Cenkali / How it works

How a Cenkali circle works, step by step.

Same tanda you know — a group, a shared pot, one turn at a time. What's new is that the rules run on public smart contracts. Cenkali doesn't hold or move the money; the code does exactly what everyone agreed to, in the open.

The rhythm

One pot. Everyone gets a turn.

Say six friends form a circle and each contributes $200 a month. Every month the whole pot goes to one member, until everyone has received once. The order is set when the circle is created and can't be changed by hand.

Illustration · a 6-member, $200 circle · seats shown as Member 1–6 · not a live pool
Setting up & contributing

Agree the rules once. The contract keeps them.

Form the circle

You invite people you trust and, together, set the contribution amount, the number of turns, the schedule, and the payout order. Everyone can read these rules before joining — and once the circle starts, they're fixed and visible on-chain.

Join with a smart wallet

Members join through a Coinbase Smart Wallet, so there are no seed phrases to memorize. Network fees can be sponsored, which means members usually don't need to hold a separate token just to pay for transactions.

Contribute each round

Each round, members send the same amount in USDC, a U.S. dollar stablecoin issued by Circle. Every contribution is recorded on Base, so the whole circle can see who has paid.

The pot pays out automatically

When the round closes, the smart contract sends the pooled pot to whoever's turn it is. No one releases it by hand, and no one can send it somewhere else — the code follows the order the circle agreed to.

3.5–7%
Variable APY
Historical Aave V3 USDC on Base
Variable · not guaranteed
Where the yield comes from

The pool's idle money can work between turns.

Between payouts, the protocol supplies the circle's idle USDC to Aave V3 on Base — an independent lending protocol. Any interest Aave generates is passed through to the circle. Historically, USDC on Aave V3 (Base) has ranged 3.5–7% variable APY, but the rate moves with the market.

This is a pass-through of interest generated by a third-party protocol — not interest paid by Cenkali, and not a guaranteed or "risk-free" return. Cenkali is not a bank; there is no deposit insurance or FDIC coverage. A member's share is tied to their participation in the circle, and rates can fall as well as rise.

Self-healing solvency

If someone misses a turn, the circle keeps going.

In a traditional tanda, one person missing a payment can put everyone else at risk. Cenkali softens that with a Default Solvency Reserve Pool (DSRP).

The DSRP, in plain terms

It's a buffer that lives inside the smart contract, funded by the pool's own yield. If a contribution is missed, the buffer can cover it under fixed rules so the scheduled payout still happens and the circle keeps turning.

What it is

  • Code inside the contract, running on fixed rules everyone can read
  • Funded by the yield the pool itself generates
  • Automatic — no person decides when it steps in

What it is not

  • Not a fund that Cenkali holds, controls, or can spend
  • Not insurance, and not a guarantee against every loss
  • Not unlimited — it can only cover what the rules allow
Fees, in the open

One small fee, visible in the contract.

Cenkali doesn't charge hidden costs. There are two components, and both are written into the contract for anyone to check.

0.75%
of each contribution
15%
of the yield the pool generates — Cenkali only earns when the pool does
What happens if…

The honest answers.

…someone stops contributing?+

The DSRP can cover a missed contribution under its fixed rules so the scheduled payout still happens. Circles work best among people who trust each other, and the on-chain record makes it clear who has paid.

…I want to leave early?+

A rotating circle is a shared commitment — the whole point is that everyone completes their turns. The rules for the full cycle, including your turn, are set and visible before you join, so you know exactly what you're agreeing to. There is no promise of "withdraw anytime," because that isn't how a savings circle works.

…the Base network has an outage?+

Base has had short outages in the past, so Cenkali is designed to retry transactions and wait for the network to recover rather than fail. Payouts follow the schedule once the network is back; your funds and the circle's rules aren't affected by a temporary outage.

…Aave's rate drops to almost nothing?+

Then the pass-through yield is small — that's the meaning of "variable." The core of a Cenkali circle is the rotating savings, not the yield. Any yield is a bonus generated by a third-party protocol, never a guarantee.

Want to try a circle when they open?

Cenkali is pre-launch. Join the list and we'll let you know when it's ready.

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