Usage Guide

Overview on the basics & investment of KCD. Find more details in each section.

Leveraged Investment

Users can generate profits by depositing collateral and using the minted KCD for further investments, such as purchasing cryptocurrency or engaging in DeFi activities. This approach is classified as a leveraged investment, where the KCD obtained through collateralization is reinvested to amplify potential returns.

KCD Earn

KCD Earn is the most basic way to earn interest. Similar to deposits in traditional finance, users can safely receive KCD Earn Interest in Kurrency, except for the external variable of the collateral asset value fluctuations. The yield on KCD Earn fluctuates based on the Asset Management Profit of the collateral and Stability Fee paid by KCD minters.

KCD Arbitrage

While KCD aims to maintain a value equivalent to $1, market dynamics of supply and demand can cause temporary price deviations from this peg. Kurrency incorporates strategies to mitigate these discrepancies as they occur, providing users with the opportunity to earn additional income through arbitrage within the Kurrency ecosystem.

Arbitrage and Repayment

Since the value of KCD is always pegged to $1 within Kurrency, a market price above $1 provides an opportunity for arbitrage by minting and then selling KCD. Conversely, if the market price of KCD temporarily dips below $1, users can profit by repaying previously minted(or borrowed) KCD for Kurrency.

PSM(Price Stability Module)

PSM(Price Stability Module) allows exchange of KCD with stablecoins such as USDT or USDC. This feature allows users to capitalize on arbitrage opportunities arising from fluctuations in KCD’s price.