Whitepaper of Koho Chain Ecosystem

WhitePaper of KoHo Chain Ecosystem
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CONTENT
I. Block Chain - Lit the torch of the financial revolution ............................................. 3
1、The nature of finance and current outstanding problems ............................. 3
Centralized & Transparency is difficult to have both ....................................... 4
Centralized payment system .................................................................................. 4
High threshold & Unbalanced development ..................................................... 4
2、How does decentralized finance solve traditional problems ....................... 4
2.1、DeFi solves the subjective human problems ............................................ 4
2.2、DeFi solves the problems of objective mechanism ................................ 5
II. KoHo Chain – Define INFI（Inclusive Finance） ...................................................... 6
1、KoHo Ecosystem ....................................................................................................... 6
2、Introduce of KoHo foundation ............................................................................. 7
3、Overview of KoHo public chain ............................................................................ 7
3.1、The value and bottleneck of current DeFi ................................................ 7
3.2、KoHo public chain emerges as the times require................................... 9
Ⅲ. KoHo - Reshaping the future of decentralized finance ...................................... 11
1、KoHo - Commercial financial chain..................................................................... 11
1.1、Payment & Clearing system.......................................................................... 11
1.2、Accessibility ..................................................................................................... 12
1.3、Decentralized & Transparency .................................................................... 13
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2、KoHo – Inter - Blockchain Bridge: KoHoBridge ............................................. 14
2.1、importance of cross-chain........................................................................... 14
2.2、KoHoBridge 2WP and Assets management .......................................... 15
2.3、KoHoBridge: cross-chain transaction management .............................17
2.4、KoHoBridge: Safety guarantee .................................................................. 18
IV. Ecological landing strategy of KoHo Chain .......................................................... 21
1、KoHo enables financial innovation ..................................................................... 21
2、Kex - Decentralized trading platform ............................................................... 22
3、ProSwap - Decentralized financial derivatives platform .............................. 23
4、TIP – Applications of Inclusive Finance and issuance platform of value
token ................................................................................................................................ 24
5、Staking Economy – A flow source of Bonus Cow .......................................... 26
5.1、KoHo – Staking Economy ............................................................................ 26
5.2、Staking Module – A key to open staking economy ............................. 27
5.3、Staking – Create a Win-win situation....................................................... 27
6、Kend - Borrowing on the decentralized chain ............................................... 28
7、KoFo – Decentralized perpetual protocol........................................................ 29
8、KIS（Keep Info safe）- Privacy protection on the chain ............................. 31
V. KoHo - The future is coming....................................................................................... 34
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I. Block Chain - Lit the torch of the
financial revolution
1、The nature of finance and current
outstanding problems
The traditional financial ecology is confronted with many serious problems,
such as black box operation, unfair distribution, low income ceiling, high
threshold and unbalanced regional development.
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⚫ Centralized & Transparency is difficult to have both
⚫ Centralized payment system
⚫ High threshold & Unbalanced development
2、Decentralized finance solve traditional
problems
Decentralized Finance，or DeFi，is currently the fastest growing sector in the
blockchain and cryptocurrency industry, and enables users to use financial
services such as lending and trading without relying on centralized entities,
such as a bank or a stock exchange. It solves many problems in the traditional
financial industry by reducing dimension with the progress of science and
technology.
2.1、DeFi solves the subjective human problems
DeFi has intelligent contracts where the code is law and technology is God, so
there is no need for lawyers and judges. Absolutely rational intelligent contacts,
also do not need a contract,, the expiration of automatic execution, so there is
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no contract dispute.
DeFi is built on the blockchain, has tamper-proof, traceable, so that trading
contacts do not require notary offices and safes, and absolutely transparent,
safe and fair.
2.2、DeFi solves the problems of objective mechanism
DeFi uses digital assets as media without the help of the official central bank, is
naturally borderless and intermediated.
DeFi has very low barriers to entry. You only need a mobile phone connected
to the Internet to enjoy all kinds of financial services.
In the traditional financial system, all loans are subject to default risk, and even
there are precedents of failure of large banks. However, in DeFi, there is no
counterparty risk.
DeFi guarantees the other party’s ability to pay strictly in the form of pawns or
mortgages.
At the same time, the smart contract for borrowing, as long as the time to
execute immediately, there is no transfer mechanism, so it can minimize the
trading risk.
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II. KoHo Chain – Define INFI

