What Is Kolibri Finance?

2021-06-13 22:02:01 · 352 views · 3 min read

 

Kolibri Finance provides a Tezos based soft pegged USD-stable value asset kUSD, working similarly as MakerDAO’s DAI. It’s one of the most popular DeFi projects on Tezos, with $1M+ worth of kUSD supply according to the Kolibri Metric.

 

 

Then how to mint kUSD? How to earn with this stablecoin on Tezos? There are 2 main features of Kolibri Finance:

 

 

Oven

The protocol is built on Collateralized Debt Positions (CDPs) named “Oven” to collateralize the algorithmic stablecoin, kUSD. 

Each Oven has four functions:

  • Deposit: Place XTZ (the native token on Tezos) into the Oven

  • Withdraw: Remove XTZ from the Oven

  • Borrow: Borrow kUSD against the Oven using XTZ as collateral

  • Repay: Repay kUSD that was borrowed against the Oven.

 

 

If an Oven drops below the collateralization ratio, then it is said to be under collateralized. Oven owners should take care to keep their position above the collateralization ratio, by either locking more XTZ or repaying kUSD when the collateralization ratio drops.

 

 

A stability fee is applied to borrowed kUSD, accrued in terms of kUSD and calculated on a 60-second basis. 

 

 

Liquidity Pool

Kolibri Liquidity Pool is a shared pool where users contribute funds in order to liquidate under-collateralized ovens.

You deposit kUSD tokens in the pool and receive QLkUSD (Quipuswap Liquidating kUSD) tokens in return. The QLkUSD tokens are like the certificates that allow you to claim the original amount of kUSD tokens you deposit, plus any additional kUSD tokens earned from liquidating ovens. QLkUSD tokens are liquid and can be tradable to other users or used in other applications. 

 

 

You may return your QLkUSD token to the pool and receive the associated kUSD at any time.

 

 

Kolibri Finance has experienced a tremendous 1011.61% increase in volume in the past 90 days.

So do the active users and transactions of Kolitri Finance. The 90d users went up 46.79%, and the 90d transactions went up 241.30%. 

 

 

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