KAKI — No-Loss Options Protocol for Retail Users
You may have heard of the lossless lottery related to some projects in DeFi more or less and think these projects are for retail investors. So what is the lossless lottery? Put it simply, participants deposit tokens (such as DAI) into the protocol, and the system will automatically deposit these funds into other lending protocols (such as Compound) to earn interests.
These interests will be collected to the prize pool, and prizes will be drawn once a week. Since it is no loss of principal, so if you are lucky enough, you can win the big prize, but bad luck can only lose your one-week interest. Sounds good, isn’t it?
However, is this lossless lottery application really that good? Not really. While using it, people found that it lacked product interaction, the GAS fee was expensive, and the probability of winning the prize was low. But don’t be sad! These problems are solved by KAKI.
The KAKI team has professional options traders coming from the famous financial institutions on Wall Street. The initial products like the European option and American option were designed for professional traders. They created an automatic market making mechanism called WMM-DDH to hedge the risks of Delta and Vega from market makers. Therefore market makers can have a relatively stable income on KAKI.
Later, the KAKI team found that a large number of users were very interested in options. However, the existing options trading was too professional to participate: with the digital trading interface, hundreds of trading options, complicated operation steps, etc. Therefore, KAKI decided to target retail customers and made option products more suitable for retail investors.
For retail investors, KAKI’s first part of products is called simple options. So what is a simple option?
Let’s start with the No-Loss option. Speaking of this, it is genius creativity!
First, it continues the “lossless” feature of lossless lottery tickets while greatly improves interactivity. Participants store their assets in the KAKI protocol, and KAKI would automatically deposit these funds into the loan protocol, for example, to earn interests. These interests will be converted into the whole prize, used to reward the payers who guess correctly. Your final bonus percentage= the number of times you have predicted correctly / the total number of correct predictions of all players * 100%.
In short, the more correct predictions you have, the more bonuses you will get.
Second, trading with a team.
If you are not good at trading and don’t know how to read the chart, what should you do? Don’t worry! You can find many teams with captains on KAKI and choose one to join, giving the leader trading authority. Once the captain wins bonuses for the team, the rest would be distributed to the team members in proportion to the funds after taking his commission.
There will be leader rankings that you can view for each captain’s records, and choose your favorite captains according to the record. Isn’t it exciting?
Third, the Binary option.
If you feel it’s not exciting enough to use only “interests” to participate in No-Loss trading, you can also choose to participate in binary options.
It’s easy to trade binary options. For example, if you think that the price of BTC will rise in 1 day, you can buy a call binary option. But if you are not good at short-term trading, you could choose to become a market maker to provide liquidity for the pool. The biggest difference from a centralized exchange is that KAKI does not require a margin of tens of thousands of dollars, nor does it set a market-making threshold. Anyone can become a market maker and earn commissions.
Fourth, lower GAS fees while ensuring security.
KAKI was the first option protocol deployed on Arbitrum - the Layer 2 star scaling solution reduces GAS fees to 1/55 of the original cost.
Why didn’t KAKI choose the BSC solution? BSC is indeed an easier path, but it is not secure enough. KAKI must choose Rollup considering long-term development, and Arbitrum is the only solution that fits the bill.
We have high expectations for KAKI. If the simple option products go live, the innovation and explosive power will surely be a hit!