（Inclusive Finance）
1、KoHo Ecosystem
KoHo Chain is a new generation of inclusive financial infrastructure based on
the side chain technology of blockchain, to create a fair, transparent，
shareable and privacy protecting Decentralized INFI ecosystem.
Money and security of data in a centralized organization can not be fully
safeguard, and across time, space, cost a lot of manpower and financial
services, high cost is difficult to cover all the people, causing a vicious cycle of
unbalanced regional development, industry ecology needs to change, at the
edge of the people need voice, stock users need a stronger sense of security.
DeFi has strong technology and bright future. It is the king of development to
use advanced technology as productivity, the general trend of the
development of the financial industry, and the driving force of this industry
revolution and even the social revolution.
KoHo Chain is committed to the development of a new generation of
Decentralized public chain of inclusive financial blockchain, to bring better and

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more secure financial services to every citizen, regardless of race, religion, age,
nationality or geography, and completely ignite the revolutionary torch of
decentralized finance.
KoHo foundation is at the forefront of this social revolution, working to solve
the current problems facing human society through high-tech means--namely
how to construct more cohesive community organization and more equitable
and efficient distribution of incentives.
2、Introduce of KoHo foundation
KoHo foundation, formerly is registered in Singapore, and gathering global
elites of the blockchain industry. Among the members of KoHo, there are
many members from world-class giants such as Google, Tencent, Baidu, Huobi
and government units if various countries.
3、Overview of KoHo public chain
3.1、The value and bottleneck of current DeFi
From Bitcoin to Ethereum, blockchain continues to develop, with improving

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protocols and maturing technologies. It has been seven years since Ethereum
came into being in 2014.
In the past seven years, Ethereum has been the hub of the whole Blockchain
net, and most public infrastructures have been built on Ethereum net, such as
the Inter-blockchain to BTC, the issue of original stable currency, etc. In the
meanwhile, the distribution mechanism in Ethereum layer1 has been also
established based on erc-20 assets.
When the side chain in Ethereum ecosystem wants to obtain these assets,
firstly it will cross the assets to its side chain through the Ethereum main
network, instead of building a bridge separately.
Therefore, the Ethereum now is facing a big problem. Confirming a deal on
Ethereum chain needs 2 minutes, only with a capacity of 7.1 deals per second
that leads to extremely unsmooth using experiences of users with high trading
gas, which even can reach ＄100 each time.
Admittedly, Defi is the biggest development and value capture in the whole
encryption field in 2020.
However, these shortcomings objectively restrict the development of the
current DeFi field, stem the participation of larger-scale and smaller-volume
markets, and also hinder the further development of DeFi. If a large number of
small-scale transactions can't be supported, and then no INFI(Inclusive
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Finance), and no developing the market. Losing the core competitiveness of
itself and centralized finance，the applications of the public chain in high
concurrency scenarios and complex business scenarios are completely limited.
3.2、KoHo public chain emerges as the times require
With the improvement of DeFi financial infrastructure, derivatives of DeFi bring
more and more new landing scenarios. In the face of the growing demand in
the field of DeFi, the current DeFi infrastructure has been difficult to meet the
public's desire for Inclusive Finance.
In order to reduce the threshold for the majority of cryptocurrency enthusiasts
to participate in DeFi, and to continuously expand the boundary of DeFi, Koho
public chain came into being!
By building a breakthrough new generation of high-performance private
financial chain, KoHo has solved such prominent problems as weak scalability,
high transaction cost, slow transaction speed and poor transaction experience
in the existing DeFi domain.
The traditional financial industry has a high requirement for the efficiency of
the trading system. Take securities trading as an example. The traditional
securities trading mainly includes declaration, matchmaking, clearing,

