KOI FINANCE

April 19, 2024

A Lightning Fast DEX, Yield, and Bond Platform

ABOUT

The fact that Koi acts as a liquidity hub for all of the projects that are hosted on zkSync is one of the factors that adds to the decentralized character of the platform designed for conducting financial transactions. In addition to offering a concentrated and regular pool AMM DEX, Koi also offers limit orders, a farming platform, and a bond platform. All of these features are supported by the platform. Each and every one of these capabilities can be found inside the dynamic decentralized application (dApp) that Koi offers. Experience the advantages that have been made possible by the developments that have been achieved in DeFi 2.0, such as reduced pricing and exchanges that do not need the addition of petroleum.

AN ASSORTMENT OF DISTINCT INDIVIDUALS

A significant amount of knowledge and experience in the subject of cryptography, more especially in the area of dealing with Zero-Knowledge protocols, is possessed by the development team that is responsible for Koi. Before Koi was made accessible to the general public, the group was responsible for designing the very first Zero-Knowledge Atomic Swap protocol. This protocol was used to convert chains that were based on UTXO to chains that were based on Bitcoin. In addition to this, they made significant contributions to the development of Zerocoin and Sigma, two cryptocurrencies that were both concerned with schemes and transactions. These individuals are now bringing that expertise to Koi and their new venture, which is the Koi DAO company. At this pivotal point in time, they are in this particular position. Koi is in a strong position to become a key participant in the zkDeFi sector as a result of the business growth of zkSync and the providing of long-term value to its community. It is the presence of a group of individuals who have shown a history of being inventive and competent that makes this objective a goal that can be accomplished.

Among the many important zkRollup DeFi platforms that were developed on the zkSync Era platform, the Koi platform is one of the most prominent examples. This platform is decentralized and community-driven, and it gives users the ability to invest and trade, get yields, and participate in bond transactions all within the same environment. Take advantage of the security that Ethereum provides without having to pay prices that are too high for gas.

IT INCLUDES CHARACTERISTICS SUCH AS:

A DEX that is based on AMM and has limit orders is available.
There is a selection of stable and normal AMM curve pools accessible.
Stable (0.01%-2%) and typical (0.01%-10%) variable LP costs are the two categories of different sorts of variable LP fees.
Costs associated with the protocol that are both constant and dynamic
LPs do not have to pay any minting expenses.
The communities of one to three
There is a decrease in gas costs that is more than 95% when compared to L1 ETH.

MANAGEMENT AND ADMINISTRATION

There is a built-in architecture for LP governance and delegation that is included in the premade version of Koi. To put it another way, this not only makes it feasible to build more intricate protocols on top of the Koi protocol, but it also makes it possible to create dynamic fees inside any LP pool.

The determination of the LP fee for each LP pool takes place at the time when a pair is generated. It is possible that the range of these expenses, which may vary anywhere from 0.1 percent to 10 percent, will be determined by the LP provider’s desire to promote themselves as the pool’s originator. It is only possible to construct a single charge at a time, which implies that all limited partners will be forced to engage within the charge range that has been defined.

By using the LP governance system, it is possible to modify the cost of the pool based on an account that controls more than fifty percent of the votes in addition to the pool. This is achievable even if the pool itself is taken into consideration. The supply balances of LP tokens and the votes are directly related to one another in a direct and immediate manner. On the other side, the LP provider has the ability to delegate their “votes” to another provider if they so want. It is because of this that parties are given the chance to run campaigns for delegates, which would lead to an increase in the pool weight of the party.

Because of a variety of factors, Mute decided to go with this design rather than a multi-fee pool type. The most significant of these factors is that the pool that has the largest liquidity will always be traded on, in contrast to its equivalents, which are pools that have lower fees and less liquidity. Therefore, it is desirable to concentrate liquidity within a single pool and to incorporate a governance structure that allows for the deployment of dynamic fees. This is because of the advantages that this provides.