Introducing Équilibre

4 min readDec 20, 2022

Protocol Design

The Équilibre protocol was designed based on the Solidly & Velodrome finance to be a public good that provides deep liquidity and low slippage on token pairs critical for the growth of the Kava ecosystem. The protocol incentivizes liquidity by giving token lockers the right to direct the protocol’s emissions to their favorite pairs.

Équilibre is a next generation liquidity layer on KAVA Chain that was created as a protocol for protocols. The main stakeholders of VARA — veVARA holders, LPs, users, and protocols — are all aligned by the ve(3,3) dynamics that determine $VARA emissions. $VARA emissions, along with bribes deposited by protocols and fees generated by each pools, are the main pillars of Équilibre economy — designed to incentivize the best behavior out of each stakeholder.”

Équilibre model uses the VARA token and veNFTs to motivate participation in the protocol by allowing lockers, who receive veVARA for locking their VARA, to vote on which pairs will receive emissions. In return, they receive 100% of the trading fees generated by these pairs. They also receive tokens from bribes directed toward these pairs and an anti-dilutive rebase to protect against negative share price movements. Fees and bribes as incentives can help pull voting toward pairs believed to be the most beneficial for the ecosystem.

Équilibre Goal

The goal of the Équilibre Finance Protocol is to create sustained demand for voting power from key protocols and enable bribes as a capital-efficient strategy for incentivizing liquidity. The protocol will distribute its unlocked circulating supply for token velocity and the ability for new entrants to accrue voting power over time, fostering decentralization with less than 50% of supply initially owned by protocols. The protocol hopes to attract experienced and engaged DeFi users in early distribution, ensuring that it can attract and retain a focused team to maintain the protocol.

A great DeFi protocol needs to consider more than just the mechanics of its operation. It also needs to be intuitive and user-friendly in its design, with clear documentation and an attractive interface. Équilibre Finance is working hard to ensure that our protocol delivers on these fronts as well.

Comparative on current KAVA DEXes

When it comes to use a DEX, it can be difficult to decide which option is the best fit for your needs. That’s why we’ve put together this comparison, to help you easily see the differences and similarities between different KAVA options.

Our product is designed to provide all the features you need in a high-quality, reliable package. We believe it is the best option on KAVA because of its functionality and value.

Of course, this comparaison would need to be customized and tailored to the specific products being compared and the unique features and benefits of the DEXs being promoted. But it provides a general framework for introducing the concept of product comparison and highlighting the advantages of Équilibre.

Another graph that may be useful for comparing previous generation DEXes with Équilibre:

Why building this protocol on KAVA?

Building on the KAVA blockchain provides the following benefits: It gives our project a secure and decentralized platform on which to build.

KAVA is currently in need of an attractive decentralized exchange (DEX) that will increase liquidity, further grow its ecosystem, and consequently increase TVL. A protocol like ours has not been developed by any other project in KAVA, and the automatic incentives program makes it the perfect place for us to build.

We believe that in 2023, Kava will lead the way in the Cosmos ecosystem’s explosive growth. It has a key spot between EVM-based networks and CosmosSDK ones, which we believe will bring more developer adoption to KAVA. There is an opportunity for us to become the DEX’s based liquidity layer — one that other projects can build upon without worrying about liquidity issues.