0xwagmitt

As we wrap up 2025 and gear up for an explosive 2026, I want to take a moment to thank every staker, partner, builder, and community member who has shaped Kofi Finance into what it is today.

What started as a simple idea in making liquid staking effortless has grown into a protocol powering 7.49M+ APT staked, ranking Top 10 on Aptos by TVL.

This year wasn’t just about growth. It was about proving that a small, focused team with an obsessed community can move fast, build boldly, and expand the boundaries of what Aptos DeFi can be.

Q1 Foundation & Testnet: The Spark That Started It All​

In March, we opened our testnet to the world. We delivered a staking experience under 45 seconds, fully mobile-friendly and compatible with every major Aptos wallet.

The response exceeded every expectation:

• 2.1K testers
• 59K APT staked
• $5K+ in bounties
• Dual security audits (Zenith + Ottersec)

From day one, our priority was clear: build the safest, fastest staking experience on Aptos.

Q2 Mainnet Launch: A Milestone That Defined Our Momentum​

On May 14, Kofi Finance went live. Within 24 hours, we crossed 1.5M APT staked, a moment that proved Aptos was ready for a next-gen LST layer.

We rolled out boosted yield campaigns, getting Kofi LST APRs with our partners (Tapp Exchange, Hyperion) above 15% APR. One of our biggest goal was to have stkAPT be used everywhere. We also integrated Kofi collateral into Echelon, Aptos’ largest lending protocol unlocking borrow loops and new strategies for our users.

We also began monthly community campaigns, a core part of our ethos: give value back to the people who trust us early. June expanded our presence globally. We hosted our first IRL meetup in Bangkok. And with the launch of weekly Brewing on Aptos spaces, we established a consistent rhythm for updates and community voice.

Q3 Integrations, Events, and Ecosystem Expansion 🌐​

Q3 was the quarter where Kofi LSTs truly went everywhere, with more partners such as Moar Market, Auro Finance and Goblin coming onboard.

We launched the Kofi Explore Page, a single dashboard for discovering all DeFi opportunities powered by our LSTs. These integrations gave our users yield multipliers and ecosystem points that later translated into major airdrops, making stkAPT one of the most versatile assets on Aptos.

IRL, we showed up strong at KBW and New York, building relationships with leaders across Move and the broader crypto world. We also integrated with Goblin Vaults to offer 1-click LP, making liquidity provision smoother than ever.

Q4 2025 - Media, Influence, and Social Trading Evolution​

Q4 we are now the top 10 dapps on Aptos. We are going capped off the year with something bold.

The launch of our social trading testnet, powered by Decibel Trade.

Because we believe yield doesn’t stop at staking. The next wave of DeFi will be social, transparent, creator-driven, and onchain.

Kofi Live will introduced:

• Revenue models for streamers
• High-value entertainment for viewers
• Smart discoverability
• Responsible, transparent copy-trading tools

Every position is routed publicly through Decibel, letting streamers showcase trades and viewers follow along with full clarity.

Moving into 2026​

From testnet sparks to 7.5M+ APT staked, from two audits to Top 10 status, Kofi Finance has grown into the liquid staking heartbeat of Aptos.

To every user, partner, validator, and builder. Thank you! You’ve turned Kofi from a product into a movement.

And as for 2026? Expect deeper integrations, explosive social trading rollouts, yield strategies that change the game, and features designed to onboard the next million users.

edit (April 22, 2025): Added profitability calculator to help estimate validator profitability at different APRs and APT prices.

Introduction​

As the founder of Kofi Finance, a liquid staking platform on the Aptos blockchain, I enthusiastically support AIP-119, which proposes reducing the APT staking reward rate from approximately 7% to 3.79% over six months. Detailed in the Aptos Foundation's GitHub issue #587, this visionary proposal enhances capital efficiency by prioritizing DeFi and infrastructure, aligning Aptos with leading layer-1 blockchains like Ethereum and Solana. While it presents challenges for smaller validators, we see it as a transformative opportunity to innovate. At Kofi Finance, we're committed to empowering validators with MEV-boosted yields and diverse revenue streams, leveraging our MEV infrastructure to deliver superior returns.

The Vision of AIP-119​

AIP-119 outlines a 1% monthly reduction in staking rewards over three months, with a six-month implementation to foster community collaboration. The current 7% expansion rate limits capital flow into high-impact areas like DeFi, restaking, and infrastructure (e.g., RPC, indexing, MEV). The target 3.79% staking reward encourages more network activity by encouraging participants to explore innovative opportunities that drive network growth, instead of just parking all their APT for "safe-yields"

Challenges and Opportunities for Smaller Validators​

We recognize that the reduction in staking rewards poses a challenge for smaller validators, who may struggle to maintain profitability without the scale of larger players.

The estimated annual profit for a validator can be calculated using the formula: Profit = (Total Stake Delegated × APT Price × Network APR × Validator Commission Rate) - Annual Validator Cost

Use the calculator below to estimate profitability based on different inputs. We've used an average validator cost of $35,000 per year and assumed a 5% commission rate for the defaults and the table that follows (note: the table simplifies the calculation by showing profit based on total rewards before commission for brevity, but the calculator uses the full formula).

At 3.79% APR, 5% commission and at current APT price of $5, a validator would need about 3.7M APT staked to break even.

At Kofi Finance, we're inspired to empower smaller validators through our liquid staking protocol. By delivering MEV-boosted yields, as demonstrated in the table, and pioneering new revenue streams, we aim to ensure all validators thrive in Aptos' evolving ecosystem. The Foundation's community-driven approach, combined with our innovative strategies, sets the stage for a vibrant future.

A Call for a Stake-Matching Program​

To fully realize AIP-119's potential, we urge the Aptos Foundation to enhance its community validator program with a stake-matching initiative. We propose matching delegated stake for smaller validators, doubling their staked APT up to 3M APT where these validators can break even.

This program would:

• Strengthen Decentralization: Supporting smaller validators ensures a diverse validator set, reinforcing Aptos' decentralized foundation.
• Inspire Participation: Matching stake lowers barriers, inviting new validators to enrich our community.
• Better Governance: Empowering smaller validators fosters trust and collaboration, aligning with Aptos' inclusive governance.

New Revenue Streams: Fueling Validator Success​

We're thrilled by AIP-119's push toward a dynamic economy, opening exciting avenues for validators to offset reduced rewards. At Kofi Finance, we're leading with:

1. MEV Capture​

Our MEV infrastructure, leveraging insights from our research with Aptos core engineers, enables validators to profit from transaction ordering.

2. Transaction Tips​

We see tips for prioritized processing as a key revenue stream. Inspired by Ethereum's EIP-1559, we're developing tip-sharing in our protocol, distributing earnings to boost yields for validators and stakers, enhancing our platform's appeal.

Our Role at Kofi Finance​

Our liquid staking protocol, built by a team with expertise in MEV, DeFi and liquid staking, delivers MEV-boosted yields via kAPT and stkAPT. Partnerships with Tapp Exchange, Aries Markets, Joule, and Hyperfluid amplify returns, while our Discord community fosters collaboration. With mainnet deployment, audits with Zenith and Ottersec, and ongoing MEV research, we're aligned with Aptos' vision. By offering tips, DeFi rewards, and infrastructure services, we aim to make Kofi Finance the premier liquid staking platform, delivering yields exceeding 3.79%.