Frequently Asked Questions about Kodiak Finance

About Kodiak Finance

Kodiak Finance is a decentralized exchange (DEX) and liquidity protocol built natively on Berachain. It enables users to swap tokens, provide liquidity, and earn rewards — all without trusting a centralized intermediary.

The platform offers several core products:

• Swap — exchange tokens instantly at competitive rates using Kodiak Finance's optimized routing engine.
• Liquidity Pools — deposit token pairs to earn a share of trading fees generated by the protocol.
• Staking — lock tokens to earn additional protocol rewards and participate in governance.
• Perps — trade perpetual contracts on select assets via the integrated perps module at perps.kodiak.finance.
• Panda Factory — create and launch new tokens directly on Berachain through Kodiak Finance's token launchpad.

Kodiak Finance is designed to be the primary liquidity layer for Berachain, integrating deeply with Berachain's native Proof-of-Liquidity consensus mechanism.

Blockchain Network

Kodiak Finance is deployed on Berachain Mainnet. Berachain is an EVM-compatible Layer 1 blockchain built on the Cosmos SDK, featuring a novel Proof-of-Liquidity (PoL) consensus model that rewards liquidity providers with block rewards.

Because Kodiak Finance is native to Berachain, it integrates seamlessly with Berachain's validator ecosystem, BGT (Bera Governance Token) emissions, and on-chain governance structures.

The native currency of Berachain used for gas fees is BERA, and Kodiak Finance supports a wide range of Berachain-native tokens including HONEY (the native stablecoin), WBERA, and many ecosystem tokens.

Account Requirements

No traditional account or sign-up is required. Kodiak Finance is a fully non-custodial protocol — you interact with it directly using your Web3 wallet.

To get started, you need:

• A compatible Web3 wallet (MetaMask, WalletConnect-compatible wallets, Coinbase Wallet, etc.)
• Your wallet configured for the Berachain Mainnet network
• Some BERA tokens to pay for gas fees

You retain full custody of your assets at all times. Kodiak Finance smart contracts only execute trades or liquidity actions when you explicitly sign and approve a transaction from your wallet.

What Sets Kodiak Finance Apart

Kodiak Finance differentiates itself through deep Berachain-native integration and a comprehensive product suite. Key advantages include:

• Proof-of-Liquidity Integration — Kodiak Finance is designed to work within Berachain's PoL system, meaning liquidity providers can receive BGT rewards on top of trading fee income.
• Smart Routing — the swap engine finds the most efficient path across multiple pools, reducing slippage and improving execution.
• Full Ecosystem Suite — beyond swapping, Kodiak Finance offers perpetual trading, a token launchpad (Panda Factory), a portfolio tracker, and staking — all under one interface.
• Validator Integration — Kodiak Finance runs its own Berachain validators, enabling BGT boost delegation directly from the interface.

This makes Kodiak Finance a one-stop destination for DeFi activity on Berachain, rather than a standalone swap tool.

How to Swap Tokens

Swapping tokens on Kodiak Finance takes only a few steps:

• Go to app.kodiak-finance.xyz and connect your Web3 wallet.
• Select the token you want to sell in the top input field.
• Select the token you want to receive in the bottom input field.
• Enter the amount you wish to swap.
• Review the quote, slippage tolerance, and estimated price impact.
• Click "Swap" and confirm the transaction in your wallet.

Kodiak Finance uses advanced routing to split your order across multiple liquidity pools when necessary, ensuring you get the best possible rate. You can adjust slippage tolerance in the settings menu before confirming.

Understanding Slippage

Slippage tolerance is the maximum price deviation you are willing to accept between the quoted price and the actual execution price of your swap. Because blockchain transactions are not instantaneous, market prices can move between the time you submit a transaction and when it is mined.

General guidelines for slippage settings on Kodiak Finance:

• 0.1% – 0.5% — suitable for highly liquid pairs like BERA/HONEY.
• 0.5% – 1% — good for medium-liquidity pairs.
• 1% – 3% — appropriate for lower-liquidity or newer token pairs.
• Above 3% — only recommended for very illiquid tokens; be cautious of front-running.

Setting slippage too low may cause your transaction to fail if the price moves. Setting it too high may expose you to sandwich attacks. Kodiak Finance defaults to a balanced slippage setting for most pairs.

