Knit Finance— Telegram AMA — September 02
On Thursday, September 02, we had the pleasure to welcome to our Telegram chat:
Sainath Gupta, CEO.
We asked him questions about the development of Knit Finance.
Some sentences have been slightly edited for readability but the meaning has been conserved.
Knit Finance is a unique decentralized protocol for creating cross-chain wrappers for the top assets. It delivers all-chains bridges to ensure comfortable cross-chain fluidity of assets and allows institutions, developers, farmers, and traders to tap into trusted custody to mint Knit’s k tokens.
$KFT is the native token of the Knit Finance platform. KFT will use a reward mechanism and payment medium. Holders of KNIT Tokens dictate all platform integrations and directions.
Knit.Finance makes programming and leveraging smart contracts a seamless possibility for the Assets, thereby propelling participants to use more contract-centred operations or products.
Knit.Finance unlocks the full functionality of the EVM based blockchain ecosystem without the need to change implementation or migrate to a completely new Blockchain.
Cartesi and Knit Finance are integrating to form a cross-chain platform to simplify the process of trading for traders. Knit Finance is adding Cartesi to its multichain platform for enabling CTSI to transact between multiple blockchains in the K-CTSI model.
Q — Ayeley from GAINS: Please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?
A — Sainath from Knit Finance: I am Sainath Gupta, CEO of Knit Finance. I made India’s first mobile point of sale i.e Aasaanpay, in 2011. I have been a successful fintech entrepreneur since then. I come with a rich decade-plus of innovative fintech execution experience.
Q — Ayeley from GAINS: What is the project about in a few simple sentences? For how long has Knit Finance been in existence and what was the inspiration behind it?
A — Sainath from Knit Finance: At present, the DeFi space is limited prominently to only two public networks. Due to this the ecosystem can only tap 3% liquidity out of the $2 trillion market space ( May 21) Knit Finance is a unique decentralized protocol that combines wrapped assets across multiple chains, bridges, and real-world markets with yield, lend, trade, and margin services through smart contracts. It is the next generation of DeFi protocol that aims to bridge multiple non-Ethereum chains with ERC20 in Phase 1. With Multichain Bridges, KNIT Finance creates a way for billions in liquidity to flow into DeFi. Any crypto hodler can convert their coin to an equivalent wrapped token of ERC-20 standard with KNIT Finance’s smart contract. The wrapped token thus generated is pegged to the original token in a 1:1 ratio. This token can then be lent, borrowed, or farmed. Likewise, ERC 20 tokens can also be wrapped into other blockchains.
We have been on this for a year now.
Q — Twitter user @meml97: It caught my attention that Knit Finance will offer “Deposit Knit Insurance” on its platform, can you tell us more about it? How does this Insurance system exactly work? How can users obtain it for their Cross-Chain Wrapped Assets? In what situations will this Insurance apply?
A — Sainath from Knit Finance: Essentially the tokens deposited are with insured custodians. Cross-chain bridges mightn’t be ready for the safety standards required to handle billions of dollars of assets. As original assets are with custodians who are insured with real-world insurance. No need to take separate insurance for the same
Q — Twitter user @antonio50221026: Knit Finance integrates Polygon into its EVM-compliant multi-chain platform, where wrapped K-MATIC tokens can transact. So, can you elaborate on this recent integration to Knit? How does this integration benefit Knit’s ecosystem and its community in general?
A — Sainath from Knit Finance: Once an asset gets wrapped, any chain integrated with us can use the same. Hence any asset wrapped with us can start using the system
Q — Telegram user Maria Fuentes: I understand that implementing the synthetic tokens k in projects of other chains, will allow them to enjoy the benefits that ERC20 offers but is interoperability between chains really the only benefit? if not, could you tell us about them?
A — Sainath from Knit Finance: On top of that, Insurance for the original asset and Liquid staking for locked DPoS tokens
Q — Telegram user Marian Merheb: It caught my attention that Knit Finance’s goal is to open DeFi for the masses and unlock trillions of dollars of potential assets. That being said, can you tell us more about this goal?
