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Kokoa Finance is a crypto-asset-backed stablecoin platform where users can borrow KSD stablecoin against crypto assets without paying any nominal cost.
Kokoa Finance adopts a two-token system: KSD and Kokoa.
KSD is a crypto-collateralized decentralized stablecoin. Minting KSD requires the deposits of the collaterals in CDP worth more than the value of the minted KSD. The LTV(Loan-to-Value) ratio of a CDP must be lower than the Maximum LTV Limit set by the governance, which will initially be 45%, and if the ratio exceeds the Minimum Liquidation Threshold, say 60%, the collateral assets in the CDP will be liquidated. Through this mechanism, the system can maintain the value of each KSD.
Kokoa is a governance token for the Kokoa DAO. Kokoa DAO is a decentralized organization whose mission is to manage the sustainability and soundness of the KSD monetary system. By staking Kokoa, users can participate in Kokoa DAO's decision-making process and earn governance rewards.
Borrow - Get Free Loan and Earn Kokoa Reward
Users are able to borrow KSD by staking Klay without paying any interest. In fact, during the first four years, there's liquidity mining reward for KSD borrowers. This means borrowers can actually "earn" rewards by getting a free loan from Kokoa!
Earn - Stay 100% Liquid and Earn 20% APY
Users are able to earn 20% yearly interest simply by depositing their KSDs into Kokoa's KSD Savings Account and are able to withdraw funds anytime without any lock-up period or expiration date. Interest will be accrued to your account in real-time!
(Important Disclaimer: Please note that the above APY is not guaranteed by Kokoa Finance, Kokoa DAO, or any party. It is subject to changes due to the market condition, protocol variable updates, Kokoa DAO's decision-making, and so on. The 20% APY is just an example for the initial policy target)
Users can participate in the Kokoa DAO's decentralized governance by staking their Kokoa. The profits that the DAO earned will be distributed to the participants as a governance reward. For the stability of the system, a lock-up period of 9 days is applied when unstaking KOKOA.