Kimchiwap Overview

We must be completely upfront from the initial stage, we are not in any way, shape or form related or affiliated to the recently launched ‘Kimchi Finance’ App. 

KimchiSwap is poised to become the go-to decentralized finance (DeFi) solution for automated smart-escrows, smart-swaps, and smart-locks. Our unique technology will allow people and organizations to easily execute smart contract-based agreements at a fraction of the cost of similar services provided by law firms and banks. With a focus on building three primary functions as part of its phase one deployment, KimchiSwap’s mission is to simplify the transaction process between people around the world by offering an alternative to the expensive middlemen generally required in these specific types of transactions. KimchiSwap is a foundational DeFi layer that will change the landscape of financial transactions.

Now that we have that information out of the way, allow us to explain why we believe that KimchiSwap can share some of the decentralized swap protocol market. We will also outline some of the key fundamental differences between other swap protocols and how we believe KimchiSwap can stand out from the crowd with its unique points of difference KimchiSwap will offer an interactive dashboard allowing users to see existing smart contracts, recurring payments and subscriptions, past swaps and escrows, and payment scheduling options.

KimchiSwap is not a fork of Uniswap nor alike to many other AnySwaps, TrustSwap or any other out there entering the DEX market. But it contains some of the same functionality/Operations and coding methodologies, but it’s unique in its core coding. The KimchiSwap platform is powered by its own native token, KSWAP, an ERC-20 token built on the Ethereum Blockchain. It is not built on uniswap code, it is in fact built from the Scratch. The KSWAP token will be used for discounts on services, dividends from staking, and as a governance token allowing the community to vote on how foundation funds are spent. Staking the tokens at KimchiSwap will allow holders to receive a share of all said fees that are paid in KSWAP. With a maximum total supply of 100M tokens minted and the implementation of staking and deflationary tokenomics, we expect this utility token to offer significant benefits when being used on the KimchiSwap platform.

Why KimchiSwap? Why now? Decentralized finance represents the future backbone of the global economy and the need for a trustless way to transact with each other is becoming ever more apparent.

After careful analysis, the KimchiSwap founding team came to the realization that there was no ready-made solution for escrows, multi-party swaps. The size of the financial services industry is over $26 Trillion dollars and the transaction market that KimchiSwap impacts eclipses $72 Billion; this translates to over $2.5 Billion in annual turnover if KimchiSwap captures 1.5% of the total addressable market.

As the crypto world and traditional finance world continue to converge, we believe the stage is set for a global fintech and DeFi revolution and KimchiSwap is positioned to lead the charge into 21st century finance.

For the full  Whitepaper

Problem & Solution:

Why We Need Layer 2 Scaling?

Blockchain technology is great and fairly complex in terms of configuration, programming and operation. Why do we need Layer 2 solution? It mainly goes to the KPI of Transaction per Second (TPS) of blockchain compared to the traditional centralized solution. As shown in the picture below [an outdated chart but good to make a point], the Visa TPS requirement is about 47K per second. Therefore, before blockchain can challenge traditional centralized solution, the TPS needs to be improved significantly. This is referred as the “Scalability Problem”. In blockchain technology, there is an Impossible Triangle, which refers to Security, Scalability and Decentralization. You can only achieve two of three but not all of them.

There have been a few protocol projects out there tackling the scalability issue and the following picture showcases some contenders in the Layer 2 Solution landscape.

Revenue Streams

All of our revenue streams will come from taking a set percentage of all transactions that use the KimchiSwap ecosystem. The fees can be paid either in ETH or KSWAP tokens. When using KSWAP, this percentage will be reduced in half in order to incentivize people to utilize the KSWAP token. A summary of fees for various services offered by KimchiSwap is shown in the following table.

1) 25% of the transaction fee received in KSWAP will be distributed proportionally (referred to as dividends) to the stakers on the official KimchiSwap Mainnet Staking Platform, Kimchi-Stake™. The dividends start accumulating as soon as the KSWAP tokens are staked and will be paid out once every 3 days. These dividends get attached to your stake as soon as they are released. It is to be noted that if the staker chooses to withdraw his/her stake, they will be held in the smart contract for 7 days before they are sent to his/her wallet.

2) 37.5% of the Transaction fee is paid to the liquidity providers for providing liquidity

3) 37.5% of the Transaction fee is paid to KimchiSwap for the ongoing development and other charges for KimchiSwap.

Road Map of KimchiSwap:

For the full Whitepaper