Analysis of the Kinza Finance project
Kinza Finance is a lending protocol created for a secure DeFi ecosystem, focusing on safety and bringing together liquidity supply and demand. Kinza enables holders to govern the future issuance, receive fees from assets they have voted for, and benefit from innovative financial products and services developed in the evolving blockchain space.
Kinza Finance was one of the twelve projects selected out of over 1500 applicants in the sixth season of the Binance Most Valuable Builder (MVB) accelerator program.
Tocenomics
The native token of Kinza Finance, KZA, is a BEP-20 token on the Binance Smart Chain (BSC).
The tokenomics of Kinza Finance have been designed to incentivize participation, reward users, stimulate liquidity provision by incentivizing borrowers, and ensure a secure and stable protocol. A major portion of KZA tokens has been reserved for community airdrops to support the ve-Real-Yield tokenomics and fuel the Kinza Wars. The total supply amounts to $100 million and is distributed as follows:
$KZA token utility
The Kinza token will have dividend-like functionality. This means that it can be staked and earn a percentage of platform revenues. This mechanism is much better than receiving tokens from the project's reserves.
Project Features
Kinza Finance aims to maximize capital efficiency wherever possible on the platform. This means that assets have the most efficient interest rates, loan-to-value (LTV) ratios, liquidation thresholds, liquidation penalties, and other relevant parameters.
Kinza Finance will continue to integrate new features to enhance capital efficiency. Currently, the efficiency mode can be switched to turbo mode to boost capital efficiency when utilizing certain asset classes together. Flash Loans allow users to borrow funds without collateral, with the condition that the debt is repaid in the same transaction.
Social Media
The project's social media presence is not particularly active. The project's Twitter account has 11.6K followers (with a score of 127, which is considered a low indicator).
The engagement under the posts is relatively low, with an average of 100-200 likes and 10-20 comments. However, as the project is still in its early stage and Kinza has not launched any marketing campaigns or its own token yet, the social media rating is not a significant metric for us. We have already initiated an Airdrop program, which holds greater importance at this stage.
Investors and Funds
Only one fund has invested in the project so far, which is Binance Labs. The investment amount has not been disclosed.
Discussions are also underway with GSR and several other top funds.
Essentially, Kinza is poised to become the largest lending protocol on the BNB & opBNB network. This is why Binance was the first to invest in them and allocated a significant portion of the total volume.
Metrics
The main competitor is Venus, whose market capitalization reached $1.4 billion at its peak. The current market capitalization is $220 million. Considering that Venus is the only significant lending protocol on BSC with a TVL of $550 million+, we can easily assess the potential of our project and understand where liquidity will come from.
Venus has experienced hacks, resulting in a loss of $200 million. This severely tarnished their reputation, and there was simply nowhere for the remaining liquidity to flow. Therefore, Binance welcomed Kinza, a more technologically advanced and secure project, with open arms. The gradual transfer of funds from Venus to Kinza has already begun.
Based on Venus's performance, we see potential from 300% to 1900%!
Conclusion
Considering the support of Binance, for transferring the main liquidity exceeding $500M to a new, secure platform. Delving into calculations regarding profitability for investors, it is worth noting the profitability of such a platform. Taking into account the functionality of the token and its role as a dividend share, we give it a rating of 9/10.