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nftperp 184 days, 7 hours ago


Look At My JPEG — Ep.28 Recap — Kairos Loan

Welcome to another summary of our recent conversations with NFT Finance teams, where we delve into their projects, market views, future plans, and much more. This time, we had the pleasure of speaking with Joseph and Tobou from Kairos Loan, an instant NFT-backed lending protocol that allows NFT holders to get loans against their NFTs.

Introducing Joseph and Tobu

Joseph’s and Tobou’s journey into the world of crypto started back in 2018. Their initiation into crypto was amidst casual discussions among friends at school. Together, they founded a blockchain lab at their school, marking the beginning of their adventure. They organized workshops, hackathons, and conferences, ultimately catching the rising movement of NFTs. This led them to experiment with NFTs on Phantom, focusing on decentralized gaming. Their combined passion for both DeFi and NFTs converged, leading to the creation of Kairos Loan.

About the protocol

At its core, Kairos Lend offers a platform for borrowing against NFTs. It emerges as a potent alternative for those wanting to leverage their NFTs without having to sell them. This mechanism opens up avenues for instant payment, hedging risks, and even arbitrage.

A particularly intriguing facet of Kairos Lend is its borrower-centric approach. Borrowers lie at the heart of the platform’s design. The system is meticulously crafted to ensure optimal capital efficiency for lenders and a seamless borrowing experience for the users. By employing a technology featuring an order book and a matching engine, Kairos Lend aspires to blend the best of both worlds — the capital efficiency of peer-to-peer models and the instantaneous liquidity of peer-to-pool models. This hybrid system means borrowers don’t have to wait for offers; they are instantly matched with lenders ready to meet their terms.

The dynamic between lenders and borrowers forms the cornerstone of Kairos Lend’s design. Lenders, in their quest to manage risks, make offers based on various collections or specific NFTs without locking up liquidity. These offers, geared to be competitive, create a lively marketplace where borrowers find a plethora of choices, ensuring that their needs are swiftly met. This competitive landscape also mirrors the mechanics of an order book, where lenders make offers based on loan-to-value ratios and loan durations.

Liquidation mechanism

Liquidation can be a concern, especially for NFT holders, given the volatile nature of the market. In the Kairos model, if you take out a loan for a fixed period, say 30 days, liquidation does not happen until the due date. This design is structured to ensure that the borrower can pay back at any time before the due date and only be responsible for the interest accrued. If the borrower defaults, Kairos initiates a liquidation process that involves selling the NFT via an auction, working in tandem with marketplaces and arbitrage bots to ensure fair market value extraction.

But Kairos doesn’t stop there. They’ve designed a feature that genuinely underscores their commitment to borrower empowerment. Let’s say you’ve put up an NFT worth 10 Ethereum (ETH) as collateral, but you only borrow 5 ETH against it. This decision allows you to risk just half the value of your NFT. In the event of a liquidation, you’re entitled to 50% of the proceeds from the auction.

Kairos Eagles and plans for the future

Kairos team launched a series of NFTs, ‘Kairos Eagles’, to reward their community and early adopters. These limited-edition NFTs, currently available on OpenSea, are expected to bring various utilities and benefits within the Kairos ecosystem, including possible airdrops and exclusive access to features.

The roadmap for Kairos in the upcoming months is filled with anticipation. Apart from the imminent V2 of the platform, Kairos aims to become a settlement layer, allowing integration with other NFT wallets and marketplaces. Furthermore, the team is keen on exploring opportunities on other blockchain networks, like Polygon and Arbitrum, to combat rising gas fees and provide users with a more cost-effective platform. The ultimate vision is to tap into assets in the gaming world and other low cap NFTs, making lending and borrowing more accessible and efficient for a broader audience.

Big thank you to Joseph and Tobou for joining us and having a thrilling discussion! Follow them on Twitter: https://twitter.com/t0bou and https://twitter.com/j0xseph

Listen to the full podcast episode with the following links:

Twitter Spaces Recording (limited time only!): https://twitter.com/nftperp/status/1654501094452613127?s=20

Kairos Loan

Website: https://www.kairos.loan/

Twitter: https://twitter.com/kairosloan

Discord: http://discord.gg/HYgc3VxN4T

Docs: https://userdoc.kairos.loan/

nftperp

Website: https://nftperp.xyz/

Twitter: https://twitter.com/nftperp

Discord: https://discord.com/invite/nftperp

Docs: https://nftperp.notion.site/nftperp-xyz-2b456a853321481bac47e5a1a6bbfd4e

Look At My JPEG on Spotify: https://podcasters.spotify.com/pod/show/lookatmyjpeg/

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