revolutionary approach in decentralized finance (DeFi) on the Bitcoin network by utilizing a robust technological suite of solutions developed by the Fairlight team. This new initiative leverages advanced CLTV technology and Merlin's smart wallet concept to establish a non-custodial banking system. Unlike traditional banks, this innovative platform ensures that at no point does it hold custody of user tokens, dramatically altering the landscape of financial services.

cToken Mechanism: Empowering Users with Smart Wallets The core of CLTV's offering is the cToken protocol, which allows users to deposit BRC-20 tokens such as 'ORDI,' 'SATS,' 'FCDP,' and 'RATS' into their smart wallets. These tokens are then transformed into corresponding cTokens like 'cORDI' for 'ORDI,' enhancing liquidity and accessibility within the financial ecosystem. Here is how the mechanism works:

• Deposit & Minting: Users deposit BRC-20 tokens into their secure smart wallets, where the system mints equivalent cTokens, effectively digitizing their assets.

• Borrowing Assets: Users can leverage these cTokens as collateral to borrow against, pulling from a diverse reserve of assets based on their needs and borrowing limits.

• Health Factor Monitoring and Repayment: The platform monitors a Health Factor to prevent liquidation and allows users to repay their borrowed assets at any time, thus improving their credit standing within the system.

Integration with UniSat for Operational Efficiency The integration with UniSat BRC-20 Swap Module is a key feature, enhancing the real-time valuation of assets and ensuring efficient operations across the platform. This integration supports the stability and reliability of the lending and borrowing processes, crucial for maintaining trust and functionality in real-time financial operations.

Security and Economic Model CLTV places a high emphasis on security with regular audits, advanced data encryption, and constant monitoring to manage risks effectively. The economic model focuses on utilizing cTokens and incentivizing participation through a structured fee system, thus fostering a stable economic environment.

Conclusion: Setting a New Paradigm in Blockchain Banking By establishing the first non-custodial bank on Bitcoin that operates without traditional licensing yet offers full security and functionality, CLTV is setting a new standard in the financial sector. This platform not only adheres to the ethos of decentralization but also significantly reduces the barriers and risks typically associated with banking and financial services. Through the use of smart wallet technology and the seamless integration of advanced DeFi tools, CLTV is truly redefining the possibilities within the blockchain ecosystem.