Centuari Bond Token (CBT)

Animation showing CBT price converging from discount to $1 at maturity

What is CBT?

Centuari Bond Token (CBT) is an ERC-20 token that represents your lending position in the protocol. When you lend assets on Centuari, you receive CBT tokens instead of a simple deposit receipt.

Key Concept: CBT behaves like a Zero Coupon Bond (ZCB). You receive more CBT than your deposit (at a discount price per token), and each CBT is worth exactly $1 at maturity. The extra CBT represents your fixed interest.

How CBT Works

More CBT at a Discount Price

When you lend, you receive more CBT than your deposit amount. Each CBT is priced at a discount and will be worth exactly $1 at maturity:

You Lend	Rate	Maturity	CBT Received	Value at Day-0	Value at Maturity
10,000 USDC	10%	1 year	11,000 CBT	$10,000	$11,000
10,000 USDC	10%	6 months	10,500 CBT	$10,000	$10,500
10,000 USDC	10%	~3 months	10,250 CBT	$10,000	$10,250

Price Convergence

CBT price moves toward $1 as maturity approaches:

Price
  │
$1├─────────────────────────────●  Maturity
  │                          ●
  │                       ●
  │                    ●
  │                 ●
  │              ●
  │           ●
$0.93├──●
  │
  └──────────────────────────────► Time
    T0                          T(maturity)

Day 1
Day 180
Maturity

Lend: 10,000 USDC at 10% APY for 1 year
Receive: 11,000 CBT
CBT Price: ~$0.909 (10,000 / 11,000)
Position Value: $10,000

Why Tokenize Positions?

CBT makes your lending position composable, you can do things with it that are impossible with traditional lending:

Trade It

Sell your position on secondary markets for early exit without protocol withdrawal

Collateralize It

Use CBT as collateral in other DeFi protocols (Aave, etc.)

Index It

Include CBT in yield indices and structured products

Transfer It

Send your position to another wallet without closing it

CBT Mechanics

Minting

CBT is minted when a lend order is matched:

Lender places order (or uses Easy Mode)
Order matches with borrower
Lender’s USDC transferred to protocol
CBT minted to lender’s wallet

Formula:

CBT Amount = Principal × (1 + Rate × Time)

For example: 10,000 USDC at 10% for 1 year = 10,000 × (1 + 0.10 × 1) = 11,000 CBT

Redemption

At maturity, CBT can be redeemed for $1 each:

Maturity date arrives
Lender calls redeem() (or auto-rollover triggers)
CBT burned
Principal + interest sent to lender

Transfer

CBT is a standard ERC-20 token:

Transfer to any address
Trade on DEXs
Deposit to other protocols
No restrictions on movement

Early Exit via CBT

CBT holders can exit before maturity by selling their position, no need to wait, no protocol withdrawal required.

How It Works

Instead of redeeming at maturity, CBT holders can sell back to the order book:

Choose Exit Type

Limit Order: Set your price, wait for match
Market Order: Instant exit at current rate

No Collateral Needed

Unlike regular borrowers, CBT sellers don’t need collateral, the CBT itself represents your claim

Order Book Matches

Your sell order matches with a new lender’s buy order

Receive Proceeds

Get stablecoins based on current CBT price

Early Exit Details

Learn more about limit and market exit options

CBT Pricing

Theoretical Price

The fair value of CBT at any time is:

CBT Price = 1 / (1 + Rate × Time Remaining)

Market Price

Actual trading price may differ due to:

Supply/demand: More sellers = lower price
Rate expectations: If market rates change, CBT prices adjust
Liquidity: Thin markets may have wider spreads

Arbitrage: If CBT trades below fair value, arbitrageurs buy it and hold to maturity for risk-free profit. This keeps prices efficient.

CBT Markets

Each CBT is specific to its underlying asset and maturity:

CBT Token	Underlying	Maturity	Example
CBT-USDC-2025-06-01	USDC	June 1, 2025	USDC maturing June 1, 2025
CBT-USDC-2025-09-01	USDC	Sept 1, 2025	USDC maturing Sept 1, 2025
CBT-USDT-2025-06-01	USDT	June 1, 2025	USDT maturing June 1, 2025

Market Depth

Nearest maturity dates typically have the deepest liquidity
Easy Mode defaults to the next available maturity for better liquidity

Technical Details

Token Standard

Standard: ERC-20
Network: Arbitrum
Decimals: 18

Contract Functions

interface ICBT {
    // Standard ERC-20
    function transfer(address to, uint256 amount) external returns (bool);
    function approve(address spender, uint256 amount) external returns (bool);
    function balanceOf(address account) external view returns (uint256);

    // CBT-specific
    function underlying() external view returns (address);
    function maturity() external view returns (uint256);
    function redeem(uint256 amount) external returns (uint256);
    function redeemTo(address recipient, uint256 amount) external returns (uint256);
}

Key Properties

Property	Value
`underlying`	Address of underlying asset (USDC, etc.)
`maturity`	Unix timestamp of maturity date
`faceValue`	Always 1.0 (with decimals)

Use Cases

Simple Hold to Maturity

Lend USDC, receive CBT
Hold until maturity
Redeem for principal + interest

Best for: Set-and-forget fixed-rate exposure

Early Exit via Sale

Lend USDC, receive CBT
Circumstances change, need liquidity
Sell CBT on order book
Receive current market value

Best for: Users who may need flexibility

CBT as Collateral

Lend USDC, receive CBT
Deposit CBT as collateral in Aave
Borrow against your lending position
At maturity, repay Aave loan and redeem CBT

Best for: Capital efficiency, leveraged strategies

Yield Arbitrage

Spot CBT trading below fair value
Buy CBT on secondary market
Hold to maturity
Redeem at $1 for risk-free profit

Best for: Sophisticated traders, market makers

FAQs

Is CBT always worth exactly $1 at maturity?

Yes. At maturity, each CBT can be redeemed for exactly $1 worth of the underlying asset. This is guaranteed by the protocol.

What if I lose my CBT?

CBT is a bearer instrument. Whoever holds the token can redeem it at maturity. If you lose access to your wallet, you lose access to your position.

Can CBT price go above $1 before maturity?

In theory, no, why pay more than

1 for something worth

1 at maturity? In practice, brief inefficiencies may occur but are quickly arbitraged away.

How is CBT different from Pendle PT?

Similar concept (tokenized yield), different mechanics. CBT is specific to Centuari’s fixed-rate order book system and integrates with auto rollover/refinance features.

Start Earning CBT

Begin your fixed-rate lending journey

Getting Started

Products

User Guides

Resources

Centuari Bond Token (CBT)

What is CBT?

How CBT Works

More CBT at a Discount Price

Price Convergence

Why Tokenize Positions?

Trade It

Collateralize It

Index It

Transfer It

CBT Mechanics

Minting

Redemption

Transfer

Early Exit via CBT

How It Works

Early Exit Details

CBT Pricing

Theoretical Price

Market Price

CBT Markets

Market Depth

Technical Details

Token Standard

Contract Functions

Key Properties

Use Cases

FAQs

Start Earning CBT

​What is CBT?

​How CBT Works

​More CBT at a Discount Price

​Price Convergence

​Why Tokenize Positions?

Trade It

Collateralize It

Index It

Transfer It

​CBT Mechanics

​Minting

​Redemption

​Transfer

​Early Exit via CBT

​How It Works

Early Exit Details

​CBT Pricing

​Theoretical Price

​Market Price

​CBT Markets

​Market Depth

​Technical Details

​Token Standard

​Contract Functions

​Key Properties

​Use Cases

​FAQs

Start Earning CBT

What is CBT?

How CBT Works

More CBT at a Discount Price

Price Convergence

Why Tokenize Positions?

CBT Mechanics

Minting

Redemption

Transfer

Early Exit via CBT

How It Works

CBT Pricing

Theoretical Price

Market Price

CBT Markets

Market Depth

Technical Details

Token Standard

Contract Functions

Key Properties

Use Cases

FAQs