DOUBLE TOP Research: Kintsugi


Kintsugi is Interlay's canary network, with the primary goal of making Bitcoin decentralized and reliable so that it is fully compatible with different blockchains and ecosystems.

Kintsugi and interBTC use the same codebase; the difference is that Kintsugi will be released earlier than interBTC and will have more experimental features such as:

- Lower barriers for collateral.

- More experimental assets can be used as collateral.

- First testing of synthetic versions.

- First testing of other "basic" assets such as DOGE, LTC, etc.

- First testing of the interBTC 2.0 protocol, which will allow you to earn interest on BTC directly from your wallet.

Kintsugi's main product, kBTC, is a 1: 1 Bitcoin backed asset on Kintsugi canary network deployed on Kusama, with the same design as interBTC.

How it works:

We lock our BTC in the Vault; then, we get kBTC in a 1:1 ratio to the locked BTC in the Vault. 

Then we can use kBTC as collateral for lending, generating yield and much more on any blockchain. Moreover, we can swap kBTC for actual BTC at any time.

Anyone can become a vault at any time.

Vaults receive BTC for storage from users and ensure that BTC are locked as long as kBTC exists, meaning they provide a 1:1 peg to locked BTC.

If a Vault tries to steal BTC, it will be automatically detected, losing its collateral. Users will receive a refund in this collateral (at a favourable rate).

Vaults also take on the risk of liquidation: if the price of collateralized assets falls compared to BTC, they could be liquidated and lose their collateral. Thus, vaults receive KINT as compensation for their risk and to ensure that they can protect themselves from hostile takeovers of management.

Team:

Alexei Zamyatin (CEO) is a PhD student at the Centre for Cryptocurrency Research and Engineering at Imperial College London. Before, he worked as a researcher at SBA Research.

Dominik Harz (CTO) – PhD at the Centre for Cryptocurrency Research and Engineering at Imperial College London. He had experience working at RISE ICT in the field of smart contracts development.

Also, there are 8 more people in the team, but they are not well-known.

Use cases:

The main objectives of the KINT token:

- Management, KINT holders vote for/against management proposals and elect board members to make operational decisions.

—Kintsugi will support payment of transaction fees for both KINT and other digital assets.


Investors and partners:


At the Seed round, they attracted $ 3 M.

The list of investors includes IOSG Ventures, Launchub Ventures, CMS Holdings, KR1, Hypersphere and Zeeprime. The "angels" are Bitmain's co-founder Jihan Wu and Blockchain.com CEO Peter Smith.

Currently, they are negotiating with other parachains, and in the near future they are going to announce partners. Also, the project has secured support from Acala / Karura Development Vice President Dan Reecer.

Tokenomics:

The total supply of KINT tokens is unlimited, however, the supply of emitted KINT for the first 4 years will be 10,000,000 KINT. Also, there is 2% annual inflation afterwards (after the "first" 4 years), indefinitely. 

70% of the original 4-year KINT offer is distributed to the community as airdrops and Vaults rewards.

70% include:

30% - Rewards to Vaults as compensation for risk, as described in the "How it works" section.

5% - To participate in governance, KINT holders should lock their tokens on the parachain. The longer KINTs are locked, the more voting rights we have.

35% - Treasury is controlled by a governance protocol that can use funds as needed.

Suggested distribution of Treasury funds:

10% - crowdloan.

2% - airdrop to crowdloan members who will use Kintsugi after launch.

5% - reserved for future crowdloans.

8% - reserved to reward kBTC liquidity pools.

5% - for grants, incentive programs and other ecosystem development activities.

5% - reserved to rebalance the kBTC peg in the event of a critical drop in the exchange rate leading to mass liquidations.

30% of the original 4-year KINT offer goes to the Interlay team as well as the investors who funded the initial development of the protocol. These coins are locked for 48 weeks and then will have linear vesting for 48 weeks.

The initial turnover of KINT tokens will consist only of tokens of the crowdloan participants and will account for approximately 3.67% of the total 4-year supply.

An approximate schedule for increasing the offer:

Crowdloan:

10% (1,000,000) is allocated for the crowdloan. KINT tokens will be airdropped to the community at launch.

30% of these tokens will be available on TGE, the remaining 70% in linear vesting for 48 weeks.

An additional 2% of the original 4-year KINT offer will be airdropped to members who will use Kintsugi after launch (kBTC chasing, Vaults interaction, etc.).

Kintsugi crowdloan limit will be KSM 200,000.

Kintsugi auctions will use a system of airdrop tokens for crowdloan participants:

- 750,000 KINT will be distributed among all members of the crowdloan.

—Up to 50,000 KINT will be allocated to early (first 3 days) participants.

—Up to 100,000 KINT will be distributed to referrals, 5% each for both the inviting and the invited member.

—100,000 KINT will be distributed among all crowdloan participants, provided that the aforementioned 200,000KSM limit is reached.

Thus, the minimum reward upon reaching the limit of 200,000KSM for 1 KSM will be 3.75 KINT, and the maximum reward, excluding referrals, will be 4.5 KINT.

Conclusions:

A project focused on the interaction of BTC with the Polkadot / Kusama ecosystem is a must. At the moment, the project had only a Seed round, and top funds can join later.

The team includes PhDs in the field of cryptocurrencies research and engineering, which can be an indicator for anticipated success and reliability.

Also, the project has secured support from Dan Reecer, a vice president of Acala / Karua.

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DOUBLE TOP Research: Kintsugi


Kintsugi is Interlay's canary network, with the primary goal of making Bitcoin decentralized and reliable so that it is fully compatible with different blockchains and ecosystems.

Kintsugi and interBTC use the same codebase; the difference is that Kintsugi will be released earlier than interBTC and will have more experimental features such as:

- Lower barriers for collateral.

- More experimental assets can be used as collateral.

- First testing of synthetic versions.

- First testing of other "basic" assets such as DOGE, LTC, etc.

- First testing of the interBTC 2.0 protocol, which will allow you to earn interest on BTC directly from your wallet.

Kintsugi's main product, kBTC, is a 1: 1 Bitcoin backed asset on Kintsugi canary network deployed on Kusama, with the same design as interBTC.

How it works:

We lock our BTC in the Vault; then, we get kBTC in a 1:1 ratio to the locked BTC in the Vault. 

Then we can use kBTC as collateral for lending, generating yield and much more on any blockchain. Moreover, we can swap kBTC for actual BTC at any time.

Anyone can become a vault at any time.

Vaults receive BTC for storage from users and ensure that BTC are locked as long as kBTC exists, meaning they provide a 1:1 peg to locked BTC.

If a Vault tries to steal BTC, it will be automatically detected, losing its collateral. Users will receive a refund in this collateral (at a favourable rate).

Vaults also take on the risk of liquidation: if the price of collateralized assets falls compared to BTC, they could be liquidated and lose their collateral. Thus, vaults receive KINT as compensation for their risk and to ensure that they can protect themselves from hostile takeovers of management.

Team:

Alexei Zamyatin (CEO) is a PhD student at the Centre for Cryptocurrency Research and Engineering at Imperial College London. Before, he worked as a researcher at SBA Research.

Dominik Harz (CTO) – PhD at the Centre for Cryptocurrency Research and Engineering at Imperial College London. He had experience working at RISE ICT in the field of smart contracts development.

Also, there are 8 more people in the team, but they are not well-known.

Use cases:

The main objectives of the KINT token:

- Management, KINT holders vote for/against management proposals and elect board members to make operational decisions.

—Kintsugi will support payment of transaction fees for both KINT and other digital assets.


Investors and partners:


At the Seed round, they attracted $ 3 M.

The list of investors includes IOSG Ventures, Launchub Ventures, CMS Holdings, KR1, Hypersphere and Zeeprime. The "angels" are Bitmain's co-founder Jihan Wu and Blockchain.com CEO Peter Smith.

Currently, they are negotiating with other parachains, and in the near future they are going to announce partners. Also, the project has secured support from Acala / Karura Development Vice President Dan Reecer.

Tokenomics:

The total supply of KINT tokens is unlimited, however, the supply of emitted KINT for the first 4 years will be 10,000,000 KINT. Also, there is 2% annual inflation afterwards (after the "first" 4 years), indefinitely. 

70% of the original 4-year KINT offer is distributed to the community as airdrops and Vaults rewards.

70% include:

30% - Rewards to Vaults as compensation for risk, as described in the "How it works" section.

5% - To participate in governance, KINT holders should lock their tokens on the parachain. The longer KINTs are locked, the more voting rights we have.

35% - Treasury is controlled by a governance protocol that can use funds as needed.

Suggested distribution of Treasury funds:

10% - crowdloan.

2% - airdrop to crowdloan members who will use Kintsugi after launch.

5% - reserved for future crowdloans.

8% - reserved to reward kBTC liquidity pools.

5% - for grants, incentive programs and other ecosystem development activities.

5% - reserved to rebalance the kBTC peg in the event of a critical drop in the exchange rate leading to mass liquidations.

30% of the original 4-year KINT offer goes to the Interlay team as well as the investors who funded the initial development of the protocol. These coins are locked for 48 weeks and then will have linear vesting for 48 weeks.

The initial turnover of KINT tokens will consist only of tokens of the crowdloan participants and will account for approximately 3.67% of the total 4-year supply.

An approximate schedule for increasing the offer:

Crowdloan:

10% (1,000,000) is allocated for the crowdloan. KINT tokens will be airdropped to the community at launch.

30% of these tokens will be available on TGE, the remaining 70% in linear vesting for 48 weeks.

An additional 2% of the original 4-year KINT offer will be airdropped to members who will use Kintsugi after launch (kBTC chasing, Vaults interaction, etc.).

Kintsugi crowdloan limit will be KSM 200,000.

Kintsugi auctions will use a system of airdrop tokens for crowdloan participants:

- 750,000 KINT will be distributed among all members of the crowdloan.

—Up to 50,000 KINT will be allocated to early (first 3 days) participants.

—Up to 100,000 KINT will be distributed to referrals, 5% each for both the inviting and the invited member.

—100,000 KINT will be distributed among all crowdloan participants, provided that the aforementioned 200,000KSM limit is reached.

Thus, the minimum reward upon reaching the limit of 200,000KSM for 1 KSM will be 3.75 KINT, and the maximum reward, excluding referrals, will be 4.5 KINT.

Conclusions:

A project focused on the interaction of BTC with the Polkadot / Kusama ecosystem is a must. At the moment, the project had only a Seed round, and top funds can join later.

The team includes PhDs in the field of cryptocurrencies research and engineering, which can be an indicator for anticipated success and reliability.

Also, the project has secured support from Dan Reecer, a vice president of Acala / Karua.

DOUBLE TOP | Website | YouTube | Chat | Services