KaiaFun Investment Proposal
1. Project Summary
- Project Name: KaiaFun
- Company Name: Caesura Labs, Inc. (A Delaware C-Corporation)
- Category: Meme Coin LaunchPad (DeFi, Launchpad)
- Official Website: https://kaiafun.io
- Whitepaper: https://docs.kaiafun.io
- Target TGE Date: 2024.12 (Q4)
Token Information
- Token Ticker: WEERO
- Token Type: ERC-20
- Explorer Link: TBD
- Total Supply: 1,000,000,000 (Fixed cap of 1 Billion)
- Current Circulation Supply: N/A
- Smart Contract: TBD
- Audit Report: TBD
- Market Cap: TBD
2. Team
Caesura Labs is the founding organization and initial core contributor entity of the protocol. The team includes both emerging innovators and industry veterans with proven track records in DeFi and Layer 1 protocol development. Team members have previously built successful startups and led digital initiatives at established companies across both Web2 and Web3 sectors.
History and Milestones
- 2024.09.24: Product launch on mainnet
- 2024.09.25: First memecoin migrated to AMM (Kaiaswap)
- 2024.09.26: Partnership with Lair Finance
- 2024.09.27: Partnership with DragonSwap
- 2024.09.30: TVL adapter integrated by DefiLlama
- 2024.10.08: Partnership with Swapscanner
- 2024.10.20: Reached cumulative trading volume of $1M
- ~2024.11 (TBD): Incorporation of Caesura Labs, Inc.
3. Business
Business Status
Project Description
KaiaFun is a meme coin launchpad platform built on the Kaia blockchain. It harnesses trading liquidity from meme coin transactions to power a sustainable growth flywheel that drives the entire Kaia DeFi ecosystem guided by the following vision:
- Only supports the fair launch model and standard supply of 1 billion
— no room for supply manipulation or shaded front-running - Introduces the “Liquidity Flywheel” — Strategic use of liquidity generated from meme coin trading (e.g. flashloans, re-staking of LSDs, and augment liquidity provision to partnered/owned ecosystem exchanges, .etc)
- Progressive decentralization of protocol decisions (governance) and revenue
Problems to Solve
The conventional meme coin issuance model concentrates excessive power in the hands of token creators, fostering an inequitable trading environment for participants. Prevalent issues include:
- Honeypots: Where users are lured into a trap and can’t sell their tokens.
- Supply monopolization and front-running: Insiders or bots gaining unfair advantages by manipulating the token’s liquidity and supply
- Lack of transparency around LP (Liquidity Pool) locks: Token issuers often manipulate liquidity, creating risks for traders.
In this context, a meme coin launchpad utilizing bonding curves can provide a more transparent and fair launch mechanism for meme coins. By aligning incentives and allowing price discovery through an open, algorithmic process, bonding curves remove the risks associated with centralized control and unfair token distribution.
Project Features
KaiaFun offers safe playground for meme coin devs and players to launch and trade meme coin through;
- Providing a permissionless function for creating new coins with on-chain metadata, facilitating trading on a bonding curve, and automating liquidity migration to CPAMM upon sellout
- Guiding a standard for meme coin launches with a fixed, capped supply of 1 billion tokens, mitigating the risk of supply manipulation
- Offering superpower features to prevent downside of meme coin through burning 10 protocol tokens to halt all sell orders for a specific token for 8 hours
Key Achievements
- Unique/Active Wallets: 2k+
- Transactions: 16k+
- Tokens Generated: 330+
- Trading Volume: $1.132M+
- TVL: $83k+
- Protocol Revenue: $30k+
- Locked KAIA: Over 1 million KAIA locked in ecosystem DEXes(KaiaSwap and DragonSwap), with a significant portion - 982,674.654075 stKAIA in the Governance Council. (link)
Competitor Comparison
- Mint.club: generalized token launchpad
- Support multiple multichains without focusing solely on Kaia
- Offers customizable bonding curve
- Choose backed asset freely
- Customizable creator allocation
- Comparison
- Meme coins Created
- Mint Club : ≈ 107
- Kaia Fun : ≈ 317
- Kaia TVL
- Mint Club : ≈ 386,494 KAIA
- Kaia Fun : ≈ 739,531 KAIA
- Meme coins Created
Tokenomics
Token Utilities
$WEERO token is the governance token of KaiaFun designed to incentivize early users and ecosystem partners for the growth of the meme coin vertical.
