🌟A New Frontier Awaits!🌟
You've found a project where contributions are yet to be made. Your insights can lead the way!
knt
KNT | Kinect Finance Crypto Research
Private Research
The Kinect Protocol aims to solve the problems of other existing yield farms, yield aggregators,
staking platforms, and farming rewards. Yield farming often looks very attractive to investors due to
extremely large interest rates. Although, a problem in today's defi ecosystem is that rewards often have
to be paid out by using artificial inflation. This is a problem but is also necessary for these protocols to
function, because without inflation, platforms wouldn’t be able to offer enticing interest rates to investors.
Although, it gives participants little reason to want to hold the token because it will be losing value as it
becomes more diluted. Historically yield farming platforms will have great price action at first, as their
large interest rates attract new investors and a large amount of capital to the platform. However, once the
rate of new users onboarding starts to peak and there is less new capital buying up the tokens that are
being minted. It ends up with the price starting to consistently decline as the market gets more and more
diluted with freshly minted tokens and sell pressure builds up. The Kinect Protocol has been developed in
a way that solves all of these problems and uses it beneficially.
