KuSwap v3 Migration Governance Proposal — Part 1

KuSwap
4 min readJun 1, 2023

Dear KuSwappers,

The moment we’ve all been waiting for has finally arrived! It’s time to reveal the carefully designed proposals for KuSwap v3. The KuSwap Finance team has been working tirelessly to bring you a complete and exciting package of improvements. So, without any more delay, let’s dive right into the exciting world of possibilities that KuSwap v3 has to offer. Get ready to join us on this thrilling journey!

Summary

This 3-part proposal revolves around the migration of the KuSwap DEX to v3 upon approval of KUSGOV. The key benefits include improved economy, functionality, and security, bringing KuSwap to the forefront of DeFi technological advancements.

Objective

The primary objective of this proposal is to migrate the KUS token from its existing version to v3 to unlock new opportunities and benefits for KUSGOV holders and other participants in the KuSwap Ecosystem. The migration will enable KuSwap to capitalize on the advancements introduced in the latest version, enhancing user experience, scalability, and optimizing the incentivization of liquidity and governance within the ecosystem.

Stages

In order to ensure that everyone is well-informed and has sufficient time to ask questions and understand the proposal, we will be implementing a three-stage voting process.

1️⃣ Protocol Changes (We are Here)
Stage 1 is all about protocol changes and additional features.

2️⃣ Tokenomics Changes
Stage 2 is all about changes in the supply, distribution, and emissions of the KUS token

3️⃣ Migration Plan
Stage 3 is all about the migraton plan and how the migration will be executed.

Stage 1: Protocol Changes

  1. Deployment of a new utility token (KUS) on KCC

A new utility token with the same ticker KUS will be deployed on KCC. Existing KUS Holders wil be able to convert into the new KUS token while existing KUSGOV Holders will be airdropped tokens proportional to their KUSGOV Holdings.

2. Deployment of a new governance token (veKUS) on KCC

A new governance token with a different ticker (veKUS) will be deployed on KCC. Holders of the new utility token KUS will be able to vote-escrow or “lock” them for a specific period to get veKUS governance tokens.

3. Implementation of a on-chain gauge voting mechanism

veKUS Holders will be able to vote which pools will receive emissions. Liquidity pools will receive KUS emissions in proportion to the votes they receive.

4. Implementation of bribes on the KuSwap Platform

Liquidity Providers (including protocols who have their liquidity on KuSwap) will have the option to bribe veKUS holders in order to incentivize them to vote for their pool. This is an additional source of income for veKUS holders that doesn’t add to the inflation.

5. Implementation of KUS Rebase

veKUS Holders will continuously receive a 30% Rebase for the duration of their locked period. This rebase is aimed to offset losses introduced by inflation due to emissions.

6. Real Yield.

veKUS holders receive 100% of the fees generated by the exchange.

Expected Outcome

By offering more utilities and offsetting dilution through rebasing, KUS holders and farmers will be incentivized to lock into veKUS. The Real Yield enables veKUS holders to earn passive income and the power to decide the emissions. This will result in a flywheel effect where the system incentivizes further relocking of their KUS Earnings.

Discussion

June 1, 2023 to June 7, 2023

One (1) Week will be given to the community to discuss these matters in the KuSwap Telegram, Discord, and KUSGOV Forum.

Voting

The voting for this stage will be held on June 8, 2023 from 2 PM UTC up to June 9, 2023 1:59 PM UTC.

The voting proper, including other details such as voting type and quorum will be available on https://snapshot.org/#/kusgov.eth/

As we embark on this next phase of KuSwap’s evolution, we invite the community to join us on this transformative journey. This milestone represents a significant leap forward, and we are eager to engage in open and meaningful discussions with all members of our community. Your valuable insights and feedback will play a vital role in shaping the future of KuSwap. Together, let’s explore new horizons, overcome challenges, and build a stronger, more inclusive platform that empowers each and every participant. We are excited to embark on this collective adventure and prepare KuSwap to be a key player in Decentralized Finance.

KuSwap Finance

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