New Listing on #DotMarketCap: Taiga Protocol.

Project Introduction

Taiga is an experimental protocol on Kusama and the sister project of Tapio. Taiga is a synthetic asset protocol enabling efficient liquidity for uniform assets on Kusama. It is designed to remove liquidity silos by synthesizing different formats of asset into a highly usable synthetic asset for the Kusama ecosystem.

Taiga synthetic assets can be used in a broad spectrum of use cases (ie. collateral, liquidity bootstrapping, cross parachain transfers) while maintaining the benefits of the underlying assets (ie. liquid staking yield, crowdloan rewards).

Project Highlight

By becoming the efficient liquidity standard for uniform assets on Kusama, Taiga can bring benefits for Synthetic Asset Users, Liquidity Providers, Traders and Project Teams.

Synthetic Asset Users

Taiga synthetic assets can increase the usability of uniform assets (ie. LKSM, KSM) by unlocking liquidity from crowdloan and staking use cases. Example: taiKSM is a synthetic asset that can be synthesized from LKSM. taiKSM holders can use it as collateral to mint kUSD (Karura stablecoin) while keeping the underlying rewards generated from the liquid crowdloan application.

Liquidity Providers

Further to earning trading fees passively, Liquidity Providers receive a better pegged and usable synthetic asset in return for providing liquidity. Example, KSM uniform asset holders (ie. LKSM, KSM) can provide liquidity to the Stable Swap pool and receive taiKSM. Liquidity Providers can use taiKSM as collateral to mint stablecoins or borrow other assets. The trading fees generated from the Stable Swap pools are collected externally so that LPs can put their synthetic assets to use without compromising trading fees.

Traders

Traders can swap uniform assets at high efficiency and low slippage via the Taiga protocol. When any underlying asset loses its peg, Traders can easily discover and capture arbitrage opportunities, which also helps maintain the value of the synthetic asset. Example: LKSM is trading at an unusually large discount relative to KSM. Traders are motivated to arbitrage this opportunity, bringing the discount between LKSM and KSM back to a normal range. During this process, the value of taiKSM remains stable.

Project Teams

Project Teams can bootstrap liquidity by renting from the common synthetic pool (ie. taiKSM). Example: A new project team is bootstrapping an ABC-KSM LP pool on Karura DEX. The project team can contribute single-side liquidity (ie. ABC token) to Taiga protocol in order to earn TAI tokens. The project team can stake TAI for voting rights to direct liquidity from the common synthetic pool to pair with the single-side liquidity to form ABC-taiKSM LP pool. This is a cost-effective way for any Project Teams with limited capital to bootstrap an LP pool with deep liquidity on a DEX.

Project History

With the rapid growth of decentralized financial primitives on Ethereum, we are witnessing an abundance of assets locked in DeFi protocols. Yet, majority of the locked assets suffer from low liquidity utilization, limiting the full potential of assets being put to use in a decentralized network.

This inspired us to focus on enabling liquidity efficiency. We began working on synthetic asset design in 2020, together with our growing understanding of the Polkadot and Kusama ecosystem, we observed siloed liquidity is a major bottleneck in scaling the Polkadot and Kusama economy.

Taiga Protocol journey on Polkadot officially started when we applied for Web3 Open Grant in early 2021. The Stable Asset system which serves as the backbone of Tapio protocol was a recipient of Wave 9 Open Grant. Tapio was also the inaugural recipient of the Acala Ecosystem Grant.

Team Members

Organized in 2018, NUTS Finance is a blockchain development DAO focused on building secure, composable and open source technology to enable financial applications on the blockchain.

Taiga Protocol core team is composed of engineers, financiers, security experts and serial entrepreneurs. Our approach is open, global and blockchain agnostic.

Through multiple projects, our aim is to deliver the working elements that can help shape the emerging crypto economy.

More details at: https://dotmarketcap.com/coin/taiga-protocol