The core problem solved by the KAIO protocol.

KAI recently just logged in to #Kaito , let's take a preliminary look at the core issues it addresses today.

KAIO (formerly Libre Capital) is a sovereign AppChain protocol specifically designed for compliant RWA tokenization, focusing on the full lifecycle management of alternative investment funds such as hedge funds, money market funds, and private credit.

The KAI protocol primarily addresses three core obstacles in the tokenization process of traditional financial assets:

1. Compliance Issues

🌀Question: DeFi emphasizes permissionless and decentralized finance, but regulatory requirements (such as KYC/AML) restrict institutional assets from entering, creating a "compliance gap."

💡KAIO Solution: KAIO builds a compliance-first RWA framework, ensuring that only qualified investors can access tokenized assets, while inter-operating with permissionless DeFi protocols (such as Sei Network, Solana), bridging TradFi and DeFi.

2. High Barriers to Entry Issue

🌀Question: Top hedge funds and money market funds are usually only available to high-net-worth clients.

💡KAIO Solution: Through tokenization, we will bring institutional-level assets (such as funds from BlackRock and Brevan Howard, exceeding $200 million) on-chain, providing seamless on-chain access.

3. Insufficient liquidity and interoperability

🌀Question: Traditional RWA has low liquidity, and cross-chain and cross-protocol usage is restricted, coupled with long subscription/redemption times, hindering large-scale institutional participation in DeFi.

💡KAIO plan: Through multi-chain Gateway (such as collaboration with Sei Network) and standardized protocols, KAIO enhances the cross-chain liquidity and programmability of RWA (such as for collateralized lending), while supporting 7×24 hours on-chain subscription/redemption in terms of timeliness.

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