October 2021 Development Plan_EN
Hello, Kai Protocol participants.
In October, development will focus on stabilization and service improvement, such as strengthening the buyback fund and improving synthetic asset services.
Add a new stable pair and change the basic distribution rate.
The KUSDC+KAI pair will be added before the 10/2 (Sat) 08:00 boost result is reflected, and the basic distribution rate of the entire liquidity pool will be changed as follows.
How to strengthen and utilize buyback funds.
Monetization is carried out by supplying liquidity to KUSDT+KDAI and KUSDT+KUSDC up to 70% of the funds raised by the buyback fund.
50% of the profits will be used to strengthen the buyback fund through re-deposit, and 50% will be used to stabilize the sKAI price. By strengthening these buyback funds, if the size of the buyback fund exceeds 110% of KAI’s circulation, we plan to distribute profits to a sKAI depositor.
The sale of vKAI to create a buyback fund will not proceed in the future, and vKAI for the buyback fund will not be issued for the remaining quantity and will be burned after modifying the Treasury Contract.
Synthetic asset service improvement
In order to activate the issuance of synthetic assets and stabilize premiums, we aim to apply the following items within October.
- Proxy liquidation page
If the issuance limit exceeds 100%, it will be reported as a liquidation target.
The excess amount (shortfall amount) is sorted in the order of high, and up to 50% of the composite assets that the liquidation target has to repay can be repaid by proxy.
Participants are synthetic assets held, and the amount of KAI deposited as collateral increases by 10% of repayment + incentives in the process of proxy repayment and decreases from the KAI deposited as collateral for the liquidation target.)
For example, Alice has been reported as a liquidation target with $1,000 exceeding the issuance limit. At this time, Alice’s synthetic asset A is 100 and Oracle’s price is $10. Bob repays Alice’s composite asset A on behalf of 50 composite assets A held. Bob’s KAI, which is equivalent to $500 in proxy repayment return and $550 in incentive, increases to the collateral deposit, while Alice’s KAI, which is equivalent to $557.5 included up to $7.5, decreases from the collateral deposit.
The proxy liquidation page will first be provided as a separate page, and the address will be guided through the community channel and Docs.
2. Change the way Long FarmsKAI gets compensation
After the update, sKAI is not directly distributed to the KLAYswap synthetic asset pair, and you must stake the LPs obtained after supplying liquidity for the KLAYswap synthetic asset pair at Long Farm to receive the distribution.
sKAI distributed to long farms is distributed in units of one hour, and the distribution amount may vary from 50% to 99% depending on the short farm distribution rate.
3. Add Short Farm function
To stabilize the premium, a portion of the sKAI distribution distributed to the Long Farm is distributed to Short Farm participants in hourly units according to the premium value.
It is determined by the short farm distribution ratio = (premium * 4) and is at least 1% and up to 50%. The short farm distribution rate changes every hour.
Ex) At 09:00, if the sKAI distribution ratio of KAI+ksETH long farm is 5% and premium is 5%, short farm 20% and long farm 80%. At this time, sKAI, which is 4% long farm and 1% short farm, is distributed at 10:00.
In case of participating in short farms when issuing synthetic assets, the issued synthetic assets are sold immediately, and the premium on the short farm participation is paid when the synthetic assets issued through short farm participation are redeemed.
Existing synthetic asset issuance participants are recognized as participating in short positions, excluding the amount of LP tokens held from the issuance volume.
Ex) If the issuance quantity is 50 and the quantity of synthetic assets held by LP tokens is 20, the issuance quantity of the synthetic assets participating in the short farm will be 30.
4. Added the function of trading synthetic assets
KAI<->Synthetic Asset, Synthetic Asset<->Synthetic Asset Trade function is added to activate synthetic asset trading.
Because it operates based on the KLAYswap contract, a transaction fee of 0.3% is incurred.
In addition, decents, metamask wallets, and weekly and monthly additions of price chart graphs will be carried out.
Please note that the contents, methods, and figures may be subject to change depending on the development progress.
Thank you
