Why Kai Auto
Kai Auto is a service that provides Auto compounding to optimize the profits of KLAYswap's Yield Farming, so that users can get maximum profits.
KLAYswap is an instant swap protocol with liquidity guaranteed by AMM (Automated Market-Making) mechanism. In other words, it is an on-chain swap service where anyone holding a specific token can become a liquidity provider and earn transaction fee income.
Liquidity Provider: You can provide liquidity to KLAY-KCT pairs created from the 'LP Deposit' menu of KLAYswap. If you provide liquidity, you will receive Liquidity Provider (LP) tokens as a Certificate of Supply. And as a reward for providing liquidity, you will receive a fee from that pool.
Auto Compounding
When it comes to liquidity providers providing liquidity and receiving rewards, it is well known that compounding reward tokens can significantly increase returns. This is especially true for farms that often harvest rewards and provide high APRs that need to be compounded for maximum returns.
When you deposit LP tokens in Kai Auto vault, Kai Auto's smart contract deposits LP in KLAYswap for reward tokens. Afterwards, the rewards are automatically harvested, converted into LP tokens, and then re-deposited. With these successive re-deposits, the reward changes from simple to compound interest and increases at a fairly high rate.
You may be rewarded with daily compounding by re-depositing once a day, but you can be rewarded with hourly compounding through Auto compounding through Kai Auto.
| APR | Daily compounding APY | Hourly Compound APY | Benefits from Hourly Compounding |
|---|---|---|---|
50% | 65% | 65% | 0.1% |
100% | 171% | 171% | 0.4% |
500% | 14246% | 14720% | 474% |
1000% | 1925283% | 2190019% | 264736% |
2000% | 28593725423% | 47423030573% | 18829305149% |
3000% | 331928372898689% | 1015256114720610% | 683327741821920% |
Additionally, by distributing the Kai Auto governance token, aKAI, you can get additional rewards in addition to KLAYswap rewards. aKAI is distributed according to the aKAI distribution ratio for each Vault, and you can be compensated according to the stake in the corresponding pool.
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