-
Safe revenue sharing though buyback & burn integration
- With a revenue stream of the project, $WEERO token is designed to be deflationary as buyback and burn will be executed creating upside for token holders
-
Governance rights granted to stakers
- Stake to earn governance rights and incentives
- An open vested escrow token model, lockup period from 1 week to 4 years ve lockers accumulate all protocol fees (emissions are made by $WEERO buybacks from protocol fees)
Revenue Model
- New Meme Coin Creation: 10 KAIA fee
- Trading Fees: 1% per trade
- Liquidity Migration Fee: ~15k KAIA upon bonding curve completion
Value to Kaia Ecosystem
- Project prevents Kaia extortion from malicious actors
- Meme coin sector proves to be the biggest catalyst for protocol’s growth (e.g. Tron ecosystem with SunSwap, Solana/Blast with Pump.fun and Baseline, Sui, .etc) generating buy volume of the native token
- Furthermore, project provides option to be traded using tokenized liquid staking derivatives of Kaia (e.g. stKAIA, GCKLAY, .etc) which contributes to governance of the protocol
Strategies
- Since project launch, it successfully onboarded on Kaia ecosystem through various community members creating 300+ meme coins, generated $750K+ trading volume
- Project is improving trading experience through partnership with the best Kaia DeFi players such as DragonSwap & Swapscanner
Business Plan
Marketing Strategy
- Product feature updates
- Supporting various meme coin projects to gain traction from platform level
- Token airdrop
Community Strategy
- KaiaFun won’t have a community to keep the stance neutral and encourage individual meme coin projects to nurture their own community.
- However, we plan to share on our Twitter account about tokens and other ecosystem projects that have achieved specific milestones (such as migration) in the most fair manner possible.
Partnership Strategy
- Ecosystem DEXes (DragonSwap, .etc)
- Liquid Staking (LSD) protocols (stKAIA of Lair Protocol, GCKLAY of Swapscanner, .etc)
- Teams looking to create fair-launched meme coins or token launches
Risk Points
- Protocol and Platform Risk
- KaiaFun may fail to attract liquidity from other protocols, causing the meme coin vertical to not flourish on the Kaia blockchain. KaiaFun’s tokenomics rely on protocol revenue when a meme coin is created and traded. Failure to form the market cause a significant downside of this platform
- The LINE mini-app can serve as a significant growth driver for the Kaia ecosystem and to KaiaFun by providing exposure to LINE’s existing user base. However, due to the speculative and volatile nature of meme coin trading, there is a risk that LINE could ban or de-platform KaiaFun, restricting its access through the LINE mini-app.
- Execution and Competition Risk
- Given that forking is common in DeFi, if someone creates a similar product, it could be vulnerable to competition. If not executed well, KaiaFun may struggle to dominate the meme coin vertical on the Kaia blockchain, facing challenges from both existing and new competitors.
4. Industry
Market Overview
Successfully establishing a meme coin ecosystem on the protocol offers significant growth potential. As the meme coin sector has proven to increase trading volume, it directly impacts the revenue of the DeFi protocol, making strategic investment in this area essential.
Data Sources:
- Tron: Dune
- Solana: Dune
- Sui: 99bitcoins
For a Layer 1 Blockchain foundation, investing in meme coin launchpads rather than individual meme coins offers a more strategic approach to gaining exposure to the potential upside of this vertical on the platform, mitigating the inherent risks and management challenges associated with direct meme coin investments.
