Introducing the KYOTO Release — Safer, Simpler, Faster Future!
In this KYOTO release version 1.0, which will be the first and foundational release for KYO finance, we have redesigned the structure to reflect the principles explained in previous articles while ensuring safety as we add various types of pools and expand to different chains in the future.
Let me explain the improvements in two categories :
Structural Improvements and UX/UI revolutions
Structural Improvements
1. Safer / Easier / Higher
Safer isolated structure, Easier integration, higher composability
We have dismantled the previous testnet structure where the Singleton vault served multiple roles as a storage for xyk pool tokens, Router, and Voter.
As the AMM / Gauge / Voter have been isolated and modularized, LPs now guarantees safety equivalent to Uniswap, and even if issues arise in the Gauge or Voter, they can be simply replaced without affecting the other system.
We have undergone multiple audits, including an additional audit from Omniscia, one of the best audit firms, and have real-time monitoring system by Hexagate, but security cannot be emphasized enough.
Safer Isolation & Higher Composability
In the new design, AMMs, Gauge, and Voter exist independently and do not grant any permissions to other parts. The basic AMMs provided, Uni V2 and V3, core contract logic remain unchanged except for the addition of an LP staking part. This separation has actually enabled batching of operations that previously couldn’t be combined into a single transaction, and increased composability by allowing the addition of AMMs without them affecting each other.
Easier Integration
Additionally, while partners previously had to learn how to build a transaction calldata for Vault, integration has become easier now as they can directly interact with each part. If they only need LP/Swap functionality, it is identical to the commonly used Uniswap interface.
2. Improving Base APR for LPs
Here’s what we call LVR (Loss-Versus-Rebalancing), which represents LP’s losses. While the concept itself is too complex to explain here, the conclusion is that in all passive LP systems, external arbitrageurs continuously extract LP value. The volume generated from such arbitrage is called toxic volume, and for LPs to overcome this and generate net profits, they need fee income from non-toxic volume that exceed these losses, which is why most DEXes provide aggressive emissions.
We aim to protect LPs by internalizing this toxic volume, providing competitive APR while conserving KYO emissions. The net profit from providing LP on KYO versus elsewhere will compound over time.
We are currently testing this feature for an upcoming launch and it will likely be implemented before the next Nagoya release.
3. Clear Distinction Between Staked LP and Unstaked LP
Previously, there was no difference between V2 and V3 LP when unstaked, except for not receiving KYO rewards.
Now, the system is designed so that
- Staked LP receives KYO rewards
- Unstaked LP receives swap Fees
, allowing users to adjust the ratio according to their preferences while ensuring greater value accumulates to $KYO. Naturally, since there is no emission until the TGE, the default setting for liquidity providing through our frontend is currently set to unstake.
4. Inflation Controlled Tokenomics
Most veDexes have emission rates programmed on certain curve. However, this prevents flexible responses to different situations. If a sufficiently competitive base APR is already being provided, it would be better to reduce emissions to increase the token’s value.
We will strive to make KYO the rarest asset on Soneium!
5. Gauge as an Incentive Layer
Just as pools are composable, gauges are also composable. Unlike typical systems where emissions can only be given to LP pools, KYO’s gauge can redirect emissions to any type of contract as long as it receives votes. This opens up possibilities for various types of projects in the ecosystem to utilize the incentive layer through bribes or direct veKYO accumulation followed by voting. It can be easily used not only for LP liquidity but also in various ways such as community events.
Five Amazing UX/UI Revolutions
Each and every one of these are revolutions, not just minor improvements. We have rebuilt many things under the philosophy that DeFi should be fast, simple, and beautiful as the basic infrastructure of the chain.
1. Fast Server-side Quote for Traders ⚡⚡
Previously, when users input swap information on the Swap page, the frontend directly requested calculation information from the blockchain server, resulting in approximately 20 calls each time and taking an average of 3–4 seconds.
Now, through server-side calculation, it takes less than 1 second on average with a single call. This will continue to be optimized as we progress through the roadmap.
In particular, this is expected to resolve issues for people in regions where the Soneium RPC server was slow or not functioning well, who previously found it almost impossible to use the swap function.
💪We are doing intensive optimization work to speed up not only quotes on the swap screen, but also loading times on the pool and portfolio pages. Behind your experience of using a fast site, there is an enormous amount of frontend and backend work, as DEXs need to display a vast amount of information.
2. All-in-one Portfolio Page
Previously in the Concentrated liquidity pool, users had to claim Fees and Rewards separately and couldn’t bundle them in batch operations, so V3-related rewards were shown in a separate tab. Now that all types of rewards can be claimed in 1 transaction, we’ve been able to integrate them into the portfolio page!
Users can view and manage the following at a glance! :
- Voting position/reward
- V2, V3 pool LP’s token amount / $ value
- Staked / Unstaked status
- V3 position Out of range status
- APRs
Users can select and claim these values or click to move to each pool page for management. Additionally, through the filter settings at the top of the table, users can view only the types of rewards they want to see.
3. One-step is Simpler than Three Steps!
Previously, to provide Concentrated Liquidity, users had to go through at least three steps as shown in the image above. Since the enter farming process was not a batchable operation, approval and enter farming had to be done separately. However, in the new version, this has been further simplified to a single step. One transaction is sufficient regardless of whether staking is involved.
4. Easier Range Setting & Pool Creation
To make providing V3 liquidity more convenient, we have added a slide bar and percentage input toggle. Additionally, users can easily view the expected APR based on each range setting.
Even when creating a new pool, setting the ratio directly was a difficult task. Especially for those that had large decimals and high volatility, mistakes were common, and once the initial setting was wrong, it wasn’t easy to correct.
Now it has become much easier as the system automatically recommends ratios for tokens where the price is already known or other tier pools exist. Additionally, by allowing token A/B switching within the pair, it’s possible to set a more visually comprehensible ratio.
5. Ecosystem Integration
Kyo aims to provide special features on pool pages for key partner protocols. The following features are planned for initial addition:
- For tokens following the ERC4626 standard, such as Sake’s aTokens, displaying relevant base APY, yield source, underlying assets, and enabling one-click deposits using only the underlying token
- On LST token’s pool page, allowing direct minting or providing LP with one click using only the underlying tokens. (ex. vASTR, nsASTR, nrETH)
Additional features will be added for key partners as we collaborate further
Rather than doing a parallel expansion, KYO will become the ultimate liquidity module that enables ecosystem partners in each position to achieve one-step DeFi functionality.
This is Just Version 1.0 of the KYOTO Release
The KYOTO release is not a one-time update but a continuous process until next NAGOYA release. Some of the features introduced above have already been deployed, while others will be deployed sequentially. Various features will be developed in parallel and optimized based on feedback as we move towards the next major milestone. Feel free to share any suggestions through the webpage and Discord ticket system.
Besides optimizing the features mentioned above, the KYOTO release has many updates planned in the roadmap, including…
- Redesign with even cooler UI / bright & modern theme
- ALMs integration
- Analytics page
- Multiple input swap
- Advanced swap input
- Limit/DCA/TWAP orders
- Meme launchpad collaborations
Additionally, though not mentioned here, updates for events such as campaigns with various partners and ticket/point systems make up a significant portion.
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Official Links
- Website: https://kyo.finance
- X (Twitter): https://x.com/kyofinance
- Discord: https://discord.com/invite/hZkhewnCPp
- Docs : https://docs.kyo.finance
