> For the complete documentation index, see [llms.txt](https://docs.hann.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hann.finance/protocol/bkaia-and-hnkaia.md).

# bKAIA and HNKAIA

Stake KAIA for bKAIA, claim unstaking requests, and wrap or unwrap HNKAIA

**bKAIA** is a liquid staking token: it represents shares in a vault that stakes KAIA. **HNKAIA** represents shares in a basket of Kaia liquid staking tokens. Both tokens keep the underlying staking position usable as a transferable token.

|                      | bKAIA                                    | HNKAIA                                                          |
| -------------------- | ---------------------------------------- | --------------------------------------------------------------- |
| Backing              | KAIA managed by the bKAIA staking vault  | Liquid staking tokens held by the HNKAIA vault                  |
| How to acquire it    | Stake KAIA                               | Deposit KAIA, bKAIA, stKAIA, or wgcKAIA through the Wrap screen |
| How rewards appear   | The KAIA value of each share changes     | The KAIA value of the basket changes                            |
| Exit through the app | Request unstaking, wait, then claim KAIA | Unwrap into a proportional share of the vault's tokens          |

## Stake KAIA for bKAIA

1. Open **Staking** (`/staking`), connect your wallet, and select **Stake**.
2. Enter the KAIA amount. Keep KAIA in your wallet for transaction fees; **Max** leaves the app's gas reserve available.
3. Review the expected bKAIA amount and minimum received, then confirm the transaction in your wallet.
4. After the transaction succeeds, the vault mints bKAIA to your wallet. The wallet token button adds bKAIA to your token list.

Native KAIA goes directly to the staking vault, so this deposit has no ERC-20 approval step. The vault delegates KAIA through its configured staking nodes.

bKAIA is a non-rebasing share token. Staking rewards change the amount of KAIA backing each bKAIA; they do not automatically add bKAIA to your wallet. The exchange rate comes from the vault's managed assets and share supply, including performance-fee accounting. The amount shown before signing uses the current rate and the deposit simulation.

The displayed staking APY annualizes the recent seven-day return. Rewards depend on staking performance and the network's reward rules.

## Unstake and receive KAIA

![A staking share becomes a withdrawal ticket, waits for release, and is claimed as native KAIA](https://2221521122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8nyFCptMbCTgKUyVYlHX%2Fuploads%2Fgit-blob-998ac9962b3cb20349dcedc6b5bc4b648a44a73d%2Fstaking-withdrawal.svg?alt=media)

*Request bKAIA unstaking → wait for the withdrawal ticket to become claimable → claim KAIA.*

### Create a request

1. Select **Unstake** on the Staking screen.
2. Enter the **bKAIA** amount and review its expected KAIA value. The minimum unstaking request is **0.1 KAIA** in asset value.
3. Confirm the unstaking transaction in your wallet.
4. Check **Unstaking status** for the newly created requests.

The vault burns the shares used by the request and creates withdrawal tickets for the staking nodes handling it. One submission can create several tickets. The request begins the withdrawal process; KAIA is paid through a later claim transaction.

A staking node can accept less than the requested amount or fail to open its part of the request. The vault then burns shares for the accepted amount and leaves the remaining bKAIA in your wallet. Check the created tickets and your remaining balance before submitting the remainder. A successful transaction receipt with no new tickets means no withdrawal was opened.

### Wait and claim

The staking node determines each ticket's release time and claim window. **Unstaking status** shows the pending amount, claimable amount, and request status. Tickets from the same submission can become claimable at different times.

| Status                          | What it means                                             | Action                                                     |
| ------------------------------- | --------------------------------------------------------- | ---------------------------------------------------------- |
| Pending                         | Staking assets are waiting for release                    | Wait for the ticket to become claimable                    |
| Claimable                       | KAIA is ready to be paid                                  | Select **Claim all** and confirm in your wallet            |
| Settlement required             | An expired request needs its final staking status checked | Select **Settle**                                          |
| Recovery required               | A canceled staking request has unpaid shares to restore   | Select **Restore stake**                                   |
| Recovered / Partially recovered | Unpaid bKAIA shares have been restored                    | Check the restored bKAIA balance and any KAIA already paid |

**Claim all** processes the claimable tickets together. The app splits a large set into batches; each batch has its own transaction. A batch can process some tickets while leaving others pending, and a ticket can be partially paid. The result shows what was processed. The unpaid part remains in the request until it is paid or restored.

After the claim window expires, settlement resolves the staking request into payment or share recovery. Share recovery re-mints the outstanding burned bKAIA; KAIA already paid remains paid. Creating an unstaking request does not give you a user cancellation button.

