Kyo Finance

What Kyo Finance does

Kyo Finance is a decentralized exchange (veDEX) built natively on Soneium, an OP Stack Layer 2 blockchain developed by Sony Block Solutions Labs (a joint venture of Sony Group and Startale Labs). Founded in 2024 and operating through Panama-incorporated ZkParadox Inc., the protocol functions as a DEX liquidity hub for token swaps, liquidity provision, and on-chain governance via a dual-token model: $KYO (utility and reward token, 200M total supply) and $veKYO (ERC-20 governance token). Kyo targets retail DeFi participants seeking a Web2-style experience, alongside developers, DEX operators, and partner chains.

The underlying technology aggregates liquidity from Uniswap V2 and V3 pools using a proprietary Smart Split Router and bundles multi-action workflows (swap, stake, vote, lock) into a single Native Batch Transaction, reducing gas costs and approval friction. Governance runs on a real-time voting system in which veKYO holders direct $KYO emissions to gauges, replacing the weekly epoch-based mechanics of earlier ve(3,3) DEXs. Additional technical components include an AI Intent Parser that converts natural-language swap requests into executable on-chain transactions, an LVR Protection mechanism that recaptures arbitrage value for liquidity providers, and a configurable pool architecture supporting stable swap, weighted, NFT-plus-token, and interest-bearing token pools. Security has been validated by audits from Omniscia and Beosin, with ongoing monitoring by Hexagate and an audit grant from the Superchain Foundation.

Kyo's revenue mechanics combine swap/trading fees (distributed to veKYO voters and LPs), $KYO token emissions, and contributions from Kyo Alliance Program (KAP) partners who license the full DEX stack to deploy on other L1/L2 chains. Distribution combines a self-serve web app (app.kyo.finance, kyo.ag), public Developer APIs (Swap API, Zap API), and a franchise-like KAP model where chains such as UltraSolid run Kyo's audited backend, frontend, contracts, and design under their own branding. Go-to-market is product-led and community-driven through Discord, Medium, GitBook documentation, and token incentive programs, with 13% of $KYO supply allocated to listing, ecosystem growth, and airdrops.

Name

Kyo Finance

Legal name

ZkParadox Inc.

Website

https://kyo.finance

Company type

Private

Founded year

2024

Operating status

Operating

Short description

Kyo Finance is a native veDEX built on the Sony-backed Soneium Layer 2 blockchain, offering token swaps, liquidity provision, and veKYO-based governance to retail crypto users, developers, and partner chains via its DEX, Kyo.ag, and KAP franchise program.

Ownership category

akta.pro rank

Product category

Decentralized Exchange (DEX) / DeFi Protocol

NAICS

Securities and Commodity Exchanges (523210), Securities and Commodity Exchanges (5232)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Decentralized Exchanges (DEX) & AMMs (FSADAMAB)

akta.pro secondary industries

Spot AMM DEXs (FSADABAA), DEX Aggregators & Smart Order Routing (FSADABAC), DEX Analytics, Indexers & Trading Terminals (FSADABAK)

Keywords

• Decentralized exchange protocol
• DeFi liquidity aggregation
• Cross-chain swap infrastructure
• Vote-escrow governance tokens
• DEX aggregation APIs

Headquarters

HQ city

Singapore

HQ country

Singapore

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Trading/Swap Fees: Kyo charges trading fees on swaps executed through its DEX pools (V2 and V3). Fees are distributed to veKYO voters who have staked in voted pools and to external incentive providers. Trading fees for staked V2 LPs are added as bribes to gauges; unstaked V3 LP fees are retained by the LP.
2. $KYO Token Emissions: 40% of the total $KYO token supply (80,000,000 tokens) is allocated to Emission Rewards, distributed monthly at a 1.25% baseline release rate (subject to protocol performance adjustment) to liquidity providers and voters through the gauge system.
3. Kyo Alliance Program (KAP) Fees: Founders deploying Kyo-powered DEXs on other L1/L2 chains through KAP may contribute technical fees, include Kyo users in airdrops, or provide other forms of compensation as part of the partnership alignment structure.

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Kyo Finance operates a native vote-escrow decentralized exchange (veDEX) on the Soneium Layer-2 blockchain, providing token swaps, liquidity provision, and on-chain governance via $veKYO tokens. The protocol aggregates liquidity across Uniswap V2 and V3 pools through a Smart Split Router, supports AI-driven natural-language intents, and offers Developer APIs plus a white-label Kyo Alliance Program (KAP) for partners to deploy Kyo-powered DEXs on other chains.

Product overview

Kyo Finance is a #1 native veDEX on Soneium blockchain designed to onboard Web2 users without UX friction. The platform operates as a unified product portfolio consisting of Kyo.ag (AI-powered intent-based execution layer) and Kyo DEX (decentralized exchange interface), supported by foundational features including Native Batch Transaction for bundling multiple DeFi actions, Super Easy Real-time Voting via veKYO tokens, Smart Split Router for cross-AMM optimization, Configurable Pool architecture supporting multiple pool types, LVR Protection for liquidity provider revenue enhancement, and PAM (Personal Asset Manager). The protocol utilizes dual-token system ($KYO for utility/rewards, $veKYO for governance) and offers a Developer API for third-party integrations.

