Introducing Kartera Diversified Token and Swap Protocol

Photo by Mathieu Stern on Unsplash


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

  • 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)
SwapBasketLib: Implementation of SwapBasket functionalities
Implementation of SwapFarm functionalities
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


  • 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.



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