kUSD, the Kalata Protocol "StableCoin"

in LeoFinance3 years ago

Hello HODLers,

A few weeks ago I wrote about Kalata: Derivatives platform on BSC
and it has been thriving since. Their main token $KALA went from 0.25 to $0.75 and their TVL is >$20mn.

This is a derivatives platform aiming to introduce assets outside the crypto world on chain. At the moment they have implemented the kCOIN which is supposed to be equivalent to a share of Coinbase Inc.

Disclaimer: This is a risky project, very new with unknown founder. They have connection to a lot of other BSC blue chip but still risky

image.png

image.png

Kalata ($KALA) Price Charts

image.png

image.png

As we can see in the Coingecko's page, there is no max supply listed. This is something I need to check out.

image.png

Investing in their own kUSD

kUSD is their own stablecoin. At the moment it trades at a discount to 1$ (around 80-85 cents). These lower projects stablecoins are always very volatile as the pairs and supply are low.

I decided to gamble and converted 1BNB for 568 kUSD a day ago. As you can see below, a BNB is now worth 588 kUSD but BNB did rise in price even compared to USDT/BUSD.

I am going to see how much I have in one month. Hopefully it will go back closer to the PEG and I will have earn free $KALA on top of it.

image.png

image.png

Pools available

Many different pools are available and offer great APR. I staked my kUSD for a 80%+ APR (paid in $KALA).

As an important caveat, once you stake you earn $KALA but you need to unlock them by having some position in the BUSD-KALA pool for now. This can be a 2 steps strategy:

Step 1: Staking a pair and earning a lot of $KALA.
Step 2: Pairing BUSD-KALA to unlock your earnings

Official Tutorial available here

image.png

image.png

Minting assets with kUSD, KALA & BUSD

Finally once you made some profits in kUSD or KALA you can use them to mint a kCOIN (only option at the moment) using your assets as collateral.

The minimum ratio is 150% but I would put at least 200%+ if I was minting as kCOIN, kUSD and KALA might be very volatile and you do not want to be liquidated !

image.png

image.png

Latest Analysis

Posted Using LeoFinance Beta

Sort:  

What makes KUSD stand out compared to other USD related stable coins?

Posted Using LeoFinance Beta

For now, this stablecoin is just trusting that it is worth 1$, I imagine the mechanism will use the minting of assets and 1kUSD will be equal to 1$ value of the minted asset it backs.

So over time it will be pegged to kUSD.

Very risky stablecoin at the moment though.

Posted Using LeoFinance Beta

oh, Mars Ecosystem. I have $40 there. Dodgy stuff👍😎


The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.