# Kima Network

> Kima Network is a decentralized settlement protocol addressing financial fragmentation, enabling interchain transactions via blockchain and offering secure cryp...

- Canonical URL: https://iq.wiki/wiki/kima-network
- Categories: Projects & Protocols
- Tags: Layer 1, DeFi, Infrastructure
- Created: 2024-09-30T21:28:55.056Z
- Last updated: 2024-09-30T21:28:55.056Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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The **Kima Network** is a decentralized settlement protocol that addresses fragmentation in the [crypto](https://iq.wiki/wiki/cryptocurrency) and financial sectors. It introduces the Smart Transaction primitive and an SDK compatible with [Web3](https://iq.wiki/wiki/web3) and Web 2.0 applications, enabling interchain and hybrid transactions. Kima’s settlement layer supports various financial services, including multi-ecosystem payments, cross-chain [DEX](https://iq.wiki/wiki/decentralized-exchange) swaps, and omnichannel wallets, offering a secure and accessible bridge between [fiat](https://iq.wiki/wiki/fiat-money) and [crypto](https://iq.wiki/wiki/cryptocurrency). [\[1\]](#cite-id-4su960rx2gh)   
  
# Overview  
  
Kima, formerly Diversifi, is a tech-driven [crypto](https://iq.wiki/wiki/cryptocurrency) asset management platform for institutions, including investment banks, funds, brokers, and corporations with [crypto](https://iq.wiki/wiki/cryptocurrency) holdings. It provides risk-mitigation strategies for digital currency investments through features like sophisticated hedging, regulated frameworks, and environmentally conscious investment options. Kima's investment tools work across multiple [blockchains](https://iq.wiki/wiki/blockchain), including products such as Structured [Crypto](https://iq.wiki/wiki/cryptocurrency) strategies, Smart Hedges, Balanced Portfolios, and carbon offsetting Green [Crypto](https://iq.wiki/wiki/cryptocurrency) initiatives. The platform's Protected [BTC](https://iq.wiki/wiki/bitcoin-btc) strategy helps investors manage bitcoin volatility by offering loss protection in exchange for a portion of potential profits. [\[2\]](#cite-id-ydelypcznd)[\[3\]](#cite-id-5z5z7pkyhrv)  
  
# Features  
  
## Kima Blockchain  
  
Kima is a [blockchain](https://iq.wiki/wiki/blockchain) designed to solve interoperability issues without creating additional [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) fragmentation. It enables cross-chain [atomic swaps](https://iq.wiki/wiki/atomic-swap) without token-wrapping, maintaining [liquidity pools](https://iq.wiki/wiki/liquidity-pool) across multiple [layer-1](https://iq.wiki/wiki/layer-1) [blockchains](https://iq.wiki/wiki/blockchain) like [Ethereum](https://iq.wiki/wiki/ethereum), [Polygon](https://iq.wiki/wiki/polygon), and [Solana](https://iq.wiki/wiki/solana). Built using the [Cosmos SDK](https://iq.wiki/wiki/cosmos), Kima uses a committee-based [consensus mechanism](https://iq.wiki/wiki/consensus-mechanism) with rotating wardens who monitor and authorize cross-chain transactions through threshold signature schemes. The [blockchain's](https://iq.wiki/wiki/blockchain) architecture is permissioned and permissionless, balancing security and decentralization. Its main functions include managing warden committees, executing governance, maintaining auditable records, and enabling cross-chain messaging. The warden committee handles cross-chain transfers, ensuring secure and accountable transactions and [validators'](https://iq.wiki/wiki/validator) misbehavior is subject to penalties. The consensus and infrastructure draw from proven [Cosmos](https://iq.wiki/wiki/cosmos)-based systems such as [Axelar](https://iq.wiki/wiki/axelar) and [Thorchain](https://iq.wiki/wiki/thorchain). [\[4\]](#cite-id-znkocempmhp)  
  
