What is Kasu

Kasu is an RWA Real World Asset (“RWA”) business lending protocol that delivers hybrid DeFi +TradFi capital solutions across the entire funding lifecycle for lending business ("Credit Originators"). The outcome for everyday DeFi lenders ("Lenders") is financial democratisation, with access to the highest quality private credit yields, by lending alongside institutional TradFi credit funds.

Lenders' yields are enhanced through proprietary technology that optimises business borrowers' cash flows, thereby improving their credit risk. Ultimately, this aims to produce higher risk-adjusted yields for Lenders.

The protocol brings together both DeFi + TradFi Lenders with creditworthy ‘real world’ business borrowers (“End Borrowers”), all curated by industry leading Credit Originators that are exclusive to Kasu. This model delivers deep value across the entire capital chain as follows:

• 💼 Credit Originators get full-stack funding across the entire capital chain and loan growth journey.

• 🌐 DeFi Lenders earn 15%–25% APY across a range of risk-return options, with deal quality validated by institutional asset managers.

• 🏦 TradFi Asset Managers – Access ongoing, quality deal flow from Kasu.

Credit Originators possess a historical track record of outstanding loan origination, portfolio performance and credit quality. They bring unique proprietary deal flow that is otherwise only available to wholesale and institutional investors, ensuring Kasu continues to democratise access to the highest quality lending opportunities in an inclusive and equitable manner. This process is enhanced by innovative technology that optimises End Borrowers’ cash flows, thereby reducing credit default risk, driving the highest risk-adjusted yields in all of RWA private credit.

DeFi Lenders simply deploy USDC into a range of Lending Strategies offered by Credit Originators, without any restrictions imposed by having to purchase the native Kasu token; $KASU. However, the lending experience is enhanced by purchasing and locking $KASU to avail of unique utility and rewards. Any Lender - regardless of their wealth (how much or little USDC they deploy into loans) - can achieve the same utility and relative rewards. This further promotes Kasu’s commitment to inclusiveness for everyday Lenders.

Kasu also prides itself on its commitment to transparency, choice and control to Lenders - another key factor that is absent from today’s TradFi and RWA lending markets. For example, Lenders (who deploy less than 350,000 USDC) are informed exactly which End Borrower(s) their funds are loaned to at any given time, including the moment funds are redeployed to another End Borrower.

Further promoting control and choice. for Lenders who deploy less than 350,000 USDC, is the opportunity to ‘opt out' prior to funds being deployed to a particular End Borrower. This ultimately provides Lenders with choice and control around how Delegates allocate capital, including decision-making influence around the degree of funding support provided to particular End Borrowers. It also empowers Lenders to take control over their personal circumstances when it comes to the use of their capital.

Transparency is further promoted through Lending Strategy credit performance dashboards, available for the entire Kasu community to observe. This is made possible via our world class software and payments technology that is fully data integrated and synchronised with End Borrowers’ Accounting and billing systems (for Professional Fee Funding and Whole Ledger Funding Lending Strategies), and stringent Covenant Reporting for other Lending Strategies where such data integrations are not required (i.e. Taxation Funding (Tax Pay) Lending Strategy).

Key Features

Native $KASU Token: The Protocol features its native $KASU token, delivering deep utility and rewards to Lenders. Although $KASU is not required to participate in USDC lending on Kasu, it enhances the lending experience via the following utility and rewards:

1. Priority access to Lending Strategies in the case that they are oversubscribed

2. Priority withdrawal of capital from Lending Strategies

3. Yield bonus

4. Protocol fee sharing

Lenders must achieve one of three tiered Loyalty Levels to avail of the above utility and rewards. Each Loyalty Level is determined by a minimum amount and period of $KASU locked.

It is important for Lenders to understand that the $KASU token generation event is yet to occur. Kasu aims to launch its $KASU token in due course. Any reference to $KASU in this document is therefore only relevant upon launch of the $KASU token.

Proprietary Technology: Lending Strategies are enhanced by workflow automation software and Global Payment Rails provided to End Borrowers. This provides deep value-add beyond mere 'lending,' which reduces administration and transaction costs for End Borrowers, whilst optimising their cash flows. Ultimately, this improves credit risk to enhance risk-adjusted yields for Lenders.

Real-Time Risk Management: Our technology also provides real-time visibility over End Borrowers’ credit performance enabling automated security backstop mechanisms.

Transparency & Choice: The unique aspect of Kasu is that Credit Originators do not pool Lenders’ funds to manage loan portfolios. Rather, Kasu and Delegates provide Lenders (who deploy less than 350,000 USDC) with full transparency, control and choice as to the business lending opportunities available and the deployment of their funds from one End Borrower to another. This includes full disclosure of every End Borrower to which each Lender’s funds are deployed, with the opportunity to opt out (within a given timeframe). This also empowers Lenders to take control over their personal circumstances when it comes to the use of their capital, along with decision-making influence on how Credit Originators allocate capital.

Real-World Cash Flows & Security Structuring: While Lenders participate in Kasu by deploying USDC, all funds are converted to fiat currency for Credit Originators to originate and manage loans to End Borrowers, which comprise creditworthy 'real-world' businesses. These business loans are underpinned by real-world cash flows and security structuring.

Minimised Smart Contract Risk: Given that funds are deployed to End Borrowers in a fiat currency environment, smart contract risk is minimised to a significant extent.

Uncorrelated to Crypto Markets: The industries in which End Borrowers operate are uncorrelated to crypto markets. The majority of them provide non-discretionary services (or mission critical services), such as accounting services (i.e. Accounting Firm borrowers), that outperform during recessionary environments.

Hence, Kasu’s value proposition goes beyond the RWA norm of democratising access to private credit opportunities. Our proprietary technology improves credit risk to deliver superior risk-reward outcomes, whilst promoting utmost transparency, choice and control to Lenders. This approach provides deep value across the entire lending value chain, ensuring all stakeholders are aligned, whilst providing comfort to Lenders via superior risk management of their capital for optimal risk-adjusted returns.