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Kinza Finance: Liquid Restaking Hub

By Bella

May 29, 20249 min read

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TL;DR

  • Kinza is one of the most prominent lending protocols in the DeFi having a unique veTokenomics model;
  • Kinza aims to strengthen its security and add more utility to its token;
  • The protocol has launched its own point system;
  • Track your Kinza points on Notum

What Is Kinza Finance?

Source: Kinza’s website

Kinza Finance is a decentralized lending protocol running on the BNB Chain. Besides, Kinza operates as the ultimate liquidity layer for BTC and ETH staking assets. Kinza Finance lending markets act as liquidity pool contracts. Thus, lenders deposit cryptocurrencies to provide liquidity. Borrowers can simultaneously provide collateral and borrow from the pooled funds in the same contract. Lenders get a portion of the interest paid by borrowers. Plus, borrowers gain a portion of Kinza Governance Token (KZA) emissions. 

Kinza is focused on Real Yield combined with ve (3,3) - inspired tokenomics. By doing this, KZA holders can stake KZA to earn a share of protocol revenue, as well as bribes.

In addition, Kinza is now shifting its focus to yield-bearing L2, liquid staking (LSTs), and restaking tokens (LRTs), and is also developing its own BTC LRT.

Key Features

Accessibility: Instead of dealing with third parties, you can borrow, and lend freely. You can easily earn crypto rewards and tokens without the need to sell investment positions.

Security: Like any system involving liquidity pools, security is of primary importance. To prevent security attacks and vulnerabilities, Kinza Finance aims to set a new standard. 

Kinza implements cutting-edge security measures such as Asset Isolation to provide a bulletproof system. Plus, the protocol is planning to have more audits in the future.

Sustainability: It’s a well-known fact that the protocol that has various lending markets with deep liquidity is a sign of a healthy lending platform. Borrowing without sufficient liquidity becomes impossible. 

Real Yield

Kinza aligns token emissions with fees generated with a unique veTokenomics model called ve-Real-Yield. It means users can stake the native Kinza token $KZA to direct future token emissions and collect fees and bribes.

ve (3,3) - Inspired Emissions

The model was inspired by the innovative vote escrow (3,3) tokenomics used to motivate liquidity provision in DEX. Kinza Finance has a gauged voting system to direct Kinza Finance token (KZA) emissions into lending markets. Emissions are separated into weekly periods, which are called Epochs.

In each Epoch, KZA holders stake the token and vote to put emissions to definite lending pools for upcoming Epochs. In each lending market, rewards go to borrowers, not lenders. By doing so,  lenders earn the most of the interest paid by borrowers. 

Tokenomics

$KZA

KZA is the Kinza Finance native token that fuels the platform and ve-Real-Yield tokenomics model. TGE (Token Generation Event) has not yet occurred. Earn Airdrop Points by depositing and holding on the Kinza Finance dApp to participate in the KZA airdrop at TGE.

Token Distribution

KZA tokenomics was tailored to provide a stable, thriving, and sustainable ecosystem. The majority allocation of KZA has been reserved for community emissions to power ve-Real-Yield tokenomics and gear up the Kinza Wars.

Source: Kinza Docs
Source: Kinza Docs

Vesting

The Vesting schedule only proves Kinza Finance's commitment to sustainable growth and a community-oriented approach. Vesting will happen over four years. Team, Investor, and Advisor vesting terms have a one-year cliff, followed by a three-year vesting period. 

Community and Reserve allocations are planned for a four-year vesting period. This guarantees community growth and project momentum will flourish.

Source: Kinza Docs
 

Airdrop

5M KZA, or 5% of the total supply will be allocated for airdrop. This allocation will be spread among Kinza users who provide liquidity on the platform before TGE as a retroactive reward. You can start trying the dApp via app.kinza.finance right now, and maximize your chances of becoming the first to receive a KZA allocation. 

It is important to note that at the moment Kinza has passed Q1, and there have been no details or published date for the next airdrop from the project yet. You can track information about the upcoming Kinza airdrop on the platform's official website.

