Chrome Finance launched

Chrome Finance - KROME Token Presale

Stablecoins used most widely on Klaytn network are bridged from other networks. This causes 1) fee inefficiency 2) time delay 3) lack of scalability in supply.  Klaytn Network needs a brand new robust stablecoin model which has 1) strong price stability and 2) high scalability for its Defi ecosystem to grow further.

Most successful stablecoin models are entirely collateralized (such as DAI), or entirely algorithmic. (such as Basis.cash, Empty Set dollar and its variants). Entirely collateralized models often need over-collateralization which lacks scalability, and entirely algorithmic models showed extreme volatility in price stability which often led to lost in confidence from the market.

Our mission is to create the most advanced and robust stablecoin not only on the Klaytn network, but in the entire crypto market.

Our solution, USDK adopts both design principles to create the first extremely stable and also highly scalable stablecoin on Klaytn.

Krome protocol is a two token model with USDK (stablecoin) and KROME (governance token). The protocol also has a pool contract which holds USDT collateral. Collateral tokens will be added in the future from governance.

The key in adopting both collateralized & algo-stable models is the collateral ratio. USDK starts with 100% collateral ratio, which means users can mint 1 USDK with 1 USDT in the collateral pool. We believe that as USDK adoption increases, users will be more comfortable with higher percentage of USDK supply being stabilized algorithmically than with collateral. (due to scalability limitations)

The collateral ratio changes in steps of 0.25% every hour. When USDK is above $1, collateral ratio is lowered one step, and when USDK is below $1, collateral ratio is raised one step. Both refresh rate and step amount can be adjusted through governance.
In a future update of the protocol, they can even be adjusted dynamically using a PID controller design. The price of USDK, KROME, and collateral are all calculated with a time-weighted average of the swap pair price and the KLAY:USD price.

KROME team understands that it is critical to have real applications for greater success of USDK. The team will not only co-work with already existing defi platforms, but will create future defi products for USDK with our own hands, and also aggresively invest the eco fund to 3rd party teams creating defi platforms which generates synergy with USDK ecosystem.

Krome Finance

Krome Finance