1. Product name
2. Product Description
- Invincible Node is a service that enables easy NFT issuance based on DeFi positions within the Klaytn ecosystem. It is currently compatible with Liquid Staking protocol(stake.ly) and plans to integrate with more DeFi protocols in the future.
- $INVI tokens can be issued using NFT minted in the protocol as collateral, and there are mechanisms in place to prevent inflation within the protocol.
- Users can leverage their positions to maximize staking rewards, while new GC nodes can easily onboard to the Klaytn ecosystem by leveraging a portion of the 500M $Klay allocated.
- Liquidity providers(LPs) who supply liquidity to the leverage pool and swap pool within the protocol are incentivized with $INVI tokens.
- Leverage Staking: This feature allows users to stake their DeFi positions with leverage and mint NFTs based on their staked positions. It operates as follows:
- Users leverage their $Klay by staking it in the protocol’s LP pool.
- The contract interacts with external liquid staking protocols to issue NFTs reflecting the leverage applied.
- The NFTs represent the user’s staked assets, accrued interest, leverage amount, and accumulated interest.
Incentivize based on collateral: NFT issuance is tied to the staking ratio, resulting in lock-up periods proportional to the ratio. When users lock up their collateral, they can mint the incentive token $INVI. The amount of $INVI issued is up to 80% of the NFT’s current $Klay value. The leverage ratio determines the mandatory staking period and protocol fees.
Burning Native & Protocol Token: Contribution to token deflation occurs through burning $Klay and $INVI based on lock-up periods, NFT withdrawls, and token burning.
$Klay is burned in two ways:
- 20% of the fees generated within the protocol are burned.
- When users lock up NFTs and receive $INVI, they can burn up to 20% of the NFT’s current value in Klay. Burning Klay in this manner increases the total amount of $INVI they receive.
→ When users burn n% of the NFT’s value in Klay (0 < n <= 20), they receive up to [n/20 * 0.125 + 1] times more $INVI. (Maximum 90%)
Key Differentiatons of the Product
- Compatibility with existing DeFi: The product features a structure that allows interoperability with existing DeFi platforms. Users can leverage $stKlay from stake.ly to mint NFTs and issue $INVI tokens.
- Fast liquidity and trading using NFTs: The utilization of NFTs enables quick liquidity provision and trading. NFTs can be utilized as financial instruments and bonds, enhancing versatility.
- Token’s floor value and deflationary mechanism: Unlike typical DeFi projects, the token has a floor value set at 80% of its value in $Klay. Additionally, a deflationary mechanism is incorporated to mitigate excessive token issuance.
Impact on the Klaytn Ecosystem
- Lock-up of circulating supply through Klaytn staking: The project contributes to locking up circulating supply by enabling users to stake their Klay for leverage and NFT issuance.
- Eases onboarding for GC nodes: New GC operators can participate more easily as they can leverage a portion of their 500M $Klay to operate, encouraging greater participation in the Klaytn ecosystem.
- Potential for external liquidity inflow: When NFTs issued by the protocol are traded for coins on other chains, it leads to an influx of external liquidity into the Klaytn network.
Tokenomics & Protocol fee
$INVI Token Structure:
New issuance: 90%
- Provided when NFTs are locked up: 60%
- Rewards for INVI stakers: 15%
- LP rewards: 10%
- Team allocation: 5%
Unlocked over 30 months [2 years and 6 months]. Maximum 3% unlock per month. A maximum of 3% of INVI tokens provided when NFTs are locked up. LP provider rewards capped at 1%. Staker rewards capped at 0.5%. Team rewards capped at 0.25%. Remaining tokens are moved to the INVI DAO pool for burning or future allocation.
Sales and Airdrop: 10%
- Pre-seed: 4%
- Seed: 4%
- Airdrop and marketing: 2%
this amounts are Unlocked over 20 months starting 4 months later[2 years]. 0.4% unlocked per month (0.2% for pre-seed, 0.2% for seed, airdrop and marketing allocation pending).
Protocol fee revenue(in Klay)
- 50%: Provided as rewards for stakers, matching the locked value after unlocking.
- 25%: Issued as LP rewards, matching the locked value after unlocking.
- 20%: Burned.
- 5%: Issued as team rewards, matching the locked value after unlocking. (Provided in $Klay if the $INVI issuance limit is exceeded).
INVI DAO operation:
Only $INVI stakers can participate in the governance of INVI DAO. The amount staked corresponds to the governance participation opportunity, and the INVI DAO can utilize the $Klay stored in the INVI DAO pool for future $INVI purchases and burning.
Team allocation and more:
The team can only acquire $INVI tokens generated from protocol revenue, excluding 10% allocated for token sales and airdrops. Therefore, the team can prevent inflation due to an increase in $INVI supply. To participate in governance, the team must stake $INVI tokens and participate in the DAO.
3. Team Information
- Team Name: Blockwavelabs
- Team History
- 2023 Polygon X Jump Crypto participation(The Only South Korea Team)
- 2023 Runner up & Honorable mention of Aptos Seoul Hackathon
- 2022 Runner up of Evmos X Covalent Hackathon
- 2022 Winner of Cosmos HackAtom
4. Grant Proposal
Size of Grants: We are requesting a grant of $245,000 for LP and Audit & Marketing.
4Q23 Milestone: Establish LP pools and launch the mainnet
1Q24 Milestones: Generate real usage with the following targets
- Monthly Active Wallets (MAW): 1,000 different wallet addresses.
- Daily Transactions: 10,000 transactions per day.
- Accumulated Protocol Revenue: $500,000 or more.
2Q24 Milestones: Add external liquidity sources
- Develop a marketplace for Klay position NFTs(bonds).
- Support trading based on tokens from other blockchains, such as Ethereum, within the marketplace.
- Consider providing discounts or cashback for external token trades to increase external demand.
(Explore the creation of Klay position NFTs for trading with external currencies, thereby generating additional demand for Klay beyond the Klaytn ecosystem.)
5. Budget Proposal
We are requesting the following amounts in USD:
Liquidity Provision: $200,000
Audit & Marketing: $45,000
- Audit Cost Estimate: Around $40,000 (We’ve already received a quote from the Odit companies like Haechi Labs or Hexlant, and We can provide the quotation if needed)
- Marketing: Approximately $5,000 (Includes Telegram channel and other marketing expenses)