Kima Whitepaper
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Direct Messaging

The Kima platform has several advantages over direct messaging solutions. Kima is aware of all the pools' states and history, at any time/block, and thus can set optimal incentives. Not only that, but also in addition to Kima's core activity (cross-chain transfers), in some cases, and based on users' and governance decisions, it can take additional actions to increase incentives via composability. For instance:
  • Use services (such as Curve) to move liquidity between pools on the same network (i.e., USDT to USDC on Ethereum)
  • Use abundant liquidity to generate additional yield by integrating with other services (i.e., offer loans)
In comparison, pools that rely on direct messages can act only based on local information sent at the message time. While the gain from the Kima optimization is hard to quantify in the abstract, it should improve capital efficiency and thus translate into higher returns for liquidity providers and lower costs to users.