Introducing Kartera Diversified Token and Swap Protocol

Photo by Mathieu Stern on Unsplash

Background

The Idea

The Protocol

  • When a user (LP) deposits their tokens they receive a token representing their share of that particular basket.
  • LPs can collect KART by locking their basket tokens in SWAP Farm.
  • Traders can swap between different basket holdings for a small fee (fee ~0.3% of trade size).
  • The swap fee is shared among the LPs and the holders of staked Kartera Governance token (KART).
  • The maximum trade size is capped at 10%.
  • To protect LPs from whales, the swap fee increases linearly with every percent share of liquidity that is drained from the basket. This means a trader looking to swap tokens and drain 10% of liquidity will end up paying 3% in fees.
  • The token weights are not fixed, however, when the protocol becomes widely accepted the weights should resemble that of the broad crypto market.
  • All pricing is done by aggregating feeds from Uniswap, more price oracles will be added later.

Incentives for Liquidity Provider

  • Diversify! Add your tokens to a Kartera Basket and diversify your risk.
  • Smooth out your APR, fees are shared among all LPs of a basket regardless of the token supplied.
  • Mining KART Tokens gives you claim to a share of fees. Early adopters will receive 10x KART tokens offering you a big piece of the pie!

Incentives for Traders

  • Traders can easily bet one token’s performance against a broad market.

Basket Constituents at Launch

  • ETH, WBTC, LINK, UNI, AAVE, MKR, SNX
  • More constituents can be added and other baskets will be created.

KART Token Distribution

  • Mining of KART tokens will begin 50,000 blocks (~ 8+ days) after launch.
  • 1,000 KART tokens will be minted per block for the next 50,000 blocks.
  • Afterwards the mint rate will drop to 100 KART tokens per block.
  • The governance community can decide to lower the mint rate after that.

Development & KART Price Stabilizer and Marketing (PSF) Fund

  • Additional 10,000,000 KART tokens will be minted to the creators account as PSF.
  • PSF will be used to offer liquidity on Uniswap at ~$0.00001 per KART token.
  • PSF will also be used to cover any transaction costs.
  • A part of PSF will be set aside towards marketing. KART tokens will be offered to Twitter and YouTube influencers.

Swap Fee Structure

  • Additional 0.3% is applied for every 1% thereafter.
  • Of the entire fee collected from a trade, only 0.05% of trade size is distributed among KART token holders. This fees is deposited in KART Farm as newly minted basket tokens.

Security Audit

Smart Contracts

KarteraToken: Native token with governance and voting (Copied from Comp)
SwapBasket: Token basket, holds tokens deposited. Owned by KART Gov protocol. Owned by Timelock and Managed by creator/developer.
SwapFarm: Deposit Basket tokens to farm KART
KartFarm: Stake KART token to earn Basket Tokens
GovernorAlpha: Compound governance protocol (Copied from Comp)
TimeLock: Owner of SwapBasket (Copied from Comp)
TreasuryVester: Development fund time lock(copied from Uniswap)
Libraries
SwapBasketLib: Implementation of SwapBasket functionalities
SwapFarmLib:
Implementation of SwapFarm functionalities
KarteraPriceOracle:
Aggregates prices from different price oracles

We are continually testing the contracts and if you find any bugs please let us know.

Time Table

  • Start minting Kart Tokens @ 1,000 KART / block from block# 12,173,285
  • End of 10x bonus Kart Token on block 12,223,285
  • Swap trading begins around block 12,173,285
  • Kart Tokens mint rate @ 100 KART / block after block 12,223,285

Platform — How to use

Acknowledgements

  • Uniswap TreasuryVester contract
  • Sushiswap’s success story was a great inspiration. We have read their contracts and you may find our approach similar to them in many ways.