Kolibri Review 2026: Tezos CDP Stablecoin Behind kUSD

Kolibri is a stablecoin protocol on the Tezos blockchain, built by Hover Labs. It uses collateralized debt positions, called Ovens, to back kUSD, a soft-pegged USD-stable asset. DefiLlama files it under CDPs.

public data shows total value locked of about $6,279, down roughly 9% over seven days. That is very small for a stablecoin protocol and suggests limited current usage. DefiLlama also lists a kDAO token and two audits. Its homepage supplied is minimal, and no shutdown is indicated, so we treat it as active but low activity.

The homepage meta description calls it an algorithmic stablecoin, while DefiLlama describes a CDP-backed design. In practice it works like a collateralized borrowing system rather than a purely algorithmic one.

Kolibri uses collateralized debt positions, which it calls Ovens. A user deposits collateral into an Oven and can then mint kUSD against it. Because the debt is backed by collateral worth more than the kUSD issued, the system aims to keep kUSD worth about one US dollar.

kUSD is described as soft pegged, so its market price can drift from $1. To get collateral back, a user repays the kUSD debt from the Oven. If collateral value falls too far relative to debt, standard CDP designs allow liquidation. Kolibri's exact thresholds and penalties are not in the research material.

The protocol runs on Tezos and has a governance-linked token, kDAO, according to DefiLlama.

Fees are not published in the research material. That includes stability fees on kUSD debt, any minting or closing costs, and liquidation penalties.

Users would normally find these in the official Kolibri documentation or in the Oven interface before opening a position. You will also pay ordinary Tezos network fees on each transaction.

DefiLlama lists two audits, but the research material does not say who performed them or what they found. Funds sit in smart contracts (Ovens), so smart-contract risk applies, and collateral can be liquidated if its value drops against your kUSD debt. Peg risk also applies, since kUSD is soft pegged.

The very low TVL means thin liquidity and little recent activity, which can make exiting kUSD positions or trading kUSD harder. No incidents or regulatory details are given publicly. Verify current status on the official site before depositing anything.

Kolibri is for Tezos users who want to borrow a USD-stable asset against collateral, and for researchers following CDP designs on smaller chains. It is not suited to anyone who needs deep liquidity or a hard dollar peg.