Welcome to Cambi's GitBook documentation! Here you'll get an overview of the protocol, as well as deep dives into what makes it special.

TL;DR

• What: Permissionless Bitcoin-backed yield protocol powered by tokenized Latin American bonds and receivables (up to 20%+ APY)

• How: Deposit BTC/Stables → Mint yield-bearing synthetics (cmBTC/cmUSD/cmBRL) → Daily rebasing shows balance growing → Withdraw anytime after lock period

• Why: Users get auto 7-25% yield without selling; LatAm users dollarize/bitcoinize savings and hedge inflation; institutions access emerging market yields without complexity

• Traction: Won Base Batches hackathon, Won XRPL Hackathon, Incubated by Odyssea. Partnerships with Liqi & DUX (tokenized receivables), Etherfuse & Fungi

• Ask: $2/3M seed round to scale operations, secure audits, lock down Brazilian markets

Executive Summary

Cambi Protocol represents a paradigm shift in how Bitcoin & Stablecoin holders access yield and how Latin Americans interact with their wealth. By creating the world's first permissionless Bitcoin-backed yield system powered by Latin American real-world assets, we're expanding El Salvador's Volcano Bonds towards a more accessible and replicable path, offering high-yield Bitcoin instruments across the globe by unlocking Latam markets.

The protocol enables users to deposit Bitcoin, Ethereum, or stablecoins and mint yield-bearing synthetic assets (cmBTC, cmUSD, or cmBRL) that automatically appreciate through daily rebasing. Unlike El Salvador's five-year lockup Volcano Bonds, Cambi offers flexible terms starting from just three months, with yields ranging from 7% to 25% annually depending on risk appetite and RWA exposure.

Our breakthrough innovation comes from accessing USD-denominated/hedge-embedded Brazilian receivables yielding 14-18% annually, making cmUSD the highest-yielding stablecoin without FX exposure.

At its core, Cambi solves three fundamental problems:

• First, Bitcoin holders globally have no trustworthy way to earn yield on their BTC without selling or engaging with opaque centralized platforms. Most BTC L2s/sidechains that offer this type of yield are also a joke (centralized/zero-sum/inflationary/non-inheriting/all of these).

• Second, Latin Americans face currency devaluation and limited access to dollar-denominated savings, while sitting on some of the world's highest-yielding fixed income assets. Even with growing crypto adoption, investment culture is still nowhere near the west and, empirically, retail investors in Latam are very polarized, missing out on a potentially balanced portfolio.

• Thirdly, tokenization of RWA in Brazil has grown a lot but it still faces dozens of millions of dollars of outstanding demand per month, even with high yields. There are NO protocols currently building beyond basic tokenization, so DeFi composability and accessibility are still not a reality for this market.

Cambi bridges these two realities by collateralizing Bitcoin $ Stables to access tokenized Brazilian receivables, Mexican government bonds, and other high-yield RWAs that routinely deliver 20%+ annual returns.

The protocol's innovation lies not just in connecting these markets, but in how it structures the risk and delivers the user experience. Through isolated vault strategies, users can choose their exposure level to RWAs while maintaining their Bitcoin position. The daily rebasing mechanism shows users their wealth growing in real-time – a powerful psychological counter to the inflation mindset that plagues emerging markets.

Unlike other yield protocols that rely on circular DeFi mechanics or risky strategies, Cambi's yields come from real economic activity:

• cmBRL: Direct access to Brazilian fixed income & bonds markets (20-25% APY)

• cmUSD: USD-denominated receivables from Brazilian exporters (14-18% APY)

• cmBTC: Institutional Bitcoin lending plus liquidity premium (5-8% APY)

Through our Cross-Collateral Yield Optimization Engine (CCYOE), excess yields from high-performing assets boost returns across the entire protocol, creating network effects that benefit all users and direct yield to where the future is: Bitcoin.

Cambi's main synthetic assets (cmBTC and cmUSD) can also be wrapped into traditional ERC20 tokens to leverage the broader DeFi composability: lend them, use them as collateral in other protocols or leverage yield farm; these new magic money LEGO blocks are yours to use as you better see fit.

Jump right in

Cambi's competitive position rests on several interconnected advantages that become stronger over time. Unlike simple yield aggregators or lending protocols, we're building a multi-faceted marketplace that creates network effects between Bitcoin holders seeking yield and Latin American markets offering yield.

Our primary competition comes from three categories: centralized Bitcoin yield products (like BlockFi before its collapse), other DeFi protocols attempting RWA integration, and traditional emerging market investment funds. Against centralized providers, our advantages are transparency, permissionlessness, and sustainable yield sources. While Celsius promised yields through opaque strategies that ultimately failed, every Cambi user can verify their funds' location and yield sources on-chain.

Compared to other DeFi protocols attempting RWA integration, our focus on Latin American markets provides specialized expertise and relationships. While protocols like Centrifuge or Maple Finance offer generic RWA exposure, we're building specific partnerships with Brazilian tokenization platforms, understanding local legal structures, and navigating regulatory requirements. This regional focus might seem limiting but actually creates defensibility – a large protocol could copy our smart contracts but not our ecosystem relationships.

Traditional emerging market funds remain our most established competition, but they're handicapped by their structure. Minimum investments often start at $1 million, lock-up periods extend for years, and fees can reach 2% annually plus 20% of profits. Cambi democratizes access with no minimums, flexible terms starting at three months, and transparent fee structures. Our 10% performance fee only applies to yields above the base rate, aligning incentives with users.