Swap Modes Explained

Kodiak Finance offers three trading modes accessible from the swap interface:

• Swap (Standard) — the default mode for simple token-to-token exchanges with automatic routing.
• Multi — allows you to swap one token into multiple destination tokens in a single transaction, saving gas and time when diversifying.
• Advanced — gives experienced traders access to detailed routing visualization, manual route selection, and finer slippage controls.

Most users will be well served by the Standard mode. Multi-swap is particularly useful when rebalancing a portfolio. Advanced mode is designed for power users who want granular control over trade execution.

Perpetual Trading

Yes. Kodiak Finance has launched a dedicated perpetuals trading platform available at perps.kodiak.finance. Perpetual contracts (perps) allow you to trade with leverage on select assets without an expiration date.

Key features of Kodiak Finance Perps:

• Leveraged long and short positions on major Berachain-native assets
• No expiry date — hold positions as long as you maintain sufficient collateral
• On-chain settlement and transparent liquidation mechanisms
• Integrated with the Kodiak Finance ecosystem — use the same wallet you use for spot trading

Perpetual trading carries significant risk due to leverage. Always understand your liquidation price and manage your position size responsibly.

Providing Liquidity

When you provide liquidity on Kodiak Finance, you deposit a pair of tokens into a liquidity pool. These deposits are used by traders executing swaps — the pool automatically prices assets and facilitates trades.

In return for providing liquidity, you earn:

• Trading fees — a percentage of every swap executed through the pool, proportional to your share of total pool liquidity.
• BGT rewards — on eligible pools, Kodiak Finance channels Berachain's BGT emissions to liquidity providers as additional incentive.
• Protocol incentives — Kodiak Finance may add additional token rewards to strategic pools to attract deep liquidity.

To add liquidity, navigate to the "Liquidity" section, select a pool, approve the token spending, and deposit your desired amount of each token. You will receive LP tokens representing your position, which can be redeemed at any time.

Impermanent Loss Explained

Impermanent loss (IL) occurs when the price ratio of the two tokens in your liquidity position changes compared to when you deposited. The automated market maker (AMM) rebalances the pool to maintain its pricing formula, which can result in you holding a different ratio of assets than you originally deposited — often less valuable than if you had simply held the tokens.

IL becomes "permanent" only when you withdraw liquidity. If prices return to the original ratio, the IL disappears. The loss is called "impermanent" because it is only realized upon withdrawal.

For Kodiak Finance liquidity providers, IL risk is mitigated by:

• Earning trading fees that may outweigh the IL over time
• Receiving BGT and other protocol rewards as additional compensation
• Choosing stable or correlated pairs (e.g., stablecoin pairs) which experience minimal IL

Always evaluate the expected annual percentage yield (APY) against the potential IL before providing liquidity to any pool.

Removing Liquidity

You can remove your liquidity from Kodiak Finance at any time — there is no lock-up period for standard pools. To withdraw:

• Go to the "Liquidity" section and select "My Positions".
• Find the pool position you want to exit and click "Remove".
• Select the percentage of your position you want to remove (partial or full).
• Confirm the transaction in your wallet.

Your LP tokens will be burned and you will receive back the underlying token pair at the current pool ratio. Note that if prices have moved significantly since you deposited, you may receive a different ratio of tokens than you originally put in due to how AMM pricing works.

Any unclaimed trading fees and rewards will be automatically distributed when you remove liquidity.

Staking on Kodiak Finance

Kodiak Finance offers staking opportunities for both LP tokens and ecosystem tokens. By navigating to the "Staking" section, you can stake eligible assets to earn protocol rewards.

Staking rewards on Kodiak Finance may include:

• BGT emissions — Berachain Governance Tokens distributed to Kodiak Finance stakers based on validator gauge weights.
• Protocol token rewards — additional incentives funded by the Kodiak Finance treasury or partner projects.
• Boosted pool APY — staked LP tokens in select pools receive enhanced yield compared to unstaked positions.

Staking on Kodiak Finance connects to Berachain's Proof-of-Liquidity system. When you stake through Kodiak Finance, a portion of BGT emissions flows back to liquidity providers, creating a self-reinforcing incentive loop that rewards long-term participants.

Validator and BGT Boost

Kodiak Finance operates its own Berachain validators. By delegating BGT to Kodiak Finance validators, you can increase ("boost") the amount of BGT emissions directed toward Kodiak Finance liquidity pools.

