The decentralized protocol KUU, which attempts to provide maximum yields on investments and credit fungibility for the decentralized applications running on it, has now been launched on Avalanche. What does this unification imply for the vested parties?
- Liquidity supporters will now be able to store their inert assets on the platform and passively earn returns.
- Others, who want to invest in decentralized loans and synthetic token derivative assets, will get the aid of KUU for backstop liquidity. KUU will also ensure that the platforms are managed in a perfectly ethical and healthy manner, especially when the market is not stable.
Clients can make use of their single assets pools in the community to invest money in KUU. They can rest assured that their funds won’t run the risk of temporary losses. The on-chain crypto bots, named Keepers, will then handle those funds to gain returns by providing flash loans. Keepers also use the arbitrage function; that is, they seek the opportune moment when they can buy assets from one market at a lower price and sell them at a higher price in a different market. They also handle fungibility operations on decentralized lending crypto protocols like KUU. Hence one can be assured that any inefficient state in the market will be dissipated, and unhealthy loan situations would also be quickly resolved.
Avalanche and KUU- how will they work together?
To begin with, KUU will take advantage of the numerous benefits offered by Decentralised Finance. KUU clients will get a better turnover on their investments even when the market undergoes fluctuating trends, simply because of regular arbitrage and the availability of opportunities for liquidity. When the market is relatively stable, KUU lends the assets which are comparatively less exploited to other platforms like BENQI so that liquidity investors never miss a chance to profit from their investments.