New synthetics are here! The protocol is starting off with kxUSD, a USD pegged algorithmic stablecoin. Why kxUSD? The dollar continues to dominate in volumes across all platforms, being the main medium of exchange. That, and the arbitrage possibilities of algo stablecoins, are a powerful way to grow the liquidity pool of Klondike protocol. Just look at this:
But the design has its own flaws. The stabilization fund model of Klondike protocol is more applicable for the working ape tax model. It has proven to work with kBTC amassing about 10M USD in WBTC a few weeks back!
The community and core devs believe that the launch of a stablecoin will push the protocol utility to new highs and allow for explosive growth! Imagine collecting those sweet positive rebases as the model plays out with KLONX incentives…
- How can I get involved sir?
kxUSD Distribution Snapshot and Farming
As discussed previously, the initial supply will start with only 50,000 kxUSD and will be distributed to the Klondike community — no team or foundation premine. 2 types of holders are qualified— kBond holders & KLONX stakers:
- 40,000 kxUSD goes to KLONX stakers
- 10,000 kxUSD goes to kBond holders
The snapshot will be performed on 06 April at 6 PM UTC. So you have about 36 hours left *at the moment of writing* to stake your KLONX in Boardroom.
Stake your KLONX to the Boardroom to get your part of kxUSD and be the first to start farming in kxUSD<>DAI pool. Link here. The pool will have 100 KLONX per day reward. It will start right after the kxUSD distribution.
Stabilization Fund burning excess kBTC
Let’s add some more value to the protocol! As the supply of kBTC has been growing and fuelling the stabilization fund, the collateralization level of kBTC is now at about 51%. But don’t get confused: kBTC is not supposed to be backed by 90% or even 70% — there are still bonds (with the upcoming kSwap and liquid bond market later on) which are the real mechanism for stability. Anyway, after the burning the level would grow to 89%.
We want to make the system as robust as possible and let the market do its positive rebases if it wants, without the stabilization fund taking the premium away from the community. Thus, all current 80 KBTC owned by the Stabilization Fund will be burned on 06 April at 6 PM UTC.
To make the stabilization system bulletproof, the sequence of kBTC minting distribution was changed (the % are same as before):
- Developer fund — 2%
- Stabilization fund — 68%
- Bonds — liquidation preference before Boardrooms
- Boardrooms — 30% if no bonds were liquidated
