Over the course of a few short weeks, Kinetix has made an emphatic arrival on crypto Twitter as a force to be reckoned with in the Cosmos ecosystem and a DeFi powerhouse dedicated to building a state-of-the-art DeFi hub on Kava. As a growing, robust community continues to form around Kinetix’s principled commitment to decentralization and vision for the development of a holistic, integrated DeFi landscape on Kava, please allow us to confirm:
Kinetix is and will remain focused on delivering an unrivaled user experience while remaining true to empirical decentralization.
Now with that in place, it’s time to move on concrete tech and tangible deliverables.
The Kinetix DeFi Hub: An Overview
The Kinetix DeFi hub will be composed of a series of interoperable, high-performance DeFi legos that live and operate exclusively on the Kava app-chain. As strong believers in the Kava tech stack, Kinetix has elected to build each and every component of the Kinetix DeFi hub on a chain where high-caliber user experience and competitive fee structures can be maintained in the face of swift upticks in usership and on-chain volume.
The Kinetix DeFi hub will be composed of a trio of platforms that will serve as the foundation for future development initiatives, feature augmentation, and the introduction of powerful incentive models.
1) V3 Decentralized Exchange (DEX): The Kinetix DEX will come fully equipped with a state-of-the-art V3 feature palette designed to minimize fees on swaps and LP transactions while enabling active liquidity management. Here are the key points:
- Optimal Capital Efficiency: The Kinetix DEX will offer a series of unique liquidity management strategies at varying levels of customization. Greater liquidity depth will be concentrated around market mid-prices (between buy and sell order), which directly translates to minimizing slippage for traders.
- Price Range Flexibility: LPs will be able to supply their assets in a designated price range.
- Fee Flexibility: LPs will determine their own fees — a major step up from the rigid 0.25% rates native to the standard V2 DEX model.
- Fee Sharing: The Kinetix DEX will distribute fees amongst relevant stakeholders to ensure a sustainable operational model. The distribution will go as follows: 90% of fees will be distributed to LPs, 7.5% will be distributed to token holders (more info to come), and 2.5% will be distributed to the Foundation.
In addition, cogent incentives will be introduced to attract liquidity from a distributed network of users with different wealth and risk profiles. The Kinetix DEX will also support farming, whereby LPs will be able to stake their LP tokens in order to earn yields from trading fees as well as other sources.
2) Perpetual Exchange (PEX): The Kinetix Perpetual Exchange will integrate high-impact features from leading perpetual exchanges across various web3 ecosystems. In addition to providing support for blue-chip digital assets and stablecoins, the Kinetix PEX will make significant leverage available to margin traders. Here are the big facts and figures:
- 50x Leverage: Margin traders on the Kinetix PEX will be able to take on up to 50x leverage on supported assets.
- Blue-Chip Assets: The platform will support leading assets and stablecoins in the Cosmos ecosystem and web3 at large, including KAVA, axlwBTC, axlETH, and USDT.
- Zero Price Impact Trades: For position opening and closure, users will never have to worry about slippage when exchanging perpetual contracts on the Kinetix PEX. The platform is also resistant to scam wicks and other forms of manipulation, thanks to an intelligent and efficient liquidation engine.
- Cross-Usable Assets: Users will be able to deposit collateral in any supported asset (or assets), and use it to open leveraged long and/or short positions in any other supported asset on the platform, a feature that allows for versatile and dynamic investing.
- Index Liquidity Token: As a decentralized platform, the Kinetix PEX will introduce robust incentives to facilitate the formation of a community-sourced liquidity pool. The platform will feature a unique liquidity token that indexes the entire basket of assets in the Kinetix PEX liquidity pool.
3) Community DAO: The Kinetix DAO will provide Kinetix community members with the critical infrastructure and tooling to act as primary decision makers contributing to the development direction and broader evolution of the Kinetix DeFi hub, its platforms, technologies, and brand identity.
The Kinetix DAO will employ a standard proposal model where token holders may vote on proposals issued by the Kinetix community. Proposal topics include but are not limited to marketing campaigns, partnership opportunities, new development initiatives, feature augmentation, additional asset support, and more.
In addition to the above DeFi legos and critical ecosystem infrastructure components, there is a lot in the works and on the way from Kinetix. As the broader DeFi landscape continues to evolve both within the Cosmos ecosystem and beyond, Kinetix will remain ahead of the curve building new protocols, implementing new features, and keeping the Kinetix community informed and at the steering wheel every step of the way.
Hungry for more on Kinetix? The Kinetix community would love to hear your feedback and offer support while you’re using Kinetix. Join the discussion via the social links below or visit the Kinetix website to find out more.
If you are interested in partnering with Kinetix, email: socials@kinetix.finance
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