Technical Considerations

System Assumptions

• The system uses USDC with 6 decimals as the base asset on all networks

• All lending pool interactions go through the LendingPoolManager contract — users never interact with lending pools, tranches, or pending pools directly

• All contracts are upgradeable via TransparentUpgradeableProxy (per-proxy ProxyAdmin)

Constants

Constant	Value	Description
FULL_PERCENT	100_00	100% with 2 decimal places (used for ratios, fees)
INTEREST_RATE_FULL_PERCENT	1e18	100% with 16 decimal places (used for interest rates)
KSU_PRICE_MULTIPLIER	1e18	Multiplier for KSU price oracle values
Epoch duration	7 days	System-wide, cannot be customized per pool
Clearing period	48 hours	Final portion of each epoch
Interest rate change delay	4 epochs (default)	Configurable by Kasu Admin
Max tranches per pool	3	Junior, Mezzanine, Senior
Min tranches per pool	1	Single investment offer
Max loyalty levels	10	Configurable thresholds

Solidity Configuration

Setting	Value
Solidity version	0.8.23
Optimizer runs (Foundry)	200
Optimizer runs (Hardhat)	800 (200 for PendingPool)
OpenZeppelin	v5.0.2

Limitations

USDC Only

Kasu currently only accepts USDC from Liquidity Providers. Multi-asset support is not available.

Uniform Epochs

All lending pools share the same system-wide epoch timing. Custom per-pool epochs are not supported. This simplifies the system but means Pool Creators cannot configure lending pools with independent epoch schedules.

Unrealized Loss Token Supply

In theory, if a lending pool reports losses so many times that the total supply of tranche share tokens would exceed 2^256, the tranche can no longer accept new deposits. In practice, this should not occur.

Block Gas Limits

Clearing Steps 2 and 4 loop over user requests and may exceed block gas limits for large pools. The batch size parameters allow splitting these steps across multiple transactions.

Source Code

The Kasu smart contracts source code is available at github.com/Kasu-Finance.