Kai Finance
  • INTRODUCTION
    • Overview
    • Getting started
      • How to Connect
      • LP Pools – The Basics
      • First Steps
  • VAULTS
    • Single Asset Vaults
      • How to Deposit
    • Liquidity Provider Vaults
      • LP Position
      • Price Oracle
      • Telegram Notifications
      • How to Create LP Position
      • How to Connect Telegram
  • Resources
    • Links
    • SDK
    • Whitepaper
    • FAQ
    • Smart Contract Audits
    • Brand Assets
    • Risk Disclaimer
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  1. Resources

Whitepaper

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Last updated 5 months ago

Concentrated Liquidity with Leverage provides an in-depth look into the principles, mechanics, and technical architecture of our platform, including our innovative approach to leverage in concentrated liquidity (CL) protocols. This document formalizes key concepts such as margin levels, asset allocation, and debt structures within leveraged CL provisioning, and explores the mathematical models that ensure safety and capital efficiency in our system.

Key Higlights

  • Formalized Principles of Leveraged CL: A clear, structured approach to leverage in CL protocols, addressing both capital efficiency and risk management.

  • Spot Price Manipulation Resistance: Demonstrates how by using our leverage model, supported by real-time data from oracles, spot price manipulation can't force unnecessary liquidations or bad debt

  • Kai Leverage Protocol: Details the unique mechanisms behind Kai’s leverage model.

We hope this article will be useful to DeFi practitioners, including liquidity providers, protocol designers, risk analysts, and security researchers. You can view the full whitepaper .

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