Last updated
Last updated
Kostren Finance will launch with 0 pre-minted tokens. Each token will be minted by users by depositing a whitelist asset in the treasury.
After many thoughts, this token release method appeared to us as the most equitable. Indeed the distribution is done in adequacy with the demand and the team does not hold any token. Moreover this system allows us not to make presale which would inevitably create a selling pressure.
In this system we rely solely on codes and mathematics to ensure that offer meets demand. The mathematical model we will use is a negative exponential bonding curve.
As with a linear bonding curve, the more the supply increases, the more the price of the asset increases. The difference lies in the fact that via a negative curve the curve is brought to stabilize and thus offer an interesting entry point to less early users (images below). Linear Bonding Curve
Vs Negative Bonding Curve
The objective in choosing a negative exponential curve is to encourage early investment without heavily discouraging late investment. Indeed, over time the curve is brought to flatten which allows to limit the price difference between the early users and the others.
• The second strategy is the simplest to understand and simply consists of seeking the best possible entry price (bonds or market) to then sell at a better price or take advantage of the rewards (real yield + $esKTN) through staking. • A third existing strategy is to take advantage of the price difference between the bonds and the open market to get discounts on the token. Note that this strategy works both ways, if the market price is higher than the price of the bonds then you have to bond and vice versa. Indeed, if the price of bonds is higher than the market price, then buying at the market is also a strategy that allows to anticipate the future rise linked to bonds when bond price < market price. However, it is necessary to have buying pressure for the market price to rise above the bond price. This is the point of our protocol, as long as the demand is strong enough then the bond price will offer discounts thanks to the negative bonding curve.
Other strategies can also be put in place, free to everyone to adopt those that suit them best.
Note that on the whitelist assets collected by the treasury via bonds, 80% will be used for our investment strategies and 20% will be used to create Univ3 positions and increase liquidity. Through this system Kostren Finance will have an increasing share of the liquidity (POL) and the protocol will also receive fees that will be redistributed through the real yield.
Through this bond function, our protocol will be able to build sufficient treasury to implement our real yield strategies and to reward $sKTN holders. 2/ The various strategies for investors Arbitrage and the fee system on UniV3 is central to the protocol and must be understood by everyone. Since the supply is distributed via bonds, there will be no pool of liquidity on the open market at the token launch. This means that it will be up to the smartest users to create their own UniV3 tickers with the most suitable ranges. • This is the first strategy of using minted $KTN to create UniV3 positions and earn fees on the volume traded on Uniswap (open market). Again, we invite you to understand the mechanics of UniV3 by reading their documentation here: In addition to positioning your range you can also DCA the $KTN on both buy and sell side with no slippage.
