Kasu Finance Docs
  • Introduction to Kasu
    • What is Kasu
    • Credit Markets - A Multidimensional Problem
    • Our Unique Technology Solution
  • How Kasu Works
    • Overview of the Kasu Ecosystem
    • Lending Strategies Explained
      • Professional Fee Funding - Accounting Firms
        • Value Proposition
        • Proprietary Technology and Defensible Intellectual Property
        • Technology-Driven Risk Management & Security Structuring
        • Real-Time Risk Monitoring & Reporting
        • General Loan Terms & Credit Policy Framework
        • Superior Quality Yields
      • Taxation Funding (Tax Pay) - Diversified Businesses
        • Value Proposition
        • Proprietary Technology
        • Technology-Driven Risk Management & Security Structuring
        • General Loan Terms & Credit Policy Framework
        • Superior Quality Yields
      • Whole Ledger Funding - Professional Services Firms
        • Value Proposition
        • Proprietary Technology & Defensible Intellectual Property
        • Technology-Driven Risk Management & Security Structuring
        • Real-Time Risk Monitoring & Reporting
        • General Loan Terms and Credit Policy Framework
        • Superior Quality Yields
    • Loan Tranches Explained
    • The Role of the $KASU Token
      • $KASU Token Locking Mechanics
      • Token Utility & Rewards for Lenders
    • Lender Loyalty Levels
    • Protocol Fee Sharing
    • $KASU Launch Bonus
  • Getting Started With Kasu
    • KYC/KYB Requirements
    • Becoming a Lender
  • Lending with Kasu
    • Lending Funds
    • Tracking Your Lending Request
    • Withdrawing Funds
    • Tracking Your Withdrawal Request
    • Earning Interest
    • Understanding Epochs & Clearing Periods
      • Epochs
      • Clearing Periods
  • Maximising Your Kasu Experience
    • $KASU Token Locking and Benefits
    • Understanding Loyalty Levels
  • Risk Structuring and Security (Collateral) Structuring
    • Security (Collateral) Structuring, Covenants & Undertakings
    • Risk Reporting
    • Tranche Structuring - Loss Apportionment & Recovery of Funds
    • First Loss Capital
    • Handling Losses
  • The Technology Behind Kasu
    • Smart Contracts and Upgradability
    • The Kasu Oracle
    • Accounts Receivables Automation Software and Payments Technology
  • Addresses and Socials
    • Kasu on Social Media
  • Important Information When Lending!!!
    • Important Information
    • Frequently Asked Questions
  • Risk Warnings
    • Risk Warnings
  • Legal Notices
    • Privacy Policy
    • Platform Access and Use (Terms of Use)
  • $KASU Kingship Token Airdrop Promotion Terms & Conditions
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  1. How Kasu Works

Protocol Fee Sharing

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

The Kasu protocol fee model derives 10% of the gross interest earned by Lenders. $KASU Token Lockers who are also Lenders can claim a share in 50% of this fee derived from the Kasu protocol’s lending activity. This equates to 5% of all Lenders’ total gross interest earned. Protocol Fee sharing is paid in USDC. The proportion of this amount to which a $KASU Token Locker (who is also a Lender) is entitled is based on their balance of rKASU relative to all rKASU in the Kasu ecosystem. For example, in a scenario where a total of 1,000 rKASU exists in the entire Kasu ecosystem, a Token Locker (who is also a Lender) who has 150 of these rKASU would be entitled to 15% of all Protocol Fees allocated to $KASU Token Lockers. This proportionality is augmented as more Lenders’ $KASU tokens are locked (or unlocked) to generate more rKASU (or burn more rKASU), entitling them to a proportionate share of protocol fees.

Protocol Fee Sharing is based on the fees generated by Kasu, which totals 10% of all gross interest generated for Lenders. This fee is shared as follows:

  • 5% is allocated proportionally to $KASU Token Lockers (who are also Lenders) based on their rKASU token balance.

  • 5% is allocated to the Kasu Protocol wallet to fund operations.

For example, assume a Lending Strategy offers 20% Gross APY to Lenders. The Lender will incur fees equivalent to 10% of its interest earned, effectively deriving 18% Net APY after fees (i.e. 10% Fees * 20% Gross APY = 2% Protocol Fee). The associated protocol fees are therefore shared as follows:

  • Half of this fee (i.e. 1%) is allocated to $KASU Token Lockers (based on the above requirements).

  • The other half of this fee (also 1%) is allocated to the Kasu protocol wallet.

It is noted that the Delegate derives revenue by adding a margin to the 20% APY example when it originates loans to its business borrower clients (End Borrowers). This portion does not get captured in the above fee structure.

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Last updated 2 months ago