FAQ

What is Kylix?

Kylix is an over-collateralized lending protocol on Polkadot Hub. You can supply, borrow or liquidate. Positions are stored in Hub state.

Three mechanisms do the work: self-repaying loans, a polynomial interest curve, and a queue for liquidated collateral.

Why Polkadot Hub?

Hub already has the shared security and the native assets. Kylix does not run a separate chain, and it does not ask you to bridge in. The work goes into the lending logic instead of into cross-chain plumbing.

What problem is this solving?

A lender today usually meets three limits.

• The interest curve barely pays until the pool is almost fully used, so early deposits earn little.
• Collateral secures the loan and earns nothing for the borrower.
• Liquidation destroys value for the borrower and for the pool, because the sale is crude.

Kylix is aimed at those three. It is not trying to be one more list of markets.

Which assets are supported?

The first markets are DOT and USDC, as Hub assets. USDT is not listed yet. An asset is added when there is an oracle and a decision to list it, not because a bridge can move it.

How do liquidations work?

An unhealthy position's collateral is offered in a queue. Bids fill from the smallest discount to the largest, so the pool takes the best price on offer before it takes a worse one.

If the bids cannot cover the debt, the remainder is swapped across routes with an external market maker. The queue is the first path, not the only path.

What is a self-repaying loan?

The collateral is moved into a yield-bearing position. The yield is applied to the debt automatically, which is useful when the collateral has a liquid staking market.

This is not a promise of a negative rate. If the yield is higher than the interest you pay, the debt falls on its own. If it is not, you still owe the difference.

What is the polynomial interest rate?

A common curve stays close to zero until utilization is high. Lenders then wait for borrowers who never arrive, because the pool looks empty.

Kylix pays a rate while utilization is still low, then steepens the curve as the pool fills. Lenders have a reason to deposit before the pool is rationed. The coefficients are in the protocol, not on this page.

How is Kylix incorporated?

The registered entity is Kylix Labs LLC, in Saint Vincent and the Grenadines. That entity is what the team uses to issue the KLX utility token.

Will there be an audit before launch?

Yes. The public release waits on an external audit and a private test. The plan includes Polkadot Assurance Legion and the vCISO programme. Reports are published when they exist. They are not implied by this page.

Will there be a token?

The team plans to issue a utility token, KLX. Supply, the inflation rate and who receives the tokens are set in section 2.6 of the whitepaper. That document is the source. This page does not restate the figures.

What is KLX for?

KLX is a utility token for the protocol, not the asset that secures Polkadot Hub. Hub secures the chain the contracts run on.

Fees from each borrow and each liquidation go to the Kylix treasury. Part of the treasury pays participants who support the protocol. Part of the KLX collected is burned, so more borrowing reduces the KLX supply. Staking and governance, where they apply, are described in the whitepaper.

How do I get KLX?

KLX for the private sale is offered through Polimec. Later distribution, if there is any, is announced on this site and on X. A faucet, if one is offered, covers fees. It is not an allocation.

How do I contact you?

Email info@kylix.finance, follow x.com/KylixFinance, or join the Discord at discord.gg/UkRcWaTh5p.