Redeemable KP3R Guide
What is rKP3R & how to redeem?
Intro
Redeemable KP3R (rKP3R) is a Liquidity Mining Incentive Reward of the Keep3r & Fixed Forex protocols, designed to mitigate the flaws of traditional liquidity mining programs
This is achieved through providing Liquidity Mining as Options where the reward must be exercised as a CALL option with a strike price and an expiry. When the Options are redeemed the funds raised are distributed to vested token holders (vKP3R)
rKP3R can be earnt in the following ways;
- Provide curve.fi/pools liquidity to any ib forex assets
- Vest KP3R at fixedforex.fi/vest for any period from 1 wk to 4 yrs
What does this look like through the process of liquidity mining & what it means for the liquidity miner?
Let’s assume the liquidity miner has mined 100 tokens through providing liquidity to the ibEUR+sEUR curve pool. Instead of simply receiving those tokens for free, the liquidity miner would receive rKP3R (in lieu of KP3R) which entitles the miner to the right to purchase KP3R at a discount in the future
Even where the liquidity miner is intent on farming & dumping they would have an incentive to redeem based due to the instant profit available. Whilst locked token holders will receive fees as compensation for the new emissions of token. As a simple example;
- Where KP3R price is currently $150
- Strike = TWAP -50%
- Future Expiry = Today +24 hrs
This would allow the liquidity miner the right to purchase each KP3R at $75 anytime in the 24 hours once the option has been activated.
Options are paid in USDC then converted to ibEUR and redirected back to the vested token holder at fee payment schedules. All such revenue is recorded as Options Liquidity Mining (OLM) revenues. Vested token holders also receive rKP3R rewards in addition to liquidity miners, allowing them the option to increase their locked position should they choose
How to redeem rKP3R options for KP3R tokens
Once users have earned rKP3R (via providing liquidity or through vesting) they can redeem rKP3R for the KP3R CALL option at 50% discount at any time. Once created, users have 24 hrs to exercise the CALL
This can be done at fixedforex.fi/options, where they will see the following;
Upon claiming, the user will progress to Step 2, which displays details of the Option, Strike & Expiry where;
- Option = volume of KP3R tokens to be purchased (i.e. amount)
- Strike = USDC required to purchase the discounted option on KP3R
- Expiry = when the option expires
Note; if user does not claim within the 24 hrs period, then the option will expire
Once USDC has been approved, user proceeds to Redeem. The user MUST have USDC in user wallet address at time of Redeem
Once the txn has been confirmed users should be able to verify KP3R balance at fixedforex.fi/claim
The USDC is transferred to the Keep3r configured treasury address and distributed as fees to vKP3R holders, proportional to their holding
Performance
OLM has raised over $5.5m for vested token holders in revenues since implementation
Upcoming
rKP3R is planned to migrate to a v2 contract in the near future. Alongside implementation discount will be returned to 10%
