[2] Building a Better DEX: Batch Transactions, Configurable Pools, and LVR Protection

• [1] Why Soneium? The Foundation of Kyo Finance
• [2] Building a Better DEX: Batch Transactions, Configurable Pools, and LVR Protection
• [3] Rethinking Governance: Real-Time Voting, Simplified Tokenomics, and Smart Systems
• [4] Kyo Finance Roadmap: Our Vision & the Problems We’re Solving

Breaking Down Complexity in DeFi

For many DeFi users, interacting with decentralized exchanges can be overwhelming — multiple transactions, high gas fees, and time-consuming processes often deter even experienced users. Kyo Finance simplifies these challenges with innovative features that make liquidity provision, swaps, and governance more accessible to everyone.

In this second article of our series, we’ll explore how Kyo’s Native Batch Transactions, Smart Split Router, Configurable Pools, and LVR Protection reshape the DEX experience and empower users with efficient, intuitive tools.

Native Batch Transactions: Simplifying DeFi

At the core of Kyo Finance’s innovation is the Native Batch Operation. Through Kyo Finance's central processor, all actions — staking, swapping, liquidity provisioning, voting, locking tokens, and more — are designed to be bundled into a single transaction. This saves users' time and gas fees while innovating the UX by allowing transactions to be divided based on ultimate intent rather than individual actions.

For example:

• A user can swap tokens, stake LPs, and cast a governance vote, all in one click, instead of initiating separate transactions for each step.
• Through Kyo’s Magic Deposit/Withdrawal, users can provide/remove liquidity with just one transaction, bypassing the need for multiple approvals and intermediate swaps.
• Claiming rewards across multiple pools in traditional veDEXs could require a lot of transactions for a user who voted on many gauges. Kyo reduces this to just one transaction, ensuring efficiency without compromising control.

This isn’t just about convenience — it’s part of our core functionality that demonstrates our mantra of making complex workflows simple and manageable to remove barriers to Web3 space.

Smart Split Router: Optimized Swaps Without 3rd-Party Costs

Kyo’s Smart Split Router searches through pools from all AMMs, including V2 and V3, then dynamically splits the swap size to maximize output.

By providing this natively, Kyo gives users the option to receive the best rates without using third-party router services that usually have hidden fees.

This smart split routing engine currently operates as a native router, but as hinted in the roadmap, it will be utilized in various ways.

Configurable Pools: Flexibility for Diverse Use Cases

Liquidity provision is at the heart of any DEX, and Kyo Finance takes it further with configurable pools. While detailed structure will be covered again in the update note about the first release following the roadmap article, there are two major considerations when adding a new pool type in veDex.

1. New pools should be connected to the native router
2. Gauge/vote system where trading fee goes to voters and LPs receive $KYO

In this aspect, Kyo Finance has placed gauge/voter and each pool on equal levels and isolated each AMM to prevent interference between them, enabling safe addition of various pools in the future.

Examples of pools that Kyo can add in the future include:

• Curve-style stable swap pools: Ideal for low-slippage stablecoin trading.
• Weighted pools: Supporting 3–8 tokens in a single LP.
• NFT + Token pools: Inspired by SudoSwap, enabling NFT liquidity.
• Interest-bearing tokens: Nested pools for assets like LSTs, CDPs, and LRTs.

This versatility not only supports existing trading needs but also positions Kyo to adapt to future demands, including IP-related assets and emerging token types.

Maximizing LP Yields

Liquidity providers often face hidden costs due to Loss Versus Rebalancing (LVR) — a phenomenon where arbitrageurs capture value during market rebalancing, reducing LP profits. Kyo Finance addresses this issue with a dedicated LVR Protection Solution:

• Value typically extracted by arbitrageurs is captured and redistributed to LPs, creating an additional revenue stream.

Our goal is for LPs to be confident that we are the best choice no matter where they look, leading to long-term partnerships. And since this isn’t about emissions, it can be applied scalably even across different chains. In essence, we aim to establish a long-term relationship where LPs will seek out Kyo Finance regardless of which chain I’m on.

By protecting LP value and enhancing rewards, this system not only incentivizes liquidity provision, but also encourages long-term participation, ensuring the sustainability and growth of Kyo’s liquidity ecosystem.

Why These Innovations Matter

Each of these features — batch transactions, smart routing, configurable pools, and LVR protection — was designed with a clear purpose: to make DeFi simpler, more efficient, and more rewarding for users. By addressing pain points head-on, Kyo Finance provides a user-friendly experience that doesn’t compromise on performance or innovation.

While we’ve provided a high-level overview of these innovations here, there’s so much more to explore. For those interested in diving deeper into the specifics, we encourage you to visit our official documentation. And once we’ve launched on Mainnet, we believe you’ll find the intuitive, streamlined experience truly remarkable.

What’s Next

As Kyo Finance continues its journey from Testnet to Mainnet, these innovations will play a pivotal role in defining the platform’s success. In the next article, we’ll dive deeper into Kyo’s Governance System — exploring how real-time voting, smart optimizations, and tokenomics empower users to actively shape the protocol’s future.

We understand that some concepts may still feel complex, despite our efforts to keep things concise. If you have questions or want to learn more, we warmly invite you to join our community. Let’s continue the conversation on Twitter or on the official Discord channel!