Kyoko Finance is a cross-chain platform built to facilitate GameFi NFT lending for both players and guilds to help them expand gaming assets.
Guilds have opened blockchain games to several millions of players across the world by making them more affordable and accessible. But the expansion of guilds is being limited by the lack of easy-access funding that can help them increase their digital assets, bring in more players, and an opportunity to grow their profits.
Kyoko Finance was established to help guilds tap the full potential of blockchain games by creating loan options specially created for them.
Since impressively-managed guilds with passionate players are already in place, the platform believes that funding is the only missing piece that can finally help them reach their full potential.
What is Kyoko Finance?
Kyoko Finance is a cross-chain platform built to facilitate GameFi non-fungible token (NFT) lending for both players and guilds to help them expand their gaming assets in the most accessible way.
The services it provides are P2P NFT lending, cross-chain lending, and guild-to-guild lending, which all help lower the high entry barrier of venturing into P2E games.
Guild to Guild Loan (G2G)
Guilds need access to additional funding to better help gamers and access more gaming assets, but the problem is the majority of lending options remain over-collateralized.
‘Guild to Guild Loan’ or G2G solves this problem by providing guilds with much-needed loans without any collateral at all.
The only requirements that guilds need to have are great records and a potential to grow and become more profitable.
Guilds interested in tapping the G2G loan service can apply for Kyoko’s whitelist access, and credits can be in the form of money or in-game assets. Guilds are not limited to one blockchain when purchasing gaming assets, as the platform allows cross-chain purchases of NFTs.
For higher loans, guilds are required to lock their tokens on the platform’s Kyoko Vault to serve as collateral. They also need to pass what Kyoko calls the ‘due diligence evaluation process’ to see their fitness in applying for a loan.
On top of this test, Kyoko has also collaborated with major guild data aggregator platforms to better determine applicants’ creditworthiness.
P2P NFT Lending
Kyoko’s P2P NFT Lending turns holders’ NFTs as loan collateral, providing an immense value for people who need immediate funds.
The platform allows lenders to set their preferred interest rate, loan amount, and loan period, which its system will automate.
Once a user fails to pay a loan in time, Kyoko’s system will automatically transfer his NFT to the lender.
Cross-Chain GameFi Assets Lending (CCAL)
Cross-Chain GameFi Assets Lending turns holders’ idle NFT into a viable passive income by allowing them to list their assets in its marketplace.
This is also beneficial for players who are reluctant to purchase gaming assets at full price and will prefer to look for available NFTs to rent.
It’s a win-win situation for both sides as NFT owners can have additional income while renters can be protected from NFTs’ fluctuating prices.
CCAL’s mechanism is the same as Kyoko’s P2P lending, where lenders can set their terms, including lending rates, cash pledges, and payment deadlines.
If ever a borrower fails to pay his loaned game asset in time, Kyoko’s system will automatically transfer his initial cash deposit to the lender.
KYOKO Token is the platform’s governance token that allows holders to vote on critical decisions in the ecosystem and gain access to exclusive benefits.
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A Quick Guide on KYOKO Staking
Go to Kyoko’s staking portal.
Choose a preferred pool.
Note: Users are reminded that providing liquidity on Uniswap V2 is required. Liquidity providers of Uniswap V3 will not be eligible for rewards.
Choose the desired setting. Users may choose between flexible or locked staking depending on their preferences.
Once the preferred setting has been set, click the ‘Approve’ button. The Web3 wallet will then ask to confirm and review the transaction; once everything is clear, confirm the agreement.
It’s now time for the staking transaction. Click the ‘Stake’ button and confirm the Web3 wallet prompt. Once the ‘Transaction Confirmed’ notification appears, the staking process is done.
Kyoko Lost Snowmen Competition
Kyoko Finance has launched a three-part competition where participants are required to find a missing snowman.
The first and second parts of the contest were finally wrapped up, and now, the third and last part has finally been launched, which started on Feb. 14 and will end on Feb. 23.
Participants can join the competition by fulfilling these simple tasks:
- Follow Kyoko Finance on Twitter
- Tweet Kyoko’s specified tweet
- Retweet Kyoko Finance
- Join on Kyoko’s Telegram and Discord accounts
- Follow Kyoko on Medium
- Share Kyoko’s official social media accounts with friends and family
Kyoko has prepared a reward of $3,000 for three lucky winners of this competition, and interested participants can find the contest’s complete mechanics here.
Kyoko Finance and Animoca Brands Raised $3 Million in Private Funding
Kyoko Finance announced that it has successfully raised $3 million in private funding in collaboration with Animoca Brands, who led the funding.
Other investors who participated are YGG SEA, Infinity Ventures Crypto (IVC), Kliff Capital, NGC Ventures, Red Building Capital, and more.
The funds will be used to expand Kyoko’s partnerships with guilds and DAOs to strengthen its services further and secure its ‘first-mover’ position.
On top of these things, Kyoko will also allocate funds in expanding its development and marketing teams to scale its entire platform.
Qualities of a Great Guild
Funding guilds is a serious venture, which explains why Kyoko has a rigorous screening process to approve guilds’ applications for funding.
But how would guilds know if they have what it takes to gain Kyoto’s approval and be eligible for much-needed funding? Here’s a quick look:
Quantity of Active Players
The number of active members in a guild determines its capability to generate revenues, which means guilds with a few players have a slim chance of getting funding.
Value of NFTs in Treasury
Having valuable NFTs is also important to ensure that members have high-quality digital tools to generate income. The platform also looks at the NFTs being actively used and digital assets that remain idle.
The platform also looks at the scholars’ average earnings to determine how fast a guild can pay back its loan, including the other fees.
Given the crypto industry’s volatile nature, does a guild have a Plan B in case something goes wrong? The platform wants to see if these types of plans are already in place to determine the guild’s preparation for unfavorable financial situations.
Is the guild already producing real profits from its operations, or is it still in the break-even stage? This information is critical to determine the guild’s present capability to produce profits and maintain its operations.
Additional Income Stream
Aside from ‘grinding’ scholars, does the guild have additional income sources, like renting their idle gaming assets? The platform also wants to see if a guild can creatively utilize all its assets to the fullest to generate additional profits.
Kyoko Finance’s loaning services are a real heaven-sent for guilds and individual players that want to scale but are limited by the scarce financing options.
By having a financing platform that specifically caters to them, guilds and blockchain gamers can finally have access to funds that can help them expand their assets and increase their revenues.