Koi finance: A next generation DAO governed ZKROLLUP DEFI PLATFORM

Koi finance Presentation

Koi is a DeFi platform, serving as a liquidity hub for all projects on zkSync. Koi's dynamic dApp features both a concentrated and standard pool AMM DEX, complete with limit orders, a farming platform, and a bond platform. Experience the evolution of DeFi 2.0 with low fees and gas-less swaps. Koi's dynamic dApp features both a concentrated and standard pool AMM DEX, complete with limit orders, a farming platform, and a bond platform. Experience the evolution of DeFi 2.0 with low fees and gas-less swaps. Koi is designed to have a dynamic setup for Liquidity Pools so that both Stable and AMM curves can be utilized. There can be a Normal and Stable pool for the same assets. Koi will find the best priced trade regardless of pool type.

Koi Farming Pools

Koi farming pools is a liquidity reward protocol that allows LPs to gain additional revenue APY & take part in the Koi ecosystem. Amplifier rewards are fueled by platform revenue and fees, which come directly from the buy back and make system the Koite DAO has in place.

Do note, there are not amplifier pairs for every liquidity pair on the Switch. Rather, amplified pairs are decided up by the team and Koi DAO. There will be amplified pairs for important base liquidity pairs such as ETH/USDC, WBTC/USDC etc. These will be linked and updated on this page as those become available.

The Koi Farming pool protocol has introduced a novel system that sets it apart from traditional dynamic farming models by implementing a static APY model. This innovative approach enables the protocol, as well as its partners & users, to generate calculated revenue based on the rewards distributed to farmers.

The base APY in an amplifier is static. Additionally, if the pool has an extra amplifier APY set, the max apy is determined by a ratio of the users Ve vote share value to the lp value being deposited.

Rewards are allocated immediately upon deposit and disbursed gradually over the month based on user redemptions. If the user chooses to withdraw their funds prematurely, they forfeit the remaining unmatured rewards.

To own the max Amplified APY, you must have a vote share value of equal or greater to the value of lp being deposited.

Your veKOI votes/holdings carry over to all amplifiers. If you are providing your LP to two amplifiers, your veKOI vote share balance is not split among them. Taking the previous example, if you provided LP on two pairs using those same exact numbers as above, your APY on both would be 12.5%. This is to encourage participation in all pools.

Koi finance Limit Orders

Limit orders on the Switch utilize the native AMM as a liquidity and inventory provider. Due to this, limit orders can cause substantial or minimal slippage on limit orders based on the volume of the order and depth of the liquidity on the pair being traded.

Regardless if a limit order causes a 10% slippage on the AMM pair being traded, the limit order owner still receives the amount the order was placed for. For limit orders to work, there is a free market of market making bot(s) that scan and execute trades based on their strategy and fees.

A visualization:

A limit order is made to purchase token X with 1 ETH. That order is created and approved so that once the AMM can support that purchase with no loss to the market making bot(s), the order is filled. With the nature of smart contracts, there are no 'automatic' executions of manually placed events such as a limit order. So as such, a free market of bot(s) continually scan limit orders to see if there are any that can be filled with any additional fees the bots want to charge. This is a free market, so any completion to these trades will mean fees should be low. Bot fees do not affect what the limit order receives, only the price of which the trade is executed at on the AMM level.

If your order cannot execute without creating a 10% slippage because liquidity on the native pair is low in comparison to the trade, the trade will be executed once token X is trading at a minimum of -10% of your purchase price. This is because the limit order being executed will increase the the AMM pair price by 10% and to be able to fill the limit order with the amounts being asked for, this is the minimum deviation that needs to occur for that order to fill successfully. Although the AMM pair is affected with slippage here, the limit order is filled at the price it requested.

There is also the opportunity for inventory based market making without needing to use the Switch native AMM module as a liquidity provider.

KOI Tokenomics

• Max Supply: 1,000,000,000 KOI

• Circulating Supply: 500,000,000 KOI

• Token Allocation: As tokens are allocated, vested, and unlocked, these numbers will be updated.

• Circulating (prev. Mute token swap): 50%

• Ecosystem Incentives: 30%

• Future Investors (reserved): 7%

• DAO: 6%

• Future Advisors (reserved): 4%

• Investors & Advisors (12-18 month vests): 3%

Roadmap

Big picture roadmap - subject to change

Complete

• Mainnet Release
  May, 2023.

• Farming Program: A liquidity reward protocol rolled out to incentivize high-value projects to provide liquidity on Koi. A fixed APY farming model that allows for efficient reward distributions.

• Bond Infra: A Bond marketplace rolled out to give projects tooling to increase their PoL.

• Paymaster: Pay fees in any tokens traded on Koi

• veDAO: Vote-escrow model for Koi tokens. Get access to the KOI DAO, boosted farming APYs, and revenue sharing (Q1 2024)

Q1/Q2 2024

• Mute -> Koi rebrand & token swap
• Rebranded ecosystem with overhauled tokenomics
• veKoi revenue sharing: Integrate revenue sharing mechanisms from protocol generated fees for veKoi lockers.
• Concentrated liquidity pools, limit orders, trading strategies: Deploy and integrated concentrated liquidity pools with limit orders, range orders, recurring orders, and overlapping liquidity segmentation.

Follow us on social media

Website: https://koi.finance/
Whitepaper: https://wiki.mute.io/mute/info/tokenomics-1
Twitter: https://twitter.com/koi_finance
Discord: https://discord.com/invite/muteio
Telegram Community: https://t.me/mute_iol

Author Details

Bitcointalk name: Belinda Axel
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=3382091
Wallet Address: 0x679f1d90c22153d18001510118971989be539f4f