DeFi Base Camp: Kima Thesis
DeFi holds the promise to be the future of finance. However, the interoperability and composability of underlying infrastructure has been a major obstacle. In DeFi’s current state, existing protocols and liquidity are all locked within the blockchain they operate on. Many have tried to solve this issue but have ended up leaving a stain on DeFi and cross-chain infrastructure. In this past year alone, over $1.8b has been exploited through cross-chain bridges.
It’s our mission to deliver the next generation of DeFi protocols that push this space forward, and we believe Kima Finance is a stepping stone as it provides a secure, seamless, and efficient solution to this critical bottleneck.
Overview on Kima Finance
Kima Finance is an Inter-Blockchain Communication (IBC) based infrastructure layer that tackles the limitations of cross-chain liquidity. Kima innovates upon existing solutions by focusing on four elements:
Liquidity Pools
- Not managed by smart contracts
- One-sided pools = No impermanent loss
- Native tokens = No synthetic minting
- Simple pool addition = Infinite scalability
Settlement layer
- Transaction validation, instant finality
- Atomic swaps + reverts
- Decentralized, immutable ledger
- Compliance-friendly: Reporting traceability, audit trail
Liquidity management
- For LPs: Reduced financial risks and maximum capital efficiency
- For users: High service level/deep liquidity
- Maintaining the equilibrium using financial incentives
Fiat on-ramp/off-ramp
- Decentralized fiat settlement
- Fiat-crypto, crypto-fiat, fiat-fiat
- Skip exchanges/OTCs for fiat swaps
In regards to security, Kima drastically improves user safety by using hardware-based key protection, a two-tiered consensus mechanism, and no oracles.
We share the belief with Kima that instead of purely chasing TVL milestones, DeFi should focus on the composability of protocols. Kima allows this by mirroring liquidity pools on different layer 1s and facilitating cross-chain transfers at a protocol level. The protocol also has a set of tools that allow developers to build more cross-chain liquidity use cases. Multi-chain wallets, lending protocols, liquid staking protocols, and more can all benefit from the deep and secure liquidity that Kima offers.
New Order is excited to partner with Kima in their seed round to help them extend their ecosystem reach, establish layer 1 relationships, and grow their developer community.
What’s next?
If you are a developer and interested in building something innovative on Kima, you can reach them at info@kima.finance or contact our Venture Manager amber@neworder.network.
What is New Order?
If decentralized finance is going to displace the financial rails of old, it needs builders. That’s why we launched New Order.
New Order is a community-led incubation DAO that builds startups at the frontier of decentralized finance. We incubate and launch projects while also accelerating early-stage DeFi protocols.