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settlement and other steps, with TPS up to hundreds of thousands. The Bitcoin
and Ethereum, the largest public chain, have TPS in the tens or even single
digits, leading to frequent congestion.
KoHo public chain, through the sharding, sub-chain capacity expansion, state
channel, online capacity expansion and other technical solutions, to achieve
the level of thousands of TPS, with the financial application scenario of TPS and
other hard indicators, to meet the high speed and high frequency demand of
trading chain.
On the other hand, intelligent contracts are supported too realize complex
transactions, business contracts, financial contracts, logic and verification
contents when the contracts are linked. While significantly reducing artificial
risk, it also improves the user experience in fully decentralized distributed
trading platform, which is also an important bottleneck for large-scale
commercial use.
KoHo public chain represents the most advanced Blockchain technology in the
industry, enabling the financial industry with cutting-edge technology, which
will open the beginning of large-scale commercial decentralized finance. At the
same time, choosing KoHo is embracing the new era of wealth wave.
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Ⅲ. KoHo - Reshaping the future of
decentralized finance
1、KoHo - Commercial financial chain
Compared with the traditional architecture, the KoHo blockchain has
advantages such as tamper proof, easy to audit, high transparency, strong
reliability and automatic execution of intelligent contracts without trusted
intermediaries.
KoHo seeks to create a better financial environment and provide a commercial
financial architecture:
1.1、Payment & Clearing system
If you’ve ever tried to send money to someone or a business in another
country, you should be keenly aware of the pain--remittances involving banks
around the world often take several working days to complete and can involve
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a wide variety of fees. To make matters worse, there may also be issues related
to the documentation required to send money, compliance with anti-money
laundering laws, privacy, and so on.
KoHo, which promotes the DeFi movement, allows you to bypass the
middleman who picks up a large share of the profits during the transfer
process. Transfer can also become very fast, your transfers will be processed
unconditionally and for a lower fee than the bank charges. For example,
transferring a cryptocurrency issued on KoHo to an account the world takes
only three seconds and a small fee(around $0.0001, yes, you read that right).
1.2、Accessibility
The World Bank estimates that as of 2017, 1.7 billion people haven’t hold
accounts in financial institutions, more than half of them in developing
countries. They are mainly from poor families. The main reasons why they don’t
have a bank account includes poverty, geographical location and trust
problems.
For the 1.7 billion people without bank accounts, access to banking services is
difficult, but KoHo has the potential to make it easy. Access to KoHo
DApp( decentralized financial application) only requires the user to have a
mobile phone connected to the internet without going through a lengthy
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authentication process.
The World Bank estimates that two-thirds of the 1.7 billion people without bank
accounts have mobile phones, therefore, unlike traditional financial institutions,
KoHo DAPP can be a portal for these people to access financial products.
KoHo represents a movement to promote borderless, uncensored, accessible
financial products, and create a level playing field for everyone on this planet.
1.3、Decentralized & Transparency
Washington Mutual, with deposits of more than $188bn, and Lehman Brothers,
with assets of more than $639bn, both collapsed in 2008.
In the United States alone, more than 500 bank failures have been recorded.
Even banks, regards by the public as one of the safest places to keep their
money, can fail, even big ones.
Transparency is also closely related--ordinary investors do not fully understand
the workings of financial institutions.
Today, all financial applications based on KoHo are open source, facilitating
auditing and transparency. These applications typically have decentralized
governance organizations to ensure that everyone is aware of what is
happening and that no malicious actors can make malicious decisions
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individually.
On KoHo, financial applications are written as lines of code-- you can’t cheat
code because it treats everyone equally. The code works exactly as it was
written. Because the code is open source for public scrutiny, any vulnerabilities
quickly become apparent.
In the final analysis, the biggest advantage of KoHo-based financial
applications is that they can eliminate intermediaries and operate in a zero-
censorship environment.
2、KoHo – Inter - Blockchain Bridge:
KoHoBridge
2.1、importance of cross-chain
Today, the encrypted digital world has nearly a trillion dollars of digital assets
scattered across different blockchain networks. In order to support the
development of financial applications based on all digital assets, KoHo tries to
