Introducing Karma Finance

Dear Omm community,

I’d like to introduce a new DeFi protocol, funded by the CPS, that will be coming to the ICON network in the next few months: Karma Finance

Karma Finance is a community-owned decentralized financial ecosystem which will provide multiple services for users and protocols.

The first service the early contributors are working on is Karma Bond. Karma Bond is a protocol owned liquidity-as-a-service, providing treasuries and bonds optimized to individual protocol needs.

We would like to reach out to you, the Omm community, to get your thoughts and feedback on:

  1. The Karma Bond mechanics
  2. Integrating Omm as a partner protocol with 3 liquidity pools: OMM/IUSDC, OMM/sICX and OMM/USDS. Further pools could be considered.

We believe Karma Bond will be beneficial for the Omm protocol as well as OMM token holders but we ultimately wish the community to engage in this process as we build out synergies across the ICON ecosystem.

I’ll be here to answer your questions and will be present at the next Monks Academy to hear your thoughts in person.


Can’t wait for this! Karma Bond will be a game changer for the Omm protocol :slightly_smiling_face:


I am personally very excited for Karma Bond launch. It will help defi protocols like Omm move towards POL, which seems to be working quite well for Omm after OIP 5. It also seems like users will be rewarded with bKARMA after they provide LP tokens, which should be very interesting as people may start speculating on the value of bKARMA.

Thank you for sharing the plan here!

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Glad to hear it! To clarify, bKARMA will not be a traded token. It is a whitelist token to ensure a fair launch. bKARMA will be redeemable for the KARMA token as follows:

`1 bKARMA + 1 USD = 1 KARMA

The KARMA token will be the reserve currency of Karma Finance as well as a multi-utility token representing the utility of the tokens within the Karma treasury. It will also have utility within the Karma Finance ecosystem. Karma Bond is the first service being developed but others will follow.

How does this exactly work for OMM, currently we can provide liquidity through balanced but with karma the liquidity would be supplied by karma and the holders of that token? So if you hold karma you receive the fees from liquidity swaps?

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Hi @Bigrob! The user journey would look like this:

  1. Rob wishes to supply the OMM/USDS LP token to Karma Bond in exchange for discounted OMM tokens.

  2. If Rob is already supplying liquidity in that OMM/USDS pool on Balanced, all he would need to do is connect his ICON wallet to Karma Bond. He would then see his LP token balance in the Karma Bond interface.

  3. If Rob doesn’t already have OMM/USDS LP tokens, he can purchase these via the Balanced platform.

  4. Once Rob has connected his ICON wallet to Karma Bond. Rob can then select how much of his OMM/USDS LP tokens he wishes to supply and then click “Bond”.

  5. Rob’s LP tokens will be sent to the Omm treasury, and Rob in exchange will receive the equivalent amount of OMM tokens at a market discount over a period of time e.g. 7 days.

Example: Let’s say 1 OMM = 0.1 USDS. Rob supplies 1,000 OMM and 100 USDS into the OMM/USDS liquidity pool on Balanced. Rob now has a certain amount of OMM/USDS LP tokens that represent 2,000 OMM worth of OMM+USDS. He can then connect to Karma Bond and supply those LP tokens in exchange for OMM at say a 5% market discount. Rob would get back after 7 days a total of 2,100 OMM tokens (2,000 + 5%).

I hope that’s answered your question :slight_smile:

Thanks for all the info! Sorry if this is an innocent question, but does this have a cost for OMM?

So how do you acquire the bKarma token?

Hi @Rook5677! Partner protocols pay a 3.3% fee to use the Karma Bond service. Let’s say a bonder receives 100 OMM at a market discount, Karma Bond receives 3.3 OMM. The transfer into the Karma treasury represents Karma’s skin in the game. The success of protocol partners is the success of Karma.

Hi @FlareyDank! For every 1 USD worth of bond fees, 1 bKARMA is minted.

90% of the bKARMA minted goes to the bonder.

10% of the bKARMA minted goes to the early contributors.

bKARMA represents the whitelisting of early users. bKARMA will in future be redeemable for KARMA, the reserve currency and multi-utility token of the Karma Finance ecosystem.

More detail can be found here: Introduction - Karma Bond

Sounds like a fair system to me. This Karma integration is looking like a worthy relationship.

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Sweet. I just took the time to read everything. Can’t wait for this to go into action


I’m in support of protocol owned liquidity. Allowing Omm supporters to buy OMM at a discount and diversifying the DAO fund in one go are cherries on top.

Monks Academy did an interview with Karma Finance which can help OMM holders to understand the workings before they vote.

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very interesting concept. I particularly liked the part of protecting LP from Impermanent Loses and the part about protocol owned liquidity.

Overall a very good project with a new innovation

who are the “early contributors” whom the 10% bKARMA goes to?