Skip to main content
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 LendRateMaturityCBT ReceivedValue at Day-0Value at Maturity
10,000 USDC10%1 year11,000 CBT$10,000$11,000
10,000 USDC10%6 months10,500 CBT$10,000$10,500
10,000 USDC10%3 months10,250 CBT$10,000$10,250

​
Price Convergence

CBT price moves toward $1 as maturity approaches: 
Price
  │
$1├─────────────────────────────●  Maturity
  │                          ●
  │                       ●
  │                    ●
  │                 ●
  │              ●
  │           ●
$0.93├──●
  │
  └──────────────────────────────► Time
    T0                          T(maturity)
  • Lend: 10,000 USDC at 10% APY for 365 days
  • 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:
  1. Lender places order (or uses Easy Mode)
  2. Order matches with borrower
  3. Lender’s USDC transferred to protocol
  4. 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:
  1. Maturity date arrives
  2. Lender calls redeem() (or auto-rollover triggers)
  3. CBT burned
  4. 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:
1

Choose Exit Type

  • Limit Order: Set your price, wait for match
  • Market Order: Instant exit at current rate
2

No Collateral Needed

Unlike regular borrowers, CBT sellers don’t need collateral, the CBT itself represents your claim
3

Order Book Matches

Your sell order matches with a new lender’s buy order
4

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 TokenUnderlyingMaturityExample
CBT-USDC-2025-06-01USDCJune 1, 202590-day USDC lending
CBT-USDC-2025-09-01USDCSept 1, 2025180-day USDC lending
CBT-USDT-2025-06-01USDTJune 1, 202590-day USDT lending

​
Market Depth

  • Major maturities (30, 60, 90, 180, 365 days) have deepest liquidity
  • Custom maturities trade but may have wider spreads
  • Easy Mode defaults to standard maturities 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

PropertyValue
underlyingAddress of underlying asset (USDC, etc.)
maturityUnix timestamp of maturity date
faceValueAlways 1.0 (with decimals)

​
Use Cases

  1. Lend USDC, receive CBT
  2. Hold until maturity
  3. Redeem for principal + interest
Best for: Set-and-forget fixed-rate exposure
  1. Lend USDC, receive CBT
  2. Circumstances change, need liquidity
  3. Sell CBT on order book
  4. Receive current market value
Best for: Users who may need flexibility
  1. Lend USDC, receive CBT
  2. Deposit CBT as collateral in Aave
  3. Borrow against your lending position
  4. At maturity, repay Aave loan and redeem CBT
Best for: Capital efficiency, leveraged strategies
  1. Spot CBT trading below fair value
  2. Buy CBT on secondary market
  3. Hold to maturity
  4. Redeem at $1 for risk-free profit
Best for: Sophisticated traders, market makers

​
FAQs

Yes. At maturity, each CBT can be redeemed for exactly $1 worth of the underlying asset. This is guaranteed by the protocol.
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.
In theory, no, why pay more than 1forsomethingworth1 for something worth 1 at maturity? In practice, brief inefficiencies may occur but are quickly arbitraged away.
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