## Kima Platform  
  
The Kima platform offers cross-chain interoperability without synthetic or wrapped tokens. It maintains [liquidity pools](https://iq.wiki/wiki/liquidity-pool) on [layer-1](https://iq.wiki/wiki/layer-1) [blockchains](https://iq.wiki/wiki/blockchain) (e.g., [Bitcoin](https://iq.wiki/wiki/bitcoin), [Ethereum](https://iq.wiki/wiki/ethereum), [Terra](https://iq.wiki/wiki/terra), [Solana](https://iq.wiki/wiki/solana)). When users wish to transfer assets (e.g., [USDC](https://iq.wiki/wiki/usdc)) between chains, they deposit [USDC](https://iq.wiki/wiki/usdc) into Kima's pool on one chain and withdraw it from Kima's pool on the destination chain. The Kima [blockchain](https://iq.wiki/wiki/blockchain) oversees and synchronizes these transactions using a committee-based consensus, with rotating wardens ensuring that transfers between pools are properly validated. Threshold signature schemes (TSS) secure the process, with wardens operating within a Trusted Execution Environment. [\[5\]](#cite-id-ic3ah9uivtg)   
  
### Threshold Signatures  
  
Threshold signature schemes (TSS) enable participants, or cosigners, to collectively generate and control a secret signing key for a digital signature. A predefined threshold of participants must cooperate to generate a valid signature that appears identical to one created with a single key. In TSS, participants hold key shares and collaborate to sign messages, while multisig systems involve each cosigner holding a separate key with signatures aggregated by a [smart contract](https://iq.wiki/wiki/smart-contract). TSS involves two key protocols: Distributed Key Generation, where each participant receives a private key share, and Distributed Signature Generation, where these shares are used to produce a signature. The scheme's security comes from its threshold property, which ensures that even if some participants' key shares are compromised, the underlying secret remains protected, especially with periodic re-randomization. This prevents adversaries from accumulating knowledge of the full secret key over time. [\[5\]](#cite-id-ic3ah9uivtg)  
  
# KIMA  
  
The KIMA [utility token](https://iq.wiki/wiki/utility-token) model supports the protocol by securing the [blockchain](https://iq.wiki/wiki/blockchain), incentivizing [liquidity providers](https://iq.wiki/wiki/liquidity-providers) and [validators](https://iq.wiki/wiki/validator), and enabling the decentralized settlement layer. It aims to enhance the platform's efficiency and utility. After the token sale, $KIMA will initially have limited functionality, with additional features rolled out incrementally as development progresses. [\[6\]](#cite-id-kn7nbzw9cr)  
  
# Partnerships  
  
* Stage  
* Forward  
* Unich  
* [GT Protocol](https://iq.wiki/wiki/gt-protocol)  
* Whistle  
* Definity  
* Penomo  
* Gabby World  
* [Plena](https://iq.wiki/wiki/plena-finance)  
* Kita  
* BEVM  
* Nika Labs  
* Trikon  
* Fuse  
* Synapse  
* Hybrid  
* Pastel  
* Massa  
* Klink  
* WalletX  
* Orochi  
* [Oraichain](https://iq.wiki/wiki/oraichain)  
* [Glyph](https://iq.wiki/wiki/glyph)  
* [Lumoz](https://iq.wiki/wiki/lumoz)  
* Blazpay  
* WOW EARN  
* ElectroWizy  
* Gate.io  
* [Port3](https://iq.wiki/wiki/port3-network)  
* [Hooked](https://iq.wiki/wiki/hooked-protocol)  
* DeGuard  
* TrintyPad  
* Attractor  
* 3VO  
* [Aethir](https://iq.wiki/wiki/aethir)  
* FoxWallet  
* Nitrodome  
* iLuminaryAI  
* Tea-Fi  
* Fizen  
* Monitok  
* Script Network  
* Atleta  
* Tilted  
* Zo.Me  
* Areon  
* [ZkAGI](https://iq.wiki/wiki/zkagi-zero-knowledge-artificial-general-intelligence)  
* HyperGPT