The protocol's true moat emerges from the intersection of technical innovation and market positioning. Our Uniswap V4 liquidation hooks provide capital efficiency that makes CDPs more attractive. Our RWA sourcing relationships in Brazil give us access to yields others can't reach. Our user experience innovations like daily rebasing create stickiness traditional finance can't match. Most importantly, we're building in a regulatory gray zone that large institutions can't enter quickly – by the time regulations clarify, we'll have established market presence and user trust.

vs. Traditional Stablecoin Yields:

• Mountain Protocol (USDM): 5% from T-bills only

• Ondo Finance: 5.2% from T-bills

• Cambi cmUSD: 14-18% from USD-denominated EM receivables

vs. Bitcoin Yield Products:

• Coinbase Bitcoin Yield Fund: 3-5%, fully locked

• Maple Finance BTC: 4-6%, institutional only

• Cambi cmBTC: 5-8% base + liquidity premium, instant cmUSD minting

vs. Emerging Market Protocols:

• Goldfinch: Complex underwriting, long locks

• Credix: Limited to institutional investors

• Cambi: Retail accessible, daily liquidity, unified yields

The moat deepens over time

1. Supply Cap Advantage: By limiting cmUSD/cmBTC supply while growing cmBRL, we maintain premium yields while competitors race to the bottom

2. Unified Yield Network Effects: More cmBRL users directly benefit cmUSD/cmBTC holders - no other protocol has this

3. Brazilian Market Lock: Our early mover advantage in USD-denominated receivables creates exclusive partnerships

4. Institutional Stickiness: Once funds integrate cmBTC into their stack, switching costs are high

5. Regulatory Arbitrage: Operating from Brazil with local partnerships while serving global users

Why competitors can't copy us

• Aave/Compound: Focused on over-collateralized lending, not RWA originations

• MakerDAO: Too big & slow-moving, focused on US/EU markets

• Frax/Curve: Stablecoin infrastructure, not yield generation

• New Entrants: Lack Brazilian relationships and unified yield innovation

The magic isn't in any single component – it's in the orchestration of Brazilian market access, unified yield optimization, and strategic supply management. By the time competitors understand this, we'll have locked in the key partnerships and user base.

• Kaue Cano: Former Senior Smart Contract Engineer at MakerDAO's CES (Collateral Engineering Services) Core Unit, lead by monkeyirish. Worked closely with Protocol Engineering, RWA and Risk Core Unites to onboard real-world collateral into the protocol and help banks such as Societé Generale mint DAI with stale colateral. Also worked with Centrifuge and Maple Finance to integrate their protocols while managing risk for the DAO. Kaue also acted as Developer Relations Lead (LATAM) for Solana Foundation, working with retail and institutions alike to bring applications and financial infrastructure on-chain.

• Gabriel Thom: Former CTO, led the architecture and delivery of over 20 on-chain products across financial primitives and protocol tooling. Previously worked as a Software Engineer at BTG Pactual, the largest investment bank in Latam, contributing to tokenization initiatives and digital asset platforms, and contributed to open-source DeFi projects and DAOs as a Smart Contract Engineer. Now focused on bridging TradFi and DeFi through real-world assets and programmable credit infrastructure.

Both Kaue and Thom co-founded Pollum.io, one of Latam's largest web3 software house, from which they exited mid-2025, in a deal with SysLabs. These founders have been working together for more than 6 years now, and are ready to build the next unicorn in Brazil.

Operating at the intersection of cryptocurrency, traditional finance, and emerging markets creates complex regulatory challenges that we're addressing proactively. Rather than hoping to avoid regulatory attention, we're engaging with authorities, regulators and law firms to build a compliant, sustainable protocol.

In Brazil, the regulatory environment is actually becoming clearer. The Central Bank has announced frameworks for crypto operations, while the securities regulator (CVM) is developing sandbox programs for tokenization. We're positioning Cambi not as a way to circumvent regulations but as infrastructure that enables compliant innovation. Our RWA investments follow existing securities laws – we're simply accessing them through blockchain rails.

The protocol's structure intentionally avoids regulatory triggers where possible. We don't custody user funds – smart contracts do. We don't promise returns – we provide tools for users to access yields. We don't issue securities – we create synthetic representations of assets. These distinctions might seem semantic but they're crucial for regulatory positioning.

Our compliance strategy includes mandatory KYC for institutional vaults accessing certain RWA categories, while maintaining permissionless access for basic functionality. This hybrid approach satisfies regulatory requirements for securities laws while preserving DeFi's open access ethos. We're also implementing transaction monitoring to detect suspicious activity, not because we want to surveil users but because sustainable protocols must address money laundering concerns.

Looking ahead, we see regulation as an opportunity rather than threat. Clear frameworks will enable institutional participation, validate our approach, and potentially restrict competitors who haven't invested in compliance. By building compliant infrastructure from day one, we're positioning Cambi to benefit from regulatory clarity rather than suffer from it.

Tokenomics and Fee Structure

The Cambi protocol operates with a straightforward fee structure designed to ensure sustainability while aligning incentives with users. Unlike complex DeFi protocols with multiple tokens and convoluted mechanics, our economics are simple: we take a share of the yield we generate for users.