establish a set of multi-chain architecture, so that all blockchains connected to
this architecture can better complete the interaction of information and value
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among each other. Cross-chain technology ensures inter-operability between
different blockchains and is the key to KoHo’s building of an ecosystem of
digital financial applications.
Cross- chain means that atomic transactions can be performed between
different chains, and the data involved in the transaction can be accessed ,
verified and used to achieve interoperability and state event interoperability
according to type of information exchanged. In simple terms, cross-chain or
blockchain interoperability is a technology designed to provide a way for two
blockchains to exchange information.
KoHobridge technology builds a cross-chain bridge between KoHo ecology
and other public chains, allowing users to freely exchange atoms between EVM
ecological blockchain systems. To transfer assets in one chain to another
blockchain, that is that the assets in the original chain need to be locked and
the assets of equal value should be remint on the other chain to realize asset
transfer. During this process, KoHoBridge can ensuer atomicity, safety, user-
friendliness of cross-chain transactions.
2.2、KoHoBridge 2WP and Assets management
The key problem to achieve 2WP is who can manage the assets of the locked
accounts, and how to ensure the operations of performing locking and
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unlocking to release the locked assets safely without causing double spending.
Taking ERC20-to-ERC677 asset transfer as an example, the typical ERC20
Token is on the Mainchain, but the typical ERC677 Token is on the Sidechain.
Transferring typical ERC tokens between main-chain and side-chain as shown
in picture 1. In the process of transferring, the safety is ensured by the cross-
chain bridge.
The above picture is the ERC20-to-ERC677 asset transfer
Users transfer Token from Main-chain to Side-chain, on Main-chain the Lock
operation will be performed to lock a specified number of Token in the Foreign
Bridge Contract protocol, meanwhile, on Side-chain the Home Bridge Contract
protocol will perform the Mint Token operation to mint the same amount of
Token.
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Users transfer Token from Side-chain to Main-chain, on Side-chain the Burn
Token operation will be preformed to burn a specified number of Token in the
Home Bridge Contract, meanwhile, on Main-chain the Foreign Bridge Contract
protocol will perform the Lock operation to release the same account of Token.
2.3、KoHoBridge: cross-chain transaction management
According to the atom exchange, assets have been locked on one chain, and
the same account of assets will be minted on another chain. The new minted
assets can be exchanged with the original assets, because the new minted
assets can be used to redeem the original assets. Therefore, as long as the
bridge continues to exist without censoring or interference, the newly minted
assets represent the right to unlock the assets on the original chain, and the
locked assets can be treated as the original assets. When the asset owner
wants to transfer the asset to the original chain, he needs to use the same
cross-chain bridge to complete the task. The asset is burned on the current
chain and unlocked on the original chain.The final certainty of cross chain
transaction means that in cross chain transaction, it must be confirmed that the
previous transaction has been finally confirmed before the subsequent sub
transaction can be processed, otherwise there will be the possibility of rollback.
In the blockchain system of POW consensus algorithm, as long as there is
enough computing power, theoretically every transaction can be canceled, but
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the more blocks are confirmed, the lower possibility of cancellation will
be.Common schemes include waiting for enough confirmations, block
entanglement, and using DPOS consensus algorithm. Wait for enough
confirmation until the possibility of rolling back the transaction reaches a
predetermined threshold, and then execute other sub transaction. The
disadvantage of this solution is that the transaction processing time will be
longer. Block entanglement means that the blocks between two chains are
dependent on each other. When a block in the chain is revoked, the related
blocks in other chains will be revoked automatically.
KoHo uses DPoS consensus algorithm to achieve the final certainty of Side-
chain crossing chain transaction more efficiently. Compared to PoW consensus
algorithm, DPoS consensus algorithm is easier to reach final certainty, that is to
say, 100% final certainty can be achieved in 3 seconds.
2.4、KoHoBridge: Safety guarantee
To achieve the interconnection between chains, firstly we must establish a trust
mechanism between blockchain systems, so that one blockchain can receive
and verify transactions on another blockchain.The essence of verification of
cross chain transaction is an Oracle proble. For a blockchain system, cross
chain messages come from the outside of the system and cannot be verified
directly by itself. Therefore, an additional Oracle mechanism must be designed

