Taiga price

TAI

What is Taiga Protocol (TAI)? Taiga is a synthetic asset protocol enabling efficient liquidity for uniform assets on Kusama. It is designed to mitigate liquidity silos by synthesizing different formats of asset into a highly usable synthetic asset in the Kusama ecosystem.

TAI is the native token of Taiga Protocol and has a similar economic utility as Tapio Protocol: *Governance *Economic Utility *Bootstrap Protocol Usage *Direct Liquidity

What makes Taiga (TAI) Unique? By becoming the efficient liquidity standard for uniform assets on Kusama, Taiga can bring benefits for Synthetic Asset Users, Liquidity Providers, Traders and Project Teams.

Synthetic Asset Users Taiga synthetic assets can increase the usability of uniform assets (ie. LKSM, KSM) by unlocking liquidity from crowdloan and staking use cases. Example: taiKSM is a synthetic asset that can be synthesized from LKSM. taiKSM holders can use it as collateral to mint kUSD (Karura stablecoin) while keeping the underlying rewards generated from the liquid crowdloan application.

Liquidity Providers Further to earning trading fees passively, Liquidity Providers receive a better pegged and usable synthetic asset in return for providing liquidity. Example, KSM uniform asset holders (ie. LKSM, KSM) can provide liquidity to the Stable Swap pool and receive taiKSM. Liquidity Providers can use taiKSM as collateral to mint stablecoins or borrow other assets. The trading fees generated from the Stable Swap pools are collected externally so that LPs can put their synthetic assets to use without compromising trading fees.

Traders Traders can swap uniform assets at high efficiency and low slippage via the Taiga protocol. When any underlying asset loses its peg, Traders can easily discover and capture arbitrage opportunities, which also helps maintain the value of the synthetic asset. Example: LKSM is trading at an unusually large discount relative to KSM. Traders are motivated to arbitrage this opportunity, bringing the discount between LKSM and KSM back to a normal range. During this process, the value of taiKSM remains stable.

Project Teams Project Teams can bootstrap liquidity by renting from the common synthetic pool (ie. taiKSM). Example: A new project team is bootstrapping an ABC-KSM LP pool on Karura DEX. The project team can contribute single-side liquidity (ie. ABC token) to Taiga protocol in order to earn TAI tokens. The project team can stake TAI for voting rights to direct liquidity from the common synthetic pool to pair with the single-side liquidity to form ABC-taiKSM LP pool. This is a cost-effective way for any Project Teams with limited capital to bootstrap an LP pool with deep liquidity on a DEX.