How it works:

• Berachain validators earn BGT and distribute it to pools they choose to incentivize.
• BGT holders can delegate their BGT to validators to influence which pools receive more emissions.
• Kodiak Finance's validators prioritize directing BGT rewards to Kodiak Finance pools, benefiting all liquidity providers on the platform.
• You can delegate to Kodiak Finance Validator 1 or Validator 2 directly from the Validator section of the interface.

Delegating BGT to Kodiak Finance validators is a powerful way to support the protocol and maximize yields for Kodiak Finance liquidity providers, without giving up custody of your tokens.

Security and Audits

Kodiak Finance takes security seriously. The protocol's smart contracts have been subjected to third-party security audits by reputable blockchain security firms. Audit reports are made publicly available for community review.

Security measures in place for Kodiak Finance include:

• Independent smart contract audits prior to mainnet deployment
• Ongoing code reviews and security monitoring
• Bug bounty programs to incentivize responsible disclosure of vulnerabilities
• Minimal admin key exposure and decentralized governance controls

Despite these precautions, interacting with any DeFi protocol carries inherent risk. Smart contract vulnerabilities, oracle manipulation, and unforeseen attack vectors are risks that cannot be completely eliminated. Never invest more than you can afford to lose.

For the latest audit reports and security information, refer to the Kodiak Finance documentation.

Keeping Your Assets Safe

Best practices for safely using Kodiak Finance and any DeFi protocol:

• Use the official URL — always access Kodiak Finance through the official domain. Bookmark it to avoid phishing sites.
• Use a hardware wallet — hardware wallets (Ledger, Trezor) provide the highest level of security for signing transactions.
• Review token approvals — regularly revoke unnecessary token approvals using tools like Revoke.cash.
• Never share your seed phrase — Kodiak Finance will never ask for your private key or seed phrase.
• Verify transactions before signing — read what you're signing in your wallet, especially the contract address and token amounts.
• Start small — test with small amounts before committing significant capital to any new pool or feature.

The Kodiak Finance team and community moderators will never DM you first. Be skeptical of unsolicited messages offering help, airdrops, or investment opportunities.

Fee Structure

Kodiak Finance charges a small fee on every swap, which is distributed to liquidity providers. The fee rate varies by pool type:

• Standard pools — typically 0.3% per swap, the industry-standard AMM fee tier.
• Stable pools — lower fees (e.g., 0.05%) for stablecoin-to-stablecoin swaps where price impact is minimal.
• Volatile pools — higher fees may apply for exotic or low-liquidity token pairs to compensate LPs for higher impermanent loss risk.

In addition to swap fees, all on-chain transactions require BERA for gas. Gas costs on Berachain are generally low but will vary with network congestion.

Kodiak Finance does not charge any platform fee on top of the pool trading fees — 100% of swap fees go directly to liquidity providers. The protocol earns revenue through other means such as its validator operations.

Bridging to Berachain

To use Kodiak Finance, you need assets on the Berachain network. If your assets are on another chain (Ethereum, Arbitrum, etc.), you need to bridge them to Berachain first.

The recommended bridging solution for Berachain is the official Berachain Bridge, accessible directly from the Kodiak Finance interface under the "Bridge" menu item, which links to bridge.berachain.com.

Steps to bridge:

• Connect your wallet on the bridge interface.
• Select the source chain (e.g., Ethereum Mainnet) and the destination (Berachain).
• Choose the token you want to bridge and the amount.
• Confirm the transaction. Bridging times vary by source chain and bridge method.
• Once assets arrive on Berachain, you can use them on Kodiak Finance.

You will also need a small amount of BERA for gas. Some bridges provide a small BERA airdrop on your first bridge transaction to help with initial gas costs.

Community and Support

The Kodiak Finance community is active across several platforms. You can find official channels and get support here:

• Discord — the primary hub for community discussion, support tickets, and announcements: discord.gg/kodiak
• Twitter / X — follow for protocol updates, new pool announcements, and ecosystem news: @KodiakFi
• Medium — in-depth articles, protocol explainers, and research: medium.com/@KodiakFi
• Documentation — technical guides, smart contract addresses, and developer resources: documentation.kodiak.finance

For wallet-specific issues or gas problems, the Kodiak Finance community on Discord has dedicated support channels where team members and community helpers are active. Never share your private keys or seed phrase with anyone claiming to be from Kodiak Finance support.