PR with Payload
Enable Gauge for kai / WETH (Ethereum)
Summary:
This proposal seeks approval for a 2% gauge allocation for the kai-WETH pool on Ethereum. The rationale behind this request aligns with the objectives of the previously approved kaiAura-Aura gauge. The kaiAura DAO governance token plays a pivotal role in strengthening the tertiary ecosystem, kai, by enhancing liquidity and yield opportunities for AURA, kaiAura, and KAI holders.
A vote in favor of this proposal supports kai’s mission to amplify DeFi rewards within the leading decentralized finance ecosystem. As a DAO, we stand to build a stronger and more rewarding future.
Pool Details:
Pool: Liquidity Pool (v2): kai / WETH
https://balancer.fi/pools/ethereum/v2/0x0aaba3d6a05a606b7a794877dd0befda47474db00002000000000000000006d2
Pool Contract: 0x0AAba3D6a05a606b7A794877Dd0beFDa47474dB0
Gauge Address (Ethereum): 0x80CD37A62A8A58C4Cbf64003410c5cCC4d01519f
References/Useful Links
- Website: kaiAura.finance
- Documentation: kai Docs
- Communities: Discord, X
- Dapp: app.kaiaura.finance
- Dune: https://dune.com/kaiauradao/kai
- Notable Mentions: Aura Tweet
Protocol Description:
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kai - is native governance token of the kai ecosystem. The kai token is primarily used to benefit the ecosystem Balancer, Aura, and kai participants. The Treasury and Community Tokens are dedicated to staking rewards and benefitting the ecosystem. That makes up eighty (80%) of all the tokens. The Community tokens are strictly through means of staking rewards, added rewards on top of all the rewards you’d ordinarily get by staking on Aura! There may be a small air drop to the wallets that help the growth of kai during Launch Phase I, II, & III.
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kai is a DeFi protocol built to optimize and amplify rewards for AURA stakers. In short, users can convert AURA into kaiAURA, a tokenized wrapper that provides enhanced yield opportunities. With real-time USDC payouts (additional Aura, Pal and WETH pending kai Governance). All that plus additional rewards via the $KAI token, kai offers a unique and innovative yield layer for the DeFi ecosystem.
Shortly after launch kai has achieved, a top 27 vlAura holder with over $800k TVL, highlighting strong community interest and demonstrating its potential to grow liquidity across the Aura and Balancer ecosystem.
Motivation:
The kai / WETH gauge is strategically important as it helps to support liquidity for the native governance token of kai. kai, at current prices, directly influences over 250k of annualized rewards for stakers in the Balancer / Aura / kai ecosystem.
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Voting Incentives: kai has allocated 58% of its supply through emissions, and would like to use bribe markets, and Aura pools to enhance effectiveness of emissions.
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Strengthen Balancer Liquidity: By pairing kai / WETH, this gauge increases Balancer’s TVL and trading volume, driving value back to the protocol treasury through fees.
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Boost Ecosystem Collaboration: Balancer benefits from kai’s integrations, which amplify liquidity efficiency and attract new users to the ecosystem.
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Enable Sustainable Growth: The gauge will encourage broader adoption of kai through visibility of the app on Balancer, and Aura with the opportunity to receive rewards, creating a virtuous cycle of increased liquidity, yield, and governance participation.
In short, this proposal benefits kai, Aura and also solidifies Balancer’s position as a leader in community run DeFi liquidity solutions.
Specifications:
Governance:
Governed by kai DAO, with community-driven governance initiatives.
kaiDAO address: https://debank.com/profile/0x4696b1123f4c6a03711e2c6e8311350b0350d7c2
Oracles:
No external oracles required.
Audits:
The open source code is here: https://github.com/kai-aura/kai-Contracts
kai started an audit with Rezolv Solutions, https://www.rezolvsolutions.com/#aboutus, on 15 Dec 2024
Centralization Vectors:
Non-custodial and decentralized protocol with strong community engagement, and collaboration with ecosystem partners.
Three early contributors, with 7 total contributors.
Market History:
- kai is a volatile asset, much like most crypto assets
- In kai’s launch the tokens were deployed, then pushed to vesting contracts, this gives the automatic readers (etherscan, dexscreener) a false impression of circulating supply vs FDV, which suppresses price action. Please reference the Dune Dashboard for an accurate account of Market Cap, Fully Diluted Valuation, and token holdings, as dune specifically mentions contracts with large holdings. The top contracts holding tokens have descriptions below.
- kai has been trading since day 1 of Phase I launch, 26 September 2024.
- Total Value locked on the platform has surpassed $800k, with plans to be a top 10 vlAura holder.
- Link to Balancer Pool, and Balancer Gauge is provided above
Description | Address
DAO Operating wallet | 0x4696b1123f4c6a03711e2c6e8311350b0350d7c2
DAO Treasury for Ecosystem Growth | 0x8c9a335240a3124619f1f5fe98c6b4c8498d7582
Communal Farm Staking Contract | 0xfc2e3cb720e68cb36b5a30925c77802ab2e78afc
Early Contributor Vesting Contract | 0x1fdf9a6b9d2ea49f82310b3ba465818df561bc45
Early Contributor Vesting Contract | 0x095188dc7d847cfa4ce8774c4bef68c9e4c5a1f9
Early Contributor Vesting Contract | 0xcb0da612ea582b77b5e2d4fc2e3833e4ed7d1cba
Early Capital Contributors Vesting Contract | 0xa6c0b9ab4e1521ae28fd96f4dae3f654e1dc24de
Early Capital Contributors Vesting Contract | 0x0d168b2d915ca93b9f58e8f4cb9817878524f316
Early Capital Contributors Vesting Contract | 0xf703dd5739fd6dbd1f6ea3ac1a0223243eecf6dd
Early Capital Contributors Vesting Contract | 0x7112d1a152c5d66ec5f668692e66deb480a66e50
6. Value Proposition:
Since the inception of kai, Aura stakers have been able to earn an amplified and enhanced rate of yield, plus kai tokens, plus no-lock, plus immediate staking/unstaking for rewards, plus additional partner rewards soon.
kai DAO has enabled substantially increased Real Yields, at current 1.8x what they would earn in a locked position on Aura. Since there now exists a Aura-kaiAura gauge, further amplification is likely as further incentives are given to kai related pools.
kai serves as the governance layer for kai DAO
The pool is also set to Volatile, as in the past, a stable swap pool has resulted in further peg deviations, which ultimately burden the app. The presence of strong liquidity and active gauge rewards will benefit the community and help maintain peg.
- Greater trading efficiency and reduced slippage for KAI participants
- Increased adoption of KAI as a core DeFi token through amplified rewards.
- Improved accessibility for users looking to participate in the KAI ecosystem.
- Increase protocol revenues for Balancer through trading fees and liquidity mining incentives.
By combining kai’s innovative yield strategies, Aura’s governance model, and Balancer’s robust infrastructure, this Gauge represents a step forward in DeFi liquidity management.
Special Note:
The pool is standard balancer pool v2, with customizable fees. The DAO has the ability to modify fees. The intention was to start the pool with 1% fee, and reduce fee as needed overtime to facilitate swap volume. The swap fees were reduced to 0.5% 15 Dec 2024.
We invite the Balancer community to review and support this proposal. Feedback and discussions are welcome to refine this submission further. Thank you!