Benefit from Kinetic's DeFi opportunities, using Kiln’s infrastructure

Kinetic

Glenn Brown, Head of Product
December 17, 2024

* Gross Reward Rate (GRR) may change over time and vary depending on the open source blockchain protocol code. In addition, fees might be deducted from the gross effective rewards earned.

What is Kinetic? 

Kinetic is an overcollateralized lending platform built on the Flare blockchain, facilitating peer-to-peer borrowing with dynamic interest rates. The protocol requires borrowers to provide collateral exceeding their loan value to maintain system stability. Interest rates are transparently determined by real-time supply and demand, reflecting market conditions for lending and borrowing.

Why bring DeFi to your users?

After staking, DeFi is the next source of digital asset rewards. Stablecoins are a $170 billion market and growing, but less than 4% of stablecoins natively earn interest for holders. In comparison, over 50% of PoS and dPoS assets are staked.

Kiln DeFi is the tech stack that enables integrators to seamlessly support and monetize DeFi in any Web3 product.

DeFi is the next step in your crypto earn offering after supporting staking. Diversify your rewards opportunities and benefit from service fees on your users’ stablecoin rewards.

Kiln DeFi is:‍
  • 1
    100% onchain
  • 2
    Seamless
  • 3
    Control your own pricing model

How can you offer Kinetic rewards with Kiln DeFi?


💡 You can start monetising Kinetic’s opportunities in less than a week with Kiln DeFi.

  • Deploy your custom Kiln DeFi vaults
  • Integrate into your UI quickly—often in less than a week (see docs)
  • Your users start earning supply rewards

Reach out to us if you need help to integrate Kiln DeFi.

How can you offer Kinetic rewards with Kiln DeFi?

In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets a DeFi protocol such as Kinetic. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.

In DeFi protocols like Kinetic, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.

From 2.5% APY in a bear market to 22%+ during peak market activity, DeFi rewards like Kinetic’s can drive a significant additional source of rewards for customers.

Why should you use Kiln DeFi to offer Kinetic rewards?

Kiln is the leading enterprise-grade staking platform, enabling institutional customers to earn rewards on their digital assets or integrate our tech stack into their products. The API-first platform supports fully automated rewards, data, and commission management.

With Kiln DeFi, our clients seamlessly access a wide range of protocols like Kinetic and assets without having to build commercial agreements and integrate different deposit/withdrawal flows for each DeFi protocol.

Gain control with comprehensive reporting and monitoring of your Kinetic DeFi positions, rewards, and audited smart contracts.

Learn more about Kiln DeFi

How can you offer Kinetic rewards with Kiln DeFi?


💡 You can start monetising Kinetic’s opportunities in less than a week with Kiln DeFi.

  • Deploy your custom Kiln DeFi vaults
  • Integrate into your UI quickly—often in less than a week (see docs)
  • Your users start earning supply rewards

Reach out to us if you need help to integrate Kiln DeFi.

How can you offer Kinetic rewards with Kiln DeFi?

In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets a DeFi protocol such as Kinetic. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.

In DeFi protocols like Kinetic, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.

From 2.5% APY in a bear market to 22%+ during peak market activity, DeFi rewards like Kinetic’s can drive a significant additional source of rewards for customers.

Why should you use Kiln DeFi to offer Kinetic rewards?

Kiln is the leading enterprise-grade staking platform, enabling institutional customers to earn rewards on their digital assets or integrate our tech stack into their products. The API-first platform supports fully automated rewards, data, and commission management.

With Kiln DeFi, our clients seamlessly access a wide range of protocols like Kinetic and assets without having to build commercial agreements and integrate different deposit/withdrawal flows for each DeFi protocol.

Gain control with comprehensive reporting and monitoring of your Kinetic DeFi positions, rewards, and audited smart contracts.

Learn more about Kiln DeFi

Protocol card

Supported assets
USDT, USDC
Supported EVMs
Flare
APR
up to 23%
TVL
$15M
Glenn Brown, Head of Product
December 17, 2024

* Gross Reward Rate (GRR) may change over time and vary depending on the open source blockchain protocol code. In addition, fees might be deducted from the gross effective rewards earned.

Kinetic FAQ

What is Kinetic?

Kinetic is an overcollateralized lending platform built on the Flare blockchain, facilitating peer-to-peer borrowing with dynamic interest rates.

What stablecoins or tokens are supported on Kinetic with Kiln DeFi?

USDC and USDT are supported on Kinetic and available through Kiln DeFi.

What are the rewards associated with Kinetic and Kiln DeFi?

Rewards on Kinetic are determined by the supply and borrowing demand for each supported asset. As borrowing demand increases, the reward rate for suppliers also rises. Additionally, rewards may be influenced by market conditions and additional protocol incentives. 

Check on Kinetic for the latest rates.

Is there a minimum amount of assets to lend on Kinetic?

You can supply any amount on Kinetic, with no minimum or maximum limits. However, for very low amounts, transaction costs may exceed potential earnings, making smaller deposits less practical.

Do the end users of the integrator maintain custody of their assets when lending on Kinetic?

No, lending on Kinetic involves depositing your assets into a smart contract that manages the lending protocol. While the smart contract oversees asset custody during lending, only you retain the exclusive right to withdraw your assets, in accordance with protocol rules.

Is there a lockup period when lending assets on Kinetic?

No, you can withdraw your assets at any time, provided the lending pool has sufficient liquidity. In rare cases where liquidity is low due to high borrowing activity, withdrawals may require waiting for borrowers to repay their loans. To mitigate this, the protocol dynamically adjusts borrowing rates upwards to incentivize repayments and restore liquidity.

How do I get started with Kiln DeFi?

Contact your account manager or complete our form to begin the Kiln onboarding process and access our suite of solutions.