Ceres protocol establishes a serials of abstract pools called "The Central Bank", which are controlled by a smart contract and based on the PCV concept. The central bank stores the collateral and medium and regulates the issuance of ASC.
The central bank stores three types of assets: collateral (such as BUSD), CRS, and ASC. The smart contract controls the central bank to call those assets to regulate the issuance of ASC when needed, in the form of minting or redemption.
Users can stake assets into the central bank to participate in the minting or redemption of ASC and then obtain CRS as rewards.
After staking is started, the assets provided by the user will be locked for a certain period.
The assets in the locked state can neither be called by the smart contract for the minting or redemption of ASC nor be withdrawn by users.
Once assets are unlocked, users can retrieve their assets and benefits according to their share in the central bank.
When the Ceres protocol is launched on the mainnet, the central bank will create three staking pools: BUSD, CRS, and ASC. In the future, the central bank will involve more types of collateral and medium, making more diversified staking pools.