AMA Recap: KTX.Finance Spotlight
Port 3 hosted a product spotlight AMA on the 20th January at 20:00 hours (UTC+8) and KTX.Finance is privileged to be invited as the speaker to share knowledge, expertise and experience on DeFi with the community and audiences. KTX.Finance also took the chance to introduce Team KTX.Finance, the protocol and tokenomics and upcoming plans during the AMA.
Participants
Host:
Gustaf, Head of Operation (Port 3 Network)
Speaker:
Jonathan, Community Manager (KTX.Finance)
1) Introduce the KTX.Finance Team
The team is led by CEO Kevin and the concept of KTX.Finance was conceived in October 2022 . CEO Kevin has a Ph.D in Computer Science and used to run several Web2 startups, unicorns and publicly listed companies as the CTO and Head of Engineering. He is the first batch of researchers and engineers that touched base with Bitcoin and Blockchain back in the 2010, founded the world-first Bitcoin Option Exchange, developed scalable permissionless blockchain, and launched multiple DeFi projects ranging from lending, trading, and insurance.
Our team conducted market research and obtained a deep understanding of the on-chain derivatives space. At the same time, initial product development was started. Subsequently, on the operational end we have been conducting continual market research, forming partnerships with other DeFi projects, product and Go-To-Market planning.
On the development end, we have been optimizing the UI/UX of the platform, created a functional application and launched Testnet on 9 January 2023.
2) What is $KTC and $KLP
KTX.Finance is a decentralized derivatives protocol that allows you to trade perpetual with up to 50x leverage. For those who may not know, perpetual contracts allow users to hold on to their leveraged positions for longer duration without expiring. Perpetual contracts or futures do not have a settlement period so traders can hold a trade for as long as they want, as long as they have enough margin to keep it open. This gives them the flexibility to exit their trades at the right time.
The decentralized exchange liquidity pool model is backed by KLP. It uses a multi-asset liquidity model which is a pool of token which liquidity providers pooled together, