The Role of the $KSU Token

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

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

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

It is noted that to participate in Kasu Lending Strategies as a Lender, purchasing and locking the $KSU token is not a prerequisite. Anyone can buy and hold the $KSU 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 $KSU Token Lockers.

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

A broad overview of $KSU use cases for Token Lockers who are also Lenders is summarised as follows: