AMA Recap: DeFi + NFT, Coinversation’s New Paradigm Evolution
Last week, we were glad to be invited to 7 Chinese communities to have AMA activities. Needless to say, these AMAs all reached great success. Our product director Paul shared us the product map, the official reward mining rules and incentive mechanism, trading pairs Kaco has supported, some details about Kaco’s audit, the basic design of Kaco’s fragmentation and big moves Coinversation will make next. Let’s read the recap and learn more about these AMAs.
1) I heard that the product map of Coinversation has been upgraded recently. Can you share it with us?
Coinversation is a synthetic asset and meta-universe NFT aggregation protocol platform built on Polkadot. With this upgrade, we put the meta-universe NFT aggregation planning into the entire product map of Coinversation. Looking at Coinversation Protocol from a macro perspective, we can see a very clear development path of blockchain product planning.
First of all, in the protocol layer of Coinversation, we have planned three modules of DEX, synthetic assets, and NFT aggregation. DEX is the basic module in these three plates, which provides a good ecological and user consensus foundation for synthetic assets and NFT aggregation. At the same time, it realizes the establishment of basic assets. This protocol layer is completely open-source in the future for more ecological Dapp direct use.
The synthetic asset protocol and NFT aggregation module are interlinked from the underlying logic. NFT fragmentation and liquidity mining are almost the same as synthetic assets, and it is also a mode of asset regeneration. Therefore, based on the user and asset base of DEX, the synthetic asset protocol, and NFT aggregation extend the user behavior. There will be many trading scenarios after the user assets enter Coinversation’s Dapp. For example, traditional dual currency pledge mining, interesting NFT trading, NFT fragmentation, liquidity mining, synthetic assets, derivatives trading, etc.
2) But we have observed that the evm version Dex of Coinversation launched at the end of August is on the BSC. Can you tell us that the Polkadot-based project first version chose to go online to BSC first?
Choosing to launch on the BSC is in line with the internal logic of our operational plan.
From the operation path, we adopted the operation idea from outside to inside.
First of all, from Kaco to launch on the BSC, through the BSC to attract Polkadot asset users to enter Dapp trading or participate in liquidity mining, through the release of NFT works, online fragmentation functions, etc., to increase the user’s high-frequency trading scenarios, to build user consensus gradually.
Secondly, Kaco is deployed to the Kusama parachain through the cross-chain bridge, and BSC’s polka assets are introduced back to Kusama. At the same time, with the help of Dapp’s trading and mining fields, large-scale coin-holding users owned by each parallel chain are attracted to enter Dapp for spontaneous trading. Among them, Coinversation’s liquid assets will inevitably participate.
In the end, Coinversation will complete the construction and deployment of Dapp based on the Polkadot parachain, and Coinversation’s protocol layer will be completely open-source for projects in the Polkadot ecosystem.
3) Kaco was launched, and it performed very well. A large number of Polkadot users also participated. I heard that it is still in the top mining period. Can you briefly introduce the official reward mining rules and incentive mechanism?
Before September 11, our official reward mining activities are still ongoing. Those who are interested in Kaco are welcome to participate in our liquidity mining. https://www.kaco.finance/
During this period, users stake KAC-DOT’s LP tokens in Kaco. We will take a random snapshot. The addresses that meet the requirements can receive the limited edition NFT 3 working days after the official reward mining ends. This event is divided into 3 levels of rewards. For specific event rules and rewards, please refer to the Medium:
During the official reward mining period, you can also get the official mining bonus. The daily bonus output is twice that of the no bonus period. The official reward mining will end on September 11. After the end, there will be no such high bonus as it is now. Yes, please hurry up and participate.
The NFT we reward is very cool. Everyone can check it below.
DUDU: Stake 1000 KAC-DOT LP
ARTEZ: Stake 500 KAC-DOT LP
COCO: Stake 50 KAC-DOT LP
4) Kaco just launched the PHA-DOT trading pair. Can you tell us about which trading pairs Kaco has supported at this stage?
Currently, Kaco supports trading pairs: KAC-DOT, KSM-KAC, DOT-BUSD, KSM-DOT, KSM-USDT, WBNB-KSM, NEAR-USDT, REEF-DOT, LIT-DOT, POLS-DOT, CLV- DOT, PHA-DOT, USDT-BUSD have a total of 13 trading pairs. The weight of each trading pair is different, the lock-up amount is also different, and the return rate display is also different.
5) Regarding security issues, could you share some details about Kaco’s audit?
Don’t worry about security issues. Recently, our project has passed CertiK’s code audit. You can check the specific audit report information on CertiK official website or click the link to view: https://www.certik.org/projects/coinversation
6) We have seen the recent launch of Kaco, which has performed well. Please elaborate on the relationship between Coinversation and Kaco?
OK, Kaco went live on BSC on August 24. TVL has broken through $9M in two weeks, and the price is close to $3. The overall performance is still in line with our team’s overall planning and expectations for this project.
Kaco is an EVM version of trading platform for Coinversation deployed on BSC and Kusama. Coinversation will be deployed directly on the Polkadot parachain as a synthetic asset and NFT aggregation protocols. It can be understood that Coinversation is the protocol layer of Kaco, and most of Kaco’s functions and codes rely on the underlying protocol of Coinversation.
From an operational point of view, after the CTO goes online, it will prioritize supporting the establishment of liquidity pools on Kaco. In addition, if Coinversation subsequently participates in the Polkadot auction, KAC will also serve as an incentive token to support the Coinversation to join auction, and Kaco will also run for the verification node of Coinversation.
We will continue to promote the diversification of Kaco’s trading pairs and increase the depth of liquidity mining. At the same time, Kaco’s NFT fragmentation will also meet with you in the next two months.
7) Kaco, the EVM network of Coinversation, will do the NFT fragmented trading market next. Personally, I think this is a very good product upgrade. Very interesting. Why did you choose this direction?
This year is the first year of the blockchain NFT outbreak, and this track is indeed a high-quality path that can quickly get a lot of traffic. For example, transfer the artwork to NFT in this earliest spring, and the recently popular NFT blind box, a short burst of great traffic and attention. So you can see that the growth rate of the NFT track has exceeded the expectations of many people.
But behind the heat, we found after a lot of research that the biggest problem with non-homogeneous tokens (NFT) is the lack of liquidity. This is the most fundamental issue of whether any transaction can extend the life cycle and form a flow circulation cycle.
If we split the NFT into a bunch of pieces and put them on the trading platform, we can effectively create liquidity on the pricing NFT through the market. So far, we have seen the rise of some NFT fragmentation protocols, such as NIFTEX and Unicly. But most of these projects are deployed on the Ethernet chain. How can NFT on the BSC create more liquidity? Kaco also extends the NFT fragmentation module. At the same time, from the synthetic assets that we originally positioned throughout the product line, NFT fragmentation and liquidity creation will also become the most interesting and imaginative part of the synthetic asset module.
8) Can you briefly talk about the basic design of Kaco’s fragmentation?
We believe that the potential of this piece is huge! Kaco’s vision is to make NFT holders on the BSC willing to put less rare NFTs into the collectible pool to obtain collectible redemption pools so that they can obtain other more rare NFTs. In the end, all the collectibles left in the collectible pool are the collectibles with the lowest rarity and lowest price. Thus, the market can finally get a relatively fair floor price for the collectible, thus releasing the value and liquidity that NFTs on the BSC should have.
Kaco’s Fragmentation Agreement is an protocol that can merge, divide, and trade NFTs, transforming NFT works into liquid tradable assets.
In this agreement, users can use Kaco, Pancake, Alpaca, and other NFTs and fragments into NFT100 tokens, buy and sell NFT100 tokens through AMM, and add liquidity and get $KAC rewards.
In general, Kaco’s NFT100 protocol has the following characteristics:
- Support ERC-721 and ERC-1155 format NFT segmentation on BSC;
- Allow collectors to bid for NFTs (NFT100 tokens) instead of the entire collection;
- All collections of slices (NFT100 tokens) are treated equally, and no random method is used to distribute rewards;
- AMM can be used to selectively carry out inventory turnover to eliminate the incentives for depreciation of NFT collections;
9) Can you tell me how Kaco’s NFT fragmentation protocol works?
