FAQ
What is Kylix?
Kylix Finance is an innovative, multi-chain lending platform designed to manage over-collateralized loans and aggregate liquidity from external chains—without the need for traditional bridging solutions.
Using a Hub&Spoke architecture, Kylix acts as a liquidity hub for cross-chain operations, registering and managing settlements of cross-chain assets. Everything is recorded on the Kylix blockchain, which functions as a multi-chain ledger.
Multi chain approach, how is this going to be executed?
The multi-chain approach is implemented by registering the virtual settlement of cross-chain transactions on a common ledger at Kylix blockchain, without the need of moving liquidity across chains.
Kylix acts as a main liquidity hub for multiple blockchain networks, analogous to the role of a clearing house for financial settlements in traditional finance. Using a hub-and-spoke architecture, Kylix aggregates settlements and maintains status information for cross-chain assets, permissionless ERC-20 tokens, and communicates with external chains with the help of smart contract vaults called Spokes.
This approach provides the users with a unified interface for cross-chain financial operations, meanwhile the platform enables compounded liquidity management, improving capital efficiency across blockchain ecosystems.
Which problems are you trying to solve?
The fundamental problem in today's cross-chain ecosystem isn't the lack of bridges or liquidity—it's the absence of intelligent aggregation and optimization. When a user wants to interact between different blockchains, they typically face:
- High slippage due to fragmented liquidity
- Complex multi-step processes
- Significant waiting times for bridge transfers
- Limited options for exotic token
- Inefficient pricing due to segregated markets
- Forced to wrap assets due to impossibility to move native assets across chains.
- Liquidity Fragmentation, Liquidity Shortages and illiquidity situations.
While existing solutions have made progress, none have successfully combined deep liquidity, optimal routing, and seamless user experience into a single, powerful platform.
Due to the existence of a multi-blockchain environment, decentralised finance (DeFi) platforms face significant challenges such as liquidity fragmentation, liquidity shortages, illiquidity and inefficient collateral liquidation systems. Liquidity risk can affect users' ability to access and trade their assets, and liquidity fragmentation can make it difficult for lenders and borrowers to operate effectively. In addition, many lending platforms lack adequate incentive mechanisms to bootstrap and maintain stable liquidity.
Which chains are supported by Kylix?
The Kylix platform has the potential to integrate all chains supported by the cross-messaging protocols used by the Kylix Hub (XCM, Wormhole and Equito Network) into a total of 25 potential blockchain networks. Initially, we will focus on supporting Polkadot and Solana. In the next phase, we plan to expand to Ethereum, SUI, SEI and MintLayer. As our business grows, we will continue to add support for additional chains to meet market demand and user requirements.
How are liquidations executed?
The Kylix marketplace uses a queue-based system to handle liquidations. As assets are liquidated, they are made available for purchase by community members through a bidding process. Bids are filled sequentially, starting with the smallest discount and progressing to the largest. This approach ensures a fair and efficient distribution of assets while maximizing returns for the protocol. In scenarios where bid liquidity in the queues of the liquidation markets is insufficient to cover a liquidation, Kylix seamlessly executes asset swaps over multiple paths through partnerships with external market makers.
What are self-repaying loans, and how do they benefit users?
Self-repaying loans are a specialised financial instrument where the deposited collateral is converted into an interest-bearing asset that generates income that is automatically used to cover the debt position. This structure allows borrowers to leverage assets supported by liquid staking platforms to hold a loan with negative interest rates.
What exactly are polynomial interest rates, and why used?
Kylix Finance has implemented an innovative interest rate model for its lending pools, designed to incentivize liquidity providers even when market utilization rates are low.
How is Kylix legally incorporated?
Kylix Finance is registered as a Foundation in order to fulfill all the regulations requested by Regulators, with the name Kylix Labs LLC, in SanVincent, Caribbean Island. This legal configuration allows us to issue the Kylix native utility token.
Will Kylix be audited before launch?
Yes, it will be audited and reviewed by several audit companies and we will add PAL (Polkadot Assurance Legion) as an auditor and leverage the security benefits of the vCISO initiative. We will release Kylix only after it has been rigorously audited and privately tested.
Will a new token be issued for Kylix?
The development team behind Kylix will issue a new utility token called $KLX, with an initial market cap of 1B and a perpetual inflation mode of 5% PA. Please refer to the tokenomics outlined in paragraph 2.6 of the Kylix whitepaper.
What’s the reason for the native KLX token?
The protocol is secured by the native KLX token. KLX is primarily a utility token. Validators need KLX to validate and are rewarded in KLX. Value is indirectly returned to validators through protocol fees. In addition, any borrow and liquidation executed on the platform results in the automatic collection of fees, which are collected by the Kylix treasury. A portion of the treasury is used to reward validators and a portion of the KLX tokens are burned, putting deflationary pressure on the network as borrowing and liquidation volume increases.
How do users get the token to use the network?
The Polimec Round offers the exclusive and only opportunity to acquire KLX tokens through a private sale. Participants in this round will gain full access to the Kylix platform, including staking and governance privileges. For those unable to participate in the Polimec auction, the network will provide a public faucet on the platform, offering minimal KLX tokens to cover transaction fees.
Which assets and chains are supported?
We will support Polkadot and Solana initially. Then other chains will follow, including Ethereum, SUI, SEI and MintLayer. The selection of Tokens is based on business decision, oracle availability and market preference.