Introducing KongSwap

Governance SNS Project Governance
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What is KongSwap?

KongSwap is the one stop token shop. Allowing users to trade across all chains with ease.

TL;DR

KongSwap is a decentralized exchange (DEX) offering seamless, bridgeless cross-chain trading across multiple blockchains like Bitcoin, Ethereum, and Solana. It addresses common DeFi issues such as high fees, liquidity fragmentation, and complex user experiences by utilizing Chain Fusion technology and stable memory within the Internet Computer Protocol. This enables direct, efficient interactions without relying on external bridges. The platform is fully decentralized, operating entirely on-chain, with both frontend and backend hosted within smart contracts. Developed by a team with strong backgrounds in blockchain and finance, KongSwap aims to provide a robust and user-friendly DeFi experience.

Why do we need another DEX?

Despite the large number of decentralized exchanges (DEXs) in crypto, there is a need for a DEX that will address key DeFi challenges such as liquidity fragmentation, high gas fees, scalability limitations, and complex user experiences. Existing DEXs often operate within isolated blockchain ecosystems, requiring users to navigate multiple platforms and deal with interoperability issues when trading across different chains. This fragmentation not only increases transaction costs and time but also exposes users to additional risks associated with external bridges and wrapped tokens.

KongSwapemerges as a platform that addresses these shortcomings by offering seamless, bridgeless cross-chain interoperability, enabling users to trade native assets across multiple blockchains from a single, user-friendly platform. By leveraging advanced technologies like stable memory and operating entirely on-chain through the Internet Computer Protocol, KongSwapreduces transaction costs, enhances scalability, and simplifies DeFi interactions, making DeFi more accessible and efficient for a broader audience across multiple blockchain ecosystems.

How Does Multichain Work on KongSwap?

KongSwap utilizes Chain Fusion technology to achieve true cross-chain interoperability without relying on external bridges or intermediaries. By building on the capabilities of the Internet Computer Protocolā€™s Chain Fusion, KongSwap can natively integrate with multiple blockchain networks at the protocol level. This integration allows for direct communication and transactions between different blockchains, enabling users to seamlessly trade, lend, and borrow assets across various ecosystems in a secure and efficient manner. The initial integrations will include firstly native bitcoin, afterwards Ethereum and Solana thereafter.

Chain Fusion technology enables us the aggregation of liquidity from multiple chains, reducing fragmentation and improving trading efficiency. It also supports the execution of complex smart contracts and the storage of large datasets on-chain, enhancing the platformā€™s ability to offer advanced DeFi services. Through Chain Fusion, KongSwap delivers a robust, scalable, and user-centric platform that transcends the limitations of traditional DEXs, providing unparalleled access and functionality in the decentralized finance landscape.

Architecture of KongSwap

KongSwap is an innovative DEX built on the Internet Computer Protocol, utilizing stable memory within the canister smart contracts to manage all state and operations. The architecture is designed for efficiency, scalability, and cross-chain interoperability, leveraging advanced cryptographic techniques and the unique capabilities of the ICP.

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Key Components

Kong Frontend Canister (kong_frontend)

This canister hosts the user interface of KongSwap, developed with React and JavaScript. It handles all user interactions, including initiating trades, adding or removing liquidity, staking in pools, and viewing transaction histories. The frontend canister communicates with the backend canister to execute these operations securely.

Kong Backend Canister (kong_backend)

The backend canister is the core component of KongSwap, written in Rust. It manages the stable memory and business logic required to operate the liquidity pools, process trades, manage staking, and maintain the state of user accounts and tokens. This canister is responsible for the following key operations:

  • Wallet Login Management: Tracking login and transaction history, and managing referral systems per connected wallet.
  • Liquidity Operations: Managing liquidity pools, including adding and removing liquidity, calculating pool balances, and updating pool states after transactions.
  • Token Swaps: Executing token swaps by calculating the exchange rates, processing transfers, and updating pool balances accordingly.
  • Staking and Rewards Management: Managing staking pools where users can stake their LP tokens to earn additional rewards. The distribution of rewards to different pools is governed by the community through DAO voting.
  • Claims Management: Tracking IOUs for users due to failed transactions or airdrops, allowing users to claim their tokens later.

Liquidity Pools

The liquidity pools are the backbone of the KongSwap DEX. Each liquidity pool is represented within the backend canister as a StablePool structure, which tracks the token pairs, pool balances, fees, and transaction history. Users provide liquidity by depositing token pairs, receiving LP tokens in return.

Staking Pools

The staking pools allow users to stake their LP tokens to earn additional rewards, which are distributed based on DAO governance. The more LP tokens a user stakes and the longer they are staked, the higher the potential rewards. The staking pools are managed within the backend canister, which tracks the staking activity and ensures rewards are distributed according to community decisions.

Component Features

DEX in Stable Memory

Stable Memory Utilization ā†’ The core of KongSwapā€™s architecture revolves around stable memory, a feature of the ICP that allows for large-scale, persistent data storage directly within canister smart contracts. All the state related to liquidity pools, swaps, and liquidity management is maintained in stable memory, ensuring that the DEX can handle vast amounts of data without the need for constant snapshots or upgrades.

