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Investors who hold our Token in the Long-term, receive rewards as Escrowed KPE (esKPE) and Multiplier Points
Both KPE holders who choose to stake on the platform and KLP holders (i.e. liquidity providers) receive rewards. These rewards can be in the form of tokens - Escrowed KPE (esKPE) and KAVA - and Multiplier Points (MP). The full reward structure is available at the end of this chapter, but here is brief summary:
- Staked KPE earns KAVA, esKPE and MPs.
- Staked esKPE earns KAVA, esKPE and MPs.
- MPs: earns KAVA when staked
- KLP held in wallet earns KAVA and esKPE.
Claiming will transfer any pending esMVX and KAVA rewards to your wallet.
The platform also has a one-click way of compounding all rewards. This will be very helpful to users who want to maximise their earnings.
Clicking on the “Compound” button will send a batch transaction with only one confirmation needed. You will see a recap of all the transactions that will happen before confirming the transaction in your wallet:
- Claiming and then staking unvested KPE and/or esKPE.
- Staking MPs.
- Claiming KAVA rewards and converting them to KAVA.
- Claiming KAVA and compounding them into KLP or KPEPlease note that compounded or manually staked esKPE can be unstaked for vesting at anytime.The earn page also has a “KPE” and a “KLP” box. Each of these boxes shows the following information:
Each box also shows direct links to all actions available to the users regarding the tokens.
- Token price.
- User assets.
- Rewards info (APR …).
- Total and staked supply.
- Buy, stake, unstake KPE.
- Stake, unstake, vest (available soon) esKPE
- Transfer account to another wallet (see dedicated section)
It is possible to convert esKPE to KPE through the vesting process, which involves reserving the average of KPE and KLP that was used to earn the esKPE.While vested, a small amount of esKPE gets converted into KPE every second.This KPE is claimable immediately.If the account misses the KPE or KLP required to vest, the user has to purchase these tokens again.Tokens may get deposited into a user’s vault at any point during vesting.
- Add, withdraw liquidity.
Distribution rates change on a monthly basis.
- Monthly 25,000 esKPE are emitted and distributed to KPE & esKPE staker - Monthly 25,000 esKPE are emitted and distributed to KLP Provider
Monthly total emission and distribution of 50,000 esKPE as rewards
KPE holders are strongly incentivized to stake their tokens on the platform because this gives them three different types of rewards. They get:
- A share of the platform fees - paid in KAVA.
- A new token: esKPE, which generates its own rewards.
- Multiplier Points (MPs) that are yet another way to boost your KAVA earnings even more.
Let’s examine each one of these rewards and how they add up in detail.
KAVA rewards from platform fees
This is the simplest form of reward and the easiest to understand: KPE stakers will get 30% of the fees collected from across the platform in the form of KAVA.
In case of blockchains other than Polygon network, the rewards are paid in the native token of the blockchain, e.g. NEAR in the case of Near Protocol.
kperp.exchange generates revenues by charging traders small fees when they use the platform for the following:
- Swaps - fees vary according to the levels of the swapped assets in the pool.
- Opening and closing trades - fee of 0.1% of the position size.
- Borrowing to leverage trade or short an asset - fee of 0.01% * (assets borrowed) / (total assets in pool), deducted at the start of every hour.
The other situations earning fees for the platform are when:
- Traders with leveraged positions are being liquidated - fee of 10% of position.
- The liquidity providers mint or redeem KLP - this is called the “rebalancing fee”, it depends on the state of the pool.
The chart below summarizes the platform fees and how they flow back to KPE and KLP stakers after being converted to KAVA.
KPE stakers get rewarded with a new token: escrowed KPE (esKPE). It is non-transferrable and there is only two ways to use it:
- esKPE can be vested to be converted and distributed as KPE. If you choose that path, then your esKPE unlocks linearly over one year and KPE is sent to your wallet at each unlocking.
But there is an additional requirement to fulfill to vest your esKPE: you need to lock the average KPE (or KLP) with which you earned your esKPE in a vault. Your KPE/KLP cannot be sold while it is locked but it still accrues rewards. The locked tokens can be withdrawn anytime from the vault with no redemption period, but this will prevent any further vesting of esKPE.
- esKPE can be staked and will then earn the same rewards as staked KPE: KAVA rewards from platform fees, more esKPE, and multiplier points.
This second option is probably the most interesting one as it compounds rewards and generates higher APR and earnings.
The third reward KPE stakers get is not a token but comes under the form of multiplier points (MPs). Like in a game, those points give you access to rewards, but you can also lose them if you undertake certain actions.
Let’s look at the rewards first:
- MPs are awarded at 100% APR.
- Each MP can be staked to earn the same amount of KAVA as a KPE token.
In this regard MPs are similar to staked esKPE: they allow you to increase your KAVA payout.
But in order to keep your points, you have to keep your KPE and your esKPE staked. Unstaking KPE or esKPE will incur a burning of multiplier points proportional to the amount of tokens being unstaked.
For example, if you staked 1000 KPE and accrued 200 MP so far, then unstaking 500 KPE - 50% of your staked amount - will burn 100 MPs.
This gamified system rewards you points for staying staked for longer as the only way to acquire multiplier points is through staying staked for the long haul.
In the previous section we gave a detailed review of each reward type. The following drawing gives a visual recap. If you focus on the wallet section where the rewards accumulate, you will see an increase in the amount of either KPE or esKPE + KAVA + MP, depending on what you choose to do with KPE and esKPE.
The richness of the reward structure allows you to design many strategies depending on your time horizon. But for those who want the greatest share of the platform fees, staking all esKPE is probably the best option because it gives access to a compounding effect. Indeed, since staked esKPE acts basically as staked KPE as far as reward goes, this strategy will accumulate the most KAVA through KPE, esKPE and MP boost.