Koi is a leading zkRollup DeFi platform on zkSync Era, offering investment, trading, yield earning, and bond participation in a decentralized, community-focused environment. It provides an AMM-based DEX with limit orders, stable and normal AMM curve pools, and variable LP fees ranging from 0.01% to 10%. Additionally, there are fixed and dynamic protocol fees, no LP minting fees, and fast settlements within 1-3 seconds. Users can enjoy over 95% gas cost savings compared to L1 ETH. Koi also features a yield generation platform, bond offerings, and operates as a DAO.
Koi's Liquidity Pools: offer both Stable and Normal AMM curves. Stable Pools cater to assets with a tight price range, like USDC/DAI, while Normal Pools handle non-correlated assets like ETH/WBTC. Both pool types can exist for the same assets, and Koi determines the best-priced trade regardless of the pool type. Fees for each pool type range from 0.01% to 10%.
Dynamic Pools allow fees from 0.01% to 10% for Normal Pools and 2% for Stable Pools. Fee changes require 50%+ LP governance vote weight and a 0.1% fee on total votes to prevent system manipulation.
Koi's fee structure aims to mirror traditional markets with fees of 1%+ to empower LP providers and projects with Protocol Owned Liquidity (POL) to generate revenue.
Koi features built-in LP governance & delegation systems. LP fees range from 0.1% to 10%, and fee changes need 50%+ vote weight. LP providers can delegate votes to other providers, increasing their pool weight.
Koi prefers a single fee pool design to concentrate liquidity and enable dynamic fees. There are two protocol fees: Dynamic (% of LP pool fees) and Fixed (fixed % of overall trade). If the Fixed fee is larger than LP fees, LP providers earn no fees until LP TVL grows sustainably.
.jpeg)
Koi Farming Pool
Koi Farming Pools offer LPs an opportunity to earn additional revenue APY within the Koi ecosystem. Amplifier rewards are fueled by platform revenue and fees through the Koite DAO's buyback and make system.
Not all liquidity pairs have amplifier pairs; they're chosen by the team and Koi DAO. Important base pairs like ETH/USDC and WBTC/USDC will have amplifiers, with updates available on the platform.
Koi Farming introduces a unique static APY model, different from traditional dynamic farming. The base APY in an amplifier remains static. An additional amplifier APY depends on the ratio of the user's Ve vote share value to the LP value deposited. For instance, with a $500 vote share out of $1000 LP value, the amplified APY becomes 12.5%.
Rewards start accruing immediately upon deposit but are disbursed gradually over the month based on user withdrawals. Early withdrawals forfeit unmatured rewards.
To achieve max Amplified APY, your vote share value must match or exceed the LP value deposited.
Your veKOI votes/holdings apply across all amplifiers. If you use the same LP for two amplifiers, your APY remains the same for both, encouraging participation across all pools.
To apply for the Amplifier program, please submit your project info to this link:
https://docs.google.com/forms/d/e/1FAIpQLSc8wcI9-Qd2U8rHAeRahKluOQfu7-pFCoZMXGXeyex28hIozQ/viewform
Limit Orders
Limit orders on the Switch use the native AMM for liquidity and inventory. Slippage on these orders depends on order volume and liquidity depth. Even with high slippage, the order owner gets the set amount.
Market-making bots scan and execute trades for limit orders based on strategy and fees. Orders are only filled when the AMM supports it without loss to the bots. Bot fees don't affect the order amount, only the execution price.
If an order can't execute without a 10% slippage due to low liquidity, it fills when the token price drops to -10% of the purchase price. This ensures the order is filled at the requested price despite affecting the AMM pair with slippage.
Inventory-based market making is also possible without using the Switch native AMM module as a liquidity provider.
.jpeg)
DAO and Governance
The native Koi token, KOI, grants access to the Koi DAO through a lock-based voting system using veKOI (Vote Escrow Locked Koi) NFTs. KOI holders lock their tokens for 7-728 days to receive veKOI NFTs, which hold metadata like locked KOI amount, vote share weight, and expiry date.
Once the lock period ends, you can redeem and burn your veKOI to get back your KOI, hold the veKOI, or choose a new lock period. Lock time ranges from 7 to 728 days in 7-day increments.
veKOI provides utility such as:
- Amplifier Boost in an Amplifier Pool
- Modifying AMM protocol fees
- Creating Amplifier pools and reward distributions
- Bond offerings and distributions
- Ownership over the protocol treasury
- All Koi DAO functionalities
veKOI allows custom functionalities like splitting veKOI into smaller NFTs, merging two veKOI NFTs, and extending the lock period.
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%
For more information visit the links below:
Website: https://koi.finance/
Telegram: https://t.me/mute_iol
Twitter: https://twitter.com/koi_finance
Discord: https://discord.com/invite/muteio
Btt link: https://bitcointalk.org/index.php?action=profile;u=2247475
Author: abeexy