The primary revenue comes from a 10% performance fee on yields above the base rate. If a vault generates 15% annually against a 5% base rate (Bitcoin lending yield), Cambi takes 10% of the 10% excess, or 1% of the total. This ensures users always receive competitive yields while funding protocol development and security. Additionally, a 1% annual management fee covers operational costs including RWA analysis, portfolio rebalancing, and smart contract maintenance.

Early withdrawal penalties of 2% discourage short-term speculation while rewarding committed users – these penalties are redistributed to remaining vault participants, creating an incentive for longer-term thinking. The protocol treasury, funded by these fees, serves multiple purposes: providing buffer capital for RWA investments, covering gas costs for rebalancing operations, funding security audits and development, and eventually distributing profits to $CMB token holders.

While we've kept the initial protocol design simple, the path to a $CMB governance token is clear. Token holders would gain rights to vote on vault parameters, approve new RWA categories, adjust fee structures, and receive a share of protocol revenues. However, we're intentionally delaying token launch until product-market fit is proven – too many protocols have failed by prioritizing token speculation over product development.

Governance Token Vision

The $CMB token represents ownership in the protocol's future, not just fee sharing. Beyond voting on parameters and receiving revenue distributions, $CMB holders will:

• Direct treasury allocation across new RWA categories and geographic expansion

• Curate vault strategies through expert committees incentivized by performance

• Bootstrap new markets by staking $CMB to underwrite initial liquidity in new countries

• Create meta-governance over partner protocols (Liqi, Etherfuse) as Cambi becomes their largest client

• Enable permissionless vault creation where anyone can propose new strategies with $CMB stake

Long-term, $CMB becomes the index token for LatAm DeFi yields – as essential as MKR for stablecoins but focused on emerging market opportunities.

Latin America presents a unique confluence of factors that make it the perfect testing ground for Bitcoin-backed yield products. The region combines extreme currency volatility with paradoxically high fixed-income yields, creating an arbitrage opportunity that has existed for decades but remained inaccessible to most market participants.

Brazil exemplifies this opportunity perfectly. While the Brazilian Real has depreciated over 80% against the dollar in the past decade, Brazilian government bonds consistently yield 10-14% annually, and private credit markets offer 20-30% returns. This yield differential exists because of country risk, currency risk, and accessibility barriers – precisely the factors that blockchain technology can address.

The demand side is equally compelling. Latin Americans have already embraced cryptocurrency at unprecedented rates, with Argentina receiving $91 billion in crypto inflows between July 2023 and June 2024, making it the regional leader. This adoption isn't driven by speculation but by necessity – when your currency loses 140% of its value annually as Argentina's peso did in 2023, any alternative becomes attractive.

What makes Cambi different from existing solutions is that we're not asking users to abandon their local context. Previous attempts at serving this market, like USD stablecoins, force users to think and transact in foreign currencies. Cambi allows users to maintain exposure to their local currency (through cBRL) while protecting their purchasing power through Bitcoin and/or USD collateralization alongside RWA yields.

The El Salvador Case

El Salvador’s Volcano Bonds are a pioneering financial instrument designed to raise $1 billion for Bitcoin City—a tax-free economic zone powered by geothermal energy to fund Bitcoin mining and purchases (generating yield).

Replicating Volcano Bonds’ concept across Latin America in a permissionless, open manner requires a decentralized approach that bypasses reliance on individual governments’ goodwill, which is often undermined by political volatility and regulatory inconsistency (e.g., Bolivia’s crypto ban, Argentina’s capital controls).

Cambi takes the core insight – Bitcoin as collateral for emerging market yields – and makes it permissionless, accessible, and immediately profitable. Instead of waiting for mining profits, we generate 20%+ yields from existing tokenized RWA. Instead of 5-year locks, our offer starts at 3-month terms. Instead of government dependency and $1000 minimum buys, we operate via smart contracts and arbitrary investment amounts. This transforms a one-country experiment into scalable infrastructure for all of Latin America.

RWAs are a reality

Brazil currently leads Latin America RWA market with almost $2B in tokenized assets (e.g., Liqi’s $500M plan, BLOCKBR’s $630M), currently ranking #6 in the world and already surpassing giants like Japan, Germany and the UAE. Banks like Itaú and Santander tokenize debt, and B3’s bonds use Hathor Network.

CVM’s (Brazil's SEC) regulatory approval alongside its combination of institutional adoption, regulatory support, and high-value tokenization projects makes it a standout market. More importantly for us, a significant portion of these assets are already publicly available on-chain, enabling novel protocols like Cambi to come into existence.

The tokenization protocols and bond platforms that we're partnered with deal with hundreds of millions of dollars per month combined by serving both the most established and highest growing markets in Brazil's economy: agriculture exports, e-commerce receivables, creator economy and marketing cycles.

Standing on the shoulders of giants like MakerDAO, Cambi inherits battle-tested CDP mechanics while adding novel features for RWA integration and yield distribution. The smart contract architecture consists of several key components working in harmony to deliver a secure, efficient system.

The Vault Manager contract handles user deposits and strategy allocation. When users deposit Bitcoin, the contract assigns it to their chosen vault strategy and mints the appropriate synthetic tokens. The beauty of this system is its simplicity – users interact with a single contract regardless of their chosen strategy, while backend logic handles the complexity of yield generation.

