Kraken has added BONZO, the native token of Bonzo Finance, to its trading platform, giving users access to the token of an open-source decentralised lending and borrowing protocol built on the Hedera network.
Users can deposit BONZO through the Funding section of the Kraken platform by selecting the asset and following the deposit instructions, though the exchange reiterated its standard warning that tokens sent via unsupported networks will be permanently lost.
Trading through the Kraken App and Instant Buy will become available once liquidity conditions are met, and geographic restrictions may apply.
Bonzo Finance is adapted from Aave v2, one of the most widely deployed decentralised lending protocols in the cryptocurrency industry, and has been modified to support both Hedera's Ethereum Virtual Machine (EVM) compatibility layer and its native Hedera Token Service (HTS), which handles token issuance and management directly at the network level.
The protocol supports permissionless lending and borrowing of HBAR, Hedera's native cryptocurrency, alongside HTS tokens and wrapped versions of major assets including Bitcoin and Ethereum.
It offers over-collateralised loans, in which borrowers must deposit assets worth more than the amount they wish to borrow, as well as flash loans, a form of uncollateralised borrowing that must be repaid within a single transaction block and is primarily used by developers for arbitrage and liquidation strategies.
Interest rates on the platform adjust dynamically based on supply and demand within each lending pool.
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Bonzo Finance has undergone security audits by Halborn, a blockchain-focused cybersecurity firm.
Kraken said it will not disclose future listing plans until shortly before launch and that client engagement specialists are unable to confirm which assets are under consideration.The recap
- Kraken opens trading for Bonzo Finance's BONZO token.
- Protocol adapts Aave v2 and supports HBAR and HTS tokens.
- App and Instant Buy enabled after liquidity conditions are met.