KSU Token Locking and Benefits

KSU is the native token of the Kasu ecosystem. While not required to participate in USDC Lending, locking KSU tokens provides Lenders with tiered Loyalty Levels to enhance the lending experience. This assumes all other factors remain constant in terms of no adverse fluctuations related to the KSU token price.

When you lock KSU tokens, you receive rKSU that will accumulate, so long as KSU remains locked. A synthetic value is applied to rKSU (pegged to the KSU price). The amount and duration of locked KSU tokens determines a multiplier associated with the amount of rKSU that a Token Locker will receive as follows:

For example, if you lock 100 KSU for 30 days, you'll receive 5 rKSU. If you lock the same amount for 720 days, you'll receive 100 rKSU.

The synthetic value of your rKSU, relative to your total USDC lending (inclusive of queued Lending Requests) determines your Loyalty Level and the extent of utility and rewards you will receive, which comprises the following:

1. Protocol Fee Sharing, paid in USDC (your share of fees is based on the amount of your rKSU relative to all rKSU in the Kasu ecosystem).

2. APY bonus, paid in KSU tokens.

3. Priority for Withdrawals from Lending Strategy.

4. Priority access to Lending Strategies.

Loyalty Levels, as they relate to the the extent and amount of the above utility and rewards, are fully detailed in the next section.