What is Kaizen Finance and How Does the $xKZEN Collateralized Token Work?
Definition: Kaizen = Continuous Improvement
This is exactly what the Kaizen Finance project is doing, improving on crypto project launches and providing structured management of partner tokens throughout the project’s lifecycle. Both structured projects and DAOs can reliably generate, issue, and manage token offerings using Kaizen’s autonomous full-stack smart-contract authoring protocol. What Kaizen is doing is comparable to the early days of purchasing crypto prior to available exchanges with easy to use interfaces. Kaizen is providing a “no-code” platform and simple User Interface (UI) turning complex tasks into easy to manage token offerings for its partner projects. In addition to providing confidence and transparency to decentralized finance pools and DEX trading, Kaizen extends upon its easy-to-use UI by employing a new DeFi offering. The days of speculative trading in exchange for profits are making way for DeFi strategies that allow you to leverage your assets for gains without buying and selling.
Scroll to the bottom for definitions and FAQs that you may not already be familiar with as Kaizen is introducing newer elements and terminology to the DeFi space.
Even in the advanced era of crypto that we live in today, portions of many projects continue to be managed with paper contracts, “promises” of token deliveries and are under threat of fraud, misrepresentation, insider transactions, and preferential trading. Kaizen’s unification of “tools” makes it possible for partner-projects to take their token from zero to launch in a much faster, easier and more profitable way than ever before
Kaizen Finance will support:
- Token generation
- Vesting schedule automation
- Execute cross-chain transactions to save on gas fees or to engage in DeFi offerings unique to a specific blockchain
- Create and manage automated airdrops
- Bridges are used to move one token from one chain to another
- Staking is the locking cryptocurrency assets on a network for a reward
- Accept purchases using stable coins (USDT USDC DAI BUSD) or using native coins of the network (ETH BNB MATIC etc)
- Realize the target tokenomics of different crypto project offerings
- Reduce “man-power” support needed to facilitate an effective token offering
A key component of the Kaizen Finance project I’d like to hone in on is their collateralized token used as a DeFi tool for individual and project empowerment.
The term collateral refers to an asset that a lender accepts as security. Collateral may take the form of real estate or other types of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender.
In this case, Kaizen is holding a Fixed Deposit in the form of your vesting KZEN from the initial IDO. In exchange you will receive $xKZEN. From how I understand it, no fees will be charged on the collateral against the fixed deposit
Holders of $xKZEN tokens get exclusive access to unique opportunities that will make even such a small investment potentially lucrative:
- Holders and stakers of $xKZEN will be rewarded in partner-projects allocations and receive early access to buy their tokens before reaching the market.
- Participants will be able to stake $xKZEN, earning additional rewards in tokens of projects that use Kaizen tools.
- Holders and stakers receive APR (Annual Percentage Rate) in $xKZEN tokens.
$xKZEN is limited to a $100 ceiling, providing access to a larger cross-section of the community in participating and ensuring decentralization. Holding and staking $xKZEN opens up investment opportunities providing multiple ways to get returns on your investment. Tokens created using the Kaizen platform can be set aside by a smart contract, locking them for a specified period of time. The locked tokens can be used as collateral by the issuer and can issue tradable collateralized tokens in their place.These collateralized tokens represent ownership of an underlying asset that is locked in a Kaizen smart contract. Collateralized tokens are equal to the value of locked tokens before they unlock. Once tokens become available for the unlock under the terms of their vesting schedule, the collateralized tokens are used to assert ownership of the unlocked tokens. Distribution of the collateralized tokens are automatically added to holders wallets. This automation reduces the need for an individual to issue investors their tokens, speeds up delivery and decreases the risk of a distribution error. Collateralized tokens can then be traded immediately on the kDEX.
Additionally, collateralized tokens or unlocked tokens can be reinvested into staking pools to earn interest, hence the DeFi play. Kaizen’s staking option is simple to understand, the more months you stake, the more token bonus allocations you get. Staking over longer periods of time exposes you to more projects, giving you a higher likelihood of various windfall type encounters. These collateralized tokens will be a tradable crypto security for locked tokens that have not yet been released. By simplifying the origination of collateralized tokens prior to the Token Generation Event (TGE), the token issuer can participate in the pre-sale of tokens to all levels of investors, affiliates and other strategic partners with a structured vesting schedule that is fully transparent to all stakeholders.
Kaizen Finance Definitions and FAQs:
What does APR Stand for?
An annual percentage rate (APR) is the yearly rate charged for a loan or earned by an investment.
What Is a Bridge?
A Bridge is a solution that allows independent blockchains to communicate with each other. On Kaizen, bridges can be used to issue tokens on multiple blockchains and move them from one chain to another.
What Is an Airdrop?
Airdrop is a token distribution method in which assets are directly transmitted to user wallets for free. Typically airdrops are used to create awareness around a project or as part of a fundraising mechanism.
What Is Staking?
Staking is the process of locking cryptocurrency assets on a network for a reward, annualized financial returns, which are paid out regularly.
What does TGE stand for?
Token Generation Event is the technical act of generating tokens in a blockchain-based network and their release to the market.
What Are Locked Tokens?
Tokens that have already been purchased but have been set aside for a specified period. On Kaizen Finance, these tokens are sealed off by a smart contract and are released in accordance with their vesting schedule. Locked tokens cannot be used to perform operations such as trade, buy, sell, stake or loan.
What Are Collateralized Tokens?
Collateralized tokens are the tokens that represent an ownership claim on an underlying asset locked in Kaizen Finance smart contracts.
Collateralized tokens are immediately distributed to investor wallets after the purchase of locked tokens. Collateralized tokens serve as tradable proof tokens to reflect the value of locked tokens before they unlock. When locked tokens become available for the unlock, collateralized tokens are used to claim these unlocked tokens on Kaizen. Collateralized tokens can be traded, staked, or bought/sold on the kDEX.
What is a kDEX?
Kaizen DEX (kDEX) is a decentralized exchange dedicated to buying, trading, and selling collateralized tokens. Through the trading of collateralized tokens on kDEX, Kaizen taps into the unique market of locked liquidity. It has the potential to release the liquidity locked in assets with an estimated value of $200 billion back into the market.
Kaizen Finance Information Stream
Website: https://kaizen.finance/
Telegram Chat: https://t.me/KaizenFinanceOfficial
Telegram Announcements: https://t.me/KaizenFinance
Twitter: https://twitter.com/kaizen_finance
