We’ve had an equally exciting and challenging past couple of months. We’ve reached 13,000 unique users in our X-Wallet, we’ve completed development of our AMM rewrite and focused a ton on UX with our redesign. All these accomplishments didn’t come with some challenges along the way, we’re excited for the future of Kaddex and will do a deep dive into our progress so far and where we’re going. I’m looking forward to sharing a more in-depth look into our DAO, the recently announced Kaddex Booster Program, and Audit progress so far. Let’s dive right in.
Transition of The DAO
The transition to a truly decentralized DAO is an important piece to this whole launch and one that we are thinking very hard on. In this transition, we will be revising the constitution to be more like a legal representation of the protocol we’ve created, outlining roles, permissions, voting power accrual, etc. But that only solves the formal/legal side, there is also the proving out of our protocol to ensure it reacts the way we intend it to.
As we have recently seen, the decision making process on the DAO side of things is not fully refined. We are continuing to investigate the decision that was made, and will be releasing a full report of our investigation in the coming days detailing what happened and what our path forward is. In the meantime the Kaddex DAO team will be expanding to include members that will work to write updated guidelines, and processes for operations within the DAO. This includes an updated legal framework that requires communication for any action to be taken, better multisigs, and more cohesive decision making systems to ensure that everything happening within the DAO is fully documented. From this point on all actions taken by the legal DAO entity will be 100% transparent and shared with the community.
So much of designing this DAO was around on-chain processes and how users accumulate voting power and use it, as well as how the Discord and Vibedust integration works symbiotically with the staking mechanisms to deliver organized community decision making. It is not something that can be fully fleshed out without just opening it up to everyone and seeing if it works.
So that’s what we are going to do. At launch, the governance platform will be live, with users able to stake their KDX (if they aren’t already staked through vesting programs), accrue voting power and begin using Vibes in main discussion channels. With it we will want to see if the system behaves as expected, with voting power growing as it should, users able to stake and unstake while having the corresponding impact to voting power, and the ability for users to put their votes toward proposals (as well as give users time to link their k: accounts to their Discord account). Until we are sure this works flawlessly, we will be doing a lot of test proposals that help us determine community participation, how Vibes interact with it all and make sure it all works.
This may take a few months to fully sort out, giving the community time to build up Vibedust and diversify channels and sub-communities, before we open it to community driven proposals, which would put the full transition to a community led DAO in and around the August timeframe. Of course, until the protocol is fully operational, we will be manually operating proposals to ensure proper decision making and communications.
Solving The Impermanent Loss Problem
DAO tech is not the only thing we’re innovating on, however. Recently we published an article going over the Kaddex booster program for IL compensation. While this program does not completely solve the issues associated with impermanent loss, it is a significant step forward in approaching a solution to a previously thought unsolvable problem. Our goal with Kaddex has always been to build the best possible solution for user experience in DeFi, for traders, arbitrageurs, liquidity providers, stakers, and more; we are working to design the best possible DeFi ecosystem that takes every permutation of user into account.
This new booster program is a major innovation in terms of liquidity provision that truly works to benefit all token holders, liquidity providers, and members of the DAO. Retaining Kaddex’s core tokenomics of being a deflationary asset, this system creates a direct synergy between staking and liquidity provision. Because the booster is DAO controlled, and assignable to different pools based on DAO sentiment, as this is a variable system, the DAO is truly given a hand in controlling the long term emissions of Kaddex. As with everything we do, we are building for the long term sustainability of the protocol, and the booster program reflects that with the initial emissions schedule, which is set to sustain it for 4 years.
Auditing and Testing
The audit has been going extremely well. So well in fact, there hasn’t really been anything to talk about. We have had a couple of findings like, “might be a good idea to not allow a negative number here” or “you have a value hardcoded there”. But at this point, while the most in-depth auditing is still coming, I feel comfortable enough with the timeline given to share it.
The audit, as it is currently planned, is slated to complete May 9th, with follow-on testing on reward schema throughout May. This, of course, doesn’t mean our work will necessarily be done. That report might come with a healthy bit of rework that we have to do, potentially pushing completeness out a bit further.
In the meantime, we will be announcing shortly our plans to test the full DEX in a more publicly open way, allowing users to use the full protocol stack as it will operate on launch but through our devnet as another form of testing of our code (because you all can often find problems others won’t). This way we can provide public bounties for helping to improve the protocol.
During all of this we will be working through and finalizing all changes based on the findings of the audit as well as any issues found in public testing, taking us into June. We are still a few weeks away from knowing exactly what that launch date could be, but we will share the results of the audit when complete. This means that we very well could be looking at a June launch date for Kaddex.
In closing, I want to express my appreciation to the community for coming out in force to show their passion around this project. As much as mistakes hurt your trust in us and force us to grow, I can honestly say it is making the way we operate much more efficient. I will continue to work with the Kaddex DAO team to create processes that improve communication and transparency, building a better system for all members of the Kaddex DAO and our ecosystem. Shortly we will be releasing more details on our public testnet release and bounty program to help finalize the launch of Kaddex.