Lending & Borrowing

Do more with your digital assets. Kinza Finance allows investors to do more with their investment positions without having to sell them. Take advantage of Kinza Finance DeFi opportunities with loans, generate yield by providing liquidity, participate in governance and rake in KZA emissions, or scoop up tokens at a discount and be rewarded for keeping the platform healthy as a liquidator.


Kinza Finance lending pools rely on depositors to add liquidity to lending markets. By supplying liquidity, lenders receive a portion of interest paid by borrowers as rewards.

Kinza Finance uses tokenized positions. Depositors to Kinza Finance will receive kTokens that represent their lending activities. kTokens are interest bearing tokens, they accrue interest in proportion to the lending position in a given lending market. The value of kTokens are pegged 1:1 to the tokens deposited. kTokens can be transferred, or traded.

To lend, users connect their DeFi wallet and deposit chosen assets. This provided liquidity will automatically become available to borrowers, and begin to generate interest for the depositor.


Borrowers on Kinza Finance deposit digital assets to use as collateral, and borrow other assets in return. The amount a borrower is allowed to borrow in relation to their deposited collateral is determined according to risks of the assets involved. Borrowers are the backbone of Kinza Finance. Kinza Finance tokens (KZA) are available as rewards to borrowers of select lending markets, as determined by directed emissions in a process described here.

Similar to the kTokens, borrowers will accrue tokenized debt in the form of dTokens. When a user borrows an asset, dTokens are minted. They represent the debt owed by the token holder and accrue interest according to the interest rates of the specific lending market. dTokens are burnt when a loan is repaid.

As a borrower, there is a maximum amount you are able to borrow in relation to the liquidity provided as collateral, according to a Loan to Value system. For more information on Loan to Value (LTV), jump to the Risk Factor section.

Interest Rates

Interest rates on Kinza Finance fluctuate according to the available capital and utilization of each lending market. The interest rates determine how much interest a borrower must pay for their loan, which in turn affects the split of interest earned as rewards for liquidity providers in that market. Similar to other DeFi lending protocols, interest rates for a given lending market will be low when liquidity is high, and capital is available - this lower interest rate is to encourage borrowing. When capital of a lending market is scarce, interest rates will increase to encourage debt repayments and increase the liquidity of that market.

A Utilization vs Interest Rate chart will be available for each asset to document the current interest rate according to the utilization and liquidity of that market.

At Kinza Finance, a portion of borrowers' interest will be paid to users who have staked KZA. A portion will also go to the protocol reserve, to protect against bad debt. More about reserves can be found here.

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