Liquidity Fees - POL - Univ3

Kostren is a POL (Protocol Own Liquidity), using BCO (Bonding Curve Offering) system and UniV3.

POL advantages:

• In part addresses the mercenary capital problem, with protocols in theory paying a lower cost (in the form of a discounted tokens) to retain liquidity

• Protocol keeps the trading fees from their own trading pair in DEXs

• Treasury assets can generate revenue for the protocol

• Assuming sufficient scale in the treasury, the trading pair should be able to absorb higher trades with less price impact

Our strategy:

At launch time, we encourage early investors to use Uni V3 platform to increase the LP value. The protocol will have no token or treasury at launch so all the Uni V3 positions will belong to holders. These positions will allow them to earn fees and to find the best entry/exit spot without slippage. Thanks to Bonds , our treasury will increase and 20% of it and will be dedicated to create Uni V3 positions. This will allow to the protocol to own its liquidity and to earn fees on the trading volume and in the end, increase liquidity.

UniV3 fees are split between 2 assets: $USDC and $KTN

The collected fees in $USDC are part of the real yield and will be distributed as rewards to the holders of $sKTN but will also be used to create new positions on Uni V3 in order to have a very liquid $KTN.

The fees collected in $KTN will be burned to decrease the supply or use to create new UniV3 positions. The $KTN generated via UniV3 fees will therefore never be sold on the open market.

The fees and treasury will also be used to place liquidity walls on important price zones to sustain the price.