Scaling Avalanche’s DeFi ecosystem above and beyond
KUU: Moon (Finnish). Kuutar is the Finnish goddess of the moon, daughter of the virgin spirit of the Air, Ilmatar. It allowed a teal to lay its egg on her knee as she floated in the abyss. As the egg fell, it formed the universe: the white of the egg being the Moon and the yolk, the Sun. Along with her sister Päivätär, the goddess of the Sun, they are the goddesses of destiny.
As the organic purpose of the egg albumen is to protect the yolk and provide additional nourishment for the growth of the nucleus, the same is of KUU, a decentralized on-chain liquidity underwriter for the young and ever-growing Avalanche ecosystem.
The KUU protocol functions as a liquidity backstop for Decentralized Financial (DeFi) protocols on Avalanche. By providing ready access to liquidity, on-chain “keepers” are able to help maintain the safety and efficiency of DeFi protocols via liquidations and arbitrages.
KUU enables flash-loans for its communal liquidity pool. Keepers can borrow in an uncollateralized manner on the condition that the borrowed funds are returned back to the pool within one transaction block.
Just as Kuutar brings forth the moon and provides light during dayless days in the winter, KUU aims to be the one that balances safety and health on Avalanche protocols.
With the growth of Avalanche DeFi close to $0.5 billion TVL, according to DeFi Llama, it is critical for a substantial amount of on-chain liquidity to be available for keepers to access. The growing number of Decentralized Exchanges (DEX) on Avalanche means there are more opportunities for arbitration of asset prices. Further, the pending arrival of lending protocols on Avalanche will require a sizeable amount of liquidity to execute on-chain liquidations, to ensure that loans do not become undercollateralized in the event of a flash-crash.
KUU offers an on-chain liquidity pool that oversees and supports Avalanche’s burgeoning DeFi ecosystem as it prepares for the next phase of growth. The KUU liquidity pools will be permissionless and accessible to anyone seeking to utilize it on any protocol. By introducing KUU, we hope to make Avalanche’s DeFi ecosystem efficient and balanced.
In the future KUU will explore a multitude of additional DeFi use-cases, i.e. by merging DeFi with art and culture, amplifying users’ experience in stunning visual form while adding functional value to the KUU protocol.
It is said that Kuutar, a quiet and gentle goddess that loves all of humanity the same, weaves the web of life, intertwining all of our dreams and wishes. KUU embodies this spirit by allowing users to utilize KUU’s liquidity pool on Avalanche’s DeFi protocols.
Liquidity Mining rewards will be distributed to participants contributing to the KUU Protocol. Further, the KUU Treasury will capture a percentage of the fees of successful flash-loans. As the Treasury grows, a Decentralized Autonomous Organization (DAO) will be formed. The DAO will exist to propose and vote on the Treasury in ensuring alignment of the growth of the protocol and driving value back to the community and KUU token holders.
We welcome you to join us on our journey to scale Avalanche’s DeFi ecosystem above and beyond.
From the team at KUU.