Kaia Portal Mission Epoch #1 Incentive Design
Missions are designed to boost liquidity and user engagement within the Kaia ecosystem. We’re allocating up to 50 million KAIA tokens, alongside participating projects which will also be allocating their tokens. When you successfully complete Missions, you will earn points that can be converted into vested KAIA tokens and project tokens once the Epoch ends.
In Epoch 1, the Missions will revolve around providing liquidity to Kaia DeFi protocols, and the rewards will be:
Kaia points
Points from participating projects
D2I program rewards
Yield from DeFi protocols
New applications and DeFi use cases built on Kaia will expand the range of available assets and support increased volume, resulting in higher fees for liquidity providers and boosting ecosystem trading activity. This will create a flywheel effect, where increased activity and liquidity enhance the overall ecosystem.
Maximum Transparency
While many point systems are opaque about their rewards calculations, Kaia Portal Missions are designed to be maximally transparent, in everything from campaign duration to point calculation formulas as we believe that Kaia users deserve nothing less.
Campaign Duration
The Missions will officially begin on September 26th, and as of now, we have Missions planned for the following three months. During this period, additional airdrop opportunities, new participating projects, and asset boosts will be introduced with each Epoch.
Early Adopters
If you participate in the Missions between August 29th and September 26th — even if you deposit just $1 into any DeFi protocol listed in the Mission tab — the corresponding wallet will qualify for the Early Adopter boost which will add a 1.2x bonus multiplier to all points earned thereafter.
Rewards
Kaia Rewards
Up to 20 million KAIA will be rewarded to general participants based on milestones. Wallets that participated in the FGP-23 voting in the existing Finschia ecosystem will receive up to 30 million KAIA. This reward pool is separate from the general participants’ pool and is exclusively for wallets that voted in FGP-23. Users with long-term on-chain contributions in the Finschia ecosystem can receive a weighted reward of 10 million KAIA by participating in the Kaia Portal Missions, based on their contributions.
20M KAIA (10M for general participants / 10M for FGP-23 participants) allocated for the points airdrop
15M KAIA (5M additional KAIA for general participants / 10M KAIA for FGP-23 participants) unlocked at $100M TVL
15M KAIA (5M additional KAIA for general participants / 10M KAIA for FGP-23 participants) unlocked at $150M TVL
Vesting
Tokens converted at the end of the campaign will be distributed over six months. When the campaign ends and a user claims point conversion (Kaia Points to Kaia Tokens), the Kaia Tokens will have a 6-month vesting period.
In addition, through the D2I program, participants can receive immediate Kaia rewards and project points without vesting.
*Vesting: Vesting is a process where you earn the right to receive full ownership of certain assets (like stocks or tokens) over time. It prevents you from getting all the assets at once, ensuring you stay committed to the project or job.
*Linear Vesting Over 6 Months: If you have 100 tokens with a 6-month linear vesting period, you don’t get all 100 tokens immediately. Instead, you get them gradually, say around 16–17 tokens each month for 6 months, until you have the full amount by the end of the period.
Partner Project Rewards
All participants will receive points from each partner in their respective Portal Mission.The criteria for points provision vary by partner, and details will be updated soon.
All projects participating in Kaia Portal Missions are required to have been audited by professional auditors and verified protocols, so you can safely participate with confidence.
Participating Projects
*Alphabetical Order
Capybara (DEX)
Built by the Wombat team (backed by Binance Labs, Animoca, Shima, and Jump Crypto)
Audited by Hacken, Peckshield, and Zokyo
Capybara, launched using the technology of the multi-chain stable swap Wombat, introduces a new DEX on the Kaia chain that integrates a gamified point system, a launchpad, and an airdrop playground. Notably, the Capybara launchpad will be the first on the Kaia chain, acting as a direct bridge between the Kaia chain and global users. Capybara innovates the coverage ratio-based stable swap mechanism, removing scalability barriers, allowing participants in the Kaia ecosystem to utilize capital without the risk of impermanent loss. It also minimizes slippage, supports single-token LP tokens, and offers an ideal DEX for lending protocols and trading platforms, all supported by a user-friendly UX/UI. The official launch, including the $CAPY token, is expected to bring vitality to the Kaia ecosystem.