A — Sainath from Knit Finance: The goal is to open trillions of dollars to enter DeFi which is currently at $150 billion
Q — Telegram user 𝗟𝘂𝗰𝗸𝘆 𝗦𝘁𝗿𝗶𝗸𝗲: How do you handle fees and commissions between chains, and is there a cost to move money from one chain to another? Taking into account that there are chains that charge more commissions than others, does the percentage of gas fees depend on the chain we handle, or do you have a fixed rate for all chains?
A — Sainath from Knit Finance: Currently, we are going with flat fees. In the future, we might reconsider
Q — Telegram user Super-Girl Says 💬: On your website, you say that a small commission is applied for the redemption of the K-assets and for the use of the bridge. Can you give us details of how much will be the value of these commissions?
A — Sainath from Knit Finance: We are looking at 0.25% of value this is less than what most bridges are charging currently.
Q — Ayeley from GAINS: What role does the $KFT token play in the ecosystem?
A — Sainath from Knit Finance: $KFT Token Use Cases
$KFT is the governance token for Knit.finance platform. All protocol-level changes shall be governed by voting using $KFT tokens. We’re exploring converting it into an independent SaaS offering so developers and projects can build unique offerings for the different pools.
$KFT token will be considered to be part of all major staking wrapped asset projects, enabling token holders to stake $KFT tokens and earn a bunch of other wrapped assets where possible.
- Premium Pools
Knit.Finance would be launching several premium pools and offerings, which would be available to $KFT token holders on a TIER structure.
- Premium Offerings
Knit.Finance is collaborating with several chains, projects, launchpads, platforms, and service providers to synergies with them for special access, etc. This would be made available to $KFT token holders on a TIER structure.
- Add-ons Access
Knit.Finance is working on adding several add-ons (such as on-chain insurance, farming of NFTs, etc.). These would be made available to $KFT token holders for a TIER structure.
- Paying Fees
As we move towards a SaaS model, all limited access features would be accessible to developers and projects by paying fees in $KFT token. Essentially, it would be the utility token for building on Knit.finance.
Q — Twitter user @TheShadowJK_1: Knit has recently partnered with the Cartesi team. How will this new merger allow Knit Finance to take a step closer to unlocking the full potential of DeFi? How will your ecosystem be enriched by this new partnership?
A — Sainath from Knit Finance: With Knit Finance, users can deposit tokens to an insured custody platform and mint k assets which are 1:1 equivalent in value and are available on multiple chains for trading, staking for yield, lending, and margin trading. Knit Finance’s integration with Cartesi will involve the integration of K-CTSI on its multi-chain platform. This will allow CTSI to be transacted across multiple independent blockchains in a wrapped K-CTSI token model. Read more here.
Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?
A — Sainath from Knit Finance: We have successfully raised $370,000 in our strategic funding round and $999,000 in a private funding round. With such significant achievements, we’ve now proceeded to our SEED SHO program on DAO Maker. A total of 290 lucky winners can win their share from a reward pool of $145,000 + $5,000 $KFT. Knit.Finance believes in a high level of transparency. With this idea in mind, we are rolling out this informative token metrics guide to understand Knit $KFT metrics and distribution better. We have received enormous love and support from our community and hope for the same to continue throughout our journey.
Q — Ayeley from GAINS: What sets Knit Finance apart from the competition?
A — Sainath from Knit Finance: We support multiple chains and wrapped tokens that are insured, 1:1 collateralized, and 100% verifiable. While some projects are providing single tokens for multiple coins which we think might create confusion to users while maintaining the portfolio and converting tokens to their original form. In addition to that Our vision is to enable DeFi on multiple chains, our execution is matching our vision thanks to a great team
Some of our USP’s mentioned below are:
1) Multi-Chain availability
2) Multiple-Assets of Crypto support
3) Multiple classes of assets support
This opens up the possibility of Decentralized Finance to many Non-ERC20 and Non-DeFi participant platforms and assets. The solution is the first of its kind, a Cross-chain Wrapped Assets system that is interoperable across various Blockchains and this is what makes Knit Finance different from other projects.
Q — Ayeley from GAINS: How many chains will be supported? And how easy will it be to use, for the average crypto hodler?
A — Sainath from Knit Finance: The plan is to support 16 chains in the next 4 months. It’s going to be very simple to use
Sainath, thanks for coming into our community, and taking the time to answer our questions. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates 🐋
Knit Finance is by the community and for the community. It was my pleasure. Its an awesome community here. Thanks for having me here