Differentiator

Problem solved

Functional benefit

Brands

• Kyo.ag: Advanced liquidity infrastructure platform with next-gen routing, aggregating liquidity across integrated sources for optimized execution.
• Kyo DEX

Products and services

• Kyo DEX Decentralized exchange web interface at app.kyo.finance providing token swaps, liquidity provision, governance voting, and reward claiming. Aggregates liquidity across Uniswap V2/V3 pools and uses Smart Split Router for optimized execution. Targeted at retail crypto users and DeFi participants globally (excluding restricted jurisdictions).
• Kyo.ag Liquidity Hub Unified cross-chain liquidity aggregation and AI-powered intent-based execution layer at kyo.ag. Allows users and partner integrations to access fragmented liquidity through a single execution surface powered by natural-language AI intents.
• Kyo Developer APIs REST APIs including Swap API (POST /v2/quote), Zap API, and Swap/LP Quest Verification API enabling developers and protocols to integrate Kyo's optimized routing, swap execution, and liquidity aggregation without managing multiple integrations. Targeted at Web3 developers, protocol integrators, and partner projects building on Soneium or within the Superchain ecosystem.
• Kyo Alliance Program (KAP) White-label DEX franchise program enabling L1/L2 chain founders and foundations to deploy a full-stack native veDEX (BE/FE/Contract/Design) using Kyo's audited technology, router, voting system, and UI. Partners focus on ecosystem growth and marketing while contributing technical fees, airdrops, or other compensation.

Quantifiable outcome

• veKYO liquidation discount typically <5% vs. 20-60% in NFT-based veDEX markets
• +1 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature8 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Sony Block Solutions LabscoreStrategic or Co-development PartnerSony Block Solutions Labs is a joint venture between Sony Group and Startale Labs that developed Soneium, the Layer 2 blockchain on which Kyo Finance is built as the #1 native veDEX. Soneium leverages the OP Stack and is part of the Superchain Alliance. Kyo's entire product is anchored to the Soneium ecosystem, making this the foundational strategic relationship.
• Startale LabscoreStrategic or Co-development PartnerStartale Labs co-founded Sony Block Solutions Labs alongside Sony Group. As a co-creator of the Soneium blockchain, Startale Labs is integral to the ecosystem in which Kyo Finance operates. Kyo benefits from Soneium's low gas costs, fast transactions, and OP Stack Superchain interoperability.
• OP Stack SuperchaincoreTechnology or IntegrationSoneium (and by extension Kyo Finance) is built on the OP Stack and participates in the Superchain Alliance, a network of standardized L2 chains sharing security, communication layers, and open-source technology. Liquidity can be bridged permissionlessly across Superchain members.
• OmnisciaminorOthersOmniscia conducted a security audit of Kyo Finance's reward voting infrastructure. The audit report is publicly available at omniscia.io. This is a one-time security assessment engagement.
• BeosinminorOthersBeosin performed a security audit of Kyo Finance smart contracts. The audit report is available at beosin.com/audits. This is a one-time security assessment engagement.
• HexagateminorOthersHexagate provides real-time security monitoring for Kyo Finance, protecting the protocol against emerging threats and active attacks. This is an ongoing security operations partnership.
• UltraSolidcoreChannel Partner/ Reseller/ DistributorUltraSolid is a live mainnet project operating as a Kyo Alliance Program (KAP) partner. It has deployed Kyo's full DEX technology (BE/FE/Contract/Design) on its own chain, functioning as a Kyo-powered DEX. UltraSolid is the first publicly listed KAP partner and represents the franchise model for Kyo's distribution.

Scale indicators2 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• PancakeSwap: Large multi-chain AMM DEX with ve-token model (CAKE) and concentrated liquidity. Operates across BNB Chain, Ethereum L2s, and alt-L1s; competes for the same cross-chain DEX user base.
• Uniswap: The dominant spot AMM DEX across Ethereum, L2s, and many alt-L1s. Kyo aggregates Uniswap V2/V3 pools via its Smart Split Router and competes for the same spot swap volume on Soneium.
• SushiSwap: Long-established multi-chain AMM DEX with concentrated liquidity, Kashi lending, and cross-chain deployment. Competes with Kyo for DeFi-native swap volume across multiple chains.
• Curve Finance: The pioneer of veTokenomics and stable-swap AMMs. Kyo directly references Curve's ve(3,3) game theory and offers Curve-style stable swap pools within its configurable pool architecture.

Emerging players

• Matcha (0x): DEX aggregator and trading terminal powered by 0x protocol. Competes with Kyo's kyo.ag as a user-facing execution layer aggregating liquidity across DEXs.

Direct peers

• Velodrome Finance: The original ve(3,3) DEX on Optimism and direct inspiration for Kyo's model. Same Solidly-fork architecture with epoch voting, NFT vote-escrow, and gauge-based emissions — a primary benchmark for Kyo's design choices.
• 1inch Network: Leading DEX aggregator with smart-order routing across chains. Directly competitive with Kyo's kyo.ag liquidity hub and Meta DEX Aggregation feature.
• Trader Joe: A veDEX-style AMM on Avalanche with concentrated liquidity and vote-escrow mechanics. Comparable ve(3,3)-inspired architecture and target DeFi user base on a non-Ethereum L1.
• Aerodrome Finance: The leading ve(3,3) DEX on Coinbase's Base L2. Direct competitor to Kyo on the same ve-DEX mechanics (Solidly/Aerodrome model), targeting similar DeFi users with epoch-based voting and NFT vote-escrow.
• Equalizer Finance: ve(3,3)-style DEX deployed across multiple chains including Fantom and Sonic. Direct architectural peer competing for veDEX mindshare and liquidity.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/kyofinance

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds2 records

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kyo Finance