Welcome

Kopi is the latest innovative project in decentralized finance (DeFi), offering a decentralized exchange (DEX), money market, and its proprietary supply-managed coins, known as kCoins. One of the unique features of the Kopi DEX is that it offers users the opportunity to trade any currency pairs and do not require dedicated liquidity pools. This enhances user engagement and allows users to maximise the yield that they are aiming for. All currencies are linked to the base currency XKP.

At the end of each block, the protocol checks the price of the issued kCoins, such as the price of kUSD. If the price of kUSD is too high compared to its reference currencies, for example if 1 kUSD can buy 1.05 USDT, the protocol assumes that the supply of kUSD is not meeting the demand and mints new kUSD. These newly minted coins will be sold on the DEX for XKP and the received XKP is burned. If the supply of kUSD is too high, then new XKP is minted and used to buy kUSD. The received kUSD is then burned which lowers its supply.

Kopi also offers a Money Market where users can deposit their funds as collateral and borrow against the deposited collateral. Governance votes determine which coins can be deposited as collateral and which ones can be borrowed. At the same time, users can deposit approved coins for lending and earn interest when they are borrowed. For example, when a loan defaults in the scenario that the borrowed amount is higher than the loan amount allowed, the Kopi protocol automatically sells off collateral on the Kopi DEX.

The value of the XKP is backed by the DEX, whereby with each trade, participants have to pay a trading fee. A portion of that fee is given to liquidity providers and the other portion is fed back to the protocol which then burns a part of those funds.