🤔FAQ

Frequently Asked Questions

Decentralized Knowledge

Have questions? Head over to our Discord and ask a member of our team. Don’t hesitate to jump into the conversation, our community is always happy to help point you in the right direction. Help us grow our FAQ and expand our resources. Decentralized power! At Kinza, we are committed to developing a sustainable and accessible ecosystem, and we welcome and encourage participation regardless of previous experience or technical knowledge.

What Is Kinza Finance?

Kinza Finance is the next-generation decentralized product ecosystem. This includes Kinza money markets currently live on BNB, opBNB, Ethereum, and Mantle networks, and Kinza Finance Bitcoin staking powered by Babylon.

Kinza Finance lending protocol is non-custodial, permissionless, secure, and incorporates cutting-edge DeFi mechanisms and solutions to offer users a flexible and highly customizable DeFi lending experience. Built-in mechanisms and rewards incentivize participation, and innovative tokenomics ensure unparalleled sustainability. Kinza Bitcoin staking offers BTC holders an accessible onramp to DeFi with native BTC staking powered by Babylon. kBTC, Kinza BTC LRT is minted 1:1 (minus fees) for the staked Bitcoin and automatically sent to the users connected wallet. kBTC can be used for lending and borrowing directly on Kinza Finance.

Kinza Finance is developing: Kinza Yield-Bearing L2

For Non-Crypto Natives, What Is Kinza Finance?

Kinza Finance is a decentralized lending protocol on the BNB, opBNB, Ethereum, and Mantle networks. Kinza Finance allows users to lend and borrow tokens. To borrow, you first need to set up a DeFi wallet, then purchase digital assets, and deposit them for use as collateral. Once you have done this, you can borrow from a range of digital assets, up to a maximum amount, depending on the amount of collateral you provided. Check out How Toto get started.

Kinza Finance allows anyone to interact with the platform in a completely private, autonomous, permissionless, and transparent way.

Explore the Kinza Finance mainnet at app.kinza.finance

What Can I Do With Kinza Finance?

You can lend and provide liquidity – earning interest paid by borrowers who take out loans with your deposits. You can stake Bitcoin to earn future yield and free up your BTC liquidity with kBTC to lend and borrow while you HODL. You can borrow assets by providing collateral according to a required collateral-borrow ratio, and earn KZA emissions. You can act as a liquidator – purchasing a portion of a loan from an unhealthy account at a discount, and helping keep the platform healthy. You can stake KZA, and participate in governance and voting to direct KZA emissions to chosen pools each week. You can get involved as a community member and help educate, shape, and build the next-generation on-chain money market with us.

$KZA has TGE has not yet occurred, voting, emissions, and bribe mechanisms will be functional after TGE.

Is There an Airdrop?

Yes! There is an airdrop. In fact, there is a massive Kinza Finance airdrop. The native Kinza Finance token is $KZA. A total potential pool of 5% of the total supply of $KZA (5M $KZA) will be distributed to users who provided liquidity leading up to the $KZA TGE. TGE is the Token Generation Event.

Provide Liquidity? Yes, Kinza Finance runs via smart contract powered liquidity pools. If you go to the mainnet app.kinza.finance - you can see how much liquidity is locked into the protocol in various lending markets and asset types. These pools are what allow other users to lend and borrow into and from.

When is the TGE? As a result of our exciting development direction, we are working closely with our advisors to ensure our TGE best supports our expanded vision. Read up on this new exciting direction, and stay tuned for official updates: https://medium.com/@kinzafinance/kinza-finance-the-ultimate-liquidity-layer-for-btc-eth-restaking-assets-378146c001a4

How Much KZA Will I Get?

The Kinza Airdrop Points System helps our users get a sense for how much of the $KZA airdrop they can get following TGE. The system weighs user TVL and Time to determine eligible Airdrop Points. For users who have already been holding TVL on Kinza Finance - a 10% bonus has been added to your points earned up until the launch of the Points System as a sign of our appreciation.

Kinza Airdrop Points are calculated like this: $100 worth of TVL deposited for 1 day will generate 1 point. The same amount of points as $50 worth of TVL deposited for 2 days, or $1 worth of TVL deposited for 100 day.

Borrowing does not change your earning rate. For instance, if you deposit $100, and borrow $50. You are still earning points at $100 TVL. If you choose to repay the $50 loan, then your TVL will be calculated and your points earned at a $150 total.

Navigate to the Points System on Kinza Finance: https://app.kinza.finance/. You will see an “Airdrop” button next to your wallet address, click through and you will land on your dashboard where you can see your points details, as well as access your referral tools.

Read more about Kinza Points in this Article and in the Airdrop section of our docs.

Is There a Referral System?

Yes! The Kinza Referral System gives users the opportunity to grow their eligible airdrop with bonuses by referring users.