Dragonswap (DEX)
Built by the Dragonswap team, audited by KALOS
Dragonswap is currently the leading DEX in the Kaia ecosystem, offering both V2 and V3 liquidity provision features through an open-source protocol. It aims to redefine a sustainable DEX environment, focusing on community engagement with rich liquidity, high trading volume, and openness. The Dragonswap team is comprised of various ecosystem experts.
Sustainability: Dragonswap currently has no native token. It aims to create a sustainable DeFi ecosystem by encouraging participation in the Kaia ecosystem through KLAY incentives and a points system.
Rich Liquidity: Dragonswap secured at least $4 million in initial strategic liquidity and currently holds approximately $9 million in liquidity.
Efficiency: With ample liquidity, Dragonswap provides fast transaction speeds and low fees through its V3 liquidity provision service.
Community Initiatives: Dragonswap participates in the Kaia Foundation’s D2I program, dedicated to supporting the Kaia community and its users.
Kaiaswap (DEX)
Built by the iZUMi Finance team (backed by Mirana, HASHKEY, IOSG, BIXIN Ventures, and more)
Audited by Certik and BlockSec
Kaiaswap, the first native DLAMM (Discretized-Liquidity-AMM) DEX on the Kaia chain, is based on the innovative technology of iZUMi Finance, which focuses on leading the decentralized finance sector with a strong emphasis on technology and user experience. By concentrating liquidity at specific price points, this AMM model achieves high capital efficiency. This approach aims to provide transparency, security, and an efficient on-chain experience within the sustainable and verified Kaia chain ecosystem. KaiaSwap will offer safer and more accessible DEX services on the high-performance Kaia chain, combining iZUMi’s unique DEX-as-a-Service solution with DLAMM, account abstraction, and multi-signature features, all with low gas fees.
*Participating projects may be updated continuously.
Incentive Design
Point Definition
A point is non-formally defined as:
Kaia point = Liquidity pool (DEX, Lending) multiplier * Asset boosting multiplier * other boosting multiplier * user’s liquidity contribution (user’s TVL) * Time + Referral points
Project point = Depending on the project’s point system policy
Providing liquidity to each project will allow users to earn Kaia points and project points simultaneously (additionally, referral points also).
More formally, Kaia point is defined as:
Multiplier Explanation
*More project pools, assets, and other multipliers will be added during the campaign. *Each multiplier number can be adjusted during the campaign.
Liquidity pool multipliers
Different risk levels associated with each DeFi’s characteristics are accounted for in the reward multipliers. For example, a USDT-USDC pair pool in a Decentralized Exchange (DEX) has very low volatility due to the stability of the assets, thus lower risk and lower reward multipliers. Conversely, a KAIA-USDT pool has higher risk due to KAIA’s price volatility, warranting higher reward multipliers. These multipliers are set based on thorough research of existing Kaia and other chains’ DeFi APR data but may be adjusted for optimization during the campaign.
Notes
If a DEX uses a model where users select a price range for liquidity provision (e.g., Kaiaswap), users will only receive point rewards when supplying liquidity within the current price range.
When depositing assets into a DEX pool, you may be exposed to impermanent loss if the prices of the assets fluctuate significantly. For an explanation of impermanent loss, please refer to this link.
For DEXs that use a model where users select a price range to provide liquidity (e.g., Kaiaswap), users receive more point rewards when they supply liquidity closer to the current price range.
Lending protocol: No point rewards for additional liquidity supplied through recursive borrowing. For example, depositing $100 USDC, borrowing $80 USDC, and redepositing would only reward points for the initial $100 USDC.
*At the time of the launch on August 29th, only the liquidity pools based on stablecoins from the list below will be supported initially. The other pools listed below will be supported gradually.
Supported Assets and Multipliers
Initially, the following assets will be supported, with more to be added later:
Other Multipliers
Various multipliers beyond the liquidity pool and assets will be added during the campaign.
Referral Points
To encourage participation with friends, we have also created referral points. Person A, who invited person B, will receive an additional 10% of the points accumulated by person B. Referral points are only credited for people directly invited by the user. For example, if B, who was invited by A, invites a new person C, a portion of C’s points will not be additionally credited to A.
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