## Wrap assets into HNKAIA

![stKAIA, wgcKAIA, and bKAIA enter the basket to mint HNKAIA; unwrapping returns a proportional share of its assets.](https://2221521122-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8nyFCptMbCTgKUyVYlHX%2Fuploads%2Fgit-blob-cdd728af75406fa60ede44642a3a8384c4ed4d8e%2Fhnkaia-basket.svg?alt=media)

*HNKAIA is a share of the stKAIA, wgcKAIA, and bKAIA basket. Each holder's exit follows the basket's holdings at the time of unwrapping.*

The **Wrap** screen (`/wrap`) accepts KAIA, bKAIA, stKAIA, and wgcKAIA. Each liquid staking token is valued in KAIA using its registered redemption rate. HNKAIA's share value reflects the combined holdings.

| Input                            | Deposit route                                                                         | Wallet authorization                                              |
| -------------------------------- | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------- |
| Native KAIA                      | Stake into bKAIA, then deposit that bKAIA into HNKAIA                                 | Transaction confirmation; no token approval for the native amount |
| KAIA input using a WKAIA balance | Use WKAIA first, unwrap it, then stake and deposit; use native KAIA for the remainder | WKAIA spending authorization plus the deposit transaction         |
| bKAIA, stKAIA, wgcKAIA           | Deposit the selected token into the HNKAIA vault                                      | Token spending authorization plus the deposit transaction         |

1. Open **Wrap** and select **Wrap**.
2. Choose the input asset and enter the amount.
3. Review the input, expected HNKAIA, exchange rate, and authorization details. For KAIA, the app uses your WKAIA balance first and shows the native KAIA remainder.
4. Complete the wallet authorization steps and submit the deposit. The transaction mints HNKAIA to your wallet.

For a Permit2 route, the wallet authorizes Permit2 to spend the token and signs an amount-limited transfer for the deposit contract. A direct approval route authorizes the HNKAIA vault or KAIA depositor instead. The confirmation screen identifies the selected token and destination. Keep native KAIA for gas even when the entire input comes from WKAIA or another token.

The displayed mint amount is a quote. Deposit execution uses the redemption rates and vault balances at execution time. KAIA deposited through this screen is converted to bKAIA before entering the basket; the HNKAIA vault does not hold that input as native KAIA.

## Unwrap HNKAIA

1. Select **Unwrap** on the Wrap screen.
2. Enter the HNKAIA amount and review each token under **You receive**.
3. Confirm the transaction. The vault burns your HNKAIA and sends your share of its token balances to your wallet.

The app calls `redeemProRata`. For each listed token, the amount received is:

```
token amount received = floor(vault token balance × HNKAIA redeemed / HNKAIA supply before redemption)
```

The calculation uses integer token units and rounds down. Basket proportions come from the vault's balances, so the output is not tied to the asset you originally deposited. A token with a zero vault balance produces no payment.

This basket redemption has **no HNKAIA redemption fee** and uses token balances directly, without a price-oracle calculation. It remains available when HNKAIA's priced deposit and single-asset redemption flows are paused. The separate single-asset contract redemption charges **0.3%** and requires liquidity in the selected output asset; the app's Unwrap action uses basket redemption.

To turn the received bKAIA into native KAIA, follow the unstaking request and claim process above. stKAIA and wgcKAIA follow their respective staking providers' redemption rules. A market swap uses the available trading liquidity and the quoted slippage instead.

## Fees and use in Hann Finance

| Item                                    | How it is charged                                                                                                                             |
| --------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- |
| Wallet transactions                     | KAIA gas for approvals, staking, requests, claims, wrapping, and unwrapping                                                                   |
| bKAIA performance fee                   | The vault's configured `performanceFeeBps` applies to profit under its high-water-mark accounting; fee shares are minted to the fee recipient |
| bKAIA claim                             | The claim module applies no separate claim fee                                                                                                |
| HNKAIA basket redemption                | No redemption fee                                                                                                                             |
| HNKAIA single-asset contract redemption | 30 basis points, or 0.3%, deducted from the gross output                                                                                      |

The bKAIA performance-fee percentage is `performanceFeeBps / 100`; it is reflected in share accounting rather than charged as a percentage of your deposit principal.

HNKAIA is collateral for the USDHN borrowing branch. Wrap bKAIA into HNKAIA, then use HNKAIA to open or add to a borrowing position. [Borrowing & Liquidation](/protocol/borrowing-and-liquidation.md) covers debt and collateral management. [Loop Strategies](/protocol/loops.md) covers repeated borrowing and reinvestment.

HNKAIA also supports cross-chain transfers through its LayerZero OFT adapter. On the hub chain, the adapter locks and unlocks HNKAIA shares. It does not redeem the LST basket or start a staking withdrawal.

Staking performance, network staking rules and penalties, trading liquidity, and contract operation affect these assets. Market prices can differ from vault redemption values. Using HNKAIA adds the basket vault and its underlying token contracts to the staking path. [Risk Disclosure](/security/risk-disclosure.md) describes these exposures and borrowing risks.


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