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KAT DEX Pool

DEX Pool Operating Playbook

Estimated reading: 4 minutes 69 views

 

(Simple Guidance for New DAO Members & KAT Holders)

This playbook explains how Kambria operates the DEX pool during migration, and what DAO members should and should not do.

1. During Migration (Phase 1)

Kambria operates the pool alone to ensure stability.

What Kambria does:

  • Supplies initial liquidity (KAT POL + USDT) 
  • Sets the reference price (0.00003 USDT per KAT) 
  • Uses a safe 1% fee tier 
  • Uses full-range liquidity 
  • Monitors trades for unusual activity 
  • Applies conversion rules (monthly 5M cap, small-first ordering) 

What community members should NOT do (yet):

  • Do not try to become Liquidity Providers (LPs) 
  • Do not try to set tight ranges (high risk) 
  • Do not worry about impermanent loss (IL) yet 

This keeps the system simple and safe for everyone.

 

2. How to Interact With the DEX Pool (Basic User Actions)

Buy KAT POL

You can buy KAT POL from Uniswap v3 (Polygon)

Using:

  • Metamask 
  • USDT or MATIC (via swap) 

Sell KAT POL

You can sell small amounts any time.

Large sells naturally face high slippage, which protects the market.

Check price

DEX price updates automatically based on trades.

Use KAT POL in DAOs

After migration, KAT POL is used for:

  • Contribution 
  • Privileges 
  • DAO membership 
  • Community participation 

 

3. Understanding Price Movements (Beginner Level)

If someone buys a lot of KAT POL…

Price goes up because KAT POL becomes scarce in the pool.

If someone sells a lot…

Price goes down, but:

  • Monthly cap limits how much people can sell 
  • High slippage makes dumping unprofitable 
  • Price usually returns to normal naturally 

If the pool is small…

Price moves more easily (this is part of Kambria’s stability strategy).

 

4. Why Community LP Starts Later (Phase 2)

Kambria delays community LP because:

  • LPing requires technical knowledge 
  • Tight ranges can lose money quickly 
  • New users may not understand impermanent loss 
  • Early liquidity needs to be protected from external manipulation 

Community LP will open after migration stabilizes, with:

  • Simple tutorials 
  • Estimated IL calculators 
  • Recommended ranges 
  • Risk warnings 
  • Optional LP incentives (DAO privileges) 

 

5. Basic Safety Rules for DAO Members

Rule 1 - Only convert KAT when needed

Follow Kambria’s conversion rules (request form, burn TX, minimum 100k KAT).

Rule 2 - Avoid very small swaps

Very small trades suffer high slippage.

Rule 3 - Always check slippage settings

Set slippage properly:

  • 1% for normal trades 
  • Higher only if needed 

Rule 4 - Do NOT become LP (add liquidity) yet

Technically, anyone can add liquidity on Uniswap.

However, Kambria strongly advises not becoming an LP during the initial migration phase because:

  • The pool is intentionally small 
  • Price moves sharply 
  • Impermanent loss is high 
  • Range-setting is complex 
  • LP behavior can distort the protection model 

Community LP will open safely in Phase 2, with clear tutorials and supported tools.

Rule 5 - Beware of scams

Do not interact with:

  • Fake KAT contracts 
  • Fake swap sites 
  • Telegram “admins” 
  • People offering “special rates” 

Kambria will provide all official links.

 

6. Quick FAQ (Beginner-Friendly)

Q: Why is price moving when someone trades?

→ Because the pool is small, and price adjusts automatically based on supply and demand.

Q: Can whales manipulate the price?

→ No - high slippage + monthly conversion cap + small-first queue prevent it.

Q: Should I add liquidity now?

→ No - only Phase 2 will allow community LP.

Q: Why does my swap give fewer tokens than expected?

→ That is slippage. In small pools, large trades move price.

Q: Is this system safe?

→ Yes - the pool is intentionally small to protect against dumps and manipulation.

 

7. Summary (1-Minute Understanding)

  • A DEX pool lets people trade KAT POL anytime. 
  • Price updates automatically based on trades. 
  • Kambria controls the pool during migration for stability. 
  • Community LP comes later, with tutorials and safety rules. 
  • DEX behavior may feel new to DAO members, but it becomes intuitive quickly. 
  • The system is designed for fairness, protection, and long-term growth.