[1] Why Soneium? The Foundation of Kyo Finance
Setting the Stage
DeFi space is evolving rapidly, but for many, decentralized exchanges seem stagnant — lacking meaningful innovation or accessibility for new users. Moreover, Web2 users often face significant friction when interacting with blockchain technologies, from complex interfaces to high transaction costs.
Kyo Finance is here to change that. As the top native DEX on Soneium, we aim to provide an effortless, web2-like DeFi experience that removes unnecessary friction, simplifies interactions, and maximizes value for users.
Currently live on the Soneium Testnet, we’re actively engaging users through campaigns like LFGM in collaboration with the Astar Foundation, as well as custom quests to explore our protocol’s capabilities. At the same time, we’re refining our features and implementing enhancements to prepare for a successful Mainnet launch.
This article is the first in a 4-part series that delves into Kyo Finance’s foundation, its innovative features, governance model, and roadmap. Through these chapters, we’ll show why we chose Soneium, what makes Kyo unique, and how we’re building the future of DeFi. Let’s dive in.
What is Kyo Finance?
Kyo Finance is a veDEX (vote-escrow decentralized exchange) built for simplicity, efficiency, and accessibility. Its name, “Kyo [共,pronounced as /kyo/ in Tokyo]” — meaning “Uni” in Japanese — represents our mission to create seamless asset exchanges using a configurable pool system.
Traditional veDEXes like Solidly and Aerodrome introduced governance and emission control through voting, but they came with significant drawbacks: reliance on complex NFTs, slow epoch-based systems, and the need for frequent, gas-heavy interactions.
At Kyo Finance, we’ve addressed these challenges with a focus on streamlined innovation:
- Enhancing the DEX Experience: With tools like batch transactions and configurable pools, we eliminate unnecessary steps, reducing costs and complexity.
- Revolutionizing Governance: A real-time, user-friendly governance model replaces outdated systems, ensuring that decisions are efficient and impactful.
- Pioneering Future Developments: Our roadmap is full of upcoming features designed to keep Kyo at the forefront of DeFi innovation.
Each of these topics will be explored further in this series, showcasing how Kyo Finance sets itself apart from other DEXes.
At Kyo Finance, we live by a simple mantra: “Simplified until it can’t be simplified further!”
Why Launch on Soneium?
When choosing where to launch, we asked ourselves one question: Where can Kyo thrive while offering users the best experience possible? The answer was clear — Soneium.
Bridging Web2 and Web3
Soneium isn’t just another Layer 2 blockchain; it’s a platform built to connect the resources of Web2 with the potential of Web3. Developed by Sony Block Solutions Labs, Soneium shares our vision of making blockchain technology intuitive and accessible. Together, we aim to onboard a new wave of users who value simplicity without compromising on functionality.
Speed, Efficiency, and Scalability
Soneium is built on the OP Stack, making it one of the fastest and most cost-effective Ethereum Layer 2 solutions available. For Kyo users, this means ultra-low gas fees and lightning-fast transactions — crucial for ensuring a frictionless DeFi experience.
In addition, Soneium isn’t an isolated chain. Soneium will take a leadership position in Superchain. It will belong to the core cluster group alongside Base, Optimism, and Unichain, leading the superchain with powerful backers, and liquidity will be connected through inter-operability.
Backed by Sony
Perhaps most importantly, Soneium carries the strength and credibility of Sony Group and Startale Labs. The most important aspect for an L2, beyond technology, is distribution, and Sony already has numerous web2 branches with worldwide distributed users. The financial resources of a global corporation and their extensive IP holdings are incomparably larger than any web3 company, and this will serve as a gateway for not only Sony but other major Japanese corporations to enter blockchain. Soneium serves as a canal that connects to the web2 world through Sony and strongly connects to web3 through Superchain.
What’s Next for Kyo?
Kyo Finance is in the Testnet phase, where user feedback and active collaboration with the Soneium Foundation are helping us refine and improve the platform. The upcoming Mainnet launch will introduce:
- Fully optimized features, including LVR protection, configurable pools, and smart governance.
- Robust campaigns and events to drive adoption within the Soneium ecosystem.
- Enhanced tools and interfaces designed to make onboarding effortless for users of all backgrounds.
As we move towards the Mainnet launch, you can expect even more exciting changes beyond what we’ve discussed so far. Many of the innovative features introduced in this series will come to full operation, and we will realize the ambitious goals outlined in our roadmap. Please keep an eye out for our Medium article series!
Join the Journey
As we prepare to transition from Testnet to Mainnet, Kyo Finance is entering a pivotal phase of development. Our focus remains on delivering the features and innovations outlined in this series, while steadily working towards the ambitious milestones in our roadmap.
We encourage you to join us — explore what we’re building, engage with our community, and watch as Kyo Finance continues to grow. Together, we’re shaping the next chapter of DeFi.
Follow our progress and join the conversation on Twitter or on the official Discord channel!
