How Kaizen.Finance Taps Into $200 Billion Market of Locked Liquidity
The fast acceptance of DeFi, the capitalization of prominent cryptocurrencies, and novel use cases involving non-fungible assets have all contributed to the steady growth of the crypto industry.
However, the vast majority of assets remain locked from the start, restricting the flow of liquidity and availability on the market.
The mechanism of locking tokens has long been used to manage the market price of tokens in questions. The tokens are withheld from the market either manually or by smart contracts to prevent them from being transacted or traded.
On average, the overall value of locked assets is estimated to be around the $200 billion mark.
That is a lot of value sitting and waiting to be used. If anyone were to develop a mechanism to access this aggregated value before the unlock, a whole new market with enormous potential would emerge releasing the locked liquidity back into rotation.
What Kaizen.Finance does is introduce such a mechanism.
Kaizen.Finance provides the ability to trade the future value of locked tokens without disrupting the market price of the token itself. It is breaking a completely new ground in the decentralized trading space.
How Kaizen Releases Liquidity Back Into Market
Kaizen.Finance enables projects to launch tokens, create vesting schedules, and automate distribution of tokens to investors — all through the power of smart contracts.
Moreover, with Kaizen.Finance investors can receive collateralized tokens to their wallets immediately after the purchase.
Collateralized tokens use locked tokens as collateral, serve as proof of locked token ownership, and reflect the value of locked tokens. Unlike locked tokens, their collateralized counterparts can be staked, traded or sold on kDEX, Kaizen’s own exchange dedicated to collateralized tokens.
Kaizen’s collateralized tokens feature enables projects to unlock the liquidity held in locked tokens and release it back into the market creating opportunities for the industry to expand at an even greater rate. As the market of collateralized tokens does not impact the market price of the respective locked tokens, Kaizen’s solution is a win-win solution for projects, investors and the crypto community as a whole.
- Projects are able to manage the price of their token and appeal to investors by providing more opportunities and instant access to tokens.
- Investors receive tradable tokens representing ownership claim to locked assets that can be sold to extract value at any time or used to begin earning interest prior to full unlock.
- The crypto community wins from billions of aggregated liquidity pouring back into the market.
To learn more about Kaizen.Finance please read the litepaper and follow Kaizen on social media:
