Kima Whitepaper
  • Introduction
  • About The Kima Blockchain
  • Existing Challenges with Asset Transferring
  • The Kima Infrastructure
  • Example: Liquidity Provider Incentivization
  • Incentive Scheme
    • A. Incentive Scheme: Liquidity Penalties and Bounties
    • B. Incentive Scheme: Protection Mechanisms
    • C. Incentive Scheme: Passive and Active Liquidity Providers
  • Simulation of Kima's Liquidity Management
  • Network Income and Distribution
  • Impermanent Loss and Arbitrage
  • Protection Against Blockchain Reorganization
  • Kima's Technology and Other Solutions
    • About Asset/Token Wrapping and Cross-Chain Bridges
      • Custodial Wrapping
      • Non-custodial Wrapping
      • Liquidity Fragmentation
    • Direct Messaging
  • The Security of the Kima Blockchain
    • Other Security Threats
  • Conclusion
  • Disclaimer
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  1. Incentive Scheme

B. Incentive Scheme: Protection Mechanisms

The Kima platform has several built-in mechanisms for protection and automation, geared towards users and liquidity providers.

First, users can define a Maximum Fee Limit to ensure their transaction is executed only when the fee does not exceed the limit.

If transactions cannot be executed in the current block (due to the fee being too high), the deposit to blockchain A will be executed, and the withdrawal from blockchain B will be considered for the next B chain block with a defined number of retries.

Similarly, liquidity providers can deposit liquidity to blockchain A with no withdrawal from blockchain B or another chain. In this case, they can set a Minimal Bounty Limit, below which the transaction will not be executed. The transaction can also wait for the next A chain block with a retry limit.

PreviousA. Incentive Scheme: Liquidity Penalties and BountiesNextC. Incentive Scheme: Passive and Active Liquidity Providers

Last updated 2 years ago