The Role of the $KASU Token

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.

$KASU is the native token of the Kasu ecosystem. Whilst Lenders aren’t required to purchase $KASU to participate in USDC lending, the lending experience is enhanced by locking $KASU for a minimum period to achieve certain utility and rewards (subject to fluctuations in the $KASU price).

$KASU is a utility token that has a supply limited to one billion tokens. In order for Lenders to maximise the associated utility and rewards, $KASU must be locked for either 30, 180, 360 or 720 days. Each $KASU locking period will provide the Token Locker with a specific amount of temporary, non-redeemable and non-transferrable rKASU that will accumulate, so long as $KASU remains locked. A synthetic value is applied to rKASU (pegged to the $KASU price).

It is noted that to participate in Kasu Lending Strategies as a Lender, purchasing and locking the $KASU token is not a prerequisite. Anyone can buy and hold the $KASU token if they so wish. However, in order to avail of certain utility and rewards, a Token Locker must also be a Lender. Token utility and rewards are therefore maximised for Lenders who are also $KASU Token Lockers.

For Lenders who are also $KASU Token Lockers, the amount and synthetic value of rKASU accumulated, relative to their USDC lending (inclusive of queued Lending Requests) in Lending Strategies, determines their Loyalty Level. Loyalty drives the extent of utility and rewards that Lenders gain from locking $KASU. This utility comprises priority access to Lending Strategies in the case that they are oversubscribed, along with Withdrawal priority should a Lender require access to their funds, Protocol Fee Sharing and Bonus APY. The higher the Loyalty Level, the more utility and rewards Lenders achieve.

While rKASU cannot be liquidated due to its non-transferable and non-redeemable nature, Token Lockers maintain ownership of their $KASU tokens once unlocked. Given that rKASU is temporary, it therefore only provides utility and benefits to Lenders whilst $KASU remains locked. Once $KASU tokens are unlocked, the proportionate amount of rKASU is burned, which may adversely affect Loyalty Levels and associated utility and rewards for Lenders.

A broad overview of $KASU utility and rewards for Token Lockers who are also Lenders is summarised as follows: