Kinza Finance: The Ultimate Liquidity Layer for BTC & ETH Restaking Assets

5 min readMar 20, 2024

2023: Building a Liquidity Base

Kinza Finance has grown from seed to blossom as a top lending protocol currently securing over $300M TVL on BNB Chain and opBNB Chain. Kinza Finance offers secure money markets and support for novel asset types — including Liquid Staking Tokens. With this foundation of liquidity growing rapidly, Kinza Finance looks forward with a refreshed vision to lean into supporting innovative Liquid Staking solutions and grow to be the The Ultimate Liquidity Layer for BTC & ETH Restaking Assets.

Supporting the Liquid Staking Economy

Proof of Stake chains are secured with capital. Token holders can stake tokens and become validators, helping to secure the blockchain and earn incentives and yield in the process. However, once staked, this capital becomes locked away and limited to validator yield on the one chain. Re-staking emerged as an innovative approach that frees up staked tokens, issuing Liquid Staking Tokens (LST’s) to the user in proportion to their staked capital. This frees up that staked capital, and has the potential to unleash that capital back into the DeFi space while still serving a security role.

Growth of LST’s has been remarkable. As a demonstration of this explosion, a leading ETH LST, stETH, has grown since emerging on the DeFi stage in 2021 to a current TVL of ~$40 Billion — and this is just one LST. The demand is massive, and for good reason. However, an LST usefulness for generating further yield rests on the availability of DeFi solutions that support that given LST. DeFi solutions of this kind are still limited. Kinza Finance is on a mission to be the single comprehensive hub for LST solutions, with widespread support and flexibility for LST’s across multiple chains.

Re-staking and Compound Yield

Liquid Staking is the future. It unleashes previously locked capital back into DeFi and facilitates more yield for holders while incentivizing validators and improving security across POS chains. To add even more fuel to the fire, some innovative projects are building infrastructure that enables automated “re-staking”, effectively multiplying a validator position to impact multiple POS chains from a single position, and in turn generate compound yield. Eigenlayer is on the forefront of Restaking. We will be developing the Kinza Finance protocol to support Liquid Restaking Tokens.

Kinza Finance, with support for LST’s, LRT’s, powered by deep liquidity in Kinza money markets, will emerge as a catalyst for unparalleled strategies, positions, and capital efficiency. The potential for yield will be unmatched when taking into account the following:

POS yield
Eigenlayer incentive
LST Incentive
LRT Incentive
Lending interest rate
Ecosystem incentive
Kinza incentive

Babylon and Native Bitcoin Staking

We have seen exciting new LST’s on various POS chains begin to emerge, but there is one chain with unparalleled liquidity that has yet to be fully tapped — Bitcoin. Babylon is pioneering on the cutting edge with innovation to allow native BTC holders to stake on-chain to secure POS chains. The implications of this are massive, transforming insane levels of idle BTC capital (21 Million BTC) into POS securing and yield generating assets.

We are excited to announce that Kinza Finance has teamed up with Babylon to build BTC staking solutions, on top of Babylon’s upcoming native permissionless BTC staking protocol. Kinza will become a portal for BTC hodlers to onramp their Bitcoin into DeFi through Bitcoin LST’s. Development is already underway, and we look forward to announcing progress with these solutions following the highly anticipated Babylon mainnet launch.

Kinza Bitcoin LRT

Kinza Finance is developing a BTC LRT to serve as a native DeFi onramp for BTC holders right from within Kinza, powered by Babylon, and fueled by Kinza liquidity. Kinza BTC LRT will allow a user to stake Bitcoin on Kinza Finance which will go on secure POS chains via Babylon. The user will then be issued Kinza Bitcoin LRT which they can then collateralize and engage freely in lending/borrowing. With the potential for maximal capital efficiency, incredible strategies will emerge, and compound yield generated from single positions.

Kinza 2.0

When the Kinza Finance vision is realized, it will serve as the single liquidity center for LST’s, LRT’s, for POS chains and Bitcoin. Kinza Finance will unlock the vast landscape of DeFi across ecosystems from one place. Allowing the maximal yield to be generated from initial capital, regardless of blockchain.

What is Next?

This evolved mission has re-invigorated Kinza Finance leaving us strongly positioned to maximize current market energy and maximize project potential. Over the last week we have announced pivotal partnerships with Renzo, Stakestone, and Babylon. This is just the beginning. Development is moving swiftly and we are beyond excited to watch our vision unfold.

We have embarked on a brief reassessment of our tokenomics to ensure we are prepared to support our evolved vision. There have been many projects which conducted TGEs prematurely, resulting in token migrations or additional set-backs. Kinza is ensuring that our TGE is set up perfectly for the benefit of the sustainability of the project, and to maximise the investments and support from our communities and investors.

TGE/Airdrop

Due to this, the Kinza TGE previously set for Q1, 2024 will be delayed. Our team is in the process of discussions with our invaluable advisors and investor partners to move the process forwards in the best possible way, as soon as possible. Updates on this will come from our official channels and as information unfolds. We want to share our deep appreciation for our communities, our partners, and our investors and look forward to building the future of DeFi together. For our users who arrived a little later on in our journey, you now have the chance to grow more airdrop points prior to launch. And for those users who have been supporting us from early on, in addition to more points, this change will bring fresh energy to your contributions as our potential heights with our new vision now seriously elevated.