Protected Collateral

Assets supplied to Kinza Finance can be used as collateral to borrow other assets on the platform in a loan. Furthermore, deposited assets are available to other users who wish to borrow. A portion of the interest generated by borrowers is directed to the supplier for providing that liquidity and making it available. This is how Default Lending operates on the Kinza mainnet. Protected Collateral now brings more flexibility to users by allowing them to deposit supported assets, but in a way so that the deposits are protected and unavailable to other borrowers. Supplied Protected Collateral assets can still be toggled on for use as collateral in a loan, but are not available to other users, and therefore will not generate interest for the supplier.

DeFi investors have different approaches to contributing and participating in lending protocol ecosystems. To support these unique interests and approaches, Kinza Finance offers flexibility with features like Protected Collateral. For users who want to operate with the absolute highest level of risk management, Protected Collateral gives them a more isolated and protected experience to supply and borrow on the platform.

Default Lending

Assets supplied for Default Lending will be available to borrowers, earning a portion of interest generated by borrowers in return.

Protected Collateral

Assets supplied for Protected Collateral, will be isolated from borrowers as an isolated and private pool that can be used for personal borrowing.