Kine Protocol x Satoshi Club AMA Recap from 8th of June
Hello, Satoshi clubbers! Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from Kine and our guest was founder and the CEO of kine protocol @lei_kine. The AMA took place on 8 June.
The AMA session was divided into 3 parts with a total crypto reward pool of 500$
In this AMA Recap, we will try to summarise the most interesting points for you.
Part 1 — introduction and questions from the Telegram community
Mary | Satoshi Club: Hello Satoshi Club! We are happy to announce our AMA session with Kine! Welcome to Satoshi Club
D. | Satoshi Club: today our guest — @lei_kine !
welcome to Satoshi Club!
how are you doing?
Lei Wang: hi all, thanks Satoshi Club for the invitation, my great pleasure to share about Kine protocol here
Mary | Satoshi Club: Hello, Lei!
D. | Satoshi Club:
happy to have you here!
Mary | Satoshi Club: We are happy to see you here today
Let’s start our AMA
Lei, could you please tell us about your role at Kine
And of course, please, introduce Kine to our community!
D. | Satoshi Club: nice way to start AMA
Lei Wang: I am the founder and the CEO of kine protocol. Before building Kine protocol I was heading huobi’s institutional business and prior to that I worked in several major investment banks heading the derivative trading technology in London and Singapore, most of the team has started working with me since then
Mary | Satoshi Club: How long are you in crypto? What are its advantages
Lei Wang: We are a bunch of engineers who loves trading, many are excellent traders, during our crypto trading, we are not satisfied with current trading environment, we identified a lot of issues affects our trading experience and we talk about potential solutions all the time, eventually instead of waiting for a perfect platform to come to existence, we decided to build one for ourselves and everybody who loves trading. Especially with the raise of defi, the timing is perfect for us to do so. It took us 6 months of hard work to build Kine, our dream derivative trading market
D. | Satoshi Club: so Kine is your first project in crypto as a CEO?
Lei Wang: yes, correct
Kine is a defi protocol you can trade derivatives in a fast, transparent, and effortless way. It offers unlimited liquidity, up to 100x leverage, immediate execution, 0 slippage, 0 gas fee with cross margin support, extremely low latency with high throughput that is comparable with any cefi derivative markets. It brings user defi level of asset security, transparency, annomasity and cefi level of efficiency and low cost
Mary | Satoshi Club: And it’s awesome, that you decided to build something based on your experience!
Lei Wang: yes, few veruy lucky doing what I love
D. | Satoshi Club: nice! 0 gas fee is especially very cool
Lei Wang: we are now the number 1 defi derivitive protocol on ehthrum in volume, today’s 24 hour volme is 75m$
Mary | Satoshi Club: Why not 100x leverage?
D. | Satoshi Club: because i don’t use leverage trading
Mary | Satoshi Club: Incredible numbers!
When Kine went live?
Lei Wang: over 5000 active trading user today!
26th March, only less than 3 months ago
Mary | Satoshi Club: And so many active traders! It means everything works very good!
How many liquidations?
Lei Wang: yes, and we are launching on bsc this thursday
let me check from live dashboard
D. | Satoshi Club:
so it will boost amount of traders on your exchange for sure
Lei Wang: 150 today, not a great day for crypto
Mary | Satoshi Club: Oh, it’s also awesome! May be it’s time for us @Cool_as_Ice to try leverage trading?
Lei Wang: I belive so, just did a ama with 1 of the largest bsc community this moring
Mary | Satoshi Club: Yes, that’s true
D. | Satoshi Club: maybe
Lei Wang: you should, it’s fun as long as you know how to manage risk, I dont recommand beginners to use high leverage though, keep it under 5X is my suggestion
Mary | Satoshi Club: Congratulations! Sure it wi be a big day for Kine and BSC!
D. | Satoshi Club:
thanks for suggestion, we will keep in mind
Lei Wang: thx
Mary | Satoshi Club: Yes, i also think so, and to be honest want to try leverage trading
Thank you, Lei for your introduction! Do you want to add something or we can dive deeper into the details with the questions from our community?
