This is part 8 of the KittenSwap series, in which we gradually present our unified swap+lending+option product (https://kitten.finance).

Here we show our synthetic asset & leverage design using Chainlink feed.

We will begin with BULL and BEAR tokens, such as QQQ_BULL_3x and QQQ_BEAR_3x. The benefits of our design:

1. Suitable for long-term holding. No time decay.

It is known that usual BULL & BEAR leverage tokens are not suitable for long-term holding, because their values decay over time. This is solved in our design.

Consider an example. Assume the underlying asset price goes $100 → $90 (so, -10%) → $100 (so, +11.1%). …

Kitten.finance focuses on DeFi innovation. Shadow is our latest invention, which can work as a cross-chain bridge for any blockchains supporting smart contracts.

As its first application, here we show it is possible to deposit token on ETH, and claim farming rewards on Polygon (Matic), to significantly save gas for everyone. Moreover, it can be used to create an interest rate market.

Guide for users:

1. Switch Metamask to ETH Ropsten.
2. Open https://www.kitten.finance/new and switch to ETH Ropsten.
3. Deposit TestCoin or Ropsten ETH to the contract. You can withdraw them at any moment. Everything is gas efficient.

Here is Part 2 of our Low Degree Testing Series. Part 1 is at:

https://kitten-finance.medium.com/low-degree-testing-in-zk-stark-part-1-c0ac6ef0de3c

As an example, assume Bob’s claim is deg(f) < 256.

Bob constructs g(a,b,c,d), such that f(x) = g(x, x⁴, x¹⁶, x⁶⁴).

The task is to prove deg_a(g) < 4, deg_b(g) < 4, deg_c(g) < 4, deg_d(g) < 4.

1. The finite field

Here we assume some knowledge of finite field (the fancy version of modular arithmetic).

Let Fₚ be the finite field with p elements, where p ≡ 1 (mod 64) is a large prime number (much greater than 256).

For any x in Fₚ and any n, we…

You may have heard about zk-SNARK, zk-STARK, etc., which can be used for ETH Layer 2 scaling and more. An excellent explanation is Vitalik’s blog post:

https://vitalik.ca/general/2017/11/09/starks_part_1.html

The Low Degree Testing in zk-STARK can be confusing for most newcomers. It is usually explained using a recursive algorithm.

Here we provide an alternative explanation without recursion. The basic idea is simple:

You can write a number (say 73678235) in radix-4 (becomes 10121003312123), and then you can verify the number is small by bounding each digit of its radix-4 form.

The problem of Low Degree Testing：

• Bob wants to prove to Alice…

This is part 7 of the KittenSwap series, in which we gradually present our next-generation swap+lending+option product.

The lending+option part will be our version of Aave+Hegic which works for all tokens, instead of a few high MC ones.

1. From Put-Call Parity to Lending

Consider the famous put-call parity:

In other words, ASSET = [CALL] + [SELL PUT] + [BORROW CASH].

Assume TOKEN is trading at 1 TOKEN = 0.1 ETH.

If you plan to borrow approximately 3 ETH using 100 TOKEN for two weeks, then you can decompose 100 TOKEN into three parts using our contract:

(i) CALL 100 TOKEN @ 0.03 ETH per TOKEN…

This is part 6 of the KittenSwap series, in which we gradually present our design for the next-generation swap+lending+option solution.

Consider lending. Currently we can only use a number of high MC tokens as collateral on major lending platforms, and low MC tokens are at a disadvantage.

KittenSwap ( https://www.kittenswap.org/ ) can change this. In this article, we discuss a method to build a lending+option pool for any ERC20 token, including those with low liquidity.

1. The Basic Design

Assume a low-liquidity TOKEN is trading at 1 TOKEN = 0.1 ETH on uniswap.

Assume the price-1-month (a parameter) of the TOKEN is 0.03 ETH…

This is part 5 of the KittenSwap series, in which we gradually present our design for the next-generation swap.

KittenSwap is at https://www.kittenswap.org/ and you can trade our first IKO (Initial KittenSwap Offering) token $LIQUID there.

In this article, we discuss a simple method to improve limit orders using AMM information.

1. The Problem with Usual Limit Orders

It is well-known that there are arbitrage opportunities in an OrderBook DEX. As an example:

• Assume the current uniswap price is 1 TOKEN = 0.1 ETH.
• Assume there is a limit order of BUY 1 TOKEN @ 0.08 ETH.
• Assume there is a limit order of SELL 1 TOKEN…

LIQUID (https://www.kittenswap.org/) has a ever-rising price floor, which means LIQUID holders will be able to lock LIQUID for risk-free ETH when our LIQUID lending contract is ready.

This lending contract will be available for all current LIQUID holders. There’s no need to do any migration.

1. Benefits for LIQUID: Less Selling, Easier Buying

For simplicity, assume the current LIQUID price is fixed at 0.2 ETH, and the price floor is fixed at 0.11 ETH.

If you buy 10 LIQUID using 10*0.2=2 ETH, then you will be able to immediately lock it for 10*0.11=1.1 ETH.

This is great for LIQUID holders, because now you can get risk-free extra capital…