🔥Deflationary Mechanism

In addition to the hardcap set on KAYEN, exotic deflationary mechanisms, inspired by Camelot's GRAIL & xGRAIL, effectively decrease the total supply.

BuyBack & Burn

A share of the Protocol Earnings is dedicated to Buyback & Burning KAYEN, effectively applying a continuous buying pressure.

xKAYEN Redeems

During xKAYEN -> KAYEN redemptions, if the vesting duration isn't the maximum, the xKAYEN:KAYEN ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the excess KAYEN will automatically be burned.

Example:

If Alex redeems 1000 xKAYEN with the minimal 15-day vesting period, he will obtain a 1:0.5 ratio, and receive 500 KAYEN in the end. A total of 1000 - 500 = 500 KAYEN are burned during the early redemption.

xKAYEN deallocations

When deallocating xKAYEN from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5% and the corresponding KAYEN amount are automatically burned.