Each user has a unique Referral code. This code consists of 6 characters. When a user is invited to Kinza Finance with a referral code and binds, deposits on the platform, both the Referrer and Referree earn a 10% bonus on the referred user' airdrop allocation according to their total value of deposits.

Learn more about the Referral System in this Article and in the Airdrop section of our docs.

Are There Risks as a Kinza Finance User?

The risks to a Kinza Finance user can be separated into a few sections:

Kinza Platform

Smart contracts power the Kinza protocol. These smart contracts have been extensively audited, and security measures have been deployed to maintain a secure system. That being said, skilled hackers can find exploits, and while the risk is low, there is a potential for security breaches by malicious actors.

Please check the Security section for more information on Kinza Finance contract Audits and Bug Bounty programs.

User Asset Management

Kinza Finance is a decentralized platform. This means that to interact with Kinza Finance, you must have a DeFi wallet set up and manage the assets you will use to lend as collateral. Your DeFi wallet will also be where interest-bearing tokens will be stored. Each user must take proper management and security measures to maintain private keys and keep their wallet and enclosed assets safe.

User Account Health

Users need to keep an eye on their account health factor to avoid liquidations and penalties.

Asset-Specific Risk

Kinza Finance allows any user to add an asset to the platform and create a new lending market. While security measures have been employed to protect the platform itself from risky and volatile assets with features like asset isolation, individual users are always encouraged to properly vet tokens, assets, and projects and practice risk-management. Risky assets could be increasingly volatile – increase user risk of liquidation, and in some cases – turn out to be untrustworthy or outright scams.

Are There Fees?

Separate from interest paid by borrowers, Kinza Finance does not charge users for using the protocol. However, because Kinza Finance uses smart contracts to power the platform, gas fees are required for processing and validating transactions. While the BNB Chain is an efficient and comparatively low-fee network, some fees will still be incurred and vary according to transaction complexity and network traffic. Ethereum, Mantle, BNB, and opBNB will incur variable fees accordingly. When approving a transaction, Kinza Finance users will be prompted with all potential gas fees involved on the respective network.

How Can I Earn on Kinza Finance?

Bitcoin Staker - As a bitcoin staker, you free up your liquidity for borrowing, lending and DeFi activities for generating yield. You will also earn potential yield as a PoS chain validator through Babylon staking.

Lending - The easiest way to earn on Kinza Finance is to deposit assets that can then be loaned out to borrowers. You will earn majority of the interest paid by borrowers who take out loans in lending markets, in which you have provided liquidity.

Borrowing - Kinza KZA tokens are emitted each week (epoch) into lending markets as voted-upon by KZA holders. You can borrow from these chosen lending markets and generate Real Yield to profit as a borrower.

Liquidations - You can monitor the health of Kinza Finance accounts and purchase digital assets at a discount, while supporting the platform.

KZA holder - Staking KZA will allow you to participate in voting to direct emissions each week. You will also earn a split of borrower interest, and can also earn bribes from external parties who aim to influence votes on the platform.

How Can I Get Kinza Finance Token (KZA)?

KZA token contract has not been deployed. You cannot currently purchase or earn KZA.

5% of $KZA supply (5M $KZA) will be airdropped to users who support our mainnet leading up to TGE. For a chance to participate in the airdrop, supply supported assets on the Kinza mainnet at app.kinza.finance.

Tokenomics

$KZA is a BEP-20 token on BNB Chain.

Total Supply: 100 Million $KZA

Breakdown:

Community Emissions (55M): 4 year vesting

Investors (12M): 1 year cliff, 3 year linear vesting

Team (10M): 1 year cliff, 3 year linear vesting

Ecosystem (10M): 50% liquid at TGE, 50% 4 year linear vesting

Reserve (5M): 4 year linear vesting

Airdrop (5M): Liquid

Advisors (3M): 1 year cliff, 3 year linear vesting

How Do I Provide Liquidity?

Don’t worry, it’s easy :) In brief, you need to set up a DeFi wallet like Metamask, or Trust Wallet, head to app.kinza.finance - and connect to the protocol by clicking “Connect Wallet”. Once connected, you will then be returned to an updated dashboard that will preview all of your available supported assets to supply and put to work on the Kinza Finance protocol.

For a step-by-step guide, head over to the How-To in our documentation found 👉 here

What Is ve-Real-Yield?

Ve-Real-Yield is the name given by Kinza Finance to the innovative tokenomics model created to drive liquidity to lending markets, and support DeFi users with Real Yield for participating in the ecosystem. The ve stands for Vote Escrow, which refers to the voting system used as part of the process for directing KZA emissions each epoch (week).

Here is how ve-Real-Yield operates: 55% of the Kinza Finance native token $KZA is programmed to be distributed in weekly emissions over the course of an initial four years.

Where do they go?

