Introducing Kodiak: Berachain’s Native Liquidity Hub

Today, we are ecstatic to reveal Kodiak, an innovative DEX that brings concentrated liquidity and automated liquidity management to Berachain. For traders, we provide the deepest liquidity and best trade execution. For protocols and liquidity providers, we provide unparalleled flexibility and control.

Kodiak is a foundational building block for liquidity on Berachain, embodying the core principles of modularity and extensibility to establish a cutting-edge swaps venue within the realm of a Proof-of-Liquidity (PoL) environment.

Kodiak is designed to be composable and allows for the seamless integration of partner protocols from day one. Examples of future integrations include the rehypothecation of Kodiak liquidity positions as collateral for derivative products and money markets.

Our goal is to become the community-native DEX of Berachain. By vertically integrating the following DEX layers, we offer users and protocols a full suite of tailored trading features and simplified liquidity management:

• Decentralized Exchange (Kodiak DEX): providing users with a non-custodial, highly capital-efficient trading and liquidity provision experience powered by both concentrated and full-range AMMs.
• Automated Liquidity Manager (Kodiak Islands): attracting sticky deposits through our set-and-forget automated concentrated liquidity strategy vaults.
• Integrated Incentive Layer (Sweetened Islands): tapping into Berachain’s PoL mechanism to sustainably incentivize liquidity for Kodiak Islands.
• No-Code Token Deployer Factory (Panda Factory): facilitating the permissionless deployment of new tokens (e.g., memecoins) and their initial liquidity on the Kodiak full-range AMM (ideal for highly volatile assets whose price characteristics are undiscovered).

Kodiak is the only DEX incubated by Berachain’s Build-a-Bera accelerator program with the mandate of filling a gap in the Berachain ecosystem with a much-needed concentrated liquidity solution.

You might wonder why we decided to develop our products on a fake network!

Well, for us, it’s quite simple: we believe Berachain is positioned to debut as a leading Layer 1 blockchain in 2024. Berachain is a highly performant EVM network secured by its novel PoL consensus mechanism.

With PoL, the only way to gain the network’s governance token (BGT) is by providing liquidity to a set of whitelisted applications, liquidity pools, and/or vaults on Berachain. As a result, PoL provides a solution that ensures that liquidity grows in tandem with staking and that these staked assets remain liquid and readily available for the network’s various DeFi applications.

The initial set of whitelisted applications starts with the chain-owned DEX (BEX), perpetual futures exchange (Berps), and lending platform (Bend), but will quickly open to any smart contract deployed on the chain. We’ve worked closely with the Berachain Foundation to ensure that Kodiak’s Islands are compatible with Berachain’s PoL consensus mechanism, and as PoL matures, sweet BGT will flow to Kodiak.

Kodiak and BEX are not competitors, but rather complementary to one another. BEX is a multi-asset AMM that allows for liquidity pools consisting of up to 8 tokens. This offers users with a venue for users to pick from liquidity pools with a larger basket of assets to participate in PoL compared to only being able to pick from liquidity pools with two tokens in other traditional DEXes.

However, BEX does not offer a concentrated liquidity solution, which enables higher capital-efficiency and flexibility for Liquidity Providers (LPs). Additionally, one of the major concerns of concentrated liquidity in the PoL system is that users could sybil farm BGT emissions by providing concentrated liquidity that is either always out of range or in a very tight range. This is where Kodiak comes in with its unique Islands product.

Kodiak Islands automate LP strategies, simplifying concentrated liquidity provision. User deposits in Islands are pooled together into a fungible concentrated liquidity range — as prices move, liquidity is automatically rebalanced to stay “in-range.” Kodiak Island LP positions are uniquely designed to be eligible for PoL BGT rewards and also leverage liquidity on BEX for rebalancing Islands. Islands liberate LPs from continuous manual involvement, simultaneously fortifying Berachain with robust, in-range concentrated liquidity.

In the coming weeks, we will release our public documentation and share more exciting news. Keep an eye on our Twitter for these updates. In the meantime, if you’re a protocol launching on Berachain and would like to collaborate on your liquidity strategy, please reach out to us on Twitter at @KodiakFi or @0xbeartic!

Kodiak is currently not live. Please be cautious of scams. Our Twitter is the only source of accurate information!

Website: https://www.kodiak.finance

Twitter: https://twitter.com/KodiakFi

Medium: https://medium.com/@KodiakFi