One year ago today, Yield, the mvp implementation of our fixed-rate, incentivized borrowing, and lending platform (a mouthful, we know) launched. And today, as Kanpeki, a new version is launching.
Cutting right to the chase…
What is Kanpeki?
Kanpeki is a non-custodial, fixed-rate, incentivized borrowing, and lending platform.
“ugh, yet another lending platform” might be the reaction. Understandable, virtually every lending platform in the last year or so has been the same thing with tweaks. However, Kanpeki isn’t yamm — yet another money market — but a new design built from the ground up with not just fixed rates but incentivized borrowing in mind.
“that’s nice, what’s in it for me tho?”
What’s in it for borrowers?
Depending on how active you’ve been in the space, you’ve probably seen one or more projects introduce one or more “borrow incentives”, typically to boost their TVL for a bit. Kanpeki is different.
Here, incentivization is core to the tokenomics and it never “runs out”. Every time a borrower repays a loan, they’re eligible to mint an amount of KAE tokens proportional to the interest they paid, and the duration of the loan. With this, Kanpeki practically covers the full spectrum of borrowing i.e.:
- borrowing where you pay a fee and interest
- borrowing where you pay no fee but only interest
- borrowing where you pay neither a fee nor interest
- borrowing where you, effectively, pay negative interest i.e. “earn interest for borrowing”
Simply, the higher the interest and duration on the loan, the less you pay. And for the highest interest rates, you may end up earning interest like a lender would.
What’s in it for depositors (lenders)?
- Not “APR” or “APY”
If you’re reading this, you’re probably familiar with “apr” or “apy” figures. They’re everywhere in defi. They’re also almost always wrong, something you might be personally familiar with.
Interest in Kanpeki is a matter of “as soon as it’s available”. No rate in Kanpeki is apr or apy. APx rates are, in the best case, extrapolations 365 days in the future from the current moment based on the assumption that conditions stay the same or better. It should go without saying that that isn’t going to happen.
- Fixed interest
You’ve probably seen an advertised APx figure plummet a couple minutes after you deposited, typically after some “whale” deposits”. That’s not a thing here.
Every interest rate in Kanpeki is user-chosen. Deposits or withdrawals by other users have no effect on what you choose. “oh noes, why is apy going down” simply doesn’t happen.