Kinetix’s V2 Mission: Bringing Perps Full Circle By Putting Traders First
Following a successful February 8 launch, the Kinetix Perpetual Exchange V2 is now two full weeks into operation. Thus far, the platform has been a standout hit, with an abundance of positive feedback coming from traders across the Cosmos community. With perpetual traders now migrating to V2 to take advantage of more assets, new features, and superior fee modeling, Kinetix could not be more pleased with the reception of the DeFi hub’s third and most potent platform.
Having already laid out the platform’s new features and functionalities in the official launch article, Kinetix would like to take the opportunity to shed light on some of the deeper thinking behind the Kinetix Perpetual Exchange V2’s design and development, as well as Kinetix’s vision and objectives for the future of the Web3 derivatives market and its traders.
Perpetual Contracts: A Cultural Pastime With Untapped Potential
Since their origination, perpetual contracts have served as an integral component of both Web3’s thriving derivatives scene and its cultural identity. Perpetual contracts are Web3-native instruments that were first designed to address the specific demands and trading preferences of the Web3 community. Unlike other derivatives instruments such as options and futures contracts, perps do not have direct counterparts in traditional finance.
A trio of fundamental characteristics make perpetual contracts unique: their high leverage offerings, on-chain settlement, and lack of expiry dates. In the high-octane Web3 trading scene, taking highly leveraged one-directional bets on the future price movement of individual crypto assets has been a favorite pastime of DeFi traders who collectively refer to themselves as “degens”. For the majority of their existence, perps have largely served this demographic as notoriously high-stakes investment vehicles that amplify return potential at the expense of amplifying risk.
However, the broader potential of perps has remained largely unseen and untouched. As a more diverse community of investors and institutions enters Web3 and begins to explore its native platforms and assets, there is a growing demand for more balanced trading strategies, exposure to more traditional asset classes, and mechanisms to stabilize portfolios. For Kinetix, this is where perpetual contracts stand to make the greatest positive impact and serve the largest demographic as Web3 continues to advance into the mass market.
Rising Use Cases: Diversification, Hedging Strategies, and Advanced Portfolio Management
By putting diversification, hedging strategies, and advanced portfolio management at the forefront of its development efforts, Kinetix architected the Kinetix Perpetual Exchange V2 to extend its products and tooling to a more risk-averse audience of traders, while still remaining true to Web3’s native community of degens. For those who want the ultra-high-stakes adventure in the wild world of perps, Kinetix increased the platform’s maximum leverage to 100x, while adding a breadth of new crypto assets and trading pairs. But without exception, the most profound and impactful aspects of Kinetix’s V2 perps are those which serve traders with more nuanced preferences. Kinetix targeted three major objectives with its V2 platform to change the perpetuals game for good.
1) Diversification: In addition to introducing new crypto assets and trading pairs, the Kinetix V2 Perpetual Exchange offers exposure to traditional assets, including commodities and forex market assets. For both new investors entering Web3 for the first time and Web3 traders looking to expand their trading operations to traditional markets, the Kinetix Perpetual Exchange V2 is quickly becoming the go-to platform for all-access perpetual contracts.
Dealing in derivatives is inherently risky, and being able to tap diverse asset classes from a single platform is a major win for traders. Kinetix’s lower, dynamic fees introduce a new level of precision and fairness that further supports traders looking for the best of all asset classes, trading tools, and user experiences in one place.
2) Hedging Strategies: Plain and simple, there are a lot of Web3-native traders that are looking to hedge their digital asset exposure without exiting the Web3 space. Self-custody, decentralization, and borderless transfers are hard to give up once you get used to them. On the Kinetix Perpetual Exchange V2, implementing complex hedging strategies across multiple asset classes allows users to protect their capital as they attempt to capitalize on market inefficiencies.
In addition to BTC, ATOM, ETH, and USDT, taking leveraged positions long and short on the British Pound, Japanese Yen, XRP, DOGE, and gold supports a wealth of unique hedging strategies across geographic regions, capital markets, and asset classes — especially from the comfort and simplicity of a single user-friendly user interface with free tutorials.
3) Advanced Portfolio Management: Sophisticated investors aren’t going to be willing to dive into Web3 on their own — they expect certain tools to be in place to allow them to manage their positions with precision. For the Kinetix Perpetual Exchange V2, Kinetix augmented stop losses, trailing stops, and take profit functions to level up Kinetix’s automated portfolio management tools. By enabling programmable trade execution, Kinetix allows seasoned traders to jump on board and begin trading perpetual contracts in Web3 without forgoing any elements of their trading strategies that provide an edge or minimize risk — especially in markets that operate around the clock.
The Future of Perps: Kinetix’s Vision
As Web3 onboards funds, institutions, and individuals from the traditional financial landscape, the market will increasingly demand more complete, robust, and advanced platforms as well as effective tooling. The Kinetix Perpetual Exchange V2 is far from being the DeFi hub’s final statement in the mission to perfect perps.
However, it represents a major step in the direction of Kinetix’s long-term vision for decentralized, on-chain derivatives: a holistic platform that serves traders of all demographics and risk profiles — degens, enthusiasts, traditional asset managers, and more.
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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