KACO allows users to receive BEP20 tokens representing NFT projects by depositing their NFT in the pool on the NFT100 dex. When you add your NFT to NFT100 dex, you deposit your NFT (such as your Kaco Finance) into the corresponding NFT project pool (such as Kaco Finance pool), and the NFT100 factory will create the BEP20 token of the NFT project, Provide the same amount of tokens for each NFT you deposit.
For example, the user has 10 Kaco Finance NFTs, 3 of which have high values. However, he believes that the value of the other seven Kaco Finance NFTs is lower than the market price of the Kaco Finance pool on KACO. So the user mints these 7 NFTs into BEP20 tokens (Kaco100), he can sell his minted BEP20 tokens (Kaco100) on KACO, or exchange his favorite NFT works in the pool, which can reduce its price and help the price discover. The above process will continue until the NFT works reach the reserve price.
10) We see that you and Astar have already cooperated in depth. Can you briefly introduce what big moves Coinversation will make next?
Our in-depth cooperation with Astar in August is also the beginning of our official landing to promote the deployment of Dapp on the Polkadot ecological chain. As early as May, we already reached cooperation with Astar and advanced the deployment test of the Wasm contract. We plan to deploy Kaco Finance on Astar’s Shiden Network with this cooperation at the end of September. After the deployment is completed, Kaco will become the first DEX in Shiden to provide liquidity mining and the first DEX to participate in Dappstaking on Shiden.
Everyone who know about Polkadot Ecology should all know that at this stage, Polkadot Ecology’s asset trading exports are relatively small. The deployment of Kaco on Shiden will give the huge users who hold Polkadot assets such as SDN and KSM an ecological place to trade. The Astar team will also vigorously promote users to enter Kaco trading and participate in liquidity mining. This is a three-win solution for both parties to the project and ecological users. You can look forward to Kaco’s Dapp on the Shiden parachain.
After the deployment, we will spend some time doing basic operations and improvement work. After that, we will immediately push forward building a cross-chain bridge with the Astar team, which will truly realize the interoperability of Kaco’s assets on BSC and Kusama. Kaco will become the first Dapp to introduce BSC assets into the Kusama ecosystem if it goes well.
11) At this stage, the second round of kusama auction is advancing enthusiastically. Will Coinversation participate in the auction of Kusama or Polkadot?
we have been paying close attention to the auction. Coinversation will not consider participating in the Kusama slot auction in the near future. But the Polkadot parachain auction has been in our plans, and we will announce our parachain auction plan at an appropriate time. As I have always said before, Kaco is the testing ground for Coinversation, and we hope to verify the functionality and attractiveness of all the modules planned for the Coinversation protocol layer through Kaco to the ground. This will lay a good foundation for the entire ecological product path in the later period.
12) What is the difference between Coinversation and the DEX of Zenlink and Acala?
The core of Coinversation’s product is in synthetic assets, so Coinversation is always a synthetic asset protocol in terms of positioning. We do DEX to pave the way for synthetic assets and NFT fragmentation to build consensus and asset base. So essentially, Coinversation is different from Zenlink or Acala. Our focus is on synthetic assets. Zenlink focuses on the underlying protocol of cross-chain DEX. And Acala is doing Defi aggregation platform. So everyone’s respective direction and positioning are quite different.
About Coinversation Protocol
Coinversation Protocol is a synthetic-asset issuance protocol and decentralized contract trading exchange based on the Polkadot parachain. It uses CTOs, the issued by Coinversation Protocol, and DOTs as collateral, to synthesize any cryptocurrencies, stocks, bonds, gold or other off-chain assets through smart contracts and oracles. Users can forge a certain synthetic asset by collateralizing CTOs or DOTs, such as U.S. dollars, and automatically have a long position in the asset. Users can also convert minted assets into other assets through the trading platform, so as to realize the purpose of shorting the asset and longing other assets.
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Kaco Finance is the evm version of DEX issued by Polkadot decentralized exchange and synthetic asset protocol Coinversation. Kaco Finance is a cross-chain decentralized trading platform based on Binance Smart Chain and Kusama parachain. Kaco Finance initially aims to provide liquidity AMM and yield farm for the Polkadot ecological project and is committed to realizing the asset bridging function between Kusama and BSC.