KAKI 2.0: Capturing Defi Gains in a Game Way
KAKI is a multi-chain Defi protocol that is currently deployed in the Arbitrum and BSC ecosystems and may be deployed in more ecosystems in the future. KAKI has launched two products, the No-loss trading game, and the Squid game. Users deposit assets into KAKI, which are automatically deposited into a lending protocol and pooled into a bonus pool. Players win the previous week’s bonus pool every Friday through trading games. In addition, players can also team up and socialize on KAKI.
KAKI is positioned to link long-tail users and early protocols. The current focus is on long-tail users. Initially, KAKI was positioned in the retail options protocol, which is arguably a major upgrade to include the derivatives approach originally represented by retail options within the current sub-section.
This 2.0 upgrade is based on KAKI’s exploration and practice of Defi for nearly half a year, aiming at the current rapid development of the Defi industry and changes in the actual needs of users. One of the biggest changes is the change in the user structure. From the early geek niche community, it has rapidly grown into a more universal and popular product. This is also the inevitable development of Defi, allowing more people to accept Defi, use Defi, and profit Defi, becoming the cornerstone of various tracks in the encrypted world. KAKI actively embraces changes and is committed to the development of new forms of the Defi industry.
“Defi needs” of long-tail users
In the Defi market, the needs of long-tail users can be divided into [high-risk gambling] and [stable risk return].
High-risk gambling includes the trading of tokens, futures, and options, and other leveraged transactions. Literally, the return is unlimited, and the principal may return to zero; stable risk returns include interest collection on loaned funds, aggregator returns, AMM market making, and expected returns, and risks are controllable. There is no low-risk return here. The current encryption industry does not have this situation. The entire industry is in a state of high-risk investment.
High-level strategies such as arbitrage, hedging, etc. Unfortunately, these are all set up for professional investors, and long-tail traders have no chance to enjoy them.
It seems that long-tail users have a lot of choices, but they are limited by the amount of funds and expensive on-chain fees. In fact, the choices are very limited. Most long-tail users do not have rich financial knowledge and risk awareness, and they still rush into it. The crypto market is panning for gold, trying to grab the first pot of gold, but things backfired. The market is obviously not so friendly to them. A large number of Defi products are full of high-level vocabulary and terminology, as well as complex operations so that most users can only buy and sell Tokens in the end, instead of really entering the Defi world and enjoying the Defi world.
The user’s demand is to participate in the Defi project simply and happily. It is difficult for you to try to force him to learn a lot of financial terms and concepts. It is likely that when he returns from learning, he will miss the huge dividend of the entire market.
Product planning of KAKI protocol
For high-risk games, the perpetual contract created by CEX can be said to be the best product at present. CEX has done a good enough job. People don’t need to use real money to use the worse DEX product. What they want is to conveniently use leverage to gain high profits in the Defi world with low capital. Of course, the other side of the ending is that they may lose a large amount of principal. I believe these users who have broken into the crypto world are prepared for this. [Squid game] and [DVH European Options] are products created by KAKI for long-tail users. In a transparent and fair way, users can play leverage in the Defi world like a game, and simply and easily participate in the process.
Regarding stable risk returns, as Farmer’s high returns have gradually declined, long-tail users have relatively little funds, and low returns have been difficult to meet their needs. The stable risk-return here is not risk avoidance, thinking that this is a stable return method, which obviously violates the definition of the crypto world. The so-called stability risk means that the risk is controllable, and the user can accept the loss but can anticipate the scope of his own loss, and also the highest profit. He will not ask for ten times a hundred times the income, but he cannot accept halving or return directly to zero (rug-pull is not in the scope of this discussion). [No-loss Trading Game] and [AMM Fund Managers] will bring new choices and experiences to users. Through social trading, long-tail users have the opportunity to gain higher expected benefits through gamification.
KAKI’s product plan is very clear, which is to use a simple gamification method to provide long-tail users with opportunities to participate in Defi to obtain higher returns. The development process of the product is from a zero-sum game mechanism to a market profit mechanism. On the one hand, it takes into account the acceptance progress of users, and on the other hand, it also considers the pace of product launch. In terms of high-risk games, Squidgame is a zero-sum game on the principal part, and simple European options are the market profit on the principal part; in terms of stable risk returns, No-loss is a zero-sum game on the income part, and the fund market maker is the income part. The market is profitable.
In this way of stabilizing the risk and return, considering the limited funds of long-tail users, frequent on-chain operations will lose a lot of gas fees, resulting in a fierce meal operation, and finally suffering from gas. So KAKI developed a set of Decentralize Team mechanisms to solve the problem of fund collection and professional investor-long tail investor solution. On the one hand, this solution solves the uneconomical situation of frequent interactive contract operations with small funds. On the other hand, it allows professional investors to help long-tail users to obtain more benefits in a win-win model, and establish a small organization alliance. At present, the method of Decentralize Team has been initially implemented on the No-loss product, which solves the methods of fund management, income distribution, and risk control of team operations. By the way, the fund-based market maker is to allow professional investors to use leverage (through a lending platform) to help the long tail under the premise of ensuring that the loss is controllable (such as formulating a 20% floating loss liquidation line) Users get AMM market-making income that exceeds 100% of APR income.
KAKI products (launched already)
Currently, KAKI has launched No-loss Trading Game and Squid game.
The No-Loss Trading Game is a team fund initiated by the manager, and the results are ranked by predicting the currency price once a week. The more accurate the prediction, the more people can get, and the second distribution of all funds. Followers have the opportunity to select excellent managers to get higher returns, managers will recruit followers and temporarily higher management level, will follow the followers to create more value, and also get corresponding management returns.
Squid Game draws on the mechanism of the current popular IP glass bridge, combines the predictive game method with the leverage model, and brings users a new derivative game mechanism. This should be said to be a high-risk game of the KAKI team on the chain. Major attempt. Through the judgment of the current price trend, the effective allocation of initial chips, and the combination of the price change trend of each round and their own risk preferences, the user can combine the ever-changing possibilities. This is like a strategic trading game. There is a chance to get super high returns in a short time.
The vision of providing users and liquidity for early protocols
Finally, the other side of the KAKI connection is an early agreement. The so-called early agreement refers to that the current user volume and liquidity of the agreement are in a relatively low cycle, but the agreement itself has a basis for development and explosion. The biggest needs of early agreements are users and liquidity. KAKI’s stable risk-return products can well solve the liquidity of early agreements, and high-risk gaming products can help early agreements bring more Token application scenarios and bring more users.
KAKI’s long-term vision is to aggregate fragmented liquidity for more protocols, managed by professional managers through the Decentralize Team Mechanism, and based on scalability, to bring more usage scenarios to these protocols And users. Of course, KAKI is still in the process of growth. Only by establishing sufficiently powerful tool components and forming a sufficiently stable ecosystem can it challenge higher goals.
Conclusion
For KAKI, the main goal at this stage is to maximize the creation of interesting and innovative products, attract more long-tail users, and enable long-tail users to truly enter the world of Defi. They do not need to understand obscure financial knowledge, nor do they need to seek high-level strategies. They can also have the opportunity to obtain high profits and returns on the premise of identifying peer-to-peer risks. This is the mission and glory of KAKI.
