MathShow Series #20 — Kalata Protocol: Redefining the Future of Finanace
I’m Cici, the host of the math show. Great pleasure to be here with Stella, CMO of Kalata and talk about Kalata Protocol: Redefining the Future of Finance.
Hello, I’m Stella Wong, the CMO for Kalata. I’m very grateful for the opportunity to be here with you all and introduce Kalata.
My topic today is “Kalata Protocol: Redefining the Future of Finance”. I hope you will find my stream informative and helpful.
To begin, I would like to give you a brief introduction to the Kalata Protocol, who we are and what Kalata does.
KALATA is the backbone of Synthetic Asset issuance and transaction agreements, enabling everyone to have a smooth experience with real world financial assets on the blockchain.
Kalata aims to build on its market position as a leading derivatives trading platform.
I will now go into more in depth detail on all I mentioned above and explain exactly how Kalata works and what you can do on our platform.
Firstly, why did we choose Synthetic assets as the track?
As we know, after DeFi, NFTs (Non Fungible Tokens) are poised for explosive growth in 2021. In fact, the rapid mainstream acceptance of these new tokens are due to their ability to integrate well with real-world items (e.g. trading cards, artwork, digital content, etc.)
However, apart from NFTs, there is another form of asset in the cryptocurrency world that can perfectly interact with the real world and which enables everything to be tokenized: synthetic assets.
In short, synthetic assets are a bridge between the real world and the crypto world. They are a simulation of an asset (cryptocurrency, stock, gold, commodity, derivative, etc.) onchain, representing a financial instrument made of one or more combinations of assets/derivatives. They are designed to meet the investment needs of investors who are unable or unwilling to hold the initial assets.
From the DeFi boom in 2019–2020 to the NFT popularity of 2020–2021, the market seems to be looking for the catalyst that will trigger the next round of market growth. Many industry insiders, including Changpeng Zhao, founder of Binance, are very bullish on synthetic assets and believe that synthetic assets are likely the “spark plug” to start this engine.
Synthetix, which began with the emergence of Synthetix in 2019 and has grown exponentially in the decentralized financial space over the last two years, is now a key component of the ‘DeFi movement’ , according to The Block data, Synthetix lockups reached $4.63 billion on February 12, 2021.
The data does not lie, there is no doubt that the market enthusiasm for synthetic assets is heating up, if we go back to 2019, when the DeFi lockup was only $2 million, but in just two years, this rose to above $65 billion. The current synthetic asset lockup is about $3–4 billion. If this follows the trajectory of the DeFi explosion, the scale of synthetic assets issued through the blockchain in the future will probably exceed a trillion dollars.
We strongly believe that the choice of synthetic assets is very promising at this stage and our aim is to build Kalata’s market position as a leading derivatives trading platform.
Secondly, Why is the Kalata Protocol competitive compared to other similar projects?
For now, some of the more popular projects in the synthetic asset space are Mirror, UMA, and Synthetix. Let us examine how Kalata compares with these projects:
We can find 3 advantages from the table above.
1. Efficient Economic Model:
Kalata has a somewhat similar business model to Synthetix and Mirror Protocol in that they both convert traditional financial products into a digital currency, allowing users to gain investment exposure without actually holding the traditional financial products. Kalata is able to support a much larger number of synthetic financial products, with the support of BSC.
As we know, BSC has a clear advantage of low fees and high throughput compared to Ether, which means that Kalata users will have much easier access to high-yield synthetic asset transactions and a smoother user experience than Synthetix and UMA synthetic asset protocols that are still deployed on the Ether blockchain today, product performance will also be better.
In addition, by being based on BSC, Kalata is able to generate synthetic assets through BUSD. In the future, it will provide users with unlimited deep trading services without slippage and counterparties based on the debt pool model, which is also an advantage of BSC which empowers Kalata on the asset side.
Kalata has designed an efficient economic model based on the KALA token.
