KAE is the reason Kanpeki exists, with Kanpeki being an attempt to execute a fixed-rate borrowing and lending system, where borrowing is incentivized.
Kanpeki was built from the ground-up with incentivized borrowing as the core offering. Where many a platform has some sort of "incentives" today, they're typically tacked on, temporary, or even subject to removal by some governance process.
Staking steps for borrowers
Staking steps for depositors
What role does KAE play?
KAE is the "incentivized" in "Kanpeki is an incentivized borrowing and lending platform".
Whenever a borrower repays their debt, they can mint a certain amount of KAE proportional to their debt and interest rate chosen, with higher interest rates yielding higher rewards. Staking KAE also gives:
a 25% discount on the borrowing fee
increased reward cap from 7,500 to 10,000
a higher reward rate for debts with higher durations
debt extensions of 15 days, even for overdue debts (provided they haven't been liquidated)
a 3.5% lower liquidation ratio for active debts (if the collateral isn't a stablecoin)
the ability to execute buy-back & burns
a 25% discount on the fee on the interest to be earned
interest rate options above 3%
deposit options of more than $100,000 for any token
reduced deposit lockups from 30 days to 21 days
one-click redeposit of claimable interest without having to withdraw (provided at least 33% of the due interest is available)
In addition, 100% of the fees on the platform are used to periodically buy-back KAE and burn it, as well as provide liquidity in relevant markets.
How much do I need to stake?
The required stake amount is dynamic, not fixed.
The required stake increases with every new borrow, and reduces when they repay.
A KAE stake of 1% the $ value of the borrowed amount is required. This is cumulative with every additional, active debt.
The required stake increases with every new deposit (including interest redeposit), and reduces with every withdrawal.
If the interest rate is <3%, to deposit more than $100,000 in value or redeposit interest that would bring your deposit value above $100,000, a KAE stake equivalent to at least 1% the $ value of the deposit amount is required.
In addition, to choose interest rates higher than 3%, a KAE stake equivalent to (desired_interest_rate - 2)% * deposit_amount_in_USD is required.
The first stake is higher, as there is a required minimum added to the calculated stake.
Do I need to stake separately for depositing and borrowing?
The value involved when depositing is separate from the value involved when borrowing. As such, it requires separate stakes.
A user that is simultaneously borrowing and depositing may use the KAE earned from repaying to fund their staking.
Stakes are locked, at a minimum, for 90 days. The lockup increases with every borrow or deposit.