The background of the creation of Kayak Finance
In 2024, Ethena once again sparked a wave of stablecoins in the crypto world. In just a few months, the issuance of USDe exceeded 4 billion US dollars. In today's market, stablecoins are not only circulating currencies but also reliable interest-earning assets for users. As a result, the demand for stablecoins and stablecoin swaps continues to increase, especially in the market for cross-chain stablecoin swaps.
Currently, most stablecoin swaps are conducted on DEX. We have found that when trading on DEX, users often have to bear high slippage due to low on-chain liquidity in certain cases, as well as the cumbersome process of cross-chain transactions. These factors contribute to the low utilization rate of assets.
We need a new stablecoin swap market aimed at addressing the following issues in stablecoin swap:
-Minimum slippage-Supporting cross-chain transactions
-Increasing the utility of stable assets
-Increasing the demand for stable assets
What is Kayak Finance?
Kayak Finance is a cross-chain stable market, which will bring users deeper liquidity and lower slippage cross-chain stablecoin trading services by aggregating liquidity distributed on different chains into one pool.
In the first stages, we will support the following three chains:
-Avalanche
-Mantle Network
-Morph
How Kayak Finance solves the above problem
Kayak Finance aggregates liquidity from different chains into a single pool. It has the following features:
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Increased liquidity -Supporting cross-chain transactions
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Reduced slippage
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Higher returns for LP
To increase the utility of stable assets we will launch the kayUSD stablecoin, which has the following features:
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A cross-chain stablecoin backed by pegged assets such as sAVAX and USDe
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Soft liquidation
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Dynamic fee rates
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Increased asset efficiency
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Reduced risk of depegging
We will introduce the $KAY token, which is different from other DEX tokens in that we will reward not only liquidity providers , but also traders.
These three assets form the ecosystem flywheel, which is the solution Kayak brings.
Stake in Kayak, something is on the way 👀🪂