After Kava Labs successfully launched the Kava 5 main network and the HARD Protocol V2 version, according toKava 2021 Ecological Planningimage description
secondary title Kava Swap is a cross-chain liquidity center connecting DeFi applications and financial services. It aims to achieve the aggregation of assets so that they can be seamlessly deployed in different blockchain ecosystems, DeFi applications and financial services. At the basic level, Kava Swap is a cross-chain autonomous market making (AMM) protocol based on the DeFi infrastructure, cross-chain bridge and security of the Kava platform. Kava Swap provides services for the seamless transaction of various assets between different blockchains, making it convenient for users to use assets in the market-making pool to obtain more income. What does Kava Swap mean for Kava platform and HARD applications? secondary title trade tradeprovide liquidity provide liquidityearn income earn incomesecondary title Kava Swap is an application built on the Kava blockchain platform. Therefore, it is able to utilize Kava’s existing verifiers to ensure security, and use bridges for cross-chain asset transfers, as well as Kava ecological partner services such as Chainlink oracles that provide price reference data. The code will exist as a standalone module and will be added to the existing Kava Mainnet package. The first version of Kava Swap, supports asset transactions between BTC, XRP, BNB, BUSD, USDX, KAVA, HARD and SWP. Each tradable asset pair will have a corresponding liquidity pool for which liquidity providers can supply funds. In version 1, adding new assets and supporting new liquidity pools will be achieved through simple on-chain governance votes. Version 2 of Kava Swap, all Kava Swap functions are packaged into the Kava API, which can be easily integrated with any application that provides cryptocurrency services to users, making it easy for users of the application to trade and utilize their assets as a liquidity provider. Additionally, this release will include some governance and scalability improvements. Version 3 of Kava Swap, will establish a smart liquidity bridge between the Binance Smart Chain and the Ethereum ecosystem, which will facilitate users to allocate assets to liquidity pools, making transactions in different ecosystems, DEXs, and AMMs possible. Version 4 of Kava Swap, will have the function of intelligent autonomous transactions, and build an additional ecological bridge, Kava Swap can transfer liquidity to various DeFi applications and financial services. secondary title secondary title secondary title Kava Swap Token (SWP) - Decentralized Governance and Incentives text KAVA Token and Compensation When designing Kava Swap, Kava Labs carefully evaluated whether KAVA tokens could be used to simultaneously manage the Kava Swap application. There are three main issues preventing this: The development of Kava Swap needs to be driven by the participants who use it. A fair distribution of users is necessary to maintain long-term success. Users of the Kava Swap protocol may or may not be the same users who hold Kava today. This gives us reason not to confuse the governance of the Kava blockchain with the governance of the Kava Swap application.What is Kava Swap?
How does Kava Swap work?
How is Kava Swap established?
open integration
Kava Swap Governance
About Kava Swap Token (SWP)
In today's yield-oriented DeFi market, providing incentives for liquidity providers is very necessary. If KAVA tokens are used to incentivize Kava Swap, then KAVA tokens will need to be inflated to more than 50% of the supply. Given that not all KAVA holders are participants in Kava Swap, inflation of KAVA will dilute the rights and interests of existing KAVA holders.
Finally, KAVA tokens are responsible for being retained as a reserve asset for the supplementary assets of the lending platform. Conflating its value across multiple use cases creates a cascade of problems and risks destroying its value as a reserve asset.
Compensation of Kava Swap Tokens (SWP) to KAVA Stakers
Just like the HARD Protocol, in order to reward Kava stakers for their contribution to security and cross-chain infrastructure, Kava stakers can get 20% of the HARD token supply within 4 years. Therefore, we believe that Kava Swap tokens (SWP) should be continuously distributed proportionally among Kava stakers.