Each epoch (week), a pool of $KZA emissions are released into lending markets on Kinza Finance, primarily as borrower rewards. This means that if you borrow from a lending market that is receiving $KZA emissions, you will earn $KZA rewards that you can find in your rewards page in your Kinza Finance dashboard.

But which pools get the rewards?

That is up to you! $KZA holders can stake their tokens 1:1 at any time for xKZA. With this token, you have the ability to vote to decide which lending markets will receive the $KZA emissions in the upcoming week. You can vote for multiple pools via weighted votes using your xKZA. By taking part in this process, you will earn a percentage of the interest as well as bribes.

$KZA TGE has not yet happened, so rewards and weekly emissions are not occurring. Stay tuned to official channels to be the first to hear about the KZA TGE announcement.

Can I Stake $KZA?

Kinza Finance has staking! Staking will be available after TGE (not yet occured)

As a $KZA holder, you can stake your tokens to receive 1:1 xKZA. With this token, you can vote to decide which lending markets will receive the $KZA emissions in the upcoming week. You can vote for multiple pools via weighted votes using your xKZA. By participating in this process, you will earn a percentage of the interest, as well as bribes.

What Are Bribes?

More fuel to the fire. Outsiders are able to bribe xKZA voters - at first in the form of $KZA, later via the cryptocurrency of the pool they wish to bribe for (i.e., if they want voters to direct emissions to USDC pool, they can bribe with USDC). Bribes are another form of incentive to allow more users to be involved in directing the token emissions to lending pools in upcoming epochs.

Example: Let’s say a DAO is borrowing from the BNB lending market. They decide on a strategy to offset interest on their borrow by earning real yield in the upcoming epoch. To influence the vote and increase the amount of $KZA emissions entering the BNB lending market, the DAO bribes the BNB voting pool with BNB - this further incentivizes xKZA voters to vote for that market and earn a percentage of the bribes.

Who Are Kinza Finance Partners?

Kinza Finance is currently partnered with BNB Chain, Mantle Network, Hypernative, Babylon, Renzo, Stakestone, Redstone, Chainlink, ListaDAO, Chainstack, The Graph, Nodereal, Foxwallet, Taskon, Safe, Galxe, B.Protocol, SpaceID, and Wombat Exchange. Kinza Finance is building new partnerships every day. For an up to date list of Kinza Finance partners, reference the Kinza Finance official website, and the Partners section of this Gitbook. Follow our Twitter for partnership announcements.

Has Kinza Finance Been Audited?

Kinza Finance has completed three extensive security audits with our security partners Salus Security, Omniscia Security, Peckenshield, and Slowmist. We are also running a Bug Bounty program with Hackenproof.

For an updated list of our security audits, refer to the security page found 👉 Here

Who Is on Kinza Finance Team?

Kinza Finance formed from a team of DeFi veterans. They have deep experience in the traditional finance, tech, and blockchain worlds, including experience at Google, Goldman Sachs, and experience building DeFi at GRO and Mantle network. They had the vision to build the pinnacle of sustainable on-chain money markets with a priority on security and capital efficiency.

Communications Director, Iain, has a BA in Professional Communication, and five years of experience in DeFi - growing communities, deploying marketing at scale, developing captivating and approachable content, and pushing projects from idea to $100M mcap and beyond.

The Kinza Finance team is unified and dedicated to developing Kinza as a sustainable, safe, and sustainable DeFi protocol that delivers unique opportunities to maximize capital efficiency and generate real yield.

When Is TGE?

The Kinza Finance development direction has shifted in March 2024 with an expanded vision Read up on this here: https://medium.com/@kinzafinance/kinza-finance-the-ultimate-liquidity-layer-for-btc-eth-restaking-assets-378146c001a4

This direction means additional attention needs to be given to ensuring our token and TGE supports the new vision. We are working closely with our advisors to ensure this happens as soon as possible. There is no current TGE date to be announced.

Stay tuned to our official channels, especially our Twitter and Telegram/Discord communities, for consistent development updates and announcements.

Discord: https://discord.gg/JFXTEp8Nub

Telegram: https://t.me/kinza_finance

Twitter: https://twitter.com/kinzafinance

Is There a Bug Bounty Program?

Yes! We have an ongoing Bug Bounty program with our security partners at HackenProof. Read more about it here: https://hackenproof.com/kinza.

What is Kinza Bitcoin Staking Soft-Launch?

Kinza Finance Bitcoin staking is powered by Babylon. With Babylon still in testnet, Bitcoin unstaking is currently not supported. Currently, when you stake native Bitcoin on Kinza Finance, you receive Kinza native LRT kBTC 1:1 (minus fees) for your staked Bitcoin, but cannot currently unstake back for Bitcoin until Babylon mainnet goes live. Read more about Bablyon on their website.

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Last updated 3 months ago