Powering the Kinza Finance Protocol

With ve(3,3) inspired emissions, innovative reward mechanisms, and governance, Kinza Finance prioritizes the health and growth of the ecosystem as a whole. Kinza tokenomics design was centered around the goal of providing Real Yield. This real yield comes from the interest paid by borrowers. By incentivizing borrowing via directed emissions, more interest is generated, and more real yield is provided to users.

Kinza Finance uses one key token to power the protocol ecosystem - KZA. KZA token is forged into xKZA when staked, which is an altered form of KZA that can be used for voting, earning dividends, and other platform activities.


How It Works

At the core of Kinza Finance, revenue is generated from interest paid by borrowers. The majority of this interest is paid to lenders who provided the liquidity in the first place. Locked token holders (xKZA) also earn a slice of protocol revenue. Moreover, locked token holders (xKZA) can vote to direct which lending market will receive emissions in the upcoming epoch (week). A bribery system allows borrowers to bribe xKZA holders to direct emissions into markets they already borrow from, so they can offset interest and generate profit. Therefore, locked token holders can not only earn interest, but also bribes paid by borrowers.

Emission Rewards

Borrowers earn KZA and xKZA from voted pools each epoch, according to a time-weighted assessment of the total debt held during that week. The more a user borrows, the more KZA is available to claim. KZA rewards collect on the Kinza Finance platform and can be claimed via the Kinza Dashboard and Reward page. The fewer borrowers in each epoch, the higher portion of KZA rewards available for a smaller total loan/debt. In addition to borrowers, lenders earn a portion of KZA emissions each epoch.

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