Kanpeki
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Borrowing
Kanpeki is a borrowing-incentivized platform.
Like depositors earn interest, every time a borrower repays their debt, they're eligible to mint an amount of KAE tokens proportional to the value of the repaid debt and interest rate on it. The higher the interest rate and duration of the debt, the higher the reward.
Borrowers borrow from vaults. However, while you can simultaneously deposit and borrow, depositing in Kanpeki is NOT equivalent to "supplying" in other platforms. Depositing and borrowing are separate actions. Your deposit cannot be used as collateral when trying to borrow from a token vault. If you simply want to borrow, you do not and should not deposit first.
As each borrow is separate, there is also no global "health factor".

How much can I borrow?

The minimum that can be borrowed is $1,000 worth of a token. The maximum amount is limited only by the available liquidity of the token's vault.

What fixed rates can I choose?

Interest rates in Kanpeki range from 2% to 10%.

Why would any borrower choose more than 2%?

The KAE reward is dependent on the $ value of the repaid debt and its interest rate.
Simply, the higher the $ value of the debt, the higher the KAE reward, but the higher the interest rate, the higher the KAE reward for the same $ value. In addition, the duration of the debt increases the rate of the reward — if a debt for 10 days @ 4% is a car going 0 - 100 in 5 seconds, an equal debt @ 4% but for 30 days would be car going 0 - 100 in 3 seconds.
Example
If SpongeBob borrows $10,000 @ 3% for 15 days, he will get more KAE than Squidward that borrows $10,000 @ 2% for 15 days.
However, Krabs borrowing $10,000 @ 3% but for 20 days will earn more than SpongeBob. And, of course, if Plankton is staking KAE and borrows $10,000 @ 3% for 20 days, he will earn even more than Krabs. These hold for higher $ amounts borrowed
The reward increases, exceeding the value of the fees paid for interest rates ~9% and higher (especially when staking), up until it hits the cap. See the calculator at the bottom of kanpeki.finance to get a feel for the numbers.

What is the KAE reward cap?

The reward cap is the limit on the amount of KAE any one debt can earn. The cap is 10,000 KAE (@ $1/KAE), if you're staking, or 7,500 KAE (also @ $1/KAE) if you're not. At, for example, $25/KAE, these reduce to 400 KAE and 300 KAE respectively. The cap is updated periodically as the market value of KAE changes to keep the value of the reward consistent.
To get an idea of the reward, head over to kanpeki.finance and play with the calculator down the page.

Can I claim KAE on my debt even if I don't repay?

No.
Only repaid debts are eligible to claim KAE.

How does claiming KAE work?

The KAE reward allocated to every repaid debt is split in two — immediate and main — both of which can only be claimed once, and in order (the immediate reward comes first).

Immediate Reward

33% of the total reward allocated to every debt is claimable immediately the debt is repaid.

Main Reward

The remaining 66% of the total allocated reward starts to release as soon as the immediate reward is claimed. The release period is 45 or 90 days, dependent on:
  • the duration of the debt — is it less than 26 days?
  • how fast the debt was repaid relative to its duration — has at least 90% of the debt's duration elapsed?
  • if you were staking when you took out the debt, if you still are, and whether the debt's duration was less than 27 days if you were staking at the time
Simply, the longer the debt and later you repay, the less time it takes for the main reward to release.

How long can I borrow for?

The minimum duration is 10 days. The maximum duration is 30 days.
The longer the duration, the higher the KAE reward especially if you're staking KAE, and the faster the main reward releases.

When can I repay?

You can first repay a debt 9 days after it begins.

Can I partially repay my debt?

Yes.
Partially repaying a debt allows you to free up a proportional amount of collateral backing the debt. Should you choose to not free up some collateral while partially repaying, this significantly improves your collateralization ratio thus making the debt safer from liquidation.
Collateral is only freed during a partial repayment if the new collateralization ratio is higher than the collateral token's initialization ratio

Do I always pay the full interest?

Yes.
Regardless of when the debt is repaid, the rate, and interest due, is fixed.

Can I add more collateral to an active debt?

Yes.
If your debt is in an undercollateralized state, you cannot add any more collateral until it leaves this state. You may be able to reduce the liquidation ratio by staking

Can I borrow and collateralize the same token?

No.
The debt and collateral token must be different.
You cannot borrow a stablecoin with another stablecoin as collateral. Borrowing USDC with, for example, USDT is impossible

What are the collateralization ratios?

Asset Type
Minimum/Starting Ratio
Liquidation Ratio
Stables
130%
125%
ETH
143%
133%
FTM & Others
150%
140%

Can I reduce my liquidation ratio?

Yes. The liquidation ratio can be reduced by 3.5% if you're staking KAE.
If the collateral is a stablecoin, the liquidation ratio cannot be reduced

What happens when I get liquidated?

A 5.5% liquidation fee is applied. This fee goes to the buy-back and burn manager which is used to periodically buy-back KAE from the market and burn it.
The liquidator is also compensated with up to 5.5% interest on the liquidated amount.
If any collateral is left, as might be the case in where an overdue debt hasn't been repaid, it's sent to burn manager. To guard against this, borrowers can extend their debt.

Do I get liquidated if my debt is overcollateralized but past its due date?

Yes.
To guard against this, borrowers can extend their debt before it's overdue, or at the very least, not liquidated.

How can I extend a debt?

Debt extensions are only available to borrowers staking KAE.
The debt is extended for a fixed duration of 15 days. An extension requires there exists, as liquidity for the token's vault, at least 150% the amount that was borrowed. During an extension, a borrower simply pays the interest due on the debt instead of having to repay the principal. This interest will be repaid again when the debt is finally fully repaid, together with the principal.
Last modified 3mo ago