Koil - A low slippage stablecoin exchange

Summary

Koil is a decentralized similar-kind asset exchange protocol. Our primary goal will be to facilitate the deepest and most liquid markets on the Fuse network, incentivizing millions and then billions of TVL.

Motivation

Fuse was designed for efficient and cheap transactions, as well as the proliferation of a stablecoin economy. We want to bring deeper liquidity for similar kind assets, which is not available on fuse fi.

The Uniswap V2 contracts used by Fusefi are good for non-similar assets that have higher volatility. However, for tokens with similar pricing, they do not preform as well. Fuse needs a separate DEX for trading stablecoin and other like-kind assets to enable efficient arbitrage and deeper liquidity pools.

In addition, this Dex should be separate from Fusefi to prevent downward pressure on Volt+Fuse, as a majority of stablecoin farmers dump their tokens immediately for more stablecoins. The KOIL token will remain separate to incentivize stablecoin liquidity, but at the same time capture the fees from swaps.

Objectives

  • Create similar kind asset pairs for stablecoin and other like kind assets.
  • Increase the volume of Fuse.fi through efficient arbitrage.
  • Create DAO structure and fully decentralize front end.

Deliverables

  • Deployed smart contracts of the protocol on the Fuse Sparknet Test Network
  • Deployed smart contracts of the protocol on the Fuse Main Network
  • Integrate Koil LP pairs into Fuse.fi and Fuse.cash
  • Pair deployment
    • 3pool - USDC-USDT-DAI
    • Pairs w/3pool (FRAX, $G, MAI)
  • Snapshot voting system

Budget

A total budget of 500k FUSE is requested for the project. The budget is divided into LPs and project setup.

1. Liquidity Pool Budget

  • We would like to work with the Fuse team to setup an ongoing liquidity budget for the first 3-12 months to incentivize stablecoin deposits into Koil.
  • The FUSE rewards will be paired with Koil rewards during this time to make the stable LPs attractive.
  • Once liquidity is bootstrapped, the FUSE LP rewards can be reduced and eventually stopped.
  • The LP budget can be halted if enough liquidity is bootstrapped and the Koil token has gained enough value.

2. Project Setup Budget

  • 10% of total budget
  • 20.000 FUSE

There will be 4 people working on this project, 1 developer, myself, a marketer and designer. We will setup a DAO eventually to provide grants to decentralize the project at some point in the next year.

Contributors

Samuel McCulloch - Active contributor to the Fuse community, founder of 8th Wonder Capital.

1 Like

Thanks Samuel. Have notified the DAO and we shall be discussing it. Will take a few days to get back to you.

Rob

So what’s your opinion about StableSwap deployed on Fuse ? Would you build from it to improve the frontend ?

1 Like