Ve-Real-Yield

Real yield in the form of KZA is available as borrower rewards in select lending pools each week. Furthermore, a portion of KZA emissions will go to lenders each epoch. Owners of KZA can stake KZA 1:1 for xKZA, which is used to vote for directing KZA emissions each week. Bribes can be sent to xKZA holders to further encourage voting for specific lending pools. The battle for directing KZA to lending pools each week is known as the Kinza Wars.

Kinza and Liquid Restaking: LST and LRT's

In addition to providing secure money markets, Kinza Finance focuses on supporting new types of assets, thereby expanding its functionality. One of the innovations on the platform is Liquid Staking Tokens, reflecting Kinza's new vision and commitment to supporting innovative liquid staking solutions. Thus, LST's will allow the project to reach a new level and become The Ultimate Liquidity Layer for BTC & ETH Restaking Assets.

As you know, although staking allows users to earn income and contribute to the blockchain’s security, it has its drawbacks. Staked assets are locked for a fixed period of time, and also allow the validator to earn money only on the one chain. Restaking solved this problem by offering users Liquid Staking Tokens (or LST’s) that reflect the assets staked.

LST’s gained wide popularity in the crypto community as they allowed to avoid the blocking period and earn additional income. However, the benefit from LST’s is also limited since not all projects have the necessary DeFi solutions for supporting it. Kinza Finance aims to solve this problem and become a hub for LST solutions that not only has broad support, but also the flexibility for LST across multiple chains. Moreover, the Kinza Finance protocol also plans to support Liquid Restaking Tokens (LRT’s) in the future.

Thus, by supporting LST's and LRT's, Kinza unlocks incredible profitability potential by offering users new strategies, solutions and positions.

Kinza’s Native BTC LRT 

Recently, more and more different POS chains are creating new LRT’s. However, Bitcoin remains the only chain with unparalleled liquidity that has not yet been completely tapped. Kinza Finance noticed the unreleased potential and decided to partner with Babylon to create BTC staking solutions built on Babylon’s BTC staking protocol, which will be launched soon. Babylon itself is working on intonation solutions that allow BTC holders to stake their tokens within the network, while protecting POS chains.

«The implications of this are massive, transforming insane levels of idle BTC capital (21 Million BTC) into POS securing and yield generating assets» - Medium.

Kinza's role in this collaboration is that it will serve as a portal for BTC token holders who will be able to transfer their bitcoins to DeFi through the Bitcoin LST. The launch itself will take place on the Babylon mainnet, but the exact date has not yet been announced.

In addition, BTC LRT is being developed, which will be used as a native DeFi onramp for BTC holders directly in Kinza. BTC LRT will be powered by Babylon while at the same time using Kinza’s liquidity.

A special feature of Kinza’s BTC LRT will be the ability to stake Bitcoin directly on the platform, which will then flow into secure POS chains through Babylon. Next, users will receive Kinza Bitcoin LRT, which can be used for various DeFi activities, such as lending, borrowing, etc.

Kinza’s Roadmap & Future Plans

Kinza Finance's growth is directly connected to the Binance Accelerator Program. Kinza went through such prominent milestones as the deployment of the Kinza mainnet with a whopping $104M TVL, various strategic partnerships, the Referral Program, and the Airdrop Points System launch. 

This year will be special for Kinza Finance, as the protocol has grand plans for further platform development:

  • release of a BTC LRT in collaboration with Babylon;
  • a yield-bearing Layer 2’s launch;
  • LST and LRT’s support;
  • mobile support improvements;
  • internationalization;
  • security improvements;
  • feature releases. 

In the future, Kinza Finance also plans to evolve into Kinza 2.0 and become the single liquidity center for LST’s and LRT’s, as well as POS chains and Bitcoin. Most likely, the platform will allow users and investors to receive maximum income, regardless of the chosen blockchain and initial capital.

Yield-Bearing L2

Kinza is also in development of a yield-bearing Layer 2, which will automate and rebase re-staking yield into BTC and ETH. A modular L2 will offer the proper level of efficiency and speed, as well as disparate income opportunities from restaking yield. Deployment for developers will also be simplified with support for all EVM infrastructure.

Besides, the Kinza team will explore and test new asset opportunities such as Inscription, and solutions within the Bitcoin ecosystem.

How to Earn with Kinza?

Lending 

Deposit assets that can then be loaned out to borrowers. You get the majority of the interest paid by borrowers.

It works as follows:

  • Every $100 staked brings you 1 $KZA token every 24 hours.
  • Thus, if you deposit $500, you receive 5 $KZA a day.
  • Depositing $ 1000 brings you 10 $KZA a day, etc.
Source: Bulbapp.io

Borrowing 

Kinza KZA tokens are given away each week (aka epoch) into lending markets as voted upon by KZA holders. You can borrow from these lending markets and generate a Real Yield to earn as a borrower.

Providing liquidity

Keep a finger on the health of Kinza Finance accounts and profit from buying assets at a discount while supporting the platform.

Being a KZA holder 

Staking KZA allows you to participate in voting to govern emissions every week. You also get a split of borrower interest and can earn bribes from external parties who influence votes on the platform.

Kinza: Crypto Points

Kinza Finance has reached the hottest Web3 trend, as well. The team launched the Airdrop Points System. This system gives users a preview into how many airdrops they can get following TGE considering two main factors:

  1. the amount of user-deposited liquidity; 
  2. time: the longer a user holds liquidity on the platform, the more points they earn, and the larger eligible airdrop allocation you generate. 

Moreover, early platform supporters who have already provided and held liquidity on the Kinza mainnet will receive a 10% bonus added to the points they have accumulated so far.

How Does It Work?

Here’s an illustration: If Ada deposits and holds $100 on Kinza Finance for one day, and George deposits and holds $50 for two days, they would both earn 1 base point. The token price is considered over time and factored into the earning mechanism.

The formula is base points + 10% bonus for binding a referrer + 10% bonus for the referee’s total points.

How to Track Airdrop Points?

To find the Airdrop Points you earned, go to the Airdrop section of Kinza DApp. There will be an Airdrop button next to your wallet address at the top right of the Kinza DApp. You could view your Airdrop Points there, as well as send invites and explore your referrals. 

Your Airdrop Points are updated every day at 0 UTC, according to the current value of the liquidity you have supplied.

There’s another convenient way of tracking crypto points in various protocols. Notum found out the users’ pain point of those who have crypto points in different projects and want to view them all in one place. The Notum app is that kind of place.

 

Source: Notum app

Final Thoughts

Kinza Finance aims to offer flexible opportunities for different crypto investors, that’s why it provides to earn through lending, borrowing, liquidity, and airdrop farming.

Kinza Finance was the first who implement the ve (3,3) model into the Lending Pool; The team has also delved into popular crypto points system to motivate users to use their platform more efficiently. 

Follow Kinza on Socials

Kinza MainnetXMedium | DiscordTelegramWebsite | Documentation

 

Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.

FAQ

  1. What is Kinza Finance?

    Kinza Finance is a lending platform running on the BNB chain that allows you to earn crypto in different ways.

  2. How can users earn on Kinza Finance?

    There are many various ways how to earn on the Kinza platform including providing liquidity, borrowing assets, participating in airdrops, or/and holding $KZA tokens.

  3. Is it safe to use Kinza Finance?

    The protocol has an asset isolation feature, protected collateral, and leading security standards to provide users with the most secure decentralized money market experience. Kinza Finance was thoroughly audited, and it has a Bug Bounty Program with Hackenproof, and strong security partners such as Chainalysis and Hypernative to ensure the platform’s safety.

  4. What are the fees for using Kinza Finance?

    Borrowers pay interest, and other Kinza Finance users do not pay any fees at all.

  5. How can users get a Kinza Finance token (KZA)?

    KZA is the Kinza Finance native token that fuels the platform and ve-Real-Yield tokenomics model. TGE (Token Generation Event) has not yet occurred. Earn Airdrop Points by depositing and holding on the Kinza Finance dApp to participate in the KZA airdrop at TGE.

  6. What is Ve-Real-Yield?

    Ve-Real-Yield is the name given by Kinza Finance to their novel tokenomics model created to initiate liquidity to lend markets and provide DeFi users with a Real Yield for participating in the ecosystem.

  7. Has Kinza Finance been audited?

    Yes, the protocol was audited by such credible security firms as Salus Security, PeckShield, and Omniscia Security.