The decentralized protocol KUU, which attempts to provide maximum yields on investments and credit fungibility for the decentralized applications running on it, has now been launched on Avalanche. What does this unification imply for the vested parties?
Clients can make use of their single assets pools in the community to invest money in KUU. They can rest assured that their funds won’t run the risk of temporary losses. The on-chain crypto bots, named Keepers, will then handle those funds to gain returns by providing flash loans. Keepers also use the arbitrage function; that is, they seek the opportune moment when they can buy assets from one market at a lower price and sell them at a higher price in a different market. They also handle fungibility operations on decentralized lending crypto protocols like KUU. Hence one can be assured that any inefficient state in the market will be dissipated, and unhealthy loan situations would also be quickly resolved.
To begin with, KUU will take advantage of the numerous benefits offered by Decentralised Finance. KUU clients will get a better turnover on their investments even when the market undergoes fluctuating trends, simply because of regular arbitrage and the availability of opportunities for liquidity. When the market is relatively stable, KUU lends the assets which are comparatively less exploited to other platforms like BENQI so that liquidity investors never miss a chance to profit from their investments.