The Cycle Protocol is a yield optimizer that uses vaults along with a liquidity mining initiative.

Each vault pools user deposits into an underlying strategy, which then places funds into a 3rd party liquidity mining program. Rewards generated from this combined deposit are 'harvested' back into the main strategy deposit, enabling continuous compounding.

The Cycle Protocol stands out by running its own reward program for every vault. Rather than minting vault shares directly to the depositor, the shares are sent to a reward contract on the depositor’s behalf, where CYCLE token rewards can be accumulated.

CYCLE token holders represent the protocol’s ownership and will ultimately hold the sole decision-making authority over which proposals get integrated. During the early stage, the protocol’s upkeep and control will stay with the core development team, with the intention to move it to a Gnosis Safe once appropriate.