Lei Wang: it helps capital efficiency, many abritrager uses it to hedge their spot risk
please go ahead
Q1 from Telegram user @Jonahapagu
KINE Exchange is implementing on its platform a peer-to-pool model, this model has been used by other projects such as Synthetix and Compound finance, but KINE Exchange is said to be implementing a more improved version of this model, so how does KINE exchange implement the peer-to-pool model on its platform, and what are the features and improvements that KINE is implementing in this Model when compared to implementation of the model in other Platforms..
Lei Wang: sure 1. Kine accepts a wider range of pledged assets, almost all major crypto assets (now major bsc asset as well) can be used for collateral, which expand our user group to much wider audiance
2. Kine can support higher leverage and higher frequency derivatives trading, synthetix not yet support leverage I believe
Lei Wang: 3. most importantly we solve the biggest issue of the current defi derivative space, the high gas fee and latency by combining on chain staking, clearing and settlement and off chain trading engine
Mary | Satoshi Club: Where can we find the full list of accepted assets?
Lei Wang: on etherum: wbtc, eth, usdt, usdc and ofc kine
on bsc: BNB, BTCB, ETH, LTC, XRP
D. | Satoshi Club: do you not support DAI? quite popular asset as well
Mary | Satoshi Club: Yes, that’s real issue! So, it’s really 0?
Lei Wang: 4. 1 more, Kine developed a high-performance oracle to realize real-time pricing feed to solve the user loss caused by the front-run. I believe front-run and toxic flow are the biggest issue with synthetix atm, due to the oracle latency, we built our high efficiency oracle with millisecond level latency, no room for front-runners
good suggestion, I think it’s in the plan in next batch bucket
D. | Satoshi Club: nice! yeah front-running is the problem on eth
Lei Wang: yes, absolutely 0 gas fee
Mary | Satoshi Club ; I am yours
Thank you for your answers, Lei! Are you ready for the next question?
Lei Wang: that is why we can accumulate 1.7 billion trading volume in last 2.5 months, nobody wants to pay gas for high frequency derivative trading
Q2 from Telegram user @meml97
It caught my attention that Kine will have a “Multiplied Staking Rewards System, where staking rewards are comprised of both trading fees from Kine Exchange and token distributions from the Kine Ecosystem Grant”. Can you tell us more about this reward system and how does it exactly work? Also, what is this Kine Ecosystem Grant? How can users get tokens from it?
Lei Wang: sure, most asset can get doubly rewarded, and kine can get tripply rewarded, here is how it works
take eth as example, you can stake your wbtc providing liquidity, here you dont need a pair just whatever single asset you have, the APY is about 40%, then you can mint kusd with the asset you staked. you can use your kusd for either leveraged trading, but if you are not a big fun of trading, you can proivde liquidity in kusd/usdt or kusd/kine pool, and get close to 130% APY, so the total APY for eth is over 200% on bsc
for kine holders, you can first lock your kine to share 20% of the transaction fee and get xkine( similar to xsushi) the apy is about 30%, then stake the xkine for staking reward (another 40%), then provide kusd-kine liquidity for the 130% reward
D. | Satoshi Club: all assets on your exchange a stackable? so i can stake wbtc, eth and stablecoins?
Lei Wang: that’s correct
D. | Satoshi Club: that’s cool!
Mary | Satoshi Club: Btw, how many transaction fees do you collect daily?
Lei Wang: the ecosystem grant is the treasury reserved for community and who contributes in the ecosystem, by providing liquidity and trading, to get kine from trading, you only need to trade $1000 a day ($1 transaction fee) to get 2.7 kine token
Mary | Satoshi Club: Super! Pretty high number!
Lei Wang: 50% of this goes to liquidity provider, 20% goes to kine holder locking, and 10% goes to trading volume reward
D. | Satoshi Club: big thank you for answers! ready for the next question?
Lei Wang: we use it to buyback kine from the market and distribute kine to contributors
the buyback from transaction fee holds token price solid
Q3 from Telegram user @Cheriemike
I noticed that Kine uses a Hybrid model of on-chain and off-chain settlement that it accept gas fees for staking and marginal transfers and it does not accept activities done on trading.Building a Hybrid Model won’t be easy can you please tell us the challenges you faced while developing such project?