Potentials
- Meme coin launching using a bonding curve is becoming a de facto standard and there’s a significant upside for KaiaFun as a first mover.
- KaiaFun already positioned itself as a leading meme coin launchpad of the ecosystem.
- Kaia’s DeFi infrastructure is still immature for attracting external liquidity (e.g., Dexscreener is not supported, DeFi protocol’s UX/UI is lacking, real-time data sync is missing, etc.). However, as KaiaFun creates downstream liquidity through various memes, the project has the potential to penetrate the DeFi market by launching various products, such as a meme coin vertical DEX and a trading bot.
5. Investment Overview
- Type : SAFE(Simple Agreement for Future Equity) + Token Side Letter
- Investment Size: $250K
- Term: 3-month cliff, 1-year vesting period
For further details, please refer to KaiaFun’s website and whitepaper.
Appendix : Q&A
Q. What’s the protocol revenue after the launch?
Cumulative Protocol Revenue Since Launch
Key Dates worth noting:
- 2024.09.24: Product launch on mainnet
- 2024.09.25: First memecoin migrated to AMM (Kaiaswap)
- 2024.09.26: Partnership with Lair Finance
- 2024.09.27: Partnership with DragonSwap
- 2024.09.29: First memecoin migrated to DragonSwap, paired with stKAIA from Lair Finance
- 2024.09.30: TVL adapter integrated by DefiLlama
- 2024.10.08: Partnership with Swapscanner
- 2024.10.20: Reached cumulative trading volume of $1M
- 2024.10.22: Incorporation of Caesura Labs, Inc.
<Weekly Fees and Cumulative Fees (in KAIA)>
| Week | Date Range | Estimated Block Range | Weekly Fees | Cumulative Fees |
|---|---|---|---|---|
| 1 | 2024-09-22 (Deployment) - 2024-09-28 | 165036474 to 165533424 | 64026.097688544256597791 KAIA | 64026.097688544256597791 KAIA |
| 2 | 2024-09-29 - 2024-10-05 | 165533425 to 166136401 | 58553.627657423899817868 KAIA | 122579.725345968156415659 KAIA |
| 3 | 2024-10-06 - 2024-10-12 | 166136402 to 166739779 | 33104.956915924211053663 KAIA | 155684.682261892367469322 KAIA |
| 4 | 2024-10-13 - 2024-10-19 | 166739780 to 167343414 | 62341.687125581769206851 KAIA | 218026.369387474136676173 KAIA |
| 5 | 2024-10-20 - 2024-10-26 | 167343415 to 167946607 | 54622.679699652962957176 KAIA | 272649.049087127099633349 KAIA ( ( ≈ $32,717.89 when 1 KAIA = $0.12)*) |
Q. ICO/IDO Strategy
- LBP : KaiaFun allocated 5% of total supply to conduct LBP to secure the liquidity onchain
- Airdrop : 20% of the total supply will be used to incentivize users trading & creating memecoins on KaiaFun which will boost the revenue for team to protect the price upon DEX and CEX listing
- (optional) CEX marketing : CEX may ask certain amount of token as marketing purpose to their user where this allocation will come from ecosystem allocation.
Q. Is there a lead investor for this round?
- We are currently in discussion with several VCs including Gate-io labs regarding investment. However, considering the overall metrics of the Kaia is very low at the protocol level, it’s important for KaiaFun to secure the signal check from the ecosystem to close the funding successfully.
Q. Is there a lead investor for this round?
- We are currently in discussion with several VCs including Gate-io labs regarding investment
- However, considering the overall metrics of the Kaia is very low at the protocol level, it’s important for KaiaFun to secure the signal check from the ecosystem to close the funding successfully
Q. Token Issuance: Reason and Vision
- KaiaFun plans to issue a protocol token called Weero.
