bKAIA & HNKAIA

What bKAIA and HNKAIA are, how they relate to Kaia staking, and how to use them safely

This page explains bKAIA and HNKAIA in plain language: what they represent, why they exist, and what risks they introduce.

Not investment advice — LSTs and wrappers can carry validator, liquidity, and smart contract risks. Returns are not guaranteed.

At a glance

• bKAIA is a Liquid Staking Token (LST) that represents staked KAIA exposure.

• HNKAIA is a wrapper token that bundles Kaia LST exposure into one asset.

• LSTs can have unbonding delays and secondary market liquidity risk.

• Wrappers simplify usage but add additional contract risk.

• OFT bridging: HNKAIA includes OFT-style cross-chain transfer functionality.

Diagram: staking and wrapping (conceptual)

What is bKAIA?

bKAIA is an LST designed to keep your KAIA exposure while making the position usable in DeFi.

Typical properties of LSTs:

• represent a claim on staked assets + rewards (depending on design)

• may not be instantly redeemable to KAIA due to staking/unbonding rules

• can trade at a premium/discount in secondary markets

[TBD] Exact mechanics — Details like rebasing vs non-rebasing behavior, unbonding duration, and fee policy are implementation-specific. This page documents the concept and risk profile.

What is HNKAIA?

HNKAIA is a wrapper token designed to unify multiple Kaia LST exposures into a single, easier-to-use collateral asset.

Why wrappers exist:

• unify multiple LST types under one token interface

• standardize accounting for DeFi integrations

• potentially reduce UX complexity when using LST collateral

How people use bKAIA / HNKAIA inside Hann Finance

1

Step 1: Acquire bKAIA or HNKAIA

You typically get:

• bKAIA by staking KAIA through the relevant vault/route

• HNKAIA by wrapping eligible LST assets (including bKAIA)

Always verify you are using the official UI and contract addresses.

2

Step 2: Use as collateral to mint USDHN

If the collateral branch supports the asset, you can deposit it into a Trove and mint USDHN.

Next: Borrowing & Liquidation

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Step 3: Manage exits realistically

If you plan to exit back to native KAIA, account for:

• unbonding delays (if any)

• market liquidity and slippage

• protocol safety buffers (avoid forced sales via liquidation)

Risks (quick checklist)

Validator & staking risk

• validator downtime or slashing (network-dependent)

• staking reward variability

• protocol-wide staking changes outside Hann Finance control

Unbonding & liquidity risk

Wrapper & smart contract risk

Next reads

• Loop strategies that often involve LST collateral: Loop Strategies

• Borrowing safety: Borrowing & Liquidation

• Full risk list: Risk Disclosure