What is Kunji Finance?

Kunji Finance is a non-custodial asset management platform that connects asset managers with liquidity providers. It allows users to access the services of asset managers to generate passive income through profitable trades.

Kunji Finance is built on Arbitrum, a layer-two scaling solution for the Ethereum blockchain. This allows the project to execute fast, cost-effective transactions while taking advantage of the security of the Ethereum blockchain.

The concept behind Kunji finance rose as a response to the numerous crashes and disasters in the cryptocurrency space. With the demand for transparency and security, while taking advantage of investment opportunities, Kunji Finance allows users to control their assets completely while providing liquidity to earn profit.

This article will look at the features of the Kunji Finance project, like asset management, vaults, and staking, while explaining the underlying framework, like synchronized investment and the optimal frontier framework.

History of the Kunji Finance Project

The Kunji project was launched in 2022 by Anurag Dixit, Vivekanand Pandey, and Harivadan Pandya, who brought over 20 years of experience in marketing, technology, and finance to the project. With the backing of several venture capital firms, Kunji Finance conducted its seed round in August 2022. After the seed round, the project aims to complete an early-stage VC round soon.

By the first quarter of 2023, the project had launched its whitepaper, finalized its architecture, and begun developing its V1 smart contracts. The platform is live for whitelisted users only, with a beta version of the Kunji Finance project released.

At the end of the development stage, the Kunji Finance project is set to launch to the public with an IDO launch and KNJ listed on multiple crypto exchanges.

The Kunji Finance Team

The current team building Kunji Finance consists of the co-founders Anurag Dixit, Vivekanand Pandey, and Harivadan Pandya. The co-founder and board member Anurag Dixit co-founded Zebi, a blockchain-based data management platform. He has over ten years of experience in marketing, business development, and entrepreneurship.

Vivekanand Pandey, also a co-founder of Zebi, is the chief product officer in charge of product development, engineering, and innovation in the Kunji Finance project. He has over ten years of experience in technology, software development, and blockchain.

Then, Harivadan Pandya, the CFO and Chief Operations Officer. He oversees the financial, legal, and operational aspects of Kunji Finance. He is a co-founder of Infinnium, an AI and machine learning platform.

The advisors and partners of Kunji Finance include Dr. Ramesh Babu, Dr. Prashant Mishra, GameFi, and Arbitrum, on which the project is built.

How Does Kunji Finance Work? Self-custody, Investment Vault, Optimal Frontier Framework and Synchronised Investment Strategy Orchestration

Self-Custody

The Kunji Platform is designed to give users full control over their assets to build transparency and trust. Unlike traditional hedge funds, where users must entrust their funds to a third-party custodian, Kunji Finance allows users to interact with the platform through their wallets and smart contracts.

The self-custody feature is powered by Arbitrum’s layer two solutions, which allows transactions to be executed off-chain and posted only on-chain after execution. This reduces the gas fees, increases the throughput, and maintains the security of the project, enabling Kunji Finance to offer a fast, cheap, and reliable platform for asset management.

Investment vault

The architecture of the Kunji Finance platform is built on smart contracts with two vaults: the user vault and the trader vault. Asset managers trade on decentralized exchanges with their relevant strategies, and these trades are replicated in the user’s vault, allowing the user to invest or withdraw funds at will.

The trades replicated on the user’s vault depend on the timing and ratio of the user’s vault in relation to the trader’s vault. When trades are closed down, the same is replicated on the user’s vault.

Optimal Frontier Framework (OFF)

The optimal frontier framework (OFF) is a risk management system developed by the Kunji Finance project. The OFF combines the data from the crypto market sentiments, technical and fundamental analysis, and statistical models to generate an investment strategy tailored to each user’s needs.

The framework uses risk management techniques, such as dynamic rebalancing and position sizing, to minimize risk and protect users’ investments. The framework also monitors the portfolio’s performance and makes adjustments where necessary. The OFF was designed to be an ideal solution for investors of all experience levels looking for a professional and hassle-free way to invest.

Synchronized Investment Strategy Orchestration (SISO)

Synchronized investment strategy orchestration is a feature of the Kunji Finance project that allows users to create and manage multiple investment strategies synchronized. SISO is designed to improve performance, save time and money, and reduce risk.

The unique mechanism also allows users to deposit any amount of assets and exit at any time they wish, as there is no lock-in or minimum investment required to start. Aside from the flexibility of investing and withdrawing, SISO would ensure the user’s funds are allocated to the best-performing strategies.

Features of The Kunji Finance Ecosystem: Asset Management, Staking and Governance

Asset Management

The Kunji Finance platform’s primary focus is managing users’ assets by allowing asset managers and traders to access the liquidity of the users and gain a share of the profit.

The strategies employed on the platform include the Alpha Blue Chip strategy, the Top Cap Digital Assets strategy, and the Arbitrage Opportunity and Balancing strategy.

The Alpha Blue Chip strategy focuses on investment in emerging and growth-themed crypto projects in the DeFi and Metaverse space, with solid teams developing them. This would help to generate the best profits with fewer risks.

The Top Cap Digital Assets strategy focuses on the top 15 digital assets. By deploying active trading techniques and proper risk management, the user and traders’ capital will be maximized. The strategy would concentrate on Bitcoin and Ethereum since they account for most of the crypto market.

