# bKAIA & HNKAIA

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

{% hint style="info" %}
**Not investment advice** — LSTs and wrappers can carry validator, liquidity, and smart contract risks. Returns are not guaranteed.
{% endhint %}

## 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)

{% @mermaid/diagram content="flowchart TB
U\[User] -->|Stake KAIA| V\[bKAIA vault / staking route]
V -->|Delegate| VAL\[Validators]
VAL -->|Rewards| V
V -->|Mint| b\[bKAIA]

U -->|Wrap LSTs| W\[HNKAIA wrapper]
b --> W
o\[Other Kaia LSTs] --> W
W -->|Mint| h\[HNKAIA]

style U fill:#B0BBF4,color:#333,stroke:#4C5FD5,stroke-width:2px
style V fill:#4C5FD5,color:#fff,stroke:#3A49C5,stroke-width:2px
style VAL fill:#EEFBA0,color:#333,stroke:#D1F24A,stroke-width:2px
style b fill:#D1F24A,color:#333,stroke:#B8DA2C,stroke-width:2px
style W fill:#3A49C5,color:#fff,stroke:#4C5FD5,stroke-width:2px
style h fill:#EEFBA0,color:#333,stroke:#D1F24A,stroke-width:2px
style o fill:#EEFBA0,color:#333,stroke:#D1F24A,stroke-width:2px" %}

## 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

{% hint style="warning" %}
**\[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.
{% endhint %}

## 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

{% stepper %}
{% step %}

#### 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)

{% hint style="warning" %}
Always verify you are using the official UI and contract addresses.
{% endhint %}
{% endstep %}

{% step %}

#### 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](/hann-finance/protocol/borrowing-and-liquidation.md)
{% endstep %}

{% step %}

#### 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)
  {% endstep %}
  {% endstepper %}

## Risks (quick checklist)

{% tabs %}
{% tab title="Validator & staking risk" %}

* validator downtime or slashing (network-dependent)
* staking reward variability
* protocol-wide staking changes outside Hann Finance control
  {% endtab %}

{% tab title="Unbonding & liquidity risk" %}

* unbonding delays can prevent fast exits
* secondary markets can be thin; prices may deviate from “1 KAIA equivalent”
  {% endtab %}

{% tab title="Wrapper & smart contract risk" %}

* wrappers add an extra contract layer
* integrations can fail or be paused
  {% endtab %}
  {% endtabs %}

## Next reads

* Loop strategies that often involve LST collateral: [Loop Strategies](/hann-finance/protocol/loops.md)
* Borrowing safety: [Borrowing & Liquidation](/hann-finance/protocol/borrowing-and-liquidation.md)
* Full risk list: [Risk Disclosure](/hann-finance/risks/risk-disclosure.md)


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