Three minutes to understand Knit Finance: Polkadot ecological asset cross-chain agreement

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Knit Finance hopes to provide the possibility of entering DeFi for non-standard ERC20 tokens, assets on the public chain without DeFi applications, and other types of assets through lightweight cross-chain operations.

Written by: Groot

The rapid development of DeFi and the performance bottleneck of Ethereum made the new public chain competition that had faded out of the market’s vision before re-launched at the beginning of this year, from the public chain of the leading exchange represented by BSC to Polygon, which focuses on special tracks, to Recently, the hot Solana and Fantom, etc., the popularity of DeFi is spreading rapidly in the entire cryptocurrency world.

However, this situation of different public chain DeFi blooming everywhere has also made the island effect of the encrypted world more prominent. The high threshold for users to transfer assets between different public chains has restricted the DeFi that originally intended to create “unlimited open finance” has encountered a bottleneck. . The inconvenience of asset cross-chain transfer has led to some “unnecessary” operating procedures, which undoubtedly aggravated the congestion of the Ethereum network, the main battlefield of DeFi. In addition, the diversity of encrypted assets determines a standard token like ERC20 It must not be everything, so there are still close to 97% of encrypted assets that cannot enjoy the dividends of DeFi.

The Knit.Finance introduced in this article intends to change this status quo, hoping to provide access to non-standard ERC20 tokens, assets on public chains without DeFi applications, and other types of assets by providing a lighter cross-chain experience. Possibility of entering the DeFi wave.

What is Knit?

Knit Finance is an asset cross-chain protocol based on Polkadot. It aims to integrate the synthetic assets on each chain and the assets off the chain to realize cross-chain transaction lending and other functions. Users can transfer their assets to the vault on other blockchains. For k assets, the agreement will support the cross-chain transfer of more than 200 top assets.

To give a simple example, you can encapsulate the tokens that lack DeFi applications such as XEM, ADA and FIL in your hands into k assets through cross-chain, directly participate in a large number of DeFi applications on Ethereum, and get higher from them. Of holding income.

Through the cross-chain transfer of assets, users’ capital utilization can be effectively improved, and the scale of funds that can be reached by DeFi applications that only support a single public chain can be effectively increased. In addition to encrypted assets, Knit can even bring other types of traditional financial assets, including stocks and bonds, into the DeFi world.

Knit has designed a token encapsulation function that can be based on the real assets of the vault, enabling any encrypted asset or other assets that can be locked into the vault to obtain the possibility of lending, margin trading, and participation in mining in the DeFi world. It is expected to introduce a huge pool of idle assets to DeFi, so that users who hold various assets can enjoy more returns from DeFi products, and at the same time, it can effectively expand the boundaries of DeFi, providing DeFi and trillion-level traditional finance. A direct bridge is created between markets.

In addition, because the aforementioned “vault” is based on real-world assets, and the total insured amount has exceeded 350 million U.S. dollars, Knit has actually brought DeFi a choice of more reliable insurance products based on traditional finance. .

Knit’s beta application was officially launched in December last year, and currently supports asset packaging on 5 public chains.

Team and investment and financing information

The Knit team has extensive experience in the encryption industry. CEO Sainath Gupta is a serial entrepreneur who has been involved in Bitcoin mining as early as 2010 and has a wealth of contacts in the Indian crypto industry. CTO DR. Aviral Sharma and other core technical team members generally have many years of product development experience. COO Nikhil R Karande has more than 5 years of experience in the crypto industry, has a deep understanding of the crypto market and understands market needs.

On May 8, Knit completed a total of 1 million US dollars in financing. The main investors in this round include DAO Maker, AU21 Capital, LD Capital, Orion, X21, Nabais Capital, Insight Capital, Momentum 6, Bitcoin.com, pSquare Capital , Chronos Ventures.

Official information shows that Knit has reached partnerships with more than 30 projects including Elrond, Polygon, NULS, Orion, OroPocket, ParaLink, PlotX, Tidal, and Unos.

Native token KFT

The liquidity of cross-chain assets in the Knit ecosystem is based on the insurance custody pool, and users need to pay a certain fee when redeeming k assets or using a cross-chain bridge to cover the cost of maintaining the operation of the ecosystem. Part of this revenue will also be used to motivate the holders of the token KFT. In addition, KFT also represents the right to vote in a decentralized governance mechanism. Decisions including various parameter adjustments need to be voted by token holders.

The total issuance of KFT is 100 million, and the token distribution ratio is as follows:

  • Private placement round sold 13%;
  • 4% of the strategic round sold;
  • Basic reserve 15%;
  • The team allocates 10%;
  • Reserve 10% of the income from farming and mining;
  • Create asset reserve 17.5%;
  • Partners allocate 10%;
  • The consultant allocates 5%;
  • 15% reserved for marketing.

Three minutes to understand Knit Finance: Polkadot ecological asset cross-chain agreement

summary

Knit hopes to increase the inclusiveness of DeFi to a higher level, while allowing more users and investors to participate in DeFi more easily, which is also expected to further release the true potential of DeFi.

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