KUU will provide backstop liquidity for BENQI through on-chain liquidations to help maintain the health of the protocol
As a new frontier forms, the sky, the moon, the sun & stars embark on their beautiful entanglement. Kuutar, the moon goddess, begins her journey to scale DeFi by aligning with BENQI, an algorithmic liquidity protocol on Avalanche. With a shared vision and commitment to decentralization, scalability, and security, the partnership was imperative.
KUU provides a backstop liquidity fund for DeFi protocols such as BENQI where its communal liquidity pool, through flash-loans, can be used to keep money-markets solvent and to ensure a tight spread of prices across different AMMs on Avalanche.
As BENQI prepares for launch, KUU is working closely with their team to ensure that under-collateralized positions on BENQI are safely and efficiently liquidated. Additionally, KUU will be putting its under-utilized assets into BENQI to receive yield and maximize profitability.
In times of severe market downturn and distress, KUU’s keepers will use flash-loans to liquidate unhealthy borrowing positions. After the liquidation, BENQI is kept healthy and solvent, thus maintaining balance to the growing Avalanche’s DeFi ecosystem.
We are very excited for our partnership with BENQI, and believe that together we can help accelerate DeFi activity on Avalanche.There will be a flash-loan fee for accessing the KUU liquidity pool, the majority of which will be directed towards the liquidity providers and the KUU Treasury. Further, through KUU’s own internal bot, contributors to the KUU liquidity pool are able to take part in on-chain activities without running their own infrastructure, lowering the barrier of entry. said KUU co-founder Tommy Ngo.
From the team at KUU.
Built on Avalanche’s highly scalable network, BENQI’s vision of bridging decentralized finance (DeFi) and institutional networks starts by launching BENQI on the Avalanche C-Chain. Through BENQI, Avalanche users will be able to earn interest on their assets, obtain credit through over-collateralized loans and earn QI governance tokens as rewards for providing liquidity on the protocol and Pangolin.
About KUU Finance
KUU protocol is a liquidity backstop for Decentralized Financial (DeFi) protocols within Avalanche by providing reinforcing liquidity to on-chain keepers maintaining the safety and efficiency of the protocols via liquidations and arbitrages.