For those who mint synthetic assets and those who provide synthetic asset liquidity, the Kalata system rewards them with KALA native tokens. These can be used not only as governance tokens in voting campaigns, but also in the future for transaction fees for synthetic assets in Kalata’s derivatives trading platform.
KALA tokens are based on the bep20 standard. In total there are 200 million, 10% of the total KALA is retained by the foundation; 45% is used to motivate users to participate in synthetic asset minting, 20% is used for private selling, and 15% will be distributed to the founding team and early stage investors.
We believe that Kalata’s economic model based on KALA tokens will bring many benefits to traders, and liquidity providers. Our economics offer a win-win situation, these advantages will help Kalata gain a strong edge in the world of synthetic assets.
2. Integration of Chainlink Price Feeds to Power Synthetic Asset Trading.
Kalata has deployed Chainlink Price Feeds on Binance Smart Chain (BSC) as the default oracle solution for all markets on our synthetic asset trading protocol. With the high-quality, tamper-proof data brought on-chain by Chainlink’s decentralized oracles, Kalata Protocol can accurately price in real-time various synthetic assets like cryptocurrencies, stocks, commodities, derivatives, and virtually any asset in the future that our ecosystem demands.
Integrating Chainlink’s time-tested oracles will strengthen the precision and robustness of Kalata’s synthetic asset trading platform, marking a major milestone towards our goal of making DeFi trading available to everyone and getting us closer to achieving one of our core missions — executing every trade with real-time price feeds.
Some of the major benefits of using Chainlink Price Feeds throughout Kalata include:
1) High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
2) Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during high gas prices and extreme network congestion.
3) Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
4) Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.
3. US stock market — one of the most common application scenarios.
As we know, the US stock market is indeed one of the most common application scenarios for synthetic assets right now, Kalata Protocol (KALA) is a synthetic asset protocol. The ﬁrst version of Kalata can realize a 1:1 peg to the stock price, allowing users from the traditional ﬁnance world to learn DeFi at a lower cost. There is no need for complicated processes.
Users will only need to connect their decentralized wallet to the Kalata DApp and then they can trade global mainstream asset like Tsla.US, BIDU.US, Coin.US, the Dow Jones, ARKK (ARK Innovation ETF), SPCE.US (Virgin Galactic Holdings Inc), PACB.US (Paciﬁc Biosciences of California), etc. This is a very thrilling innovation.
In addition, the early and long-term supporters of Kalata Protocol come from mainstream ﬁnancial subdivisions such as trusts, banking, and securities. They have professional experience and attainments in traditional ﬁnancial ﬁelds. The long-term supporters of the Kalata Protocol will inﬂuence and inspire more traditional ﬁnancial users to join. We have the confidence and ability to compete with these programs.
Next, Let us share with you our latest progress.
We undertook the Private Sale of $KALA from July 23rd to the 30th this year. Our IDO followed on August 7th. In both cases they were fully subscribed which shows great enthusiasm for the Katala project.
Prior to the launch of the Kalata app we completed security audits conducted by Certik and Trustlook. We did this because we are acutely aware of the importance of security in our ecosystem. We also released our open source code on GitHub prior to the launch of the Kalata app.
Our app launch which was much anticipated by the community, occurred on August 16th this year. Our dapp V1.0 launched with KALA, KCOIN trading functions available. Single KALA and single BUSD staking functions are both available now. The KALA-BUSD mining function is also available. We launched our Genesis Mining campaign which rewarded our users with a mining APR of up to 2,200%. Our current KALA-BUSD LP pool has a steady APR of around 400%-500% now. Please visit app.kalata.io for more details. We’re testing DAPP V1.2 and adding the NFT module now.
We’ve made significant progress with making the Kalata app accessible on multiple wallets. Currently, the app is accessible on MathWallet, Token Pocket Wallet, Trust Wallet, Coin98 Wallet and more.
We also opened yield farms and snack pools on BabySwap on August 31st. We also reached a partnership with AIpaca Finance which is the 1st leverage yield farming protocol on BSC. Now you can stake ibALPACA to earn KALA.