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to help verify whether the cross chain transaction is true. KoHoBridge uses
Oracle to monitor bridging related events and authorize asset transfers. Oracle
is deployed on the designated verifier nodes in the network.
It connects two chains through remote procedure, and is responsible for
events related to cross-chain bridge contract and sending transactions to
authorize asset transfer.
KoHobridge refers to the secure decentralized Oracle solution--ChainLink, and
solves the connectivity of smart contract through decentralized Oracle
network，meanwhile, this decentralized method limits any one-way power.
Through ChainLink as a verifier to realize free and mutual asset transfer, every
step in the process of cross chain transaction needs the participation and
confirmation of verifiers.
KoHoBridge uses a group of trusted nodes as verifiers to monitor the condition
between chains, and confirms and verifies the collected data, and as an
intermediary to achieve cross-chain interoperability. Cross-chain transactions
can only be confirmed or verified after multiple verifiers reach a certain
proportion or number of consensus.
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The above picture is Verifiers confirm cross-chain transfer.
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IV. Ecological landing strategy of
KoHo Chain
1、KoHo enables financial innovation
The KoHo (KoHo Foundation) has planned a series of DeFi apps that will create
a financial infrastructure for various tokens within the KoHo system， in order
to build a fair, innovative and transparent decentralized financial platform.
KoHo financial innovation plate has fully covered the latest and hottest DeFi
DAPP, KoHo will not be limited to helping and supporting developers to
develop the DeFi infrastructure, but also helping innovative financial creators
who don't understand code and computer to easily research and issue the
DeFi applications, and push it to the market and benefit the general public.
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2、Kex - Decentralized trading platform
Centralized exchange (CEX) allow bulk trading when liquidity is abundant, but
because users do not have ownership of their assets on the exchange, they
carry a lot of risk.
Such centralized exchanges act as intermediaries and custodians of traded
assets, exposing users to huge losses should an exchange be hacked and
default on its debts. In 2019, more than $290 million of cryptocurrency was
stolen, while more than half a million log-in details were leaked from
exchanges.
More and more people are becoming aware of these risks and moving to a
decentralized exchange (DEX).
There are two types of DEX- the DEX based on order books and the DEX based
on liquidity pools. The DEX based on order books works like CEX, allowing
users to submit buy and sell orders at limit prices or market prices. The main
difference between the two types of exchanges is that, for CEX, the traded
assets need to be held in the exchange wallet, while for DEX, the traded assets
can be held in the user’s own wallet.
KoHo has launched the order thin KEX at the end of September 2020, and uses
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the KoHoBridge technology to support the trading of many highly liquid
mainstream digital current assets and high value primary assets of public chain.
3、ProSwap - Decentralized financial
derivatives platform
KoHo plans to launch a liquidity mining platform based on AMM (automatic
market maker mechanism) in Q2 of 2021-ProSwap.
ProSwap is essentially a token exchange protocol based on KoHo chain, which
is a decentralized transaction protocol based on exchange pool rather than
order books. The so-called exchange pool refers to a fund pool, and the price
of a user's transaction in ProSwap is determined by the token proportion and
algorithm in the fund pool.
On this basis, ProSwap also introduces the mechanism of auto market maker,
which fundamentally changes the way of how users trade cryptocurrency.
The difference of ProSwap from the mode of traditional order book trading is
that both parties participating in the automatic market maker mechanism can
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interact with the liquidity asset pool on the chain.
Liquidity pool allows users to switch seamlessly among tokens on the chain in a
completely decentralized and unmanaged way. The traders who provide two-
way liquidity between the tokens on the chain earn passive income by the way
of obtaining the ProSwap platform pass, and the proportion of obtaining
ProSwap platform pass is based on the percentage of contribution to the asset
pool.
4、TIP – Applications of Inclusive Finance
and issuance platform of value token
In the era of blockchain 2.0, based on Bitcoin, Ethereum's technology has
become more mature. With Turing's complete virtual machine, it can easily
create programmable currency. Ethereum has set ERC20 standard token
protocol，as long as you follow the ERC20 standard, write a smart contract,
and then deploy it to Ethereum, you can issue token.
It can be said that Ethereum created an era of one button coin issuing.
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On this basis, KoHo is going to create an era of one button issuing of DeFi,
KoHo is planing to launch the issuance platform of Inclusive Finance and value
token in Q2 of 2021-TIP( Token Issue Platform).
A company, a community, or even a person can simply issue an inclusive
financial application and its value token what he wants to create through the
KoHo issuing platform (TIP).
KoHo issuing platform(TIP) is built on the original KoHo public chain system.
Then, the security of the token can be guaranteed through the KoHo public
chain system. The initiator of token does not need to spend time and
