🏦 Lending
KaspaFinance includes a non-custodial lending and borrowing protocol inspired by Aave and Compound, enabling users to earn yield by supplying assets or unlock liquidity by borrowing against their collateral — all within the EVM-L2-scaled, high-speed environment of the Kaspa DAG.
🧩 What Is Lending?
Lending allows users to:
Supply tokens to a shared liquidity pool
Earn interest on those tokens as other users borrow from the pool
Use their supplied assets as collateral to borrow other assets
The protocol is fully decentralized and governed by smart contracts on Kaspa EVM (Kasplex L2). Funds never leave your control, and interest accrues in real-time based on protocol-wide borrowing activity.
🔁 How It Works (Step-by-Step)
💰 Supplying
Deposit supported tokens (e.g., KFC, KAS, USDC, WETH) into the lending market
Begin earning supply APY immediately
Your deposits act as collateral if you choose to borrow
💸 Borrowing
Enable collateral on any supplied token
Borrow supported assets up to a defined Loan-to-Value (LTV) ratio
Pay interest (borrow APY) based on demand for that asset
Repay anytime to unlock your collateral
All interest rates are dynamic and adjust algorithmically based on supply and demand.
📊 Supported Assets
$KFC
✅
Varies
Varies
$KAS
✅
Varies
Varies
$USDC
✅
Varies
Varies
$WETH
✅
Varies
Varies
$DAI
✅
Varies
Varies
$WBTC
✅
Varies
Varies
More tokens may be whitelisted via governance or partner integrations.
🛡️ Risk Parameters
Loan-to-Value (LTV)
Maximum borrow % against collateral (e.g., 70%)
Liquidation Threshold
Collateral level at which liquidation occurs
Health Factor
A score showing how close a position is to liquidation (HF < 1 = risky)
Liquidation Penalty
Discount applied to collateral if liquidated
🔐 Safety & Transparency
No central custody: All funds remain in smart contracts
Audited code: Lending pools are governed by verified, upgradeable contracts
Transparent metrics: Real-time APY, borrow rates, and market utilization
💡 Key Features
Dynamic Interest Rates
Respond to market conditions in real-time
Non-custodial
Users retain full control over their funds
Multi-collateral
Supply any supported asset, borrow any other
Real-time Metrics
Track utilization, APY, and market health instantly
Kaspa-speed Transactions
Fastest confirmations via DAG consensus
🧠 Strategy Use Cases
Earn passive income by supplying idle tokens
Leverage long by borrowing stablecoins and buying more KAS
Hedge volatility by borrowing against volatile assets
Collateral farming by using NFT LP tokens or staked assets as collateral (planned)
🚀 Coming Soon
Interest rate models adjustable via governance
Flash loans for advanced arbitrage and liquidation strategies
Isolated lending markets for risk-containment
NFTs and yield tokens as collateral
Kaspa-native stablecoins (e.g., KaspaDollar) fully integrated
Last updated