Kinza Finance is a lending protocol, focused on security and ve-Real-Yiled tokenomics model, built and developed on BNB Chain. This is also one of 4 projects that received investment from Binance Labs in the recent Most Valuable Builder (MVB) VI program.
1. What is Kinza Finance?
Kinza Finance is a new generation lending protocol built and developed on BNB Chain, focusing on 2 key characteristics: Security and the ve-Real-Yield tokenomics model.
Security: Use the Isolation Assets model to avoid unexpected fluctuations during harsh market periods. When wanting to borrow a loan on Kinza, users can deposit part of the collateral and part of it in the isolation system to back up when the collateral price drops below the minimum level, that part of the asset will be used to avoid asset liquidation. Ensure the system is always operated in the safest way.
ve-Real-Yield tokenomics: Borrowers in Kinza Finance will be rewarded directly in KZA tokens (platform token). The number of these tokens will be voted and decided by $KZA token holders and staked into the platform weekly (Epochs). And liquidity providers (also known as lenders) will receive most of the profits from interest paid by borrowers.
2. Kinza Finance participants
Currently, Kinza Finance has just launched mainnet version V1 at the end of June. After nearly 2 months of launch, the platform has achieved:
Total value locked (TVL): ~575 thousand dollars
Total loan value: ~215 thousand dollars
Amount remaining in the liquidity pool: ~$359 thousand
Kinza Finance participants
Lenders are those who provide liquidity into the protocol pool and receive a portion of the profits from the interest paid by borrowers.
Borrowers are people who deposit digital assets to use as collateral and in return borrow other assets on Kinze Finance. These people will have to pay interest rates depending on the type of loan asset, part of this interest rate will be shared back to the lender, part will be given back to the protocol.
ve-holders: are people who hold platform tokens and stake their tokens, receiving veToken (xKZA) in return. These people will have the right to vote on the token emission level for the borrower and receive profits from the interest of the borrower.
Bribe: are people who have the right to deposit bribes into the “bribe” fund of each liquidity pool. These bribes will be distributed to all ve-holders of that group at the end of each period (Epochs). This helps incentivize tick-holders to vote to increase the amount of rewards (emmisions) for borrowers.
⇒ The above mechanism is considered one of the new innovations, promoting the Real Yield model, sharing revenue and profits with users.
3. Specific mechanism of action
For liquidity providers (Lenders)
Depositors to Kinza Finance will receive kTokens representing their lending activities. These assets can be (ETH, USDT, USDC, BNB,...) and kToken will be converted 1:1 with those assets.
kTokens will accrue interest in proportion to the lending position in a given lending market. The value of kTokens is fixed 1:1 with the tokens sent.
kTokens can be transferred or traded.
To lend, users connect their DeFi wallet and deposit selected assets. This provided liquidity becomes automatically available to borrowers and starts generating interest for depositors.
For borrowers (Borrower)
Borrowers, mortgage their digital assets in return for loans in the form of other types of assets.
The amount a borrower can borrow against their deposited collateral is determined by the risk of the property (determined by the LTV index - details below)
When a borrower mortgages property and borrows another type of asset, dToken will be minted - representing the debt of the borrower. When the loan is repaid, dToken will be burned.
Explain some indicators in the platform
Some terms in Kinza Finance
Supply APY: is the interest rate received when providing liquidity to that pool.
Borrow APY: is the interest rate the borrower must pay when borrowing assets in that pool.
Total Supply: the number of assets deposited into that pool
Total Borrow: the amount of assets in the pool that have been used by the borrower
Available: amount of remaining assets, available to borrow in the pool.
LTV: Maximum % that a user can borrow based on their collateral (For example, a user pledges 1 BNB, assuming 1 BNB is worth 1000$, to borrow USDT, the LTV of that pool is 70% . Users can borrow up to 700 USDT).
4. Tokenomics
Kinza Finance uses a 2-token model: $KZA - platform token, $zKZA (ve-token)
Token information
Token name: Kinza
Token symbol: KZA
Token type: Platform token
Blockchain: BNB Chain
Token standard: BEP20
Contract: Not yet available (Token has not officially launched yet)
Total supply: 100,000,000 $KZA
Token allocation
Kinza Finance's token allocation table
12% - Investor: locked in for 1 year, and distributed linearly for 3 years
3% - Advisor: lock in 1 year, and linear allocation over 3 years
10% - Team: locked for 1 year, and distributed linearly over 3 years
55% - Community: unlocked in 4 years
5% - Reserve: unlocked for 4 years
10% - Ecosystem: 50% liquidity at TGE, remaining 50% distributed linearly over 4 years
5% - Airdrop: most of this is airdropped to those who provide liquidity before the TGE period (Currently, there is still no official information about TGE)
This will also be one of the opportunities for users to participate in the platform experience to have a chance to receive airdrops from the project later.
Token unlocking schedule
Kinza Finance's token vesting schedule
$xKZA
xZKA is created when users lock their KZA tokens at a 1:1 ratio (this is a non-exchangeable token, and is used to vote on the platform's waste).
zKZA holders will receive a portion of the interest back from the pool they voted for, as well as a bribe from borrowers.
zKZA can be converted back to KZA depending on the extraction time. This period is minimum 15 days, maximum 6 months. The exchange rate of KZA increases from 1:0.5 to 1:1 in a linear time frame.
Time and conversion rate zKZA: KZA
Conversion rate reference table according to extraction time frame
In case the user chooses a time below the maximum time, the remaining KZA will be burned. During this period, xKZA can still be used for voting and users can continue to receive profit sharing and bribes, but only at 50% of xKZA value.
5. Information on capital mobilization and investors
There is currently no official information about the capital mobilization of Kinza Finance and their investors, other than the fact that Kinza received support funds from Binance Labs when participating in Binance's MVB program.
List of investors and partners of Kinza Finance
In addition, the project is currently collaborating with a number of major partners in the industry such as BNB Chain, Chainlink, The Graph, Salus.
6. Development team
Information about the project's development team has not yet been officially revealed.
Ecosystem
Website: https://kinza.finance/
Twitter: https://twitter.com/kinzafinance
8. Conclusion
Currently, the Lending/Borrowing puzzle is no longer something new to DeFi. However, in the BNB ecosystem, there are currently only a few lending projects that are occupying the main market share such as Venus Finance, Radiant V2, etc. Although there are not too many competitors, most of the projects are The leaders on that platform have been proven and received the trust of users over a period of time, so competing for market share with old projects will still be a big problem Kinza Finance needs to solve.
In addition, for lending platforms, the reserve fund also plays a large role in ensuring the sustainability and handling risks of the platform, but with Kinza, this reserve fund has not been noticed and promoted. too much. This will also be a point of concern for users to be willing to trust and experience the project.
Source: Theblock101.com