Last updated 8 months ago
Current lending platforms expose borrowers to liquidations, lock lender capital inefficiently, and remain too complex for users limiting DeFi adoption on Cardano.
KiyoFi is a next-gen lending protocol on Cardano that protects borrowers from harsh liquidations, simplifies lending and borrowing, and drives safer, wider DeFi adoption.
This is the total amount allocated to Kiyo Finance - A Next-Gen Lending Protocol for Cardano.
Please provide your proposal title
Kiyo Finance - A Next-Gen Lending Protocol for Cardano
Enter the amount of funding you are requesting in ADA
90000
Please specify how many months you expect your project to last
8
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Current lending platforms expose borrowers to liquidations, lock lender capital inefficiently, and remain too complex for users limiting DeFi adoption on Cardano.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
Yes
License and Additional Information
MIT License
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Lending
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
Kiyo Finance introduces borrower protection and liquidation resilience, which most funded Cardano lending projects lack. Unlike standard lending models, KiyoFi prioritizes user safety, efficient liquidity use, and simplicity. By combining non-custodial design with proactive safeguards, it addresses capital lock-up and harsh liquidations. This makes Kiyo not just another lending dApp, but a next-generation protocol built to grow Cardano’s DeFi adoption.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP will be a live testnet dApp where users can deposit ADA, borrow against collateral, and experience borrower protection features (alerts & liquidation safeguards). It will also showcase the simplified lending/borrowing flow through a clean UI. The prototype will be accessible via a public web dApp with Cardano wallet integration (e.g. Lace, Eternl). All smart contracts and front-end code will be open source on GitHub, ensuring transparency and enabling developer feedback.
Describe realistic measures of success, ideally with on-chain metrics.
Realistic Measures of Success (on-chain):
• Unique wallets interacting with MVP: at least 50–100 in first 1 months.
• Total loan volume: 10k–100k ADA processed during testnet/mainnet pilot.
• Successful repayments vs. liquidations: >70% of loans closed without liquidation.
• On-chain transactions: steady monthly growth in deposits/borrows tracked via Cardano Explorer.
These goals are modest but achievable, ensuring reviewers see Kiyo as grounded in Cardano’s current reality.
Please describe your proposed solution and how it addresses the problem
Proposed Solution
KiyoFi is a next-generation, AI-enhanced lending protocol on Cardano that enables users to earn, borrow, and unlock liquidity effortlessly.
Core Features
Borrower Protection with AI
AI-driven monitoring tools track borrower positions and market volatility in real time. Instead of sudden liquidations, borrowers receive alerts and adaptive recommendations, giving them time to protect collateral.
Kiyo Points System
Lenders receive non-transferable Kiyo Points when depositing funds. These points allow them to borrow up to ~80% of the amount lent, without withdrawing capital. Points are burned once the loan closes. This boosts capital efficiency while avoiding tradable debt instruments.
Enhanced Lender Profitability
Lenders not only earn interest from borrowers but also benefit from secondary liquidity unlocked through Kiyo Points. This dual advantage makes lending more attractive, ensuring funds are more productive while remaining safe.
Simple, Retail-Friendly dApp
A clean, intuitive interface for deposits, borrowing, and repayments lowers barriers for both new and experienced users.
By combining AI-powered borrower protection, capital-efficient Kiyo Points, and enhanced lender profitability, KiyoFi delivers a safer, more rewarding, and user-friendly lending protocol for Cardano.
Please define the positive impact your project will have on the wider Cardano community
KiyoFi is designed to create meaningful value for both users and the broader Cardano ecosystem.
For Borrowers
For Lenders
For the Cardano Ecosystem
Success Metrics
By aligning borrower safety, lender profitability, and ecosystem growth, KiyoFi contributes directly to Cardano’s mission of building inclusive and sustainable financial systems.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
KiyoFi is early stage, but the idea is clear and the plan is practical. The project will be delivered by combining my vision with support from experienced Cardano builders.
How We’ll Deliver
Partnerships: I’ll work with established Cardano dev groups for smart contracts, audits, and frontend work. This keeps the project lean but reliable.
Phased Development:
Phase 1: Lending/borrowing contracts + Kiyo Points prototype on testnet.
Phase 2: AI monitoring system for borrower protection.
Phase 3: User-friendly dApp + mainnet launch.
Accountability
Funding will be used carefully, focused on development and audits. I’ll share progress regularly on GitHub, Twitter, and community forums, so backers can track every milestone.
Why Feasible
The concept itself is not overly complex lending, borrowing, monitoring but packaged in a safer, more user-friendly way. With clear milestones, open collaboration, and full transparency.
Milestone Title
Research & Prototype
Milestone Outputs
Produce complete technical documentation detailing protocol architecture, lending/borrowing flow, and risk handling models. Build a minimal working testnet prototype of deposit and borrow contracts to validate core lending functionality before further expansion.Produce complete technical documentation detailing protocol architecture, lending/borrowing flow, and risk handling models. Build a minimal working testnet prototype of deposit and borrow contracts to validate core lending functionality before further expansion.
Acceptance Criteria
Prototype must support wallet connection, deposits, borrowing, and repayments without errors. Transactions should be recorded properly on testnet and reviewed by at least two external testers for confirmation.
Evidence of Completion
GitHub repository with source code and documentation, recorded demo video showing testnet transactions, and written validation feedback from early testers confirming functionality.
Delivery Month
2
Cost
10000
Progress
10 %
Milestone Title
Smart Contracts & AI Monitoring
Milestone Outputs
Develop lending and borrowing contracts with integrated AI-based monitoring that constantly tracks loan health. AI will simulate volatility events and issue early alerts to minimize liquidation risks. Introduce Kiyo Points system on testnet, letting lenders borrow a portion of their deposit.
Acceptance Criteria
Contracts must pass functional stress tests with consistent results. AI system must trigger alerts correctly during volatility simulations. Kiyo Points should mint and burn accurately, following the fixed 1:0.8 borrowing ratio rules.
Evidence of Completion
Publicly available testnet contract addresses, published logs of AI alerts during tests, GitHub commits of contract code, and documented test runs verifying Kiyo Points behavior.
Delivery Month
4
Cost
25000
Progress
40 %
Milestone Title
Frontend dApp & Community Testing
Milestone Outputs
Deliver a clean, retail-friendly web dApp with wallet integration and full support for deposits, borrowing, repayments, position tracking, and Kiyo Points usage. Deploy this on testnet for open community testing, gather structured feedback, and refine UX.
Acceptance Criteria
Users must be able to complete all actions on testnet (deposit, borrow, repay, redeem Kiyo Points) through the frontend. Feedback will be collected from at least 5 testers and improvements must be applied.
Evidence of Completion
Public dApp testnet URL, GitHub repo with frontend code, published user feedback reports, and a changelog showing refinements made from community testing results.
Delivery Month
6
Cost
20000
Progress
60 %
Milestone Title
Audit & Mainnet Prep
Milestone Outputs
Commission an external security audit for all smart contracts, resolve every major or critical finding, and finalize optimized versions for production. Prepare detailed deployment documentation and internal test scripts to ensure stability for mainnet launch.
Acceptance Criteria
Independent audit must verify contracts are free of critical vulnerabilities. Optimized code should be deployed on a staging network and tested for efficiency, showing no unresolved issues remain.
Evidence of Completion
GitHub commits documenting fixes, internal test logs on staging network, and finalized deployment documentation for the mainnet release.
Delivery Month
7
Cost
15000
Progress
70 %
Milestone Title
Mainnet Launch
Milestone Outputs
Deploy fully audited contracts to Cardano mainnet and release a stable production version of the KiyoFi dApp. Publish onboarding guides, FAQs, and tutorials so lenders and borrowers can use the system with zero prior DeFi knowledge. Launch marketing campaign to onboard users.
Acceptance Criteria
At least 50 unique users must complete successful lending or borrowing transactions on mainnet in the first month. Onboarding docs must be published and accessible to the public, community announcement posts confirming the official launch.
Evidence of Completion
Transaction hashes on Cardano mainnet proving successful use, production dApp URL, onboarding documentation links, and community announcement posts confirming the official launch.
Delivery Month
8
Cost
15000
Progress
90 %
Please provide a cost breakdown of the proposed work and resources
The total requested budget is 90,000 ADA, allocated as follows:
Smart Contract Development (20,000 ADA)
AI Risk Monitoring (15,000 ADA)
Frontend dApp & UX (15,000 ADA)
Testing & QA (10,000 ADA)
Security Audit (15,000 ADA)
Deployment & Launch (10,000 ADA)
Reporting & Contingency (5,000 ADA)
Final project report, community presentation, and buffer for unforeseen costs.
How does the cost of the project represent value for the Cardano ecosystem?
Kiyo Finance delivers strong ecosystem value at a lean budget of 90,000 ADA. Comparable DeFi projects often require much larger funding, yet Kiyo focuses on efficiency, transparency, and open-source delivery.
High Impact for Borrowers: By reducing liquidation risks through AI monitoring, users gain more confidence to borrow on Cardano.
High Impact for Lenders: Kiyo Points improve capital efficiency, ensuring lenders earn more utility from their deposits.
Open Source Outputs: All code and documentation will be released under MIT license, benefiting future Cardano developers and projects.
Community First: Testing, feedback, and audits ensure funds are spent on creating a secure, usable, and trusted protocol.
Sustainability: Rather than one-off development, Kiyo is designed to grow into a multichain product while keeping Cardano at its core, maximizing long-term ROI for the ecosystem.
In short, Kiyo Finance provides real utility, ecosystem growth, and transparency at a fraction of the cost of similar DeFi protocols ensuring Catalyst funding is used responsibly and effectively.
Terms and Conditions:
Yes
Kiyo Finance is founded by Horrish, Marketing Director at Begin Wallet( https://begin.is/ ) and Founder of Cubix Studio (https://www.cubixstud.io/ ). With experience in marketing, growth, and community building, I will lead vision and coordination. Development, audits, and design will be supported by trusted ecosystem partners and open-source contributors. Catalyst funds will help onboard developers, auditors, and testers, with all outputs released under MIT license.