ELI5: csrCanto and its many usecases

Hello anon. Welcome. This article will explain csrCanto simply, and look at some of the use cases enabled by it.

Please note: I will use ‘csrCanto’ to refer to the project itself, and ‘csrCANTO’ to refer to the token - which is the flagship product of our project.

obligatory logo
obligatory logo

csrCanto for dum-dums

The native token of a blockchain is usually not the same technical standard as the other tokens that exist on the same blockchain. For example, Ethereum’s native token, ETH, is not the same standard as the fungible ERC-20 tokens. Due to this technical difference, in order to use ETH (as opposed to an ERC-20) in a smart contract, the contract must be written in a specific way, or the ETH must be converted into an ERC-20 version of itself… which is why WETH (Wrapped ETH) exists. Its the same as ETH, and can be wrapped or unwrapped at any time for no fees (besides gas). Here are some examples of things you can use WETH for:

  • NFT mints

  • Using Automated Market Makers (so you can buy and dump shitcoins)

  • Liquidity provisioning (so you can enable others to buy and dump shitcoins)

  • Collateral to borrow shitcoins

  • To use your favourite ponzi

  • Etcetera etcetera bla bla bla

What is true on Ethereum, is also true on Canto. A wrapped, ERC-20 compatible version of CANTO exists: wCANTO (wrapped Canto).

csrCANTO is another version of wCANTO.

“Why do we need another version of wCANTO? Whats wrong with it?”

Nothing at all, its great. The only difference, is that csrCANTO is enabled with Contract Secured Revenue (CSR), and distributes this CSR back to the csrCANTO holders

“Woah woah woah, whats this CSR thingy??”

Similar to Ethereum, Canto has implemented EIP-1559. This achieves several things, however the relevant one here is that the gas base fee is burned. Thus, all gas fees we pay on Canto are burned. CSR is an extra add-on a developer can add to a smart contract they deploy, where 20% of the gas fees paid when someone is using that smart contract are NOT burned, but instead redirected to an NFT that this developer owns.

This does NOT mean you pay 20% more gas, you pay exactly the same amount of gas*. The difference is that instead of 100% of this gas being burned, 80% is now burned, and 20% is sent to that developer’s NFT. Pretty neat, right?

“So how does csrCANTO use this CSR?”

Well, csrCANTO is an ERC-20 token, and each ERC-20 token is a smart contract itself! So the csrCANTO token smart contract is deployed with the CSR optional add-on! So when you or anyone else uses csrCANTO, 20% of those gas fees you are paying (which are paid in CANTO), are going to an NFT. Instead of keeping this revenue to ourselves though, we are giving ALL of it back to the csrCANTO holders!

So its just like holding CANTO or wCANTO**, but every now and then, you can go claim some more CANTO!

“Can anybody go claim the CSR?”

No, not just any address or smart contract is eligible for CSR rewards. Only EOAs (wallets of people like you and me), and whitelisted smart contracts are eligible.

Why Abraxas, why?

I’ll tell ya! This is because if we achieve some of our goals, csrCANTO will be used widely across DeFi and therefore a meaningful amount of the supply will be held in smart contracts. We don’t want these smart contracts to get your revenue! Also because most of them won’t even claim it.. effectively wasting all that sweet, sweet CSR.

More questions? Check out our FAQ and our docs. If you still have questions, hmu on twitter.

Logo with lazer eyes?? Based.
Logo with lazer eyes?? Based.

What are some use cases?

You may be thinking “ok, cool. But what we can do with this besides just holding it?”

Boy, let me tell you. Remember earlier when looked at some examples of things you could use WETH for? csrCANTO can be used for all of those.

Do you currently hold any CANTO? Do you use it for anything? csrCANTO can be used instead in the same way.

The difference though is important.

Because the difference is that csrCANTO is yield-bearing. This means it makes money. So what if you could do the exact same things as before, but now theres more money in the equation? This money can be used in many ways. Let’s look at some examples:

Example 1: NFT mint

Instead of an NFT mint priced in CANTO, let’s say its priced in csrCANTO. This means that now, the smart contract which received payment now holds csrCANTO.

If whitelisted, CSR rewards may be kept by the project (as an extra source of revenue), or redistributed to the NFT minters! This would effectively create a mint-2-earn. Pretty cool, eh?

Example 2: Liquidity Pool

You are an LP in the csrCANTO/NOTE liquidity pool. That’s great, but it means you can’t claim the CSR rewards because the csrCANTO is not technically in your wallet.

What we can do here though, is to work with the devs of the DEX and whitelist the liquidity pool smart contract. This would allow it to claim the CSR rewards, and give back to the LPs as boosted rewards for LPing.

Example 3: CDP Stablecoin

Imagine an over-collateralized stablecoin just like the ones we are used to on other chains. You deposit $XYZ in a vault, and you mint $xUSD. You can use this for whatever you want, but sooner or later you have to pay back this loan unless you want to lose your collateral.

Now imagine: you deposit csrCANTO in the vault to mint the stablecoin. Since the collateral used here is yield-bearing, your loan is slowly paying itself back over time. Maybe if you keep it open long enough, it will pay the whole thing back (you might wait a while tho), or at least when you have to repay the loan, you will be pleasantly surprised to find that you do not have to pay as much back, because the CSR rewards from the csrCANTO contributed towards that already.

What do you think, anon? Pretty nifty right? The use cases here are limited only by our imaginations. csrCanto is building economic infrastructure for the Canto Ecosystem, and we are excited to see what comes next. Follow our twitter page to stay updated.


*Technically speaking, would pay an insignificantly greater amount of gas due to the contract having the few extra lines of code to include CSR

** Again, to be technically correct here, its not EXACTLY the same since the token contract has some extra goodness inside which enables all the cool things csrCANTO does. Practically speaking tho, its the same

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