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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Kima's Technology and Other Solutions

PreviousProtection Against Blockchain ReorganizationNextAbout Asset/Token Wrapping and Cross-Chain Bridges

Last updated 2 years ago

The global crypto market cap grew tenfold from January 1st, 2020, to January 1st, 2022 (from $196B to over $2T¹). This massive growth has caused a fragmentation of liquidity– as of March 2022, more than 15 different blockchains have native tokens with market caps above $5B²). Furthermore, it seems unlikely that the market will have a single “blockchain to rule them all”, as the different chains offer trade-offs between security models, speed, cost, functionality, and environmental costs that make different blockchains appealing for different users and applications.

Allowing users to move liquidity from one chain to another securely is a challenging and critical problem facing the continued growth of the blockchain space. Kima has been developed to provide this seamless, secure, and efficient cross-chain transaction. It is superior to the other interoperability and liquidity solutions available on the market today, including cross-chain bridges/token-wrapping and direct messaging. This section will share an overview of these solutions and their disadvantages.

Also review our for a detailed description of the technical elements of the Kima protocol and blockchain that support the advantages of the Kima model over the other solutions.

¹Coinmarketcap. Global charts.https://coinmarketcap.com/charts/, 2022. ²https://defillama.com/chains

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