D. | Satoshi Club: so you use distribution model and not burning? some other projects prefer buyback and burn
Lei Wang: it’s very challenging thing to do, we know demand for trading derivitive on defi is there with huge potential, but gas fee and latency is the only thing in the way for traders to move onchain, that is why we designed this hybrid solution, we are the first project does that, there is no reference to learn from
firstly the team needs to have smart contract development skill and java skill and ofc deep knowledge in financial system and derivitive, build a team with such set would the first challenge
Mary | Satoshi Club: Why did you decide to choose this model instead of L2 solution?
D. | Satoshi Club: i wanted to ask the same
Lei Wang: luckily most of the team member has been following me since investment banking days for last 5 days we have been developing derivative trading system since 2015, the team already have the deep bounding and the right skill for that
Mary | Satoshi Club: It’s very important! That’s why you already succeed
Lei Wang: L2 is still in experiment, not mature enough for trading volume that’s comparable with cefi exchange, our aim is to compete with binance, huobi and okex, using experiment solution might bound us from moving. and we dont want to treat our users as labrat with experiment solution, we are serious about it. we can handle 8000 transactions per second with our setup not sure any existing L2 solution is capable atm, but when L2 solution has proven to be capable, we can easily migrate
D. | Satoshi Club: well said
Mary | Satoshi Club: Perfect explanation!
Lei, thank you for your answers! Ready to jump to the next question?
Lei Wang: we have 3 institution trading firm already started trading on kine, one of them did $15m today, institution has doubt with L2, you need to have sofisticated solution to get them onboard, it’s not a game when you work with institutions
Q4 from Telegram user @orlemys
You said virtually any asset can be supported by Kine’s peer-to-pool engine. You mentioned BSC, ETH, and even gold or fiat. This is, of course, to help the platform expand, encouraging users to trade and consequentially promoting the use of your protocol. However, this might provoke unwanted fees. Could you explain what exactly are Kine’s plans to resolve or alleviate these issues? You also support cross-margining, do you consider this to be a less risky trading method than others?
Lei Wang: from my perspective, I worked in top investment banks and hedge fund for 14 years, trading fx, commodity, stock is no much difference from trading crypto, the strateges are similar, we will adjust fees to a comfortable level according to the nature of the asset and users’ expectation
Mary | Satoshi Club: Except BSC do you plan to add more chains?
D. | Satoshi Club: this is the last question
Mary | Satoshi Club: Ohhhh, sorry
Lei Wang: cross-margin is indeed less risky, especially for professional hedging traders, say you are both long and short in 1 asset for the abitrage profit, without cross margin you might easily get liquidited on 1 leg while you are in profit, cross margin looks at your protfolio level gain/loss, so for hedge trading you could never get liquidated
D. | Satoshi Club: by the way, to users have to pass any KYC procedure on your exchange? as i see i need only metamask or walletconnect to use it
Lei Wang: yes, we are launching on Heco and Okexchain later this month, SOL and polygon are in the pipleline for next month too, we aim to have defi users trading popular asset from all chain without feeling of the boundry
metamask, it’s defi, no kyc
Mary | Satoshi Club: Super, we hate KYC a bit
Lei Wang: using our chain-bridge solution, user can move asset between different blockchain with 0 cost
D. | Satoshi Club: thanks for clarification
Mary | Satoshi Club: You can continue while answering the next question
Are you ready for it?
Lei Wang: sure
D. | Satoshi Club: awesome! so it won’t be a problem to move stablecoins from bsc to eth, using your bridge?
Lei Wang: because usdt on bsc is not issued by tether, we need a bit of work to support that, but other asset like eth, ltc, bch etc you can use the solution
D. | Satoshi Club: great!
thank you for answer
Q5 from Telegram user @NataliyaKil
While looking for information about Kine Exchange, I read that you have some kind of affiliate program. Can you tell us more about this? Who can take part in this program, how to do it, and how do the participants benefit? What other programs does Kine have for the community (for Stakers, Traders, Liquidators and KINE token holders), partners, investors? Is there a referral and ambassador program?
