$KASU Token Locking and Benefits

$KASU is the native token of the Kasu ecosystem. While not required to participate in USDC Lending, locking $KASU 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 $KASU tokens, you receive rKASU that will accumulate, so long as $KSU remains locked. A synthetic value is applied to rKASU (pegged to the $KASU price). The amount and duration of locked $KASU tokens determines a multiplier associated with the amount of rKASU that a Token Locker will receive as follows:

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

The synthetic value of your rKASU, 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 rKASU relative to all rKASU in the Kasu ecosystem).

2. APY bonus, paid in $KASU 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.