Currency Abstraction

Overview

Currency Abstraction simplifies multi-currency lending by automatically analyzing rates across all supported stablecoins and suggesting optimal strategies. For users who don’t want to manually compare EUR vs USD vs JPY rates, currency abstraction handles the complexity.

Think of it as: A smart assistant that finds the best fixed-rate opportunities across all currency markets, while respecting your preferences and risk tolerance.

How It Works

Analyze Markets

System scans all supported currency markets in real-time:

Current rates for each stablecoin
Liquidity depth
Historical rate stability

Match Preferences

Considers your settings:

Acceptable currencies
FX risk tolerance
Minimum rate threshold

Recommend Strategy

Suggests optimal currency:

“Lend in EURC at 6.5% APY (vs 5.8% USDC)”
Shows FX considerations if cross-currency

Execute (Optional)

With permission, can auto-convert and deploy to recommended market

User Preferences

Configure currency abstraction to match your needs:

Currency Whitelist

Select which currencies you’re comfortable with:

✅ USD (USDC, USDT, DAI)
✅ EUR (EURC)
☐ JPY (JPYC)
☐ GBP (GBPT)

Only whitelisted currencies will be considered in recommendations.

FX Risk Tolerance

No FX Risk
Low FX Risk
Full Optimization

Setting: Same currency onlyOnly recommends opportunities in your base currency. If you hold USD, only USD options shown.Best for: Users who want zero currency exposure

Minimum Rate Threshold

Set a floor rate below which you won’t participate:

Minimum Rate: 5.0% APY

Recommendations will only include opportunities above this threshold.

Recommendation Examples

Example 1: USD Holder, Rate Optimization

Your situation:

Holding: 50,000 USDC
Settings: USD + EUR allowed, Low FX risk

Current markets:

Currency	Best Rate	Maturity
USDC	5.8% APY	90 days
EURC	6.5% APY	90 days

Recommendation:

💡 Recommended: Lend EURC at 6.5% APY

Expected return: $812 (vs $725 in USDC)
Additional yield: +$87 (+12%)

⚠️ FX Consideration:
- Requires conversion: USDC → EURC
- EUR/USD rate: 1.08
- Break-even: EUR can weaken 0.7% before USDC is better

Example 2: Borrower, Minimize Cost

Your situation:

Need: 30,000 USD equivalent
Collateral: ETH
Settings: All major currencies

Current markets:

Currency	Best Rate	USD Equivalent
USDC	7.2% APY	$2,160/year
EURC	5.5% APY	$1,650/year
JPYC	3.2% APY	$960/year

Recommendation:

💡 Recommended: Borrow JPYC at 3.2% APY

Interest savings vs USDC: $1,200/year

⚠️ FX Consideration:
- JPY has appreciated 5% vs USD this year
- If JPY strengthens 10%, savings reduced to $600
- Consider hedging if rate advantage is primary goal

Auto-Execution Mode

With auto-execution enabled, currency abstraction can:

Auto-Convert on Deposit
- You deposit USDC
- System identifies EURC has better rates
- Converts USDC → EURC automatically
- Places lend order in EURC market
Auto-Convert on Withdrawal
- Your EURC position matures
- You want funds in USDC
- Converts EURC → USDC automatically
- Sends USDC to your wallet

Safety Controls

Auto-execution has built-in safety limits:

Control	Setting
Max slippage	0.5% (configurable)
Max single conversion	50,000 USD equivalent
Rate improvement threshold	Must be 0.5%+ better to trigger
User notification	Always notified of conversions

Integration with Easy Mode

Currency abstraction is built into Easy Mode:

Easy Mode automatically considers multi-currency opportunities
If EURC has significantly better rates than USDC, Easy Mode will suggest it
User always confirms before any currency conversion
No additional configuration needed

Advanced: API Access

Programmatic access to currency abstraction:

import { Centuari } from '@centuari/sdk';

const client = new Centuari({ chainId: 42161 });

// Get optimal currency recommendation
const recommendation = await client.currencyAbstraction.recommend({
  action: 'lend',
  amount: 50000,
  baseCurrency: 'USD',
  allowedCurrencies: ['USD', 'EUR'],
  fxRiskTolerance: 'low',
  minRate: 0.05
});

console.log(recommendation);
// {
//   recommendedCurrency: 'EUR',
//   asset: 'EURC',
//   rate: 0.065,
//   maturity: '2025-06-01',
//   fxImpact: {
//     breakEvenMove: -0.007,
//     currentTrend: 'EUR strengthening'
//   }
// }

Currency Conversion Mechanics

When currency abstraction triggers a conversion:

Quote Sourcing

Aggregates quotes from multiple DEXs (1inch, Paraswap, etc.)

Best Route Selection

Chooses route with lowest slippage and fees

Execution

Swaps through selected route

Deposit/Withdraw

Proceeds to intended action in target currency

Fees

Component	Cost
DEX swap fee	~0.1-0.3% (market dependent)
Centuari fee	0% (no additional fee for conversion)
Gas	Covered by protocol (gasless)

When Not to Use Currency Abstraction

Currency abstraction may not be ideal if:

You have specific currency requirements (e.g., EUR liabilities to match)
You’re highly sensitive to FX risk and rates don’t justify exposure
You need exact amounts and can’t tolerate conversion slippage
You’re operating under regulatory constraints requiring specific currencies

In these cases, disable auto-suggestions and manually select your currency.

FAQs

Can currency abstraction lose me money?

Rate optimization is not guaranteed. FX movements can offset rate advantages. Always review FX considerations in recommendations.

How often does it re-evaluate?

Continuously for new orders. Existing positions are not changed, recommendations only apply to new capital deployment.

Can I see historical recommendations accuracy?

Dashboard shows past recommendations and actual outcomes, helping you calibrate trust in suggestions.

Does it consider my tax situation?

No. Currency conversions may have tax implications. Consult a tax professional for your jurisdiction.

Configure Currency Preferences

Set up your currency abstraction preferences

Getting Started

Products

User Guides

Resources

Currency Abstraction

Overview

How It Works

User Preferences

Currency Whitelist

FX Risk Tolerance

Minimum Rate Threshold

Recommendation Examples

Example 1: USD Holder, Rate Optimization

Example 2: Borrower, Minimize Cost

Auto-Execution Mode

Safety Controls

Integration with Easy Mode

Advanced: API Access

Currency Conversion Mechanics

Fees

When Not to Use Currency Abstraction

FAQs

Configure Currency Preferences

​Overview

​How It Works

​User Preferences

​Currency Whitelist

​FX Risk Tolerance

​Minimum Rate Threshold

​Recommendation Examples

​Example 1: USD Holder, Rate Optimization

​Example 2: Borrower, Minimize Cost

​Auto-Execution Mode

​Safety Controls

​Integration with Easy Mode

​Advanced: API Access

​Currency Conversion Mechanics

​Fees

​When Not to Use Currency Abstraction

​FAQs

Configure Currency Preferences

Overview

How It Works

User Preferences

Currency Whitelist

FX Risk Tolerance

Minimum Rate Threshold

Recommendation Examples

Example 1: USD Holder, Rate Optimization

Example 2: Borrower, Minimize Cost

Auto-Execution Mode

Safety Controls

Integration with Easy Mode

Advanced: API Access

Currency Conversion Mechanics

Fees

When Not to Use Currency Abstraction

FAQs