Kyoko.finance

Kyoko.finance operates as a decentralized, cross-chain platform focused on providing liquidity solutions for the GameFi and Web3 sectors. Founded in 2021 and headquartered in Japan, the company has established itself as a venture capital-backed entity within the financial software industry.

The platform addresses critical financial barriers within the play-to-earn (P2E) gaming market, such as high entry costs and the challenge of siloed in-game assets across different blockchains. It caters to a range of clients, including decentralized autonomous organizations (DAOs), gaming guilds, and individual players. In February 2022, Kyoko announced a significant milestone, having raised $3 million in a private funding round led by Animoca Brands, with participation from other notable investors like YGG SEA and Infinity Ventures Crypto. This capital was earmarked for expanding partnerships, development, and marketing efforts.

Kyoko's business model is centered on generating revenue from transaction fees and interest margins. The platform charges a 1% fee on the principal of each peer-to-peer (P2P) loan and a 5% interest rate on cross-chain asset lending transactions. The income generated is intended for distribution among holders of its locked tokens, with the specific allocation decided by the Kyoko DAO.

The company offers several core services:

* **P2P NFT Lending:** This service allows NFT holders to use their digital assets as collateral for loans. Lenders can set their desired interest rates and loan terms, and the platform automates the process, transferring the NFT to the lender if the borrower defaults.

* **Cross-Chain Asset Lending:** This feature enables guilds and players to monetize unused in-game assets, effectively lowering the entry barrier to new P2E games.

* **DAO-to-DAO (D2D) and Guild-to-Guild (G2G) Lending:** Kyoko provides credit lines to DAOs and guilds, which often face difficulties accessing traditional funding, allowing them to scale their operations and acquire more gaming assets.

The platform's native governance token, $KYOKO, plays a central role in its ecosystem. Token holders can stake their tokens to receive a share of the protocol's income and participate in governance by voting on key decisions, such as which DAOs are eligible for credit. In a strategic move to enhance market opportunities, the $KYOKO token was migrated from the Ethereum network to the Base layer-2 solution.

Keywords: GameFi lending, NFT collateral, cross-chain assets, DAO-to-DAO credit, play-to-earn, P2P NFT lending, Web3 liquidity, decentralized finance, guild financing, blockchain gaming, crypto loans, KYOKO token, Animoca Brands, digital asset lending, metaverse finance, crypto credit provider, NFT-backed loans, cross-chain lending, DAO liquidity, P2E finance