Liquidity Intent Classes
The protocol recognises two distinct LP motivations, each mapped to a Liquidity Intent Class that determines deposit routing, fee accrual, yield exposure, and kToken variant.
1. Class A — FX-Only Liquidity
Profile: Stablecoin issuers (e.g., IDRX, MYRC issuers), institutional partners, and any LP who opts out of yield participation.
Motivation: These LPs earn yield on their fiat deposits already. They provide stablecoin liquidity purely for FX utility and want zero exposure to DeFi yield strategy risk.
- Deposit Routing: 100% to Reserve Pool. Never touches Yield Pool.
- kToken Variant: kXXX-fx (e.g., kIDR-fx, kUSD-fx). Separate rebasing index from Class B.
- Fee Accrual: Earns from FX swap fees only. Fee tier is configurable per partner (admin-set), not the standard 30% LP share. Yield profits never flow into this index.
- Risk Exposure: Zero yield strategy risk. Only exposed to protocol operational risk (smart contract, oracle) and FX execution risk.
2. Class B — Full Participation Liquidity
Profile: Retail LPs, yield-seeking funds, DeFi-native depositors.
Motivation: Maximise returns by earning both FX swap fees and yield from deployed strategies.
- Deposit Routing: Split between Reserve Pool and Yield Pool per admin-configured ratio (default 50/50 at launch).
- kToken Variant: kXXX-full (e.g., kIDR-full, kUSD-full). Separate rebasing index from Class A.
- Fee Accrual: Earns from FX swap fees (standard 30% LP share, pro-rata by TVL) plus yield profits from Yield Pool strategies.
- Risk Exposure: Full exposure — yield strategy risk, impermanent loss from strategy deployments, plus protocol operational risk.
3. Class Comparison
| Attribute | Class A (FX-Only) | Class B (Full) |
|---|---|---|
| Deposit Routing | 100% Reserve Pool | Reserve + Yield (admin ratio) |
| kToken Variant | kXXX-fx | kXXX-full |
| Liquidity Index | Separate (FX fees only) | Separate (FX fees + yield) |
| Fee Tier | Custom per partner (admin) | Standard 30% LP share |
| Yield Exposure | None | Full |
| Yield Loss Exposure | Firewalled — zero | Absorbs losses via index |
| Typical LP | Stablecoin issuers, risk-averse institutions | Retail LPs, yield funds |
| Class Migration | Withdraw + re-deposit as Class B (fresh cooldown) | Withdraw + re-deposit as Class A (fresh cooldown) |
| Cooldown | Per LP Withdrawal schedule | Per LP Withdrawal schedule |