The RWA Oracle system represents one of our key innovations. Traditional DeFi oracles like Pyth provide crypto price feeds, but RWA yields require different infrastructure. We're building custom oracles that track receivables performance, maturity schedules, and yield realizations. This data feeds into our rebalancing algorithms, ensuring optimal portfolio allocation across different receivables categories.

The daily rebasing mechanism, inspired by protocols like Ampleforth but applied to yield distribution rather than price stability, requires careful implementation to avoid common pitfalls. Each synthetic token tracks a "rebase multiplier" that increases daily based on realized yields. This creates the user experience of watching balances grow while maintaining composability with DeFi protocols through wrapped versions.

Security remains paramount given we're handling both volatile crypto assets and real-world financial instruments. Beyond standard smart contract audits from firms, we're implementing additional safeguards specific to RWA integration. These include multi-signature controls on RWA purchases, time delays on large rebalancing operations, and circuit breakers that pause operations if unusual yield patterns are detected.

Add a new block

The integration of Real World Assets into DeFi has been promised for years, but Cambi represents one of the first protocols to deliver it in a way that makes economic sense. The key insight is that Latin American fixed income markets offer yields that are essentially impossible to find in developed markets, but these yields come with access barriers that blockchain can uniquely solve.

On the other hand, most progress in RWAs across Latam was done on the base layer, that meaning, many assets have been tokenized over the last 2 years, but very few distribution mechanics, UX abstractions/improvements and protocols in general have been built on top of them. This exposes a dichotomy within the market: growing assets available but stale user base and exposition. Brazil needs projects like Cambi for RWA to really thrive.

Through our partnership with Liqi, we're accessing tokenized receivables that routinely yield 20%+ annually. These aren't experimental instruments – they're the same types of receivables that Brazilian banks have financed for decades. A typical receivable might be a 60-day credit right from a major retailer, backed by credit card payments. The yield is high because Brazilian interest rates are structurally higher, not because the credit risk is excessive.

The protocol's RWA strategy employs what we call "ladder maturity management" – a continuous process of investing in staggered maturities to ensure constant liquidity, directly inspired by MakerDAO's RWA Core Unit risk modeling. Rather than locking funds in single long-term instruments, we maintain a portfolio where receivables are constantly maturing and paying out. This creates several benefits: continuous yield realization, reduced duration risk, and the ability to dynamically adjust the portfolio based on market conditions.

Our risk management combines traditional credit analysis with modern tools. Each receivable undergoes due diligence examining the creditor, payment history, and legal structure. AI systems help identify patterns and anomalies across the portfolio, while the DAO can vote to exclude specific types of receivables or adjust exposure limits. This hybrid approach leverages both human expertise in local markets and algorithmic efficiency in portfolio management.

The beauty of this system is its scalability. As the protocol grows, we can access larger and more diverse receivables, potentially including government bonds when they become available on-chain. The Brazilian government has announced plans to tokenize hundreds of millions in treasury bonds – when this happens, Cambi will be positioned to immediately integrate these lower-risk, lower-yield instruments for users preferring stability.

The Cambi Protocol operates on a collateralized debt position (CDP) model, evolved from the battle-tested MakerDAO architecture but optimized for emerging market dynamics and Bitcoin collateralization. Users deposit collateral assets (primarily BTC and stablecoins, but yield-bearing ETH is also accepted) and mint synthetic assets against them. However, unlike traditional CDPs that simply create synthetic representations, Cambi's synthetics are actively yield-bearing through (gradually) on-chain RWA investment strategies.

The protocol flow works as follows:

• A user in São Paulo wants to protect their savings from inflation while maintaining spending power in Brazilian Reais.

• They transfer R$10,000 via Pix, Brazil's instant payment system, which gets automatically converted to Bitcoin through our on-ramp partners.

• This Bitcoin is then deposited into the protocol as collateral. The user chooses their risk profile – let's say "Balanced" with 40% RWA exposure – and mints cmBRL against their collateral.

• Immediately, their cmBRL begins earning yield from a combination of Bitcoin lending (1-4% from platforms like Aave or Morpho through our yield-optimizing partner Fungi) and Brazilian receivables (20%+ yield from tokenized assets via partners like Liqi). This cmBRL can be used to buy groceries, pay for rent, or even attached to a crypto-native credit card.

• Alternatively, the user can mint cmUSD and automatically protect their holdings against local inflation while still remaining liquid and earning yield. This is an objectively superior alternative to other dollarization options offered by players like Nomad or Wise.

• On top of that, users also have the option to mint cmBTC and stay exposed only to the new digital gold standard, wrapping it to leverage it's composability across DeFi or just follow El Salvador's reserve value mentality - but with yield on top!

The genius of the system lies in the yield generation mechanism. Unlike Volcano Bonds that promise yields from future Bitcoin mining or appreciation, Cambi generates real, immediate yield from proven fixed-income assets. Through partnerships with tokenization platforms like Liqi and Etherfuse, the protocol accesses a diverse portfolio of Brazilian receivables, LatAm government bonds, and private credit instruments. These aren't experimental DeFi yields – they're the same instruments that Brazilian banks and funds have used for decades to generate returns.

The protocol manages risk through multiple layers:

• First, over-collateralization ensures that even if Bitcoin drops significantly, positions remain solvent.