manpower to maintain the ecological security. More importantly, in a Koo
public chain ecosystem, all kinds of tokens can not only develop
independently, but also connect, share and replace resources with each other
through the KoHo public chain system, so as to make their own tokens
develop better.
TIP is not only a token issue platform, but also provides a full range of
consulting services for the project. Before the project is launched on the KoHo
TIP platform, strict audit will be conducted to determine whether it meets the
KoHo standards.
KoHo expects the project to have the following characteristics：
-Project development is in a relatively mature stage
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-It has conditions of large scale applications
-It has a strong and persistent team
-It has the potential to promote the growth and development of the whole
KoHo ecosystem
After the project is screened, it will be published on TIP platform. KoHo users
who are interested in participating in Token issuing of this project will be able
to see all the information.
5、Staking Economy – A flow source of
Bonus Cow
5.1、KoHo – Staking Economy
Stacking economy is the business model of holding money to generate interest
that KoHo plans to launch in Q3 of 2021. In the KoHo ecosystem, the holder of
the token can obtain transaction fees, block rewards, dividends and other
profits through pledging, voting, entrusting and locking the token.
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5.2、Staking Module – A key to open staking economy
In order to make all KoHo innovative financial founders enjoy the dividend of
Stacking Economy, KoHo will also launch the stacking module after completing
the construction of economy.
Stacking Module will enable all the tokens in the KoHo public chain system to
complete the stacking economy of the token only by one key.
5.3、Staking – Create a Win-win situation
In the Stacking Economy, a certain proportion of KoHo ecological tokens are
locked, which can regulate the circulation of the pass marke. The token holders
entrust a third party to exercise their rights and charge interests which can
offset some or even all of the asset depreciation caused by the inflation of the
token. The node operators of KoHo public chain / the third-party service
providers in the ecosystem can also charge a certain fee by providing the
Stacking service and revitalize the existing funds.
Stacking Economy is a model that encourages token holders to actively
participate in the ecological construction of KoHo, its initiation will promote a
series of changes of KoHo ecology, so as to create a win-win situation for
project parties, token holders and third-party service providers.
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6、Kend - Borrowing on the decentralized
chain
Capital loans is one of the most common services provided by the financial
industry, which is facilitated by the concept of credit and guarantee. It can be
said that the invention of commercial scale lending has brought about the
Renaissance，less affluent people can also get start-up funds through lending.
As a result, the economy began to grow at an unprecedented rate.
The lending scenario of KoHo ecology is named Kend. In the first stage, we will
eliminate the above thresholds through the decentralized lending tool
MarginSwap, allow anyone to mortgage their digital assets and then obtain
loans by using the mortgage assets.
MarginSwap is a decentralized transaction protocol, it itself supports
mortgage, spot and leveraged trading tokens in automatic market makers such
as ProSwap. Marginswap, like any existing transaction agreement, allows
traders to trade all kinds of assets with a leverage up to five times.
In bond financing, margin trading is possible, that is that the lender provides
encrypted assets to the agreement, and the trader borrows the specified
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encrypted assets for the transaction. The MarginSwap trading agreement
encourages fixed income investors seeking attractive returns to provide assets
in exchange for relatively stable interest.
The MarginSwap trading agreement encourages fixed income investors who
are seeking attractive returns to provide assets in exchange for relatively stable
interest.
At the same time, users who participate in MarginSwap can also get profits
from their assets, and participate in the loaning market by inpouring the assets
into the loan pool to earn interest. In KoHo ecology, borrowers can enjoy the
INFI financial instruments of KoHo ecology with zero threshold, low cost and
high security, and no longer need bank accounts or credit checks.
7、KoFo – Decentralized perpetual
protocol
The full name of koFo is KoHo Forward, which is a decentralized perpetual
protocol. It achieves the asset transactions through virtual automatic market
maker (vAMM).
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The implementation of KoFo is based on KoHoBridge technology.
In the process of trading various assets, there are only transaction fees, but no
network fees. The speed is basically the same as that of CEX, and the
transaction fees will be very low, the participating experience will be very
smooth.
Using AMM's price discovery mechanism, KoFo can achieve rapid protocol
expansion and liquidity attraction, and users don't have to worry about the
problem of too large sliding point. It realizes the futures products of traditional
financial market in the field of decentralization.
In KoFo, traders can trade directly with vAMMs with no need of counterparties.
vAMMs ensure the liquidity of the chain, and set a predictable price by a
constant product curve. vAMMs are also designed to be Market-neutral and
fully collateralized.
In our common sense AMM is that asset X and asset Y are inpoured to the flow
