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 $KSU Token
      • KSU Token Locking Mechanics
      • Token Utility & Rewards for Lenders
    • Lender Loyalty Levels
    • Protocol Fee Sharing
    • 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
    • KSU 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)
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  • Loyalty Level 2
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  1. Maximising Your Kasu Experience

Understanding Loyalty Levels

PreviousKSU Token Locking and BenefitsNextSecurity (Collateral) Structuring, Covenants & Undertakings

Last updated 1 month ago

There is no requirement to purchase and lock KSU to lend USDC on Kasu. However, your lending experience can be enhanced by achieving Loyalty Levels, which determines the extent of utiliy and rewards you receive as a Lender. This is calculated using the following formula, referred to as your rKSU-to-Lending Ratio:

Loyalty Levels, and associated utility and rewards, are as follows:

Loyalty Level 1

If your rKSU-to-Lending Ratio exceeds 0%, but is less than 1%, then you are entitled to the following reward:

  • 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).

Loyalty Level 2

If your rKSU-to-Lending Ratio equals 1%, but is less than 5%, then you are entitled to the following utility and rewards:

  • 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).

  • APY bonus, paid in KSU tokens.

  • Second order priority access to Lending Strategies.

  • Second order priority for Withdrawals from Lending Strategy.

Loyalty Level 3

If your rKSU-to-Lending Ratio equals 5% or more, then you are entitled to the following utility and rewards:

  • 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).

  • APY bonus, paid in KSU tokens (higher APY bonus than Loyalty Level 2).

  • First order priority access to Lending Strategies (higher priority than Loyalty Level 2).

  • First order priority for Withdrawals from Lending Strategy (higher priority than Loyalty Level 2).

The amount of Protocol Fees you can earn is not capped. For example, the higher your rKSU-to-Lending ratio beyond the minimum 5% for Loyalty Level 3, the more share of Protocol fees you will earn.

The amount of Bonus APY for each Loyalty Level will be published on the Kasu platform, and is subject to change depending on factors such as liquidity shortages or excesses.

If your Withdrawal Request has not been fulfilled (Accepted) after 5 Epochs, it will automatically outrank all published Loyalty Levels, elevated to the highest priority (exceeding Loyalty Level 3), regardless of your existing Loyalty Level. This is also the case for Lenders that have not achieved a Loyalty Level.

Important notes

  • After 5 epochs, any Withdrawal Requests that remain queued (yet to be fulfilled) receive the highest priority regardless of existing Loyalty Level.

  • You can unlock any portion of your KSU when the lock period ends.

  • Unlocking KSU burns the corresponding/proportionate amount of rKSU, which may affect your Loyalty Level.

  • KSU price changes can affect your Loyalty Level, given that the synthetic value of rKSU is pegged to the KSU price.

The rKSU-to-Lending ratio system is designed to be inclusive, where a Lender with a small USDC lending balance can achieve higher priority than a Lender with a very large USDC lending balance. This loyalty system therefore rewards engaged participants while remaining accessible to all Lenders, regardless of their lending amount.