• Second, the RWA portfolio is actively managed using a combination of human expertise, DAO governance, and AI-powered risk assessment & tooling.

• Third, yields are laddered across different maturities – as 30-day receivables mature and pay out, the funds are automatically rolled into new instruments, creating a continuous yield stream regardless of individual user lock periods. This accrues back into the synthetics with are rebased automatically.

The Three Synthetics: cBTC, cUSD, and cBRL

• cmBTC represents the protocol's flagship product for the global Bitcoin community. When users mint cmBTC, they're essentially creating the first legitimate yield-bearing Bitcoin synthetic backed by real-world assets rather than ponzi tokenomics or opaque lending desks. Bitcoin maxis are a tough, risk adverse crowd, but institutions (crypto-native or not) are done overlooking the value of having BTC in their treasuries. And yield-bearing BTC? That's what puts smiles on shareholders faces.

  The continuous rebase means that 1 cmBTC today becomes 1.0001 cmBTC tomorrow (assuming 4% APY), creating a Bitcoin that grows. Instead of convincing Bitcoin maxis to take on RWA risk, we target institutions and family offices already interested on services like Coinbase Bitcoin Yield Fund (CBYF) or Maple Finance so cmBTC offers something previously impossible: Bitcoin exposure plus real yield from one of the world's highest-yielding fixed income markets.

  The value proposition:

  • Earn 3-5% base yield from institutional Bitcoin lending

  • Maintain full liquidity (unlike CBYF's lock-ups)

  • Mint cmUSD/cmBRL against cmBTC for operational needs without selling Bitcoin

  • Benefit from CCYOE boosts (potentially achieving even double digit yields)

• cmUSD serves as the dollarization vehicle for Latin Americans and the perfect DeFi collateral for crypto natives. By minting cmUSD against Bitcoin collateral, users get a dollar-denominated asset that automatically appreciates through RWA yields. This solves a critical problem in Latin America where accessing dollars typically requires expensive remittance services or gray market exchanges.

  For DeFi users, wrapped cmUSD (wcmUSD) becomes superior collateral – imagine using a stablecoin that earns 10%+ while sitting in a lending protocol. The psychological impact for Latin American users cannot be overstated: they're saving in dollars that grow, protected from local currency devaluation while earning yields their banks could never offer.

  Through our partnership with Brazilian tokenizers / bond providers, we deal with originated receivables from Brazilian exporters, tech companies, other USD-earning businesses as well as fast-yielding markets such as e-commerce, creator economy and marketing projects that need BRL financing.

  How it works:

  • Brazilian companies earning USD revenues but with BRL expenses issue dollar-denominated receivables or receivables with embedded hedge

  • These companies pay Brazilian interest rates (12-18%) for USD funding

  • No currency risk because repayment is in dollars/ hedge is embedded

  Every other yield-bearing stablecoin is limited to US Treasury yields (4-5%). cmUSD breaks this ceiling by accessing emerging market rates without emerging market currency risk. A user holding cmUSD sees their balance grow from 1,000 to 1,120-1,180 over a year, automatically.

• cmBRL addresses the practical reality that despite currency concerns, people still need to pay rent, buy groceries, and live their daily lives in local currency. By minting cmBRL against Bitcoin collateral, users get a Brazilian Real that appreciates daily while maintaining local purchasing power.

  Through partnerships with credit card providers and off-ramp services, cmBRL becomes spendable everywhere while the underlying Bitcoin collateral appreciates over time. This creates a powerful dynamic: spend depreciating fiat while your appreciating Bitcoin collateral grows, gradually increasing your purchasing power without active management. High cmBRL adoption subsidizes yields for cmUSD and cmBTC through CCYOE, creating a flywheel effect.

  Advantages:

  • 20-25% yields from Brazilian receivables and bonds

  • Spend in BRL while collateral appreciates

  • No supply cap - drives yield for entire protocol

  • Natural hedge against local inflation

Cambi's three synthetic assets serve distinct user segments and use cases, but all share our core innovations such as daily rebasing yield distribution and active yield management. Each synthetic maintains its own risk profile and yield source, but excess yields are strategically redistributed to maximize protocol-wide returns.

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Financial Projections and Success Metrics

While specific projections depend on market conditions and adoption rates, we can model realistic scenarios based on comparable protocols and market data. Our base case assumes measured growth focusing on sustainability over hype.

Year one targets $50 million total value locked, generating approximately $1.5 million in protocol revenue from performance fees. This assumes average yields of 12% with our 10% performance fee on excess returns. With operational costs around $500,000 annually (primarily team, operations and RWA analysis/management), the protocol reaches profitability quickly.

By year three, assuming successful partnerships and mainstream adoption, TVL could reach $1 billion. At this scale, protocol revenues of $30 million annually support expanded development, security initiatives, and potentially token holder distributions. More importantly, this scale enables access to institutional-grade RWAs, potentially directly including government bonds and corporate debt that further stabilize yields.

Success metrics extend beyond financial measures. User retention rates indicate product-market fit – we target 80% of users maintaining positions for their full lock period. Yield consistency matters more than maximum yields – delivering promised returns builds trust essential for mainstream adoption. Geographic distribution shows ecosystem health – while starting in Brazil, expansion to Mexico, Colombia, and Argentina validates the pan-Latin American thesis.

