Knidos Labs Secures Funding to Launch Node-Fi Yield Trading Protocol
Zug, Switzerland, February 20th, 2025
Knidos Labs, a blockchain innovation studio, has secured funding from the Avalanche Foundation to develop and launch its decentralization enhancement layer. This initiative introduces Knidos Node-Fi, a trustless and transparent fractional node ownership platform. Knidos Node-Fi provides a structured approach to validator yield, allowing participants to engage with a rewards-based system while maintaining principal security within the protocol.
The platform is designed to enhance user participation, with plans to integrate additional financial instruments such as concentrated liquidity strategies, auto-looping mechanisms, AI-driven signals, and funding rate arbitrage trading bots to optimize validator-based yield trading.
Traditional staking mechanisms often present challenges for retail users, including low yields and a lack of transparency. These factors can limit broader participation, which is essential for decentralization. Knidos Node-Fi addresses these concerns by introducing an incentive structure designed to enhance accessibility while maintaining fairness. The platform’s reward distribution system is structured to optimize engagement while ensuring participants retain control of their principal, offering a structured approach to network validation.
As retail participants go up the risk curve to chase returns, network security, and consensus are left to institutional capital, which leads to centralization. Knidos Labs tackles this issue by natively introducing financialization and gamification elements to the staking yield.
Knidos Node-Fi aims to transform traditional staking into an engaging, and rewarding experience. Funders enter a dynamic system where daily bounties are allocated by validator rewards, turning validator ownership into a game of chance without the risk of loss. Operators, on the other hand, meet strict criteria to maintain network reliability, while the platform facilitates a trustless and transparent system. These operators share a percentage of network rewards.
Knidos Node-Fi redefines true ownership of validator nodes, providing access to the full extent of its benefits; including competitive APR, private and MEV-protected RPCs, and compounded and leveraged yield trading. The protocol decentralizes blockchain consensus by providing a trustless liquidity hub and DePIN operator marketplace through a hybrid and dynamic insurance pool that includes AVAX, BTC, and selected currencies. Behind the scenes, Node-Fi connects funders with blockchain infrastructure, maintaining that participation not only generates rewards but also strengthens the networks it supports. Operators maintain rigorous performance standards, and the platform provides a trustless and transparent environment for all participants. Knidos Node-Fi bridges the gap between security and user engagement, creating a system that unlocks yield’s full potential while driving decentralization and adoption across blockchain Networks.
“Blockchain’s current challenges are not technical; they’re insufficient economic and engagement models” said Arda Askin, CEO of Knidos Labs, who has a background in Systems Engineering and Venture Capital. “Our protocol welcomes broader participation from retail users, we’re building a more decentralized and robust network by yield trading. We are not another zero sum Game.”
The protocol will initially launch on Avalanche but is designed with multichain compatibility in mind. With this funding, Knidos Labs takes a major step toward delivering innovative decentralized finance products that democratize participation, foster decentralization, and solve critical incentive structure problems. Knidos Node-Fi is expected to go live by Q3 2025.
“The Knidos Node-Fi represents the kind of forward-thinking innovation that the Avalanche Foundation supports, and which aligns perfectly with Avalanche’s mission for a decentralized, secure, and inclusive blockchain ecosystem,” said Aytunç Yildizli, CEO and Executive Director of Avalanche Foundation. “By reimagining validator engagement and staking yields, Knidos are not only driving decentralization but also unlocking unprecedented opportunities for retail users to actively participate in network security and growth. We are thrilled to support their journey in creating tools that empower users and transforming how blockchain networks operate and thrive. We encourage other builders and innovators to apply for support under one of our many Programs that seek to grow and develop the Avalanche blockchain and its vibrant ecosystem.”
For more information, users can visit knidos.xyz or follow Knidos on X.
About Knidos Labs
Knidos Labs is a blockchain startup and research studio dedicated to building innovative and impactful financial tools that align user incentives with decentralization. By crafting intuitive and transformative solutions, Knidos Labs empowers users to engage with decentralized finance in ways that strengthen blockchain ecosystems and align with the path to mass adoption.
About Avalanche Foundation
The Avalanche Foundation is a non-profit organization dedicated to supporting the development and growth of the Avalanche ecosystem. Through initiatives like the infraBUIDL(AI) Program, the Foundation fosters innovation and collaboration in the blockchain and AI sectors.
About the Avalanche Blockchain Network
Avalanche is an ultra-fast, low-latency blockchain platform designed for builders who need high performance at scale. The network’s architecture allows for the creation of sovereign, efficientand fully interoperable public and private layer 1 (L1) blockchains which leverage the Avalanche Consensus Mechanism to achieve high throughput and near-instant transaction finality. The ease and speed of launching an L1, and the breadth of architectural customization choices, make Avalanche the perfect environment for a composable multi-chain future.
Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building decentralized applications (dApps). With its combination of speed, flexibility, and scalability, Avalanche is the platform of choice for innovators pushing the boundaries of blockchain technology.