State Management ā†’ The DEX operates by managing all liquidity pool states in stable memory. This includes tracking individual liquidity positions, swap transactions, and adding or removing liquidity. The stable memory enables the platform to store detailed historical data on trades, liquidity changes, and price movements directly within the canister, facilitating complex operations and analysis without relying on external databases or oracles.

Single Canister Architecture

Single Canister DEX ā†’ KongSwap backend operates within a single canister smart contract, which handles the entire state of the DEX, including all liquidity pools and user transactions. This unified approach simplifies the architecture, reduces the overhead of managing multiple contracts, and ensures that all operations are tightly integrated and consistent.

Liquidity Pools as Positions ā†’ Unlike traditional DEXes where liquidity pools are represented by tokens (e.g., LP tokens), in KongSwap, liquidity pools are managed as positions directly within stable memory. Each position is a data structure stored in stable memory, tracking the amount of liquidity provided, the corresponding share of the pool, and other relevant metadata. This approach reduces complexity and enhances the efficiency of the system.

Multichain Pools with Advanced Cryptography

Threshold ECDSA and Schnorr Signatures ā†’ KongSwap utilizes threshold ECDSA and Schnorr signatures to create and manage multichain pools. These cryptographic techniques enable the DEX to sign transactions across multiple blockchains securely and efficiently, facilitating cross-chain swaps and liquidity management without requiring traditional bridging mechanisms.

Cross-Chain Interoperability ā†’ The use of threshold cryptography allows KongSwap to support native assets from various blockchains (e.g., Bitcoin, Ethereum) within the same liquidity pools. This interoperability is key to KongSwapā€™s vision of a seamless, bridgeless DeFi experience where users can interact with assets across different chains without worrying about the underlying technology.

Fully On-Chain Backend and Frontend

On-Chain Backend ā†’ The backend of KongSwap, responsible for processing transactions, managing liquidity, and executing swaps, runs entirely within the canister smart contract. This design ensures that all core functionalities are decentralized, resilient, and fully transparent.

On-Chain Frontend ā†’ In addition to the backend, the frontend of KongSwap is also hosted on-chain within the canister. This includes the user interface code, which users interact with through their wallets. By keeping the frontend on-chain, KongSwap eliminates the dependency on centralized servers for UI delivery, ensuring that the platform remains accessible and functional even in the face of external disruptions.

Direct Wallet Integration

Direct Connection to Kong Canister ā†’ User wallets connect directly to the Kong canister smart contract, enabling seamless interaction with the DEX. This direct connection ensures that all transactions, from swapping tokens to managing liquidity positions, occur on-chain without the need for intermediaries.

On-Chain Operations ā†’ All interactions, including those initiated by wallets, are processed entirely within the canister, ensuring that both the backend logic and the user interface are fully decentralized and on-chain. This architecture provides a high level of security and transparency, as all actions are recorded and verifiable on the blockchain.

Whoā€™s Building KongSwap?

KongSwap is developed by experienced developers with expertise in blockchain development, traditional finance, and ecosystem development. The teamā€™s combined experience includes roles and successful projects within major organizations such as Sygnum Bank, UBS, Deutsche Bank, DFINITY, and others. Our diverse backgrounds in building on blockchains like Ethereum and the Internet Computer Protocol, including projects like Helix Markets, equip us with the knowledge and skills necessary to drive innovation and deliver a cutting-edge DeFi platform.

Learn more

App: https://www.kongswap.io/
Whitepaper: documentation/kong_whitepaper.md at main Ā· KongSwap/documentation Ā· GitHub
Source Code:https: //github.com/KongSwap/kong
Code Audit: documentation/sig9_kongswap_audit_report.pdf at main Ā· KongSwap/documentation Ā· GitHub
SNS settings: documentation/sns_init_kong.yaml at main Ā· KongSwap/documentation Ā· GitHub

Socials

X: x.com
Telegram: Telegram: Contact @kong_swap
Open Chat: OpenChat

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Thank you for this. I noticed that you are a new user so you might not be able to share any links so I will ask for your account to be upgraded.

  1. Can you share any dapp and social media links?
  2. you have any open source code?
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How does KongSwap compare to other multichain DEXs like LayerZeroStargate and Thorchain?

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hey, thank you for the question hereā€™s brief overview of how Kong compares to the two:

KongSwap:

  • Offers bridgeless, native cross-chain swaps without relying on external bridges or wrapped tokens.
  • Utilizes Chain Fusion technology for direct protocol-level integration with multiple blockchains.
  • Operates entirely on-chain via the Internet Computer, enhancing scalability and reducing latency.
  • Employs advanced cryptography, including threshold cryptography, enhancing security without relying on external bridges.
  • Fully on-chain operations reduce potential attack vectors associated with off-chain components.

