SYNTHETICS QUICK GUIDE (EN)

4 min readSep 16, 2021

9/15(Thu) Synthetics Service Open

Kai Synthetics is a service that enables the creation of a synthetic asset called ksAsset.

By following the price of real underlying assets, even if you don’t invest in real underlying assets on an actual exchange, you can get the same financial effect and additional profits such as transaction fees and sKAI compensation.

ksAssets can be minted by depositing KAI as collateral on the Kai Protocol website, and liquidity supply and trading are possible on KLAYswap.

※ When transferring synthetic assets, a 0.2% fee will be deducted from synthetic assets. However, fees will be exempted until December 2021 to activate synthetic asset trading.

Quick Guide

[approve]

When accessing Synthetics from the menu, each contract [approval] is required for collateral, ksCOINBASE, ksDUNAMU, and ksYANOLJA.

When approval for all items is completed, you can see the screen below.

[Collateral]

Kai can be withdrawn and collateralized through the button at the center of the screen.

※ Synthetic asset mint, transmission, and repayment fees may change depending on the service situation.

Collateral is only available for KAI, and the collateral ratio is 200%.
If you deposit KAI as collateral, it will be converted to Mintable Value that allows you to issue ksAsets (according to a specific rate based on quantity and price).
If the KAI price rises or the Oracle price of ksAssets falls, the available issuance will rise so you can withdraw your collateral at any time through [Withdraw] for the collateral ratio surplus.
However, if the KAI price falls or the Oracle price of ksAsset rises, the available issuance will fall. As a result, if the collateral ratio exceeds 100%, the minted ksAssets may be liquidated. Therefore, it is necessary to maintain an appropriate collateral ratio.

[Mint]

At the bottom of the screen, you can Mint, Repay, Sell, and Buy each ksAsset.

ksAssets can be minted only during the operating hours of the exchange (where price information of the real underlying asset can be received).
Within the mintable amount, ksAsset (synthetic assets) can be minted based on the Oracle price, and a 0.5% fee is deducted as synthetic assets.
The mintable amount is reduced by the value of the minted ksAssets and the collateral ratio is changed.

[Repay]

ksAssets can be issued only during the operating hours of the exchange (where price information of the real underlying asset can be received).
When you mint ksAssets, you are obligated to repay the same asset and quantity, and you need synthetic assets of the same type and quantity for repayment.
Based on the Oracle price at the time of repayment, a 1.5% fee will be deducted from the collateralized KAI.

[Buy(long) ] / [Sell(short)]

When you click the Buy/Sell button, you will be connected to Klayswap as shown in the screen above so that you can buy/sell ksAsset.

Use case

If the price of the minted ksasset is higher than the oracle price of the real underlying asset, a premium is generated by making a profit. Therefore, by minting and selling ksAsset, a premium price difference can be obtained.
If the price of the minted ksasset is lower than the oracle price of the real underlying asset, By supplying liquidity of minted ksassets, sKAI can be distributed according to the boost results.

To supply liquidity — You can go to Klayswap through the link in the image below