Benefits

Kima offers significant incentives for liquidity providers, whether they participate passively or actively. By joining our liquidity pool system, providers can maximize their returns and help secure cross chain liquidity, benefiting from Kima’s efficient and secure network.

Earn Network Fees

Liquidity providers earn a portion of the network transaction fees. For every transaction processed through the liquidity pool, a small fee (0.05% of the transaction amount) is distributed to liquidity providers. Example: For every $1 million in daily transaction volume, liquidity providers earn $500 in network fees per day, or $182,500 annually. Passive liquidity providers, in this case, would receive half of that amount ($91,250/year).

Capital Efficiency

Kima is designed to achieve high capital efficiency, meaning liquidity providers can earn more returns with less liquidity.

Cross-chain Liquidity

Kima’s liquidity pools span multiple blockchain networks, offering liquidity providers access to a broad range of opportunities. By providing liquidity across Ethereum, Polygon, Optimism, and other networks, providers can participate in various ecosystems while enjoying the benefits of Kima’s seamless cross-chain infrastructure.

Security

Kima Finance leverages Trusted Execution Environments (TEEs) and a Threshold Signature Scheme (TSS) to ensure that all liquidity provider operations are secure and private. These advanced security mechanisms protect liquidity providers' assets while enabling the system to function at optimal performance.

Conclusion

Kima Finance’s liquidity pool system is designed to be efficient, secure, and flexible. Liquidity providers can benefit from participating in cross-chain pools, earning rewards through network fees and bounties. For more information on becoming a liquidity provider, refer to the Deposit assets in Kima pools section.