Kinect.finance
The worlds first deflationary yield farming protocol!
The worlds first deflationary yield farming protocol!
Introduction
The Kinect Protocol aims to solve the problems of other existing yield farms, yield aggregators,
and staking platforms. Yield farming often looks very attractive to investors due to
extremely large interest rates. Although, a problem in today's DeFi ecosystem is that rewards often have
to be paid out by using artificial inflation. This is a problem, but is also necessary for these protocols to
function. Because without inflation, platforms wouldn’t be able to offer enticing interest rates to investors.
Although, it gives participants little reason to want to hold the token because it will be losing value as it
becomes more diluted. Historically yield farming platforms will have great price action at first, as their
large interest rates attract new investors and a large amount of capital to the platform. However, once the
rate of new users onboarding starts to peak and there is less new capital buying up the tokens that are
being minted. It ends up with the price starting to consistently decline as the market gets more and more
diluted with freshly minted tokens and sell pressure builds up. The Kinect Protocol has been developed in
a way that solves all of these problems and uses it beneficially.
Funtionality
The Kinect protocol is able to generate attractive interest rates and reward its users in the native deflationary $KNT token.
It is able to do this because the protocol outsources all of its capital to some of the leading yield farms on the Binance
Smart Chain. All of the interest the protocol generates is then converted back into the native $KNT token and distributed to
stakers (5% is burned & 5% is paid to $KNT stakers as governance rewards). This allows the protocol to still offer competitive
interest rates while also rewarding its users with a one of a kind reward token that is built for price appreciation.
Protocol governance
Our native token $KNT will also act as the protocol's governance token. All participants will have
the ability to stake their KNT in the Dividend Vault to earn a portion of
all protocol fees (5% of all rewards and all deposit & withdrawal fees). These fees will be paid to
stakeholders in the form of KNT dividends which will give them the ability to yet compound their rewards
and gain more ownership of the protocol.
The Kinect Protocol aims to solve the problems of other existing yield farms, yield aggregators,
and staking platforms. Yield farming often looks very attractive to investors due to
extremely large interest rates. Although, a problem in today's DeFi ecosystem is that rewards often have
to be paid out by using artificial inflation. This is a problem, but is also necessary for these protocols to
function. Because without inflation, platforms wouldn’t be able to offer enticing interest rates to investors.
Although, it gives participants little reason to want to hold the token because it will be losing value as it
becomes more diluted. Historically yield farming platforms will have great price action at first, as their
large interest rates attract new investors and a large amount of capital to the platform. However, once the
rate of new users onboarding starts to peak and there is less new capital buying up the tokens that are
being minted. It ends up with the price starting to consistently decline as the market gets more and more
diluted with freshly minted tokens and sell pressure builds up. The Kinect Protocol has been developed in
a way that solves all of these problems and uses it beneficially.
Funtionality
The Kinect protocol is able to generate attractive interest rates and reward its users in the native deflationary $KNT token.
It is able to do this because the protocol outsources all of its capital to some of the leading yield farms on the Binance
Smart Chain. All of the interest the protocol generates is then converted back into the native $KNT token and distributed to
stakers (5% is burned & 5% is paid to $KNT stakers as governance rewards). This allows the protocol to still offer competitive
interest rates while also rewarding its users with a one of a kind reward token that is built for price appreciation.
Protocol governance
Our native token $KNT will also act as the protocol's governance token. All participants will have
the ability to stake their KNT in the Dividend Vault to earn a portion of
all protocol fees (5% of all rewards and all deposit & withdrawal fees). These fees will be paid to
stakeholders in the form of KNT dividends which will give them the ability to yet compound their rewards
and gain more ownership of the protocol.