Protocol Design

An overview

Kodo Exchange uses KODO as a utility token and veKODO as governance token.

KODO is used for rewarding liquidity providers through emissions. veKODO is used for governance. Any KODO holder can vote-escrow their tokens for up to 4 years and receive a veKODO NFT in exchange.

Core Mechanics

The protocol is designed to enable token swaps and generate fees (from Traders) by attracting liquidity.

Every epoch liquidity providers (LPs) receive KODO token emissions proportionally to the votes the pools accumulate. Only staked (in the protocol gauges) liquidity receive emissions.

Participants can lock their KODO to be able to vote on the next epoch distribution of emissions, becoming veKODO Voters. veKODO Voters are rewarded (proportionally to locked amounts) for their votes with 100% of the protocol trading fees from the previous epoch and any additional voters incentives from the current epoch.

Protocols on Taiko looking to incentivize liquidity can incentivize veKODO voters (i.e., deposit token rewards for voters of a pool) and accumulate veKODO to vote directly.