Lei Wang: yes there is an referral/affiliate program, anybody can participant, once you connected with the site, you can produce your own invitation code/link anybody who conncted with your invitation link, 15% of there transaction fee automatically goes to your affiliate account
for people who wants to higher commission, apply to become our affilliate and lock some kine, 3000 kine for 40% commission, 25k kine for 60%, and lock 100k kine to get 80% of the commission, this program is designed for professtional brokers
again anybody can apply and lock amount of kine accordingly to be eligible for the transaction fee commission
D. | Satoshi Club: gotcha! thanks
Mary | Satoshi Club: What about ambassador program? Do you have it?
Lei Wang: for bsc stakers on top of the existing apy reward, the first month, we will give extra 50k kine per week to attract bsc stakers, the estimated apy for this month is 300%-500%
it’s currently just referal program and affiliate for user aquisation atm, but we are open for suggestions
Mary | Satoshi Club: Thank you for clear answers! Ready for the 6th and last question from this part?
Lei Wang: anybody is interested in becoming ambassador in non-chinese/english region can contact our team we are open to start this
Q6 from Telegram user @lzamg
The Kine Protocol is currently going through a cross-chain token transfer, specifically to OKEx Chain and Binance Smart Chain. I would like to know, what motivated you to perform this cross-chain token transfer? Is it because of the issues of Ethereum? And aside from the two chains mentioned, will you be integrating other networks in the future?
D. | Satoshi Club: question was a bit answered already
Mary | Satoshi Club: Partially
Lei Wang: I believe defi should be a unified world, separate asset by chain is not ideal, due to the current efficiency issue of the etherum infrastructure, users are distributed across chains, and on each chain there are great asset, this shouldn’t bound user from the access to ther block chain, we want to reunit them again, that is our motivation
already anwsered for more chains, heco, okex, polygon, sol etc
D. | Satoshi Club: totally agree
Mary | Satoshi Club: If before we couldn’t imagine this, now it’s becoming reality
Lei Wang: we are only limited by our imagination, creativity is human nature, all we have to do is stay out of the way, let our creativity guide our work
Mary | Satoshi Club: Thank you for what you are doing
And now we came close to the live part of our AMA!
Lei Wang: feels lucky to be in blockchain world and become part of this greatest revolution in the centrue
Mary | Satoshi Club: Me as well
So, Lei, are you ready for the storm of questions?
Part 2 — live questions from the Telegram community
Q1 from telegram username @Ashia_24
What are the differences between Kine Finance and Kine Exchange, as well as their respective roles?
Lei Wang: kine.finance for staking and liquidity farming, kine.exchange for leverage trading
Q2 from telegram username @Jonahapagu
It is stated that In KINE ecosystem, there are several major roles in play which are stakers, traders and liquidators. Stakers and traders are more common roles found in other platforms, but what is the role of liquidators in KINE ecosystem, what functions do they perform, and how can a user become a liquidator and benefit from the role in KINE’s Ecosystem.
Lei Wang: when staking users’ debt ratio goes over 95%, liquidators to comes in to perform liquidation and gain 5% of the liquidation incentive
Q3 from telegram username @Ashia_24
Kine Exchange is being discussed. You have a 100-fold leverage edge. Is it possible for all traders to choose the amount of leverage they employ, or are there conditions that must be met in order to access leverage at the maximum level? What about newcomers? Is KINE exchange designed with them in mind?
Lei Wang: yes, users can choose whatever leverage they feel comfortable with, we dont set conditions to interfer with trader’s own decision, my recommandation is for begineers is to keep leverage low
Q4 from telegram username @Jonahapagu
KINE is said to be introducing synthetic funding fees to balance long/short exposures and reduce impermeant P&L, So how does this your idea of using synthetic funding fees work, and how does this balance long/short exposures when trading derivatives on KINE exchange….
