Earn with no risk of impermanent loss in KUU’s single-asset communal pools AVAX, LINK, ETH, WBTC, USDT and DAI
KUUs platform allows users to benefit from the liquidation side of lending protocols and arbitrage opportunities. Acting as a backstop liquidity protocol on Avalanche, KUU assists DeFi projects to maintain an equilibrium and solvency on their platforms.
Starting today, Monday, August 16th the platform goes live! The journey to scale DeFi on Avalanche begins! Be prepared, be early, be part of an evolution that’s about to happen on a network built for the future.
How does KUU work?
At the heart of KUU is a communal liquidity pool which enables users to deposit assets such AVAX, LINK, ETH, WBTC, USDT and DAI into KUU’s smart contracts to collectively capture fees paid by keepers (on-chain bots that seek profit using flash loans). As users provide liquidity with just one asset, they are not subject to the risk of impermanent loss.
Keepers borrow funds from the communal pool to take advantage of on-chain opportunities. Whenever positions go into liquidation on lending protocols, or arbitrage appears between DEXs, KUU uses its pool of deposited assets to capture the opportunity and earn profit for its liquidity providers. Nevertheless, these opportunities are not always present and often only occur in times of high volatility. To ensure that KUU is always earning profits for its liquidity providers, the pooled assets will be lent out to other DeFi protocols such as BENQI to accrue interest while not in use (low market on-chain activities). This feature is coming up soon.
Have you ever explored the Avalanche DeFi ecosystem before? No, no worries, we got you covered. Here’s a quick tutorial on how to set up your Metamask and bridge your Ethereum assets using the new Avalanche bridge.
How to set up the Metamask for Avalanche?
Avalanche’s C-Chain is EVM-compatible which means you can use the same Ethereum address you are already familiar with when using Binance Smart Chain or Polygon.
On Metamask, just click on Custom RPC and fill the fields with the following information as shown in image:
New RPC URL
Currency Symbol (optional):
Block Explorer URL (optional):
How to move Ethereum assets to Avalanche?
You can move your Ethereum assets using the new Avalanche bridge. It will take about 15 minutes due to the number of validations required on the Ethereum side.
Having the Ethereum network selected on Metamask, select the token from the dropdown and enter the amount you want to transfer.
Notice that you will receive 0.1 AVAX airdropped if the transfer is above $75 in value (subject to change).
After you have bridged your Ethereum assets to Avalanche, you can deposit into KUU to earn a share of the flash loan fee, returns from liquidations, and other on-chain activity from keepers. The profit is paid with the same token you deposited and without any risk of impermanent loss.
Please, be aware there is a 0.64% deposit fee to incentivize sticky liquidity. The fee is given to existing pro rata to their pool ownership.
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.