A new entrant in the decentralized finance space believes it can use gamification to overcome the complexity that has become a well-known Achilles heel the industry has struggled with as its users explode from a small subset of experienced crypto veterans to a wider audience.
Kalmar is a decentralized bank that sets its DeFi products apart with two basic engagement principles, which can be boiled down to keep it simple and keep it fun.
While the quality of the product offerings are, of course, the most important part of Kalmar’s offerings — which currently include leveraged yield farming and NFT fundraising — the key to its offering is dealing with barriers to entry that DeFi must overcome to achieve mass adoption.
Calling this complexity “a well-known and common struggle in the race of competing with traditional centralized financial institutions,” Kalmar says that if DeFi is to become a full-fledged alternative to centralized finance, problems such as complex deposit procedures and confusing user interfaces must be overcome.
Getting it right
The tools Kalmar intends to use to clear this hurdle are gamification and user experience.
“Kalmar believes that creating a gamification experience with educational elements, along with the combination of various protocols using one familiar and clear interface, can be a serious step toward DeFi’s further evolution,” the company said.
In order to thrive at the intersection of decentralization and engagement, Kalmar has formed partnerships with two firms with deep experience in the field.
One is TechPad, which Kalmar says combines industry leadership in digital product development with years of experience in successfully assisting gamification-oriented blockchain projects.
The second is Blockvis, a blockchain consulting and innovation firm of longstanding experience, which will oversee its fundamental DeFi protocol work. This is key, as code innovation is a fundamental part of that user experience.
Working with the two, Kalmar believes it can create a gamification experience with educational elements and asingle user interface that is both familiar and clear.
In the works
The first of Kalmar’s existing products is leveraged yield farming, which has three components: BNB token lenders, yield farmers, and liquidity providers.
The BNB lenders provide the funds to be lent to yield farmers, receiving iBNB tokens, a tradable and interest-bearing asset that represent the BNB tokens they have banked. The yield farmers borrow that BNB in order to leverage the amount of BNB or the token they wish to farm, increasing their returns by up to 3x. The Kalmar Leveraged Yield Farming Platform reinvests the farmers returns and the trading fees, constantly increasing the farmers’ positions. The liquidity providers also borrow BNB, getting revenue from fees that they can increase by leveraging their positions.
The second existing product is a non-fungible token fundraising platform. The gamified offering allows clients to sell NFTs that can later be resold in NFT marketplaces or redeemed for a reward of some kind. Kalmar’s design has buyers receive randomly dropped NFTs — for example, five NFTs of increasing rarity that can be bought in packs of five.
Kalmar also has an exchange aggregator in the works that will let users access liquidity on many decentralized exchanges (DEX) while getting the best available price for their assets.
Other upcoming releases include audited, stablecoin-leveraged farming pools and hosting the public sale of Kalmar’s KALM token through an NFT fundraiser, as well as airdrops.
Down the road, an actual gaming platform is in the works. It will provide participants with uncomplicated multiplayer games that don’t require a lengthy registration process. Players will be provided the opportunity to win awards from skill-based games, by winning tournaments, and from random cosmetic items drops with real, tangible.