🗒️Overview

kai is a protocol built on top of Aura Finance to provide additional incentives and benefits to Aura Finance and Balancer users. It aims to further enhance the rewards, governance opportunities, and decentralization for users of Aura by introducing its native token, KAI, and wrapped aura, kaiAURA.

Aura token holders

1. Seamless Onboarding:

   • kai offers a 1-way conversion from aura to kaiAura

   • kai maintains incentives for a secondary market where kaiAura can be traded back to Aura.

2. Enhanced Rewards:

   • Users are able stake kaiAura on kai for enhanced rewards.

   • All Aura converted to kaiAura is used in voting for rewards, and the rewards are provided to the kaiAura stakers, and since there exists an incentivized secondary market not all kaiAura will be staked, therefore, one kaiAura staked will earn more than one Aura staked on Aura Finance.

   • Users who wrap their AURA into kaiAURA can stake these tokens to receive additional KAI rewards.

Governance

1. KAI Token:

   • Acts as a governance token within the kai ecosystem.

   • Holders of staked and locked KAI can participate in governance decisions, such as voting on kai proposals, balancer proposals, Aura proposals, and weekly gauge emissions.

Security and Audits

• Audits: kai is built from existing Aura contracts with slight modifications. These modification have not been audited.

• Bug Bounties: kai offers bug bounties to incentivize external security researchers to identify and report potential vulnerabilities.

Integration and Yield Optimization

• Maximized Yields: By leveraging kai’s protocol-owned governance power and additional KAI rewards, users can maximize their yields on staked AURA tokens.

• Liquidity Pools: kai introduces new liquidity pools and staking pools where users can provide liquidity (BPTs), kaiAURA tokens, or kai tokens and earn rewards in both AURA and KAI.

Example Scenario: Earnings Comparison

Let's compare the earnings of a user participating in Aura and kai:

1. On Aura:

   • The user stakes their AURA tokens to earn voting rewards fees from hidden hand, BAL rewards (via Aura’s veBAL), and additional AURA rewards.

2. On kai:

   • The user wraps their AURA into kaiAURA.

   • The user stakes kaiAURA to earn higher yields due to amplified yield from some kaiAura not staked, along with additional KAI rewards.

Governance and Voting

• kai Governance:

  • Users participate in kai’s governance by locking their KAI tokens.

  • Governance decisions include protocol upgrades, balancer proposals, and Aura FInance proposals