KLK Sync Nexus
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English
  • Whitepaper
    • Introduction
    • About KLK Sync Nexus
    • Technical Framework
      • Dynamic Collaboration Pool (DCP)
      • AI Game-Theoretic Oracle
      • Proof of Time Power (PoTP)
      • Liquidity Sharding Protocol
      • Asset Permission Declaration
    • Operational Mechanism
      • Model Overview: KSN Six-Dimensional Collaborative Economic Flywheel
      • AI Treasury Contract
      • Bond Issuance Contract
      • Time Power Proof Contract
    • AI Incentive Model
    • Tokenomics
    • KSN Ecosystem
      • Core DeFi Ecosystem
      • Collaborative Power Mapping
      • Compliance Financial System
    • DAO Governance
    • Risk Control
    • Roadmap
    • Core Developers
    • Legal Disclaimer
  • Support
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    • Contract Audits
    • Official Links
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On this page
  • Mathematical Model for Fund Allocation
  • Dynamic Liquidity Adjustment
  • Liquidity Risk Management
  • Decentralized Governance Mechanism
  1. Whitepaper
  2. Technical Framework

Dynamic Collaboration Pool (DCP)

PreviousTechnical FrameworkNextAI Game-Theoretic Oracle

Last updated 8 days ago

The Dynamic Collaboration Pool (DCP) is the core liquidity management system within the KLK Sync Nexus ecosystem. It aims to optimize capital allocation, reduce market volatility, and enhance the rewards for long-term stakers through decentralized mechanisms. The DCP utilizes smart contracts to automatically adjust liquidity parameters and combines AI-powered oracles to dynamically calculate reward distribution. This ensures that the liquidity pool operates efficiently and maintains stability during market uncertainties.

Mathematical Model for Fund Allocation

DCP employs a nonlinear reward calculation model to provide higher returns for long-term stakers while disincentivizing short-term arbitrageurs.

The reward weight for each user is calculated using a collaborative coefficient model:

Formula:

Where:

  • Reward: The user’s daily reward

  • BaseReward: The total daily reward allocated to the DCP pool by the protocol

  • Stake: The user’s staked amount

  • TotalStake: The total staked amount in the DCP pool

  • C: The collaborative coefficient, determined by:

    • t: Staking duration (in days)

    • L: Loyalty score based on non-withdrawal behavior over time

    • G: Governance contribution, including the number of votes and proposal pass rates

Dynamic Weight Factors:

  • α, β, γ: System-adjustable weight factors to ensure fairness

Dynamic Liquidity Adjustment

  • Employs an Automated Market Maker (AMM) mechanism to ensure reasonable liquidity adjustments under varying market conditions.

  • Integrates concentrated liquidity design from Uniswap V3, enabling capital to be more effectively allocated across key price ranges.

  • Uses AI-powered oracles to calculate market volatility, increasing reserve funds during high-volatility conditions to mitigate liquidation risks.

Liquidity Risk Management

  • Automatically allocates 30% of protocol fees and 50% of arbitrage penalties to the DCP pool to enhance its volatility resistance.

  • Introduces a Reserve Pool mechanism to inject funds into the DCP during periods of high market volatility, ensuring fund stability.

  • Adjusts the liquidation mechanism: increases penalty interest rates during significant market fluctuations to discourage short-term arbitrage.

Decentralized Governance Mechanism

  • Governance token holders (vcKSP) can vote to determine the allocation of 10% of the DCP’s funds.

  • Funds can be used for ecosystem development, protocol buybacks, or token burns, strengthening decentralization.

  • Implements Merkle Tree for on-chain storage of voting data to ensure transparency.

  • Incorporates Quadratic Voting to optimize governance weight distribution and reduce the voting influence of whale users.