KUMA Protocol
About
KUMA Protocol is a decentralized protocol that tokenizes real-world assets (starting with sovereign bonds) by accepting regulated NFTs backed by bonds and minting Kuma Interest-Bearing Tokens (KIBTs) — ERC-20 tokens that automatically accrue interest. Designed for both retail and institutional users, it bridges traditional finance and DeFi by making bond-based yield accessible without requiring KYC at the token level, while ensuring transparency through on-chain issuance and DAO governance via the MIMO token.
Where Does Yield Come From?
Yield for KIBT holders starts with the real-world government bonds that sit behind each regulated KUMA NFT (these NFTs are issued by Mimo Capital AG). When someone swaps a KUMA NFT through the KUMA Swap smart contract, the protocol mints KIBT tokens. The interest rate on those KIBTs is set using the bond's own coupon (the regular interest payment the bond pays).
Once minted, a KIBT balance grows automatically. The protocol uses a compounding interest model that mirrors the bond's promised yield at maturity. This is called a "rebasing" mechanism — your token count quietly increases over time to reflect the interest earned.
If multiple KUMA NFTs from the same risk category are swapped in, the KIBT earns interest at whichever rate is lower: either the lowest coupon among those NFTs or the relevant central bank rate. This rule keeps the protocol economically safe.
When NFTs are swapped for KIBTs, a small SellBondFee of 0.01% (per supported token and chain) is charged. This fee goes directly to the protocol's treasury.
The protocol also includes something called a "KUMA Clone" mechanism. If central bank rates go down, the clone can lower the KIBT rate. This creates a spread between the original bond's higher coupon and the newer, lower rate — and that difference becomes revenue for the protocol.
KIBT can be wrapped into wKIBT, a version that does not rebase (your balance stays fixed) but instead increases in value per token. This wrapper form works more easily with DeFi apps like exchanges and lending platforms.
Beyond just holding and earning automatically, KIBT and wKIBT holders can lend, trade, or stake their tokens on integrated DeFi protocols — DEXes, lending markets, CDP platforms, and yield aggregators — to earn extra yield on top.
Finally, all yield settings — fee rates, which bond risk categories are accepted, and which rate sources are used — are controlled by MIMO token holders through on-chain governance votes.
Persons
Claude Eguienta
CoFounder & CEO at Mimo Labs
jeanbrasse.eth (JeanBrasse)
Mimo Labs team member, Multisig Signer
starny.eth (0xStarny)
Mimo Labs team member, Multisig Signer
Sven
Mimo Labs team member, Multisig Signer
Frederic
Mimo Labs team member, Multisig Signer
Martijn (m19)
Mimo Labs team member, Multisig Signer
Bad
Mimo Labs team member, Multisig Signer
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Code4rena17-02-2023 - 22-02-2023 |
| The KUMA Protocol audit uncovered a critical balance-inflation bug and several medium-severity logic flaws, all of which were confirmed and mitigated, significantly improving the protocol's security posture for its fixed-term bond model. |
Hacken10-04-2023 |
| The audit document for KUMA Protocol could not be retrieved because the Hacken landing page returned a 404 error, so no security assessment of the protocol is possible from this source. |
ChainSecurity24-08-2023 - 04-10-2023 |
| The audit identified no critical or high-severity vulnerabilities; all medium and low findings were corrected by the team, indicating a well-secured codebase with addressed issues. Residual design risks (oracle staleness edge cases in sellBond, liquidity constraints, deprecation mode triggers) are documented as accepted design considerations rather than fixable code flaws. |
Backers
No information about investors, funding rounds, or backers was found on any official source reviewed (kuma.bond website, docs.kuma.bond, gov.kuma.bond, mirror.xyz blog, or mcag.mimo.capital). The protocol was developed by Mimo Labs, and the regulated NFTs are issued by Mimo Capital AG (registered in Liechtenstein with the Financial Market Authority), but neither entity disclosed any external investors, VC backers, or fundraising rounds.
Legal
Legal form
Decentralized protocol governed by the KUMA DAO (MIMO token holders via vMIMO voting power). No separate legal entity disclosed for the KUMA Protocol itself. The regulated NFTs are issued by Mimo Capital AG (Aktiengesellschaft / public limited company registered in Liechtenstein). Development is attributed to Mimo Labs (legal form not disclosed).
Registration jurisdiction
Mimo Capital AG: registered in Liechtenstein, entry no. FL-0002.584.786-1, supervised by the Financial Market Authority of Liechtenstein (registration no. 293568). Address: Alvierweg 17, 9490 Vaduz, Liechtenstein. KUMA Protocol itself: no jurisdiction disclosed (DAO-governed, no registered entity).
Status and notes
The KUMA Protocol is a decentralized, community-governed protocol with no disclosed legal personality. The protocol's disclaimer (at app.kuma.bond/terms) is issued by "the MIMO Decentralized Autonomous Organization ('MIMO')" and states it does not create legal relations. Regulated NFTs are issued by Mimo Capital AG, a regulated Liechtenstein entity (Trusted Technology Service Provider authorized by the FMA Liechtenstein, compliant with AML/CTF). The kuma.bond website footer states "© 2024 by Mimo Labs", while app.kuma.bond footer states "© 2023 Mimo Labs". Docs.kuma.bond describes two distinct organizations: Mimo Labs (development) and KUMA DAO (governance). No imprint page was found on kuma.bond or its subpages.