pool with a fixed proportion, and then a constant K is generated.
The quantities of X and Y are constantly changing, but K remains the same, so
X and Y in the pool will have constantly changing prices.
This kind of mechanism mainly relies on arbitragers to realize that the price in
the pool is consistent with the price in market.
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Here, the function of vAMM is to find the price by using the constant product
curve of X * y = k, but actually there is no real capital in this AMM.
In other words, KoFo can use the constant K to have infinite depth, a very large
K will make the price extremely smooth, and a very small K will make the price
fluctuate greatly. Therefore, the setting of K value is very critical. The parameter
setting of KoFo is automatically determined and set by quantitative strategy,
which is similar to the setting of volatility in option pricing model.
8、KIS（Keep Info safe）- Privacy
protection on the chain
Although Blockchain is a public ledger and stored on multiple nodes in
different locations, it can achieve anonymity and trust, as multiple applications
based on Blockchain and existing cryptocurrencies with high privacy
demonstrate.
In KoHo ecology, we will protect transaction data, address, identity and other
sensitive information through the KIS system, while allow the accounting nodes
to verify the legitimacy of transaction.
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KIS system realizes the privacy protection of transaction identity and content
through the scheme of mixed currency protocol.
We mix multiple unrelated inputs to output, then the external world can not
associate the input and output of transactions, so it is difficult to locate the
flow direction of assets on the chain.
8.1、Identity confusion
The identity confusion technology used in the KIS system is to hide the identity
of trading users on the BlockChain.
On the KoHo public chain, the transaction certificate function can be used, that
is, the short-term certificate of each transaction which meets the requirements
of one-time pad, unforgeability, non-relevance and traceability. Users not only
participate in the system anonymously, but also prevent the correlation
between transactions.
In the identity obfuscation technology, group signature and ring signature are
also used for anonymity. Any member of a group can sign messages
anonymously on behalf of the whole group.
Like other digital signatures, group signature can be verified publicly, and can
be verified with only a single group public key.
8.2、Homomorphic encryption
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Homomorphic encryption applied in KIS system is a cryptography technology
based on the computational complexity theory of mathematical problems.
Process the homomorphic encrypted data to create an output, and decrypt
the output, then the result is the same as that process the unencrypted original
data with the same method.
8.3、Attribute based encryption（ABE）
Attribute based encryption（ABE）：also known as fuzzy identity-based
encryption.
In the KIS system, KoHo public chain identifies identity as a series of attributes.
The decryptor can decrypt the information encrypted by the encryptor only
when his identity information is consistent with the information described by
the decryptor. Different from IBE, the user can decrypt when the user's
attribute exceeds the preset threshold described by the encryptor.
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V. KoHo - The future is coming
Writing here, feeling amazing.
The wave of the Blockchain 3.0 era has been blown, and the KoHo ecology is
the ship which we build to sail to the new world.
As the most advanced mean of upgrading traditional industries and reshaping
asset circulation and distribution, Blockchain technology has been paid more
and more attention by governments.
So far, 81% of the world's National Central Banks have started digital currency
related work.
In 2020, the number of global Blockchain companies registered, the number of
global Blockchain technology patents, and the number of Blockchain policies
and regulations have increased by more than 50%.
In this magical year of 2021, the international situation is changing and the
trend of deglobalisation is rising. Now, various countries vigorously support to
speed up their internal industrial updating with the help of the advanced
technology of Blockchain, and get rid of the shackles of foreign technology
and use the natural borderless digital currency to help themselves sitting pretty
34
in the turbulent global situation.
Only in line with the background of the times can we catch up with the biggest
wind. At present, the financial field is the field where Blockchain technology
application scenarios are explored mostly and most suitably. The introduction
of various support policies will further accelerate the large-scale commercial
implementation of decentralized Inclusive Finance.
This puts forward very high requirements for the ecological infrastructure of
Blockchain.
The number of users that KoHo can serve at the same time per second is
thousands of times that of Ethereum, and the bridging technology
breakthrough of KoHo bridge is enough to support all financial activities.
Users only need to spend one millionth of Ethereum's gas fee to enjoy financial
services more than 100 times faster than Ethereum.
We are very confident that KoHo which bridges Ethereum and other
technological ecology through Side-chain technology, and greatly reduces the
threshold of decentralized finance, will undoubtedly become the first high-
performance privacy public chain that truly supports large-scale commercial
use and create a truly inclusive financial ecosystem.
35
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Whitepaper of Koho Chain Ecosystem