The ultimate success metric is simple: do we enable Bitcoin holders to earn sustainable yield while helping Latin Americans preserve wealth? Financial projections matter, but our mission of bridging these communities through innovative financial infrastructure drives every decision.

Vision for the Future

Cambi represents more than a DeFi protocol – it's infrastructure for a new financial paradigm where geographic boundaries don't determine financial opportunity. Today, a Bitcoin holder in Tokyo has no easy way to access Brazilian yields, while a saver in Rio watches their wealth evaporate to inflation. We're building the bridge between these realities.

The immediate future focuses on proving the model in Brazil. With its large crypto-native population, established tokenization ecosystem, and high-yielding fixed income markets, Brazil provides the perfect testing ground. Success here validates the concept for expansion across Latin America, each country offering unique opportunities and challenges.

Medium-term vision includes full Latin American coverage with local currency synthetics for major economies. Imagine cmMXN backed by Mexican government bonds, cmCOP leveraging Colombian infrastructure investments, or cmARS providing the first stable savings vehicle for Argentinians. Each market requires local partnerships and regulatory navigation, but the core protocol remains consistent.

The long-term potential extends beyond Latin America. Emerging markets globally share similar characteristics – currency volatility, high local yields, limited dollar access. Cambi's model could serve savers in Nigeria, Indonesia, or Turkey. The protocol becomes a global platform for connecting capital seeking yield with markets offering yield, all powered by Bitcoin's neutral, borderless nature.

Africa is actually a huge market for native, local, decentralized stablecoins.

Throughout this evolution, certain principles remain inviolate. User funds stay secure through over-collateralization and careful risk management. Yields come from real economic activity, not token printing or circular lending. The user experience stays simple despite backend complexity. Most importantly, we remember our core mission: empowering individuals to preserve and grow wealth regardless of their geographic lottery.

Conclusion: Building real LatAm DeFi

Cambi Protocol stands at the intersection of multiple massive trends: Bitcoin's emergence as pristine collateral, Latin America's crypto adoption surge, the tokenization of real-world assets, and DeFi's maturation into sustainable yield generation. By synthesizing these trends into a coherent product, we're creating something genuinely new.

We're not just another yield farm or algorithmic stablecoin. We're building critical infrastructure that solves real problems for real people. The Brazilian worker who watches their savings evaporate to inflation. The crypto holder who refuses to sell but recognizes opportunity cost. The family office seeking emerging market exposure without operational complexity. Each finds their solution in Cambi.

The journey ahead contains challenges. Technical complexity must be hidden behind intuitive interfaces. Regulatory frameworks must be navigated carefully. Partnerships must be cultivated patiently. Competition will emerge as the opportunity becomes obvious. But we have advantages that compound over time: first-mover position in Bitcoin-to-RWA yields, deep understanding of Latin American markets, technical innovations like our liquidation system, and most importantly, alignment with users' fundamental needs.

Volcano Bonds promised to revolutionize how developing nations interact with Bitcoin but delivered a centralized, inaccessible product. Cambi delivers on that original promise – permissionless access to Bitcoin-backed yields that anyone can use. We're not building a Bitcoin city or buying mining rigs. We're building something more powerful: a protocol that lets anyone, anywhere, put their Bitcoin to work earning real yields from one of the world's most dynamic economic regions.

Consider the problems we solve:

• The Brazilian worker watching savings evaporate to inflation now has cmBRL earning 20%+ in local currency, beating inflation even if staying only exposed to real

• The global saver seeking yield finds cmUSD paying 15% – triple any other legitimate stablecoin

• The Bitcoin holder who refuses to sell discovers cmBTC offers liquidity without liquidation

• The institutional fund seeking emerging market exposure accesses it without operational nightmares

Each user finds their solution in Cambi's simplified, powerful product suite.

The future of finance isn't in New York or London – it's being built in São Paulo, Mexico City, and Buenos Aires. Cambi is the bridge to that future.

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.

Cambi's launch strategy focuses on proving the concept with crypto-native users before expanding to mainstream adoption. We're not trying to onboard millions on day one – instead, we're building trust through transparent operations and consistent yield delivery.

1. Phase one targets Brazilian crypto holders who already understand Bitcoin but want yield. Through partnerships with retail-facing apps like Picnic and Chainless, we'll offer Cambi vaults as yield products within their interfaces. These users don't need education about crypto risks – they need access to sustainable yields. By starting with this audience, we can refine our operations while building track record.

   Outreach to local web3 and bitcoin communities, as well as micro-influencer campaigns done in partnership with these distribution front-ends mentioned above are also planned to yield good results. The primary focus is on cmBRL with unlimited minting, but also validating other collateral types and stress testing our CCYOE and overall yield model.

   Strategy:

   • Launch with Pix integration for seamless onboarding

   • Partner with Picnic, Chainless for distribution

   • Influencer campaigns emphasizing inflation & net-worth protection

   • "Poupança Turbinada" (Turbocharged Savings) messaging

   Success Metrics:

   • $20M cmBRL TVL (this makes us larger than BRZ already)

   • 20,000 active users

   • 14%+ sustainable yields (beating Brazilian treasury)

   Timeframe: Months 1-6

2. Phase two expands to mainstream Brazilian users through fintech partnerships. Conversations with Nubank, PicPay, and other neo-banks indicate strong interest in offering yield products that beat traditional savings. Our integration would be white-labeled – users might see "Bitcoin Savings Account" without knowing Cambi powers the backend. This approach leverages existing user trust while scaling distribution.