- Token issuance is essential for true community ownership. As a fair launch meme coin launchpad, KaiaFun recognizes that while open governance is crucial for building a vibrant L1 ecosystem and worth pursuing, it remains rare within the current Kaia Ecosystem. To address this, we’ll implement a gradual governance rollout that maximizes community participation. Our vision is to create a balanced ecosystem where token holders, core team members, and ecosystem contributors can meaningfully participate in both KaiaFun’s management and ecosystem growth, with built-in checks and balances to ensure sustainable development.
- As a protocol, we believe we have a duty to capture the entire value chain in the most optimal way for protocol expansion, maximize investor returns, and fulfill our vision of making the mainnet (Kaia) liquidity flourish. One of the biggest existing ecosystem problems is the lack of token utility and sustainable revenue streams to prevent price dumps. However, for a meme coin launchpad, token issuance is natural due to consistent revenue generation (as evidenced by SunPump [0], which buys back the foundation’s $SUN token, and Pump.fun’s recent announcement to issue their protocol token). We are taking action where opportunity exists.
- From the foundation’s perspective, if protocol revenue is generated in Kaia without any token-based revenue sharing (e.g., simple buyback or buyback and burn), and if the team and investors monopolize these profits, it inevitably creates periodic selling pressure on Kaia proportional to the protocol’s revenue. This phenomenon has been observed in the interaction between Pump.fun and Solana [0]. However, if we have our own token with a portion of revenue locked through buyback & burn mechanisms, this can reduce selling pressure and contain liquidity flow within the L1 ecosystem, benefiting both the network and protocol.
- We plan to diversify this revenue stream also. As stated in the IR materials provided to investors, KaiaFun plans to launch its own DEX by the end of 2024. As shown in DragonSwap’s V2 Info, meme coin launchpads can significantly drive CPAMM DEX growth. Since KaiaFun’s launch and first token migration to DragonSwap on September 29, there has been dramatic TVL and volume increase. (DragonSwap’s V2 liquidity grew from $59.43k on September 28 to $381.76k currently. Compared to the new all-time high of $634.19k, this represents a 967% increase.)
Also the top 3 pools with largest liquidity in V2 are all meme coins created by KaiaFun:
Due to liquidity’s virtuous cycle characteristics, DragonSwap’s V3 pools have also benefited. To fully capture this value to the protocol itself, we will develop and operate our own DEX with deep liquidity and superior user experience, powered by KaiaFun’s unique growth engine.
The final key reason is that investment firms prefer tokens over equity. Tokens can leverage protocol growth and speculation, as token demand can easily reflect both protocol value and speculative interest.
Q. Buyback and Tokenomics
- Post TGE:
- Protocol Revenue will be divided into 3 pools with each percentage
- Buyback fund (40%)
- This fund powers quarterly burn events, where the team buys back and burns Weero Token ($WEERO) from on-chain pools, creating deflationary pressure.
- Strategic Reserves (30%)
- Reserved until proposed for future ecosystem investment and strategies(e.g. token swaps between partner protocols or/and foundations, CEX listings, future holder incentives, .etc)
- Team Revenue to cover future operation costs (30%)
- Buyback fund (40%)
- Protocol Revenue will be divided into 3 pools with each percentage
- Post veNomics(Vote Escrow) Integration:
- We expect the integration will be held during 2025 Q2~3
- 70% of protocol fees will be redirected to veToken lockers. This is one of the core deviations of the ve(3, 3) model, incentivizing lockups of the Weero Token.
Q. Entity Information
- At the time of application submission, KaiaFun was in the process of establishing a legal entity for seed round investment.
- Team completed incorporation as a Delaware C-Corporation on October 22, 2024.
Q. Purpose of Funds and Operation Plan
- KaiaFun is raising a total of $1.5M to deliver its roadmap and expand its protocol, which includes launching two additional ecosystem products: a decentralized exchange to capture the entire value of the memecoin lifecycle (before and after the bonding curve), and a trading bot designed to attract new users to both the Kaia ecosystem and KaiaFun’s exchange.