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WhitePaper of KoHo Chain Ecosystem

1、The nature of finance and current outstanding problems ............................. 3

Centralized & Transparency is difficult to have both ....................................... 4

Centralized payment system .................................................................................. 4

High threshold & Unbalanced development ..................................................... 4

2、How does decentralized finance solve traditional problems ....................... 4

2.1、DeFi solves the subjective human problems ............................................ 4

2.2、DeFi solves the problems of objective mechanism ................................ 5

II. KoHo Chain – Define INFI（Inclusive Finance） ...................................................... 6

1、KoHo Ecosystem ....................................................................................................... 6

2、Introduce of KoHo foundation ............................................................................. 7

3、Overview of KoHo public chain ............................................................................ 7

3.1、The value and bottleneck of current DeFi ................................................ 7

3.2、KoHo public chain emerges as the times require................................... 9

Ⅲ. KoHo - Reshaping the future of decentralized finance ...................................... 11

1、KoHo - Commercial financial chain..................................................................... 11

1.1、Payment & Clearing system.......................................................................... 11

1.3、Decentralized & Transparency .................................................................... 13

2、KoHo – Inter - Blockchain Bridge: KoHoBridge ............................................. 14

2.2、KoHoBridge 2WP and Assets management .......................................... 15

2.3、KoHoBridge: cross-chain transaction management .............................17

2.4、KoHoBridge: Safety guarantee .................................................................. 18

IV. Ecological landing strategy of KoHo Chain .......................................................... 21

1、KoHo enables financial innovation ..................................................................... 21

2、Kex - Decentralized trading platform ............................................................... 22

3、ProSwap - Decentralized financial derivatives platform .............................. 23

4、TIP – Applications of Inclusive Finance and issuance platform of value

5、Staking Economy – A flow source of Bonus Cow .......................................... 26

5.1、KoHo – Staking Economy ............................................................................ 26

5.2、Staking Module – A key to open staking economy ............................. 27

5.3、Staking – Create a Win-win situation....................................................... 27

6、Kend - Borrowing on the decentralized chain ............................................... 28

7、KoFo – Decentralized perpetual protocol........................................................ 29

8、KIS（Keep Info safe）- Privacy protection on the chain ............................. 31

V. KoHo - The future is coming....................................................................................... 34

I. Block Chain - Lit the torch of the

1、The nature of finance and current

The traditional financial ecology is confronted with many serious problems,

threshold and unbalanced regional development.

⚫ Centralized & Transparency is difficult to have both

⚫ Centralized payment system

⚫ High threshold & Unbalanced development

2、Decentralized finance solve traditional

Decentralized Finance，or DeFi，is currently the fastest growing sector in the

blockchain and cryptocurrency industry, and enables users to use financial

services such as lending and trading without relying on centralized entities,

such as a bank or a stock exchange. It solves many problems in the traditional

financial industry by reducing dimension with the progress of science and

2.1、DeFi solves the subjective human problems

also do not need a contract,, the expiration of automatic execution, so there is

DeFi is built on the blockchain, has tamper-proof, traceable, so that trading

safe and fair.

2.2、DeFi solves the problems of objective mechanism

naturally borderless and intermediated.

to the Internet to enjoy all kinds of financial services.

there are precedents of failure of large banks. However, in DeFi, there is no

execute immediately, there is no transfer mechanism, so it can minimize the

II. KoHo Chain – Define INFI

KoHo Chain is a new generation of inclusive financial infrastructure based on

the side chain technology of blockchain, to create a fair, transparent，

shareable and privacy protecting Decentralized INFI ecosystem.

Money and security of data in a centralized organization can not be fully