Earn Rewards 🏦

KasLend empowers users to borrow assets on our platform by setting their own loan terms. Borrowers can customize key parameters such as collateral amount, loan duration, and interest rate, giving them full control over their borrowing experience. Additionally, borrowers have the opportunity to earn interest on the assets they lend through our platform.

Example:

Bob's Lending Strategy with KasLend (1-Month Example)

Bob decides to lend his TokenA on KasLend for 1 month with a 50% APR. Here’s how Bob’s lending strategy works:

Lending Terms

• Amount Lent: Bob lends 100 TokenA.

• APR (Annual Percentage Rate): 50%.

• Loan Duration: 1 month.

• Collateral: Bob's loan is collateralized by the borrower.

Step-by-Step Process:

1. Lending TokenA

Bob lends 100 TokenA on KasLend to earn interest. The APR is 50%, which is annual, so we need to calculate how much interest Bob will earn over the 1-month period.

2. Monthly Interest Rate Calculation

Since there are 12 months in a year, we convert the annual APR to a monthly rate:

\text{Monthly Interest Rate} = \frac{\text{APR}}{12} = \frac{50%}{12} \approx 4.1667% ]

3. Interest Earned Over 1 Month

The interest Bob earns on his 100 TokenA for 1 month is calculated as follows:

$$\text{Interest Earned} = \text{Lent Amount} \times \text{Monthly Interest Rate}$$

$$Interest Earned=100×(4.1667 / 100)$$

Bob earns approximately 4.167 TokenA in interest over 1 month.

4. Bob’s Total TokenA After 1 Month

At the end of the 1-month lending period, Bob will have:

$$\text{Total TokenA} = \text{Lent Amount} + \text{Interest Earned} = 100 + 4.167 = 104.167 \text{ TokenA}$$

Bob’s Earnings Summary

• TokenA Lent: 100 TokenA.

• Interest Earned: 4.167 TokenA.

• Total TokenA After 1 Month: 104.167 TokenA.

Conclusion:

By lending 100 TokenA for 1 month at a 50% APR, Bob earns an additional 4.167 TokenA in interest. This extra amount represents Bob’s profit from lending his tokens, assuming the token price remains stable during this period.