Lei Wang: to keep liquidity pool exposure low, it is important to have long/short balanced at all time, the funding fee will be calculated based on long vs short position, means the larger gap between long-short, the higher funding fee to attract abitragers to take this risk free profit, so long/short gap will be restored quickly and staking pool will never have too large of exposure
Q5 from telegram username @lzamg
kUSD is the primary stablecoin of Kine Protocol and it’s accepted as the only margin assets on Kine Exchange. You promote the adoption of kUSD beyond your native exchange, so users may supply kUSD on Uniswap and other DEX to earn KINE from your farming schemes. Can you explain why is so important the adoption of kUSD beyond your platform? How does it benefit the Kine users and the project in general?
Lei Wang: originally the design of kusd was within kine ecosystem, but we see there isn’t a major stablecoin comes from defi ecosystem except dai, usdc/usdt still plays the major role but they are not originated from defi world, this means opportunity, we believe kine as the top derivative trading protocol is in the perfect position to issue an stablecoin and defi world needs more stablecoin that originated from defi, hence we made a change to promote kusd beyond kine ecosystem
Q6 from telegram username @doithay1617
There have been a lot of attacks happening on major exchanges, so security is always the most important issue for users. What measures does Kine Exchange take to protect users’ assets? For example: Google Authenticator, Mobile connection, Mail connection, Security Pass,…?
kine protocol is audited by pecksheild, we take security as our top priority at all time, each time we see an attack in defi world, we analyse it carefully and even try attack kine with the method to find vonerability, if we find a risk we quickly make improvement to prevent it from happening. Kine has been running safely for about 3 month, and all the attack mechanism that we know doesn’t work on kine, so it is very safe.
Q7 from telegram username @FrEeBoY5620
Almost every investors hold the token for short-term without understanding the long-term value. So, how can you ensure us that holding this token is more beneficial for long-term and what is your plan to increase the demand and scarcity of the token?
Lei Wang: firstly, over 80% of the transaction fee are used to buyback kine, and our transaction fee is growing rapidly, that creats a strong support for token price. at the initial period, part of the reward comes from the ecosystem grant beside the fee share, as the fee keeps increasing, the part from ecosystem will reduce eventually to 0, that gaurantees the scarcity. as the community becomes mature, we will gradually hand the governence to community thorugh kine token voting, decisions like listing new asset, support new staking asset, risk limite, fee etc will be decided by the community not the team anymore eventually, long-term holders will accumulate more voting power, so hold it for long term if want be part of kine’s future
Q8 from telegram username @meml97
I read that one of the benefits users have thanks to Kine is that: “ You can dynamically hedge the impermanent risk through KINE’s real-time pool exposure API”. Can you tell us more about this? How will Kine’s real time pool exposure API help on hedging risks? Will you have other ways for users to prevent risks on your platform? Also who can exactly take advantage of this benefit? @lei_kine
Lei Wang: not like uniswap’s AMM impermenant loss as a guranteed loss, providing liquidity on kine may be in a gain/loss, for risk takers they most likely end with gain and choose to leave it, for risk averse users it is easy to hedge agains the MCD as long/short for each asset on kine are public information and MCD change is linear, you can simply hedge it with future contract. to make it easier to beginners, we could create an mcd contract for you to easily short and hedge all your MCD risk, does that sound interesting?
Q9 from telegram username @cryptovgh
Could you explain about your Supporters and partners? Always good partners will give a great potential to the project. And what kind of partnership with KRYPTIAL GROUP , a famous group in crypto? @lei_kine
most of our investors are big names, our angel investor Naval Ravikant is the former CEO of Angelist and founder of Coinlist, here is the investor list
Q10 from telegram username @coinerm
You mention that your trading engine is run off-chain and only allows gas to be consumed for stake and margin transfers and takes a hybrid approach, not for trading activities. Could you please give detailed information about this feature, what are its benefits, is it a feature unique to you etc.
Lei Wang: every 30 mins trading engine reports all trades in a block to onchain clearing contract, that way kine only pays $50 gas instead of all users pay $20 gas for each of their trade. this way it guarantees 2 most important things for users, 1 efficiency and low cost for trading as it happens offchain 2. transparency for pnl clearing and asset security this all happen onchain
Part 3 — Quiz Results
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about the crypto project. A link to a Quiz form was sent into the chat.
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