Token Utility & Rewards for Lenders
Last updated
Last updated
A $KASU Token Locker who is also a Lender can avail of the following token utility and rewards, but only if they have achieved certain Loyalty Levels. The extent to which a Lender receives the below utility and rewards is dependent on their Loyalty Level, which is determined by the synthetic value of their rKASU balance relative to total current USDC lending (inclusive of queued Lending Requests). Loyalty benefits are fully detailed below.
Lending Strategy Priority Access: Lending Requests will be processed on an epoch basis but will be subject to available Lending Strategy capacity and demand from (and supply of) Lenders and End Borrowers. Therefore, Lenders who achieve a Loyalty Level by locking $KASU to achieve a minimum ratio of rKASU relative to their USDC lending (inclusive of queued Lending Requests), will receive priority access to Lending Strategies. This mechanism may also be used to grant exclusive access to particular loan Tranches within Lending Strategies.
Withdrawal Priority: Withdrawal Requests from Kasu Lending Strategies will be processed on an epoch basis but will be subject to the current liquidity status of each Lending Strategy (excess funds, shortage of funds, End Borrower repayments, End Borrower demand, etc.). Therefore, Lenders who achieve a Loyalty Level by locking $KASU to achieve a minimum ratio of rKASU relative to their USDC lending (inclusive of queued Lending Requests), will receive withdrawal priority.
Token Lockers, who are also Lenders, can receive an ongoing APY bonus, paid in $KASU tokens, but only if they have achieved (and maintain) certain Loyalty Levels ().
The amount of APY bonus is subject to change, depending on the need to attract more Lenders to Kasu.
Lenders who are also $KASU Token Lockers are entitled to Protocol Fee Sharing, paid in USDC.
The higher the Lender's Loyalty Level, the more share of Protocol Fees they are entitled to.
Longer locking periods provide Lenders with greater amounts of rKASU to achieve higher Loyalty Levels and associated utility and rewards. This is fully detailed in the Section.
By purchasing and locking $KASU tokens and ensuring the minimum rKASU-to-Lending Ratio, Lenders can amplify their returns whilst aligning their interests with the long-term success of the Kasu protocol. This creates a mutually beneficial relationship between Lenders and the Kasu ecosystem, facilitating more lending growth and contributing to the overall health and democratisation of global private credit markets. However, Lenders must maintain awareness of the risks associated with purchasing and locking the $KASU token, where like any cryptocurrency, it is subject to cryptocurrency market price volatility.