   This phase also includes the public launch of the protocol globally, with a more crypto-native campaign across CT and high-engagement KOL platforms so early adopters can bring in liquidity and feedback by leveraging our own UI.

   By catering to Global DeFi users seeking superior stablecoin yields

   Strategy:

   • List wcmUSD on Curve, Aave, Morpho

   • Emphasize 14-18% yields vs 5% competitors

   • Partner with yield aggregators (Fungi, Yearn, Beefy)

   • "The Stablecoin That Pays Your Rent" campaign

   Success Metrics:

   • Fill $50M cap within 60 days

   • Integration with 5+ major protocols

   • Maintain 14%+ yields

   Timeframe: Months 4-9

3. The international expansion in phase three targets family offices and crypto funds seeking emerging market exposure. Here, our pitch is simple: access Brazilian yields without establishing local entities, dealing with currency controls, or navigating regulatory complexity. The blockchain rails provide something impossible through traditional channels – 24/7 liquidity for emerging market investments. By this point, Cambi already has enough track record (users, TVL, time in market) to negotiate with these entities with higher investment standards.

   The primary focus here is to sell cmBTC as both a liquidity management tool and a BTC treasury power-up.

   Strategy:

   • Direct BD to funds using CBYF/Maple

   • Submit DAO proposals for treasury management

   • White-glove onboarding with custom terms

   • Emphasize liquidity advantage over competitors

   • Case studies showing 8-10% effective yields

   Success Metrics:

   • $40M institutional deposits

   • 5+ institutional clients

   • Zero large liquidation events

   Timeframe: Months 7-12

4. Pan-LatAm Expansion across Mexico, Colombia, Argentina and Chile, with focus on local currency synthetics with unified yield benefits as well as increasing cmUSD distribution in the region, both for retail and institutions.

Strategy:

• Replicate cmBRL success with cmMXN, cmCOP

• Leverage unified pool to offer superior yields

• Regional partnerships with local exchanges

• Become the "Nubank of DeFi" for LatAm

Our partnership strategy extends beyond distribution to core protocol functionality. Liqi & DUX provides access to tokenized receivables, Etherfuse offers government bond tokenization when available, and Pyth Network delivers reliable price feeds. Each partnership is strategic – we're not just integrating vendors but building an ecosystem where each participant benefits from protocol growth.

Growing cmBTC among institutions and treasuries

The Liquidity Premium Strategy:

• Instant Liquidity: Unlike CBYF's lock-ups, institutions can mint cmUSD against their cmBTC instantly for operational needs

• Capital Efficiency: They keep BTC exposure while accessing working capital - it's like a superior crypto credit line

• Tax Optimization: In many jurisdictions, borrowing against assets (minting cmUSD) isn't a taxable event, unlike selling BTC

• Yield Stacking: They earn BTC yield (3-5%) PLUS can deploy the cmUSD for additional yield (14%+)

Specific Incentive Mechanisms:

• Liquidity Mining Program: First $100M in institutional cmBTC deposits get bonus rewards (2-3% extra APY for 6 months)

• Fee Waivers: Institutions minting >$1M cmUSD from cmBTC pay zero fees for first year

• Preferred Rates: Institutional vaults get access to higher LTV ratios (70% vs 50% for retail)

• White-Glove Service: Dedicated account management, custom reporting, API access

Synthetic Stability Risks:

• Depeg risk: Mitigated through over-collateralization (150% minimum) and automated liquidations via Uniswap V4

• Oracle manipulation: Multi-source price feeds (Pyth, Chainlink/API3 & proprietary) with circuit breakers

• RWA defaults: Diversified portfolio across 50+ receivables, insurance buffer fund (2% of TVL)

• Yield distribution risk: Isolated smart contracts ensure base yields even if optimization layer fails

Regulatory Risks:

• Securities classification: Synthetics are collateral receipts, not investment contracts

• Cross-border restrictions: Compliant KYC for institutional vaults while maintaining permissionless retail access

• RWA custody: Licensed partners (Liqi) handle securities custody; we only interact with tokens

Technical Risks:

• Smart contract bugs: Multi-audit strategy + bug bounties

• Composability breaks: Capped wrapped versions (wcmBTC) ensure sustainable DeFi compatibility

• Liquidation cascades: Isolated vault architecture prevents contagion

Currency Risk Elimination (cmUSD):

• USD-denominated receivables eliminate FX exposure

• Counterparties are Brazilian companies with USD revenues

• Natural hedge through business model alignment

• No need for expensive derivative hedging services

Institutional Risk Parameters (cmBTC):

• Higher collateralization ratios for institutions (200% vs 150%)

• Dedicated liquidation pools to prevent cascades

• Automated rebalancing for large positions

Unified Pool Risk Isolation:

• Each asset vault maintains independent solvency

• Optimization layer can be paused without affecting base yields

• Emergency withdrawal preserves principal + base yield

• Circuit breakers prevent excessive redistribution

User Journeys and Market Segmentation

Understanding our diverse user base is crucial to Cambi's success. Each user segment has different needs, risk tolerances, and technical capabilities, but our protocol serves them all through thoughtful design and clear pathways.

1. The Brazilian Retail User: Maria in São Paulo has R$10,000 in savings earning 0.5% at Itaú bank while inflation runs at 5%. She's heard about Bitcoin but finds it too volatile and complicated. Through a Cambi partner app integrated with Pix, she deposits her R$10,000, which automatically converts to stablecoins and mints cmBRL. She doesn't need to understand crypto, yields, or RWAs – she just sees her balance growing 20-25% annually in Brazilian Reais. The app shows her daily gains in a simple interface: "Yesterday: R$10,000 → Today: R$10,006.85". When she needs to spend, her Cambi-linked debit card works everywhere Visa is accepted, automatically converting what she needs while the rest keeps earning.

2. The Global DeFi User: Alex in Singapore discovers cmUSD offers 15% yields versus 5% from other stablecoins. He deposits $100,000 USDC and mints cmUSD, immediately seeing the difference. Within DeFi, he uses cmUSD as collateral on Aave to borrow more USDC, creating a recursive position earning him 25%+ net yields. Unlike complex strategies requiring active management, cmUSD's daily rebasing means his collateral automatically grows, improving his health factor over time. He integrates cmUSD into his yield farming strategies, finally finding a stablecoin that meaningfully contributes to portfolio returns rather than being "dead capital" between opportunities.

3. The Institutional Bitcoin Holder: A crypto fund managing $50M in Bitcoin faces a dilemma: they need USD liquidity for operations but don't want to sell BTC. Traditional solutions like CBYF lock their Bitcoin for months. With Cambi, they deposit 500 BTC as collateral and mint $10M cmUSD against it, maintaining Bitcoin exposure while accessing immediate liquidity. The fund earns 5% on their Bitcoin collateral plus 15% on the cmUSD they're using for operations. When Bitcoin appreciates, they can mint more cmUSD. When they close positions, they simply return the cmUSD and reclaim their Bitcoin. No complex negotiations, no waiting periods, no counterparty risk beyond smart contracts.

4. The Emerging Market Saver: Carlos in Mexico City wants dollar exposure but local banks make it expensive and complicated. He downloads a Cambi partner app, deposits MXN via SPEI, and mints cmUSD. For the first time, he has a dollar-denominated savings account earning 15% annually – triple what any Mexican bank offers on USD deposits. The psychological impact is profound: every morning, he sees his dollar balance has grown. In a country where the peso regularly devalues, he finally has a defense that doesn't require a US bank account or expensive remittance services.

Cross-Collateral Yield Optimization Engine

Cambi's most innovative feature isn't just accessing high yields – it's intelligently distributing them across the protocol to create sustainable, market-beating returns for all users. Think of it as both an embedded protocol hedge, as well a constant pseudo-equalizer that allocates yields (instead of token inflation or “free money” for mercenary capital) as a form of incentive to build a powerful, Bitcoin-first treasury for the protocol.

The Problem with Isolated Yields

Traditional protocols treat each asset in isolation:

• USDC earns T-bill yields (5%) - that Circle keeps entirely

• BTC earns DeFi lending yields (3%) - really high risk for low returns

• Local currencies earn local rates - which are usually locked up and heavily controlled

This creates inefficiencies and limits growth potential.

Cambi's Approach

We treat all protocol yields as a unified pool, dynamically optimizing distribution while maintaining risk isolation:

Base Layer: Each asset generates native yields

• cmBRL: 14-25% from Brazilian markets

• cmUSD: 12-18% from USD-denominated receivables

• cmBTC: 3-8% from institutional lending

Optimization Layer: Excess yields flow into unified pool

• If cmBRL yield exceeds targets, excess yield boosts cmUSD/cmBTC

• And since we're competing against single-digit-yields from other yield-bearing stables

• If cmUSD yield exceeds targets, excess yield boosts cmBTC

• During high-demand periods, yields auto-balance

• Protocol treasury captures value for security and growth

Simplified Distribution Logic:

Base Yield Distribution:
- cmBRL holders: Native yield (currently 14-25%)
- cmUSD holders: Native yield (currently 12-18%)
- cmBTC holders: Native yield (currently 3-8%)

Optimization Distribution:
- Calculate excess yields above target rates
- Redistribute based on:
  - 40% to under-supplied assets
  - 30% to strategic growth incentives
  - 20% to all holders proportionally
  - 10% to protocol treasury

Dynamic Supply Caps

To maintain attractive yields, we also implement dynamic supply caps:

• cmBRL: Unlimited (main yield generator for protocol)

• cmUSD: $50M initial cap (expands by $25M when yield >14%)

• cmBTC: $20M initial cap (expands by $10M when utilization >80%)

Real-World Example

Imagine the protocol state:

• cmBRL: $80M TVL generating 25% = $20M annual yield

• cmUSD: $40M TVL expecting 15% = $6M expected yield

• cmBTC: $15M TVL expecting 5% = $750k expected yield

Total protocol yield: $20M Total expected distribution: $6.75M Excess yield: $13.25M

This excess is redistributed:

• cmUSD boost: +3% (to 18%)

• cmBTC boost: +2% (to 7%)

• Strategic reserves: $2M

• Future incentives: $3M

Benefits of Unification

1. Network Effects: Success in one asset benefits all users

2. Sustainable Yields: Excess Brazilian yields subsidize other assets

3. Strategic Flexibility: Adjust yields to drive growth where needed

4. Risk Mitigation: Diversified yield sources protect against single-asset issues