Kianite: a DeFi Platform for Yield Maximization
As of 2021, the DeFi movement is still only getting stronger everyday; at the beginning of April 2021, the total value locked in DeFi is already over $45 billion. There are new, exciting projects coming up within the DeFi space almost regularly. One such up and coming project is Kianite, a community governed DeFi ecosystem that enables users to maximize their investments.
Without further ado, let’s get into detail about the Kianite platform.
So, What is the Kianite Ecosystem All About?
The Kianite ecosystem is based upon the Ethereum blockchain. The objective of the developers of Kianite is to create a DeFi ecosystem governed by one single token, and come up with a range of DeFi solutions that can be vertically integrated so as to allow yield-maximization for users.
The suite of DeFi products offered by Kianite ranges from investment to liquidity solutions. The platform gives its community of users the power to govern over every single one of their products and to decide the trajectory of each product in the time ahead.
Kianite aims to automate the procedure of compounding interest by passing it through the ecosystem of products they have on offer.
Kianite’s Suite of Products:
As mentioned before, the suite of products Kianite provides will coordinate so users get to maximize the amount of interest they earn on their investments, with the help of vertical integration. The initial products Kianite has on offer are as follows:
- Batch: Batch is the very first index protocol with governance. Batch allows the minting of tokens to track the price of baskets of crypto assets so a diversified investment vehicle can be generated.
- Fluid: Fluid is a decentralized exchange that serves to generate liquidity. Fluid allows users to exchange ERC-20 tokens so they can perform trades swiftly and efficiently.
- Rates: Rates is Kianite’s P2P (peer-to-peer) lending platform for interest rates generation. Users get to collect interest income on their existing assets by adding it to the Rates lending protocol.
Here’s how Kianite’s vertical integration will work with the three services mentioned above: let’s assume user X buys some Batch index tokens. Now, they’ll have to add these tokens to the Fluid decentralized exchange as liquidity providers. The returns they get from the fees would then be automatically sent to the Rates platform and be used to create interest payment. Thus, Kianite users can use their suite of products to generate a larger amount of compound interest and automate their returns.
The initial focus of the Kianite ecosystem are the Kianite index products that track the market price using an algorithm named the ‘decentralised reserve’ — built as an alternative to the Rebasing mechanism most of the DeFi community uses for token price stabilization.
Governance on Kianite, and the Governance Token:
The Kianite governance token — KIAN- will empower all holders to govern over every product within the Kianite ecosystem. Holders will be voting on and proposing changes for each product or how the overall system works.
The things KIAN holders can vote on include (but are not limited to) the following:
- The fees paid to the liquidity providers on Fluid
- The interest rates on Rates
- Index composition
- Decentralized exchange product development
- Lending new markets
Check out the planned governance structure for the Kianite protocol in the chart below:
Advantages of Kianite:
- Tokenized Portfolio: This feature will allow for less complexity for the users, not to mention the range of opportunities it will create for diversification. Finally, this will also decrease the fees users would have to otherwise pay on another platform.
- Community Governed Platform: The entire Kianite community’s involvement in governance will bring many benefits, including crowdsourced information, community policing, and the alleviation of associated risks.
Backers & Investors:
Kianite has successfully raised $1.5 Million in seed and private rounds. The funding rounds were highly oversubscribed. Investors includes Spark Digital Capital, followed by other investors, including x21, Hillrise Capital, PrivCode Capital (MXC), Block Dream Fund (OKEx), Candaq, Magnus Capital, Oasis Capital, Titans Ventures and more.
Roadmap for 2021 — Goals the Kianite Team Aims to Achieve in the Upcoming Months:
In the second quarter of 2021, Kianite plans to release Kianite indices for the first time to the open market for investors and traders. In quarter 3, the goal is to build strong partnerships with relevant organizations to strengthen the Kianite project and expand the use-cases for its products. As for the fourth quarter of 2021, the governance voting platform will finally be made available to the Kianite community.
Parting Thoughts:
As we can see, the Kianite platform is still at the earliest stage of its journey. However, the decentralized reserve algorithm Kianite has developed brings in a whole new way of price tracking and stabilization within the DeFi space. If the platform can actually operate the way it has planned and develop a truly community-governed ecosystem, it sure does hold the potential to revamp the DeFi lending and borrowing sector.
Here’s where you can find out yet more about Kianite:
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