We carried out several giveaway activities targeting the community members with our partners: CoinMarketCap, ONTO Wallet, and MathWallet. Kalata has a very solid user base and following which continues to grow.
We now have nearly 59,000 members in our Telegram and our Twitter account has over 110,000 followers. Trading volumes on the Kalata app continue to grow and over 7,000 addresses hold $KALA tokens now.
Finally, dream big with Kalata.
Synthetic assets will be a major direction for the cryptocurrency market in the future, as synthetic assets are equivalent to “dimensioning” various traditional financial products in the real world, indirectly allowing these traditional financial products to achieve on-chain status. For the synthetic asset track, 2021 will be a very important “critical point”.
Kalata believes that DeFi is not just the play toy of a small group of people but that Kalata will be the ﬁrst step for traditional ﬁnance traders entering the DeFi world. We intend to redefine the future of finance. Through our actions we will help more and more users to explore this form of future ﬁnance, and ultimately bring DeFi into the mainstream.
Kalata is committed to building a next generation synthetic asset trading platform with cross-chain capabilities.
We have already started development on other emerging public blockchains.
We remain committed to achieving everything we have detailed in our roadmap and much more.
We know it’s going to be a long journey which requires dedication and consistent effort.
We are absolutely committed to achieving success.
Everyone can keep dreaming big with us as we redefine the future of finance together.
Before the start of the MathShow, we have collected a wide range of questions on Twitter. For some questions submitted by some community members, let’s invite Stella to answer .
If Kalata supports the staking of synthetic US stock assets, once the synthetic assets with obvious financial characteristics are on-chain, how to deal with the financial risks such as excessive rise and fall but insufficient market depth?
We are using a very accurate and efficient oracle service from Chainlink to quote asset prices. So they will very closely mirror the prices in the traditional markets.
We have a strong reward system to provide incentives for people to mint synthetic assets and provide liquidity on our platform.
Additionally the team will support liquidity for the synthetic assets on Kalata.
Thanks for your question, hoping my answer informative and helpful.
There are many synthetic asset products on the market. Could you give an example of the difference between Kalata and them?
As I said above, Kalata has a somewhat similar business model to Synthetix and Mirror Protocol in that they both convert traditional financial products into a digital currency, allowing users to gain investment exposure without actually holding the traditional financial products.
Kalata is able to support a much larger number of synthetic financial products, with the support of BSC. As we know, BSC has a clear advantage of low fees and high throughput compared to Ether, which means that Kalata users will have much easier access to high-yield synthetic asset transactions and a smoother user experience than Synthetix and UMA synthetic asset protocols that are still deployed on the Ether blockchain today, product performance will also be better. In addition, by being based on BSC, Kalata is able to generate synthetic assets through BUSD.
In the future, it will provide users with unlimited deep trading services without slippage and counterparties based on the debt pool model, which is also an advantage of BSC which empowers Kalata on the asset side.
Apart from this, we also have an efficient economic model based on the KALA token that will bring many benefits to traders, and liquidity providers. And we have the integration of Chainlink price feeds to power synthetic asset trading. Kalata can realize a 1:1 peg to the stock price, allowing users from the traditional ﬁnance world to learn DeFi at a lower cost. There is no need for complicated processes. These are our advantages compared from the other projects.
Technical issues should be the issues that users have been paying attention to. Could you introduce Kalata’s technological breakthroughs?
Firstly, prior to the launch of the Kalata app we completed security audits conducted by Certik and Trustlook. We did this because we are acutely aware of the importance of security in our ecosystem. We also released our open source code on GitHub prior to the launch of the Kalata app.
We have a security team that focuses solely on protocol security. Their tasks include but are not limited to monitoring transactions, catching issues, and fixing security bugs. The QA team will do testing manually and/or automatically using scripts, and we plan to open-source the test scripts in the near future.
Code Auditing is also very important to us and all our users, and therefore, we plan to have our contracts audited annually and whenever there is a major update or release.
Math Show #020 is finish now. Thank you again for your time and listening, we will see you in the next issue.