FAQ

Q1: How is this different from just buying Bitcoin? A: Bitcoin doesn't earn yield. With Cambi, your Bitcoin works for you – earning 7-25% annually from real bonds while maintaining BTC exposure. It's like having rental income from your gold bars.

Q2: What happens if Bitcoin crashes 50%? A: Positions are over-collateralized at 150%. If BTC drops, you can add collateral or face liquidation at 130%. However, your cmUSD/cmBRL continues earning yield during downturns, softening the impact.

Q3: Why would anyone trust Brazilian receivables? A: These receivables have been financing Brazilian commerce for decades. Banks like Itaú and Bradesco built empires on them. We're just making them accessible on-chain with 20%+ yields that were previously exclusive to institutions.

Q4: How do you guarantee 20% yields? A: We don't guarantee anything. Historical yields on Brazilian receivables average 20-30%. We target 7-25% depending on vault choice. If yields drop, so do returns – but that hasn't happened in 20 years of data.

Q5: What if the protocol gets hacked? A: Multi-layered security: audited contracts, bug bounties, gradual rollout with TVL caps, and isolated vaults (a hack in one vault doesn't affect others). Plus, insurance fund building to 5% of TVL.

Q6: Why not use other yield protocols? Anchor Protocol collapsed for instance. A: Anchor collapsed because it subsidized fake yields. Our yields come from real economic activity – actual Brazilian companies paying actual interest on actual loans. No ponzinomics.

Q7: How liquid are these synthetic tokens? A: Initial liquidity comes from our AMM pools. As adoption grows, cmBTC/cmUSD become collateral across DeFi, creating natural demand. Plus, you can always redeem for underlying collateral after lock period.

Q8: What's stopping Sky or Aave from copying this? A: They could copy the code but not our ecosystem & ops. We have partnerships with Brazilian tokenizers, local regulatory relationships, and deep understanding of LatAm markets. It's like asking why Uber didn't just copy Didi in China. If we move fast and get market, our expertise and momentum will make sure Sky and Aave focus on their already profitable roadmap while we focus on expanding ours.

Q9: How do you handle currency risk between BRL and USD? A: cmUSD is dollar-denominated, avoiding BRL exposure. cmBRL users accept currency risk but get 20%+ yields as compensation. Optional delta-hedging vaults are planned for V2 for full protection.

Q10: This sounds too good to be true. What's the catch? A: The catch is lock-up periods (3-24 months), smart contract risk, and RWA credit risk. We're not hiding these – they're why yields are high. Traditional finance charges 2-20% fixed fees on total amount for the same exposure; we charge 10% of profits and make it permissionless. These risks don't compare to ponzinomics, inflationary BTC L2s, centralized/opaque yield or “trust me bro” BTC synth protocols though. Not even close.

Q11: How does cmUSD earn 15% without currency risk?

A: We access USD-denominated receivables from Brazilian exporters and companies with dollar revenues. They pay Brazilian interest rates (15-18%) for dollar funding. Since repayment is in USD, there's no FX risk – just emerging market credit spreads.

Q12: Why trust Brazilian receivables?

A: These receivables finance $100B+ in Brazilian commerce annually. Major banks like Itaú and Santander built their businesses on them. We're simply tokenizing the same instruments, making institutional yields accessible to everyone.

Q13: How do you guarantee these yields?

A: We don't guarantee anything – yields float based on market conditions. Historical Brazilian receivables average 20-30% in BRL, and USD-denominated ones 14-18%. If yields compress, returns adjust accordingly, but this hasn't happened in decades of data.

Q14: What makes cmUSD better than USDT or USDC?

A: Regular stablecoins earn nothing sitting in your wallet. cmUSD automatically grows 15% annually through daily rebasing. Imagine checking your wallet and seeing 1,000 cmUSD become 1,150 cmUSD over a year, with the same stability and DeFi compatibility.

Q15: Can I lose money with cmBRL if the Real devalues?

A: Yes, cmBRL has currency risk. However, earning 20-25% helps offset typical 5-10% annual BRL depreciation. For users living in Brazil, this matches their expenses. For dollar-based users, cmUSD eliminates this risk entirely. If you deposited BTC and minted cmBRL, your collateral will appreciate while your debt depreciates, so you will actually make money.

Q16: What happens in a Brazilian financial crisis?

A: Our receivables are diversified across sectors and maturities. In 2008 and 2020 crises, Brazilian receivables continued performing because companies need working capital even more during downturns. We also maintain insurance reserves equal to 5% of TVL.

Q17: Why are there supply caps? A: Supply caps ensure sustainable yields. By limiting cmUSD to $50M initially, we maintain 15%+ yields. Unlimited supply would dilute returns. As we source more USD-denominated receivables, caps increase.

Q18: How is liquidation handled? A: Automated liquidations occur at 130% collateralization via Uniswap V4 hooks. This happens on-chain without human intervention. Users get warnings at 140% to add collateral. The system is battle-tested from MakerDAO's design.

Q19: Can institutions get better terms? A: Institutions depositing $1M+ get white-glove service: higher LTV ratios, dedicated support, and custom reporting. However, the protocol treats all users equally on-chain – same yields, same security, same terms.