The Arbitrage Opportunities and Balanced strategy seeks to maximize investors’ returns through price anomalies across different platforms. The aim is to capitalize on price inefficiencies without taking any directional risk.

Staking

The Kunjji Finance platform allows KNJ holders to stake their tokens and receive rewards. There are three staking-pool tiers, including gold, silver, and bronze, based on the KNJ tokens staked and the expected rewards.

The gold tier pool is the highest and most preferred tier for rewards. There is a minimum staking limit of 1000 KNJ, and it comes with a 15-day lock-in period. The gold tier allows participants to enjoy up to 35,000 KNJ in rewards.

The silver tier is the second highest, with a staking limit of 200 to 1,000 KNJ tokens and a reward potential of 25,000 KNJ. The lock-in period is also 15 days and above. The final bronze tier is the entry-level tier with a 1 to 200 KNJ staking limit and a possible profit of 15,000 KNJ.

All staking is done directly on the Kunji Finance beta platform, and each pool has a lock-up period of 15 days. Afterward, users can unstake their assets with the associated rewards.

Governance

The governance model in the Kunji Finance project utilizes the same focus on transparency to build trust within the community. The users can propose changes and vote on these changes, which play a significant role in the project’s future.

Holders of the KNJ token can vote on the approval of asset managers and their strategies, assets to be supported by the project, and the compensation due to platform contributors. It is important to note, though, that KNJ holders can only vote on the features and structure of the platform, not the individual activities of the company’s operations or that of the approved traders. The operations of the management team are governed by a separate structure, and the safety of investor assets is guaranteed through established security measures and protocols.

What is the KNJ Token?

The KNJ token is the native token of the Kunji finance project, which can be utilized for staking, governance, and the Principal Cover feature of the platform.

To protect investors’ capital from mismanagement by asset managers, the principal cover feature is established to compensate for consistent negative returns after one year, which would trigger the compensation clause in the smart contract. For that reason, asset managers must stake a minimum of 5 KNJ for every $100 in the investor’s vault to minimize user exposure. However, if the user doesn’t remain invested for more than six months in a row, if the user withdraws their funds, they wouldn’t be eligible for the principal cover.

The holders of the KNJ token have governance rights to participate and make decisions in the project. They can also invest and stake these tokens to receive rewards based on the staking pool tier in which they participate.

The total supply for KNJ tokens is 100 million, with a self-reported 6.37 million tokens in circulation and a market valuation of around $480k.

Is the KNJ Token a Good Investment?

The KNJ token is the native token of a promising DeFi project in development. Its non-custodial design and onboarded asset managers allow users to earn passive income while not giving up control of their assets.

The added benefits of governance, staking, and principal covers serve as incentives to participate in the community while reaping the benefit of Kunji Finance and Ethereum’s asset security measures.

Holders of the KNJ token are well-placed to benefit from the growth, development, and success of the Kunji Finance project, providing the community support needed to be viable long term.

Risk Analysis

Advantages

The main advantage of the Kunji Finance project is its non-custodial asset management, which allows its users to retain control over their assets. This contrasts traditional asset management, which requires users to entrust their funds to third parties.

Another advantage is that Kunji Finance is built on the Arbitrum layer-two solution, which offers transparent, fast, affordable, and secure transactions. The flexible investment options open to users allow them to find the plan that suits their risk tolerance. And the principal cover feature adds a finishing touch, protecting investors’ capital from mismanagement by asset managers.

Disadvantages

One major disadvantage of the Kunji Finance project is the uncertainty. The project is still under development, so it is difficult to predict its future success perfectly. The project is also relatively new, which makes it complicated to understand.

The project is in its beta testing phase, which means some issues are yet to be resolved in its complex infrastructure. If the project isn’t successful, initial investors may lose their investment.

Challenges

The Kunji Finance project is relatively new. As such, it faces heavy competition from other DeFi platforms. With other projects providing similar services, it can be difficult for the project to attract and retain users.

The asset regulatory environment is another challenge, as a prevalent atmosphere of uncertainty provides another layer of risk for the project and its users.

Competitive Product Analysis

A few crypto projects like Set Protocol, Index Coop, Yield Protocol, PieDAO, and Balancer offer similar services as the Kunji Finance project. Yet, the top competitor to Kunji Finance is Set Protocol.

Both projects are under development and offer decentralized asset management but are focused on different objectives. Kunji Finance is focused on providing a variety of transparent investment strategies managed by specially approved asset managers that are always secure.

Set Protocol is focused on providing its users with various index funds that can be created and managed by any ecosystem member. It also offers non-custodial asset management features.

Since both platforms are under development, there’s no clear winner.

How Can You Own KNJ?

To own KNJ tokens and become a part of the Kunji Finance ecosystem, users can follow a simple process.

Setup a Wallet

One way to own KNJ tokens is to purchase them through an exchange. For this, the user can create a Gate.io account, complete the KYC process, and add funds to the account to buy the token.

Utilize the KNJ Tokens

Once users have acquired KNJ tokens, they can explore the wide range of functionalities in the Kunji Finance ecosystem, such as staking, asset management, and governance.

Take action on Kunji Finance

Users can sign up and purchase or trade Kunji Finance tokens here.