Klondike Vault Ideas (for V2)

V2 is on the way! With such improvements as a new boardroom, KLON locking for extra rewards, and additional kAssets, we have a lot to look forward to in the next few weeks. For the latest info on V2 from the ask me anything the team hosted, see the AMA summary.

As we await V2, the community has started to hypothesize what types of vaults might help shore up demand for both KBTC and kBonds. Check the Discord or Telegram to see some of the ideas that have started circulating.

What’s listed below are three new vault ideas to throw in the ring, that do the following:

  • Accrue value via continuous cash flow to KLON boardroom stakers/lockers so they earn both in times of expansion and contraction (will keep the KLON price from dumping if kAssets are in contraction).
  • Help Klondike supporters save time and money (i.e. gas fees)
  • Help fund KLON development/marketing (what I will call the dev fund)

Take these as experimental ideas. Some of them may not be feasible depending on gas fees, development fees, etc. But the goal is to create vaults that strengthen the Klondike ecosystem instead of being parasitic and extracting value from Klondike. Also, gas fees may not be a big problem if we shift to L2.

KBTC Compounder Vault

Like Pickle (or Harvest), this vault takes your KBTC/WBTC LP tokens (i.e. after you have supplied liquidity to the KBTC/WBTC LP) and auto compounds it while saving you gas fees — it sells the KLON earned and buys more LP tokens. Makes it really easy to be an LP, especially with smaller funds.

15% fee, routed 10% to dev fund (to cover gas), 5% to boardroom stakers. 15% is smaller than what Pickle (20%) and Harvest (30%) charge, and while this vault sells KLON, the proceeds from the fee strengthen Klondike.

KLON Compounder Vault

Similar to the one above, this one takes KLON/WBTC LP tokens and auto compounds it, saving you gas. This vault may not be necessary once the KLON/WBTC LP tokens get staked in the boardroom for rewards, but it could function up until that point.

15% fee, routed 10% to dev fund (to cover gas), 5% to boardroom stakers. Again, cheaper than Pickle/Harvest, and the proceeds stay in the ecosystem.

The Prospector Vault

Finally, for the die-hard Klondike supporters: this vault will take your KBTC-WBTC LP tokens, and automatically harvest the KLON on a regular interval, and stake it in the boardroom for you. This is what we want!

I’m not sure if this is doable economically as it might cost a lot of gas to individually stake for everyone, but if we find a way to make it work this could be time saving and encourage the right behavior. To defray the gas cost, we also may be able to change the frequency of staking, set a minimum amount of LP tokens, or only do it if a positive rebase is expected (anyways maybe the devs can be creative).

Fee: 15%. 10–15% goes to the dev fund (inc. covering gas), and 0-5% goes to boardroom stakers.

How do we make these vaults?

For the first two vaults, KBTC Compounder and KLON Compounder, we can fork Pickle jars. There is a precedent in that Mith cash did something similar to create their in-house vaults. Basis is also working with Pickle to create their vaults. The third vault (Prospector) may need some extra coding but hopefully, it isn’t too much.

Where did this idea come from?

We all know the ultimate goal is to have a use case for synthetic assets (KBTC, etc.), and that will propel the KLON price, as well as the Klondike ecosystem going forward. This will come from kSwap, as well as partnerships. But these things take time to develop, especially the best partnerships, and we will need to bootstrap our ecosystem to a good level to demonstrate to our potential partners that they should want to work with us.

The ideas for these vaults were inspired by the vault discussions in Telegram/Discord, but they also take inspiration from what other seignorage coins have been doing to bootstrap their ecosystems. By implementing vaults like these, we can make it easier for people to support Klondike (saving them time/gas), encourage them to stay in the Klondike ecosystem instead of going to external farmers like Pickle and Harvest, and encourage them to take actions that help us, all while generating additional revenue to the dev fund and boardroom.