Introducing i4i Finance

An Eye for an Eye, a Dollar for a Dollar.

Introduction

i4i Finance is a stableswap protocol for the Klaytn ecosystem, through which users — or other protocols — can exchange stablecoins with low slippage.

Why Do We Need a Stableswap?

CP-AMM(Constant-product Automated Market Maker) protocols such as KlaySwap are useful for general-purpose liquidity providing and trading. However, when it comes to exchanging assets whose exchange rate is mostly stable — for example, USDT-DAI, KLAY-AKLAY -, their market-making algorithm becomes very inefficient. With CP-AMM Protocols, market takers always suffer from high slippage losses even if there’s a lot of liquidity provided to the pool.

What’s wrong with the CP-AMM Protocols?

Providing liquidity to CP-AMM is like spreading an infinite number of limit orders on an order book from price 0 to infinity. The thing is, the swap ratio between stablecoins usually stays around 1:1. The rates rarely deviate 20~30% from the equilibrium.

This means that most of the liquidity allocated to price ranges, for example, under 0.8 or over 1.2, is seldomly used because the price rarely gets there. Because of this, the ‘effective’ liquidity that traders utilize is actually very low, even with the high volume of total liquidity provided to the pool.

What’s the benefit of using i4i Finance?

i4i Finance offers low-slippage swaps between assets with stable swap rates — such as exchanges between USDC and USDT. Since a stableswap’s price adjustment mechanism, compared to that of CP-AMM, depends lesser on the arbitragers, the extra margin benefits the liquidity providers and traders.

Beta Launch

i4i Finance will beta-launch on December 30th with two initial pools. The first pool is the k3EYE pool which consists of kDAI, kUSDC, and kUSDT, and the other is the KSD4EYE pool which consists of KSD, kDAI, kUSDC, and kUSDT.

There will be no governance token during the beta launch. However, you will be able to receive KOKOA by staking the KSD4EYE token — the LP token for KSD4EYE pool — in Kokoa Farm.

Website: https://i4i.finance

Telegram (KR): t.me/i4iFinance_kr

Telegram (Global) t.me/i4iFinance_global

Twitter: https://twitter.com/i4i_official

Medium: https://medium.com/i4i-finance