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Kava Swap Token (SWP) Distribution
Kava Swap tokens (SWP) will be issued in 250 million pieces and will be distributed within 4 years. The initial Kava Swap token (SWP) distribution is as follows:
55%—Community
25% - Foundation
15%—Team
5%—IEO
Community funds will be used for LP incentives, KAVA Staking incentives, airdrop rewards, community voting and other activities.
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Kava Swap V1 product roadmap and timetable
👉🏼June 30, 2021—Kava Swap code freeze
The code of all internal Kava Swap modules will all be internally reviewed and "frozen", no more new features will be allowed, and internal and external audits will begin at the same time.
👉🏼July 12, 2021—Kava Swap Incentivized Testnet Launch
An incentive testnet with Kava Swap function is opened to Kava users.
👉🏼July 14, 2021 — Kava Swap audit completed
Internal and external audits completed.
👉🏼July 21, 2021—Online Confirmation
Based on the feedback from internal and external audits, and the results of the incentive testnet, it will be decided to launch Kava Swap to the Kava validator community.
👉🏼August 12, 2021—Kava Swap mainnet launch
Kava Swap was released to the Kava DeFi platform, and then a series of governance suggestions were put forward to gradually enable various Kava Swap functions to ensure the safety of operation to the greatest extent.
Kava Swap Version 1 Feature List
1. Governance parameters
Add and remove token pairs for liquidity pools
Adjust the reward APY of the liquidity pool
Adjust the percentage of transaction fees and deposit them in the liquidity pool
2. Incentives for principals
Users who delegate KAVA to validators will now also be rewarded with Kava Swap tokens (SWP).
3. Transaction Fees
Users pay a fee for each transaction as income for liquidity providers. Fees will be deposited directly into the corresponding liquidity pool.
4. Deposit assets into the liquidity pool
Users can select assets and the amount of each token to deposit into the existing pool through the Kava web application, third-party applications or command line interface (CLI). Users who provide liquidity will be rewarded with Kava Swap tokens (SWP).
5. Withdraw assets from the liquidity pool
Users can withdraw their assets in the liquidity pool at any time. The withdrawn assets will only be affected by the recharge and withdrawal of other users, and the transaction function will not affect the withdrawn assets. Withdrawals will be made minus any accumulated transaction fees. The reward module will keep track of the corresponding reward amount and display this information on the user interface. However, if the user withdraws all funds before the end of the lock-up period, he will not be entitled to the reward. If only part of the funds are withdrawn before the end of the lock-up period, the reward share will be reduced accordingly.
6. Trading assets between liquidity pools
Users can trade any amount of their tokens for another digital asset through the Kava web application or CLI, depending on the asset and token pairs available. Users can specify the transaction period (1 minute by default) and slippage (1% by default). The price will be automatically determined according to the curve formula, so that users can get instant quotes when using Kava Swap. If certain parameters are not violated, users should be able to successfully complete asset transactions to reduce loss of funds such as slippage and transaction timeouts.
7. User Interface
Users will have an interface to view liquidity pool statistics to ensure they are trading tokens at the best possible price while investing in pools that maximize rewards. Users can also view their earned and pending rewards at any time through this interface.
8. Customized lock-up period
Users can choose between 1-month and 12-month lock-up periods. There will be additional rewards for choosing the 12-month option. The reward logic is similar to HARD Protocol.
9. Enable on-chain governance of the Kava Swap Token (SWP)
The community will implement modifications to the committee module to allow Kava Swap token (SWP) holders to vote on governance proposals, enabling users to directly participate in shaping the future development of the project. Additionally, locked Kava Swap tokens (SWP) will be counted towards governance votes.
10. The variable function list of the first version of Kava Swap:
Arbitrage Bot
Arbitrage Bot——Automatically query the transaction logic in the mempool to take advantage of arbitrage opportunities.
Adjustments to Transaction Fee Allocation——Users can decide the proportion of transaction fees for transactions and deposits in the agreement through governance voting.
Exchange listing and integration——Cooperate with exchanges and further integrate to ensure that users can directly use Kava Swap.
