The Kryptonite Protocol Guide

The Kryptonite protocol is a leading platform in the Sei blockchain for liquid staking of SEI tokens. It simplifies the staking process for SEI users and offers them the ability to earn compounded interest on their SEI holdings. Additionally, it provides options for leverage and lending. As a versatile and innovative part of the Sei ecosystem, Kryptonite sets a new benchmark in the world of decentralized finance (DeFi) protocols.


A Decentralized AMM and Staking Protocol

1. bAssets:
2. Kryptonite introduces bAssets, created by staking SEI tokens.
3. The protocol ensures a 1:1 ratio between bAssets and SEI tokens.
4. It manages network slashes, penalties, and the distribution of bAsset rewards.
5. Focuses on maintaining resilience and enhancing user experience.

SEILOR Token:

• The SEILOR token is central to the Kryptonite protocol.
• It allows users to stake SEI, mint stablecoins, and access special promotions.
• Users get priority access to Kryptonite's services.
• SEILOR holders decide on deploying treasury funds for liquidity events like buybacks, burns, and/or expanded yield.

Liquid Staking:

• Kryptonite provides liquid staking services to the SEI community.
• SEI stakers are rewarded with block rewards and transaction fees for network validation.
• Kryptonite offers liquidity to stakers in exchange for a part of their network fees, which fund a community treasury controlled by SEILOR DAO.
• Fees paid in SEILOR tokens receive a discount.
• Liquid-staked SEI is used for collateral to compound yields, access leverage, and hedge positions - tapping into lending & trading as main revenue streams.

Stablecoin Minting
kUSD is Kryptonite's stablecoin. bSEI tokens are used as collateral to produce kUSD, ensuring that the collateral is always double the value (200%) of the kUSD minted. There are no fees for minting kUSD, and the system uses Pyth SEI-USD price feed to determine values. While creating kUSD provides access to stable coints, minters should be aware of the risks involved. If the value of the collateral falls below 150% of the kUSD value, users face liquidation.


Using Kryptonite
Kryptonite can be accessed at https://app.kryptonite.finance/
Users can connect their wallets using the button in the upper right of the dashboard. Make sure you are connected to the SEI mainnet. Not all features of Kryptonite are currently available, but advancements are steadily being made with new feature releases quarterly.


Staking SEI

1. Visit the kASSET link in the site header
2. Click Mint/Burn SEI/stSEI
3. On the “Mint” tab, enter the amount of SEI you wish to stake and click the “Mint” button to receive stSEI.
4. Claimable rewards are viewable in the kASSET section.
5. Once SEI is stake to a validator, it takes 21 days to convert stSEI back to SEI. To start the 21 day unlock, navigate to the “Bun” tab, enter the amount of stSEI you wish to burn, and click the “Burn” button.
6. Once the 21 days have bassed, the unstaked SEI will be available for withdrawal in the kASSET section.

SEI/SEILOR Liquidity Providing

1. Visit the SEILOR link in the site header
2. Select the vesting period for your rewards (rewards are given in the form of vested SEILOR - veSEILOR). The longer the vesting period, the more of a boost your rewards will receive. However, the rewards will not be available to you until the vesting period ends, so think carefully before committing.
3. Click the “Stake” button to provide the SEI you would like to commit to the SEI/SEILOR liquidity pool.
4. To remove your SEI from the pool, you will need to click the “Unstake” Button.
5. Accumulated “veSEILOR” rewards can be claimed using the “Claim veSEILOR” button.
6. Once the vesting period of your veSEILOR has passed, you will be able to convert veSEILOR to SEILOR. Your SEILOR can then be claimed using the “Withdraw SEILOR” button.