We have combined the most popular and successful protocols together to give you the best features with mechanisms built in to protect you from market conditions so your portfolio grows steadily over time regardless of what is happening in the markets.
Kalend uses a risk-adjusted approach that considers both liquidation scenarios where borrower's collateral assets decrease in value and the borrower's liabilities increase in value. In this way, the protocol reduces the amount of bad debts protecting the lender’s assets.
Kalend allows the discount to rise as a function of how under-water a position is. This turns a one-shot opportunity into a dutch auction. As the discount slowly increases, each would-be liquidator must decide whether or not to bid for liquidation at the current discount on offer. In this way, borrowers will not get the entire position liquidated.
Kalend allows liquidators to repay up to the amount needed to bring the underwater position back. As a result, borrowers who are only slightly in violation will have less than half their debts repaid during a liquidation, while borrowers who are heavily in violation will often have more than half their debts repaid during a liquidation.
Kalend allows lenders to support liquidations by providing liquidity to a stability pool associated with each lending pool. This generates additional yields for lenders and reduces the amount of bad debts as it reduces the friction for liquidations.
Kalend creates properly functioning lending and borrowing pools for Kadena assets. Each pool has interest rates that are determined by the supply and demand of the underlying asset.
Chainweb - Kadena’s Public Blockchain protocol
Chainweb is a braided, parallelized proof-of-work consensus mechanism that improves throughput and scalability while maintaining the security and integrity found in Bitcoin.
Pact is a human readable and Turing Incomplete smart contract language purpose-built for blockchains with powerful security features including:
Unlike Compound or Aave, Kalend uses a two-sided approach to calculate a borrower’s borrowing capacity. Read our whitepaper to learn more about Kalend’s unique approach.