Kinto has been designed to offer users a unique value proposition: a safety-first L2 with native sybil resistance and account abstraction to solve the biggest blockers to mainstream adoption: security and user experience.
As explained in our Engen post, Kinto is preparing for its full mainnet launch in May. Before launch, we want to onboard and reward valuable network participants through our launch program, Engen.
So far, we have launched The Arrival, The Setup, and The Rescue. The reception from the community was incredible, with spots filling up quickly at every single step. Over 25K users have completed the KYC process, creating over 23K Mamori Wallets.
The fourth and last phase of Engen is live today. Users can now multiply their rewards based on their capital allocation.
Users do not need Metamask or any other external wallet to complete the process while receiving fully non-custodial accounts.
Capital earns yield from third party protocols (sDAI, wstETH, weeETH, and sUSDE) until it unlocks on May 16th.
You can visit the site here: engen.kinto.xyz
🍶 The Fourth Step
As a refresher, Engen is split into four different phases. During each phase, users can complete specific tasks to earn Engen credits.
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Phase 1: 🌊 KYC Arrival — Launched on November 27th.
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Phase 2: 🛡️ Wallet Set-Up — Started mid-January.
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Phase 3: 🛟 DeFi Rescue — Started mid-February.
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Phase 4: 🍶 Capital Commitments — Begins today. In Phase IV, verified users can deposit capital and multiply the rewards earned during the program. Capital will be locked until Kinto’s full launch on May 16th.
The number of credits earned will be based on two different parameters: lock capital and time of the commitment.
First, your base multiplier is calculated based on the amount of funds locked in $ according to the following formula:
The resulting value will be multiplied again by a time factor. This time factor aims to reward contributors that lock early during Phase IV.
Until March 26th, users get their total multiplier: 1x. From then until April 7th, users get 0.8x. From then until April 17th, users get 0.6x. From then until April 27th, users get 0.5x. Users will receive 0.4x from April 27th onwards. Action: Lock your capital and bridge into Kinto L2.
Reward: 1–100 Engen credits based on your commitment.
Total Max Credits: 2500 credits.
Fair Credit Activity
Thanks to our user-owned KYC, Kinto offers sybil resistance natively. Traditionally, airdrops and point programs have been susceptible to sybil attacks. In such cases, farmers sap value from networks through vast arrays of anonymous accounts whose activity is automated via bots and fine-tuned to each project to maximize returns. Ultimately, once perpetrators consolidate and dump their airdrop rewards on the market, the overall value of the community-driven offering is reduced.
Thanks to its sybil resistance, Kinto can deliver the highest amount of credits to users without worrying about leakage.
If you are a human, you can participate and know you will receive your fair share.
….all of a sudden you look down, and you see a tortoise…
🛢️The Last Gas Sacrifice
Ethereum scalability has dramatically improved in the last couple of years. Thanks to Layer Twos and its recent Dencun Upgrade, the cost of executing transactions has dropped to a penny.
Kinto goes one step further and uses Celestia for Data availability, making gas costs 20x-100x cheaper versus optimistic rollups. Furthermore, given that Kinto has account abstraction at the chain level, we are working with Pimlico to compress all user operations and get an extra 2x in savings, making Kinto the cheapest L2 in the Ethereum ecosystem. Thanks to our paymaster and account abstraction architecture, users won’t have to ever worry about gas on Kinto.
However, you must send one last mainnet transaction to bridge to this promised land of no-gas. Unfortunately, mainnet activity has picked up in the last two weeks, and gas prices have stayed elevated, making this transaction costly.
To make this last transaction as cheap as possible, we have taken the following measures:
The gas fee is not taken from the principal. It will be deducted once Engen ends on May 16th. That gives the locked funds time to compound and earn a yield to offset the cost. The user does not need ETH to deposit. They enjoy gasless deposits, meaning they can complete the transaction without having ETH in their wallet. Kinto bridges user deposits in batches. That means users do not have to pay bridging costs; they just cover the cost of depositing into our smart contract on L1. Claiming your deposit will be free on the L2. Kinto will also cover the cost of claiming the deposit on your Kinto Wallet. Even with all our work to make gas as cheap as possible, users still need to pay $50-$100 in gas fees at current gas prices.
We acknowledged that it makes no sense for someone who wanted to deposit a small amount to spend this amount on fees, so we have decided to award all of our current users the equivalent 2x multiplier. Even if you don’t lock any capital, you will still complete Engen and double your rewards. If you do not meet the $1000 minimum but are willing to take the risk and pay the gas fee, you can deposit using ETH, where the minimum is 0.1 ETH.
🌾 Compounding…
Given that capital remains locked for 60 days, the user needs to pick up a productive asset to make sure the funds are earning yield during this time.
Kinto has integrated the best compelling opportunities from mainnet. It is up to the user to pick the one that matches their risk preferences. Please consider that the yields fluctuate on market conditions, and we, Kinto, do not endorse any of them. DYOR.
The assets are as follows:
Step by step
Step by Step During phase four, users need to complete the following steps:
- Select how you want to fund it— You can select your external wallet, use Coinbase Pay or send assets from any exchange.
2. Complete the funding — Either using your external address or sending funds from Coinbase or Exchanges
3. Select the amount you want to deposit
4. Select the asset and amount you want to deposit
5. Select which yield asset you want to convert it into
6. Click send and sign the transactions. Once they confirm, you will see the following.
Finally, you can share Kinto and earn referral credits.
Psst! — We will distribute 10 secret 🧧 will be distributed amongst users shared their depsosit on X and paste it on the fortune channel on Discord.
Remember that you can earn up to 10% of all the credits your friends receive.
🕐 60Days
During the first three phases, all spots were filled within hours.
Given the community's excitement and reception, we have decided to keep Phase IV open until May 16th, with diminishing credit rewards over time.
Phase Four will be available until May 16th at noon PST.
🌊 Engen is here…
Engen marks the beginning of Kinto. We want to accelerate the transition to an on-chain financial system.
A system that can match the guarantees of traditional finance, increase availability 24/7, enhance security, and decrease the friction and costs associated with traditional asset issuance.
If you share our vision for a secure, open, decentralized financial system, help us realize it.
Join us!