LayerZero/Stargate:

  • Facilitates cross-chain messaging and token transfers using oracles and relayers.
  • Functions as a messaging layer, with scalability dependent on underlying chains and the efficiency of relayers and oracles.
  • Security depends on the honesty and efficiency of oracles and relayers. Potential risks if these components are compromised.

Thorchain:

  • Enables native cross-chain swaps without wrapped tokens but relies on its own blockchain and node network.
  • Uses continuous liquidity pools secured by bonded RUNE tokens.
  • Scalability may be limited by its own blockchain infrastructure and the need for node operators to secure the network.
  • Relies on the economic incentives of node operators bonding RUNE tokens.
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hi Jennifer,

sure happy to share:

  1. Socials
    x: x.com
    OC: OpenChat
    TG: Coming soon
    App (test version): https://www.kongswap.io/
  2. not yet will be fully opensourced soon but our SDK is out if anybody would like to start working on integrations
    KongSwap Ā· GitHub
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Helix Markets cannot be used by anyone living in the United States due to the restrictions that the dev team implemented. If the team behind KongSwap is the same team behind Helix Markets, then I respectfully ask that you please do not restrict use of KongSwap for people in the United States. Please follow all laws, but please also put in the extra effort needed to make sure the app can be used globally including the United States.

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hey,

KongSwap is fully permissionless and running on chain backend and frontend, meaning that anybody can interact with the canisters and integrate or build on KongSwap canister contracts.

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Thanks @KongSwap. That sounds great. Some of those terms mean different things to different people. Hence just to confirm, if I want to be a liquidity provider and I live in the United States, will I be able to use the front end provided by the KongSwap app without having to use a VPN to mask my location? Thanks for providing clarification.

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yes, you will be able to use it without any restrictions.

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Can you please also provide?

  1. Your whitepaper
  2. Your SNS.yaml file
  3. Please explain more of your tokenomics
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I found a white paper hereā€¦not sure if it is what they consider official, but itā€™s on the KongSwap GitHub linked above. It includes tokenomics info.

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Iā€™m following up here. Also, when do you plan to open-source the entire dapp code?

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Found this issue in KongSwap github, would be good if someone from the team to address it.

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Hi Jennifer, all links are updated and code open sourced.

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Hello

Can you tell us what makes Kongswap unique compared to ICPSwap or Sonic. As per my understanding what you have described is inherent defi capabilities of ICP network. What is innovative in this dapp? What are the unique features?

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What I meant is KongSwap seems like another front-end for the ICP DeFi capabilities, which DFINITY seems to promote non stop on their social channels, even by the founder of DFINITY.

They do not mention what makes KongSwap unique compared to existing battle-hardened DeFi platforms like ICPSwap, Sonic or ICDex

Also can you mention the amount of tokens you would be raising via decentralization sale on SNS

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Okay Iā€™ve found the sale details

summary: >
    Proposal to create an SNS for the project KongSwap.
    The SNS will be initialized with the following parameters:
    - Total KONG supply: 1_000_000_000
    - 220_000_000 Public Sale, 200_000_000 Dev Neuron, 580_000_000 treasury
    - ICP to raise min: 100_000 ICP
    - ICP to raise max: 350_000 ICP (With NF 469_048 ICP)
    - Min number of tokens per contributor: 1 ICP
    - Max number of tokens per contributor: 100_000 ICP
    - Min number of participants: 100

https:/ /github. com/KongSwap/documentation/blob/main/sns_init_kong.yaml

You plan on raising a minimum of around 150,000 $ICP tokens including neuron fund

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Hey, thank you for the question. Kong differentiates itself from other DEXes on the IC in several key ways:

Unique Architecture: Kong is the probably the first DEX in crypto built to run fully in canister stable memory. This architecture allows for significantly faster transaction execution and position managementā .

Future Capabilities: Our architecture enables us to add other financial primitives such as lending and margin trading in the futureā ā .

Multi-chain Features: Weā€™re developing features that will allow seamless trading of assets from different ecosystems without the need for bridges or third partiesā .

User-Friendly Experience: We prioritise creating intuitive trading experiences across all platforms, making Kong accessible and easy to use for crypto users of all experience levelsā .

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This seems extremely rushed imo. :-1:

Barely a week after release and you guys want 800k for a barebones product?

It lacks many features, has a mediocre UX and the UI uses 6 different types of mismatched pixels.

The team isnā€™t doxxed, from what I see itā€™s a bunch of young twitter hype-bros that I donā€™t believe have the perseverance or grit to lead this thing to success.

From what I understand, Kong has a single-canister architecture. Wonā€™t that be a major flaw in the future when supposedly itā€™ll have to handle a ton of txs and whatnot? Is Kong swap future-proof?

Also, can you expand on this, please?
ā€˜The teamā€™s combined experience includes roles and successful projects within major organizations such as Sygnum Bank, UBS, Deutsche Bank, DFINITY, and others.ā€™

Iā€™d love to see this evolve into something awesome a year down the road but for now, it has too many red flags and looks fishy to meā€”best of luck.

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Really need the teamā€™s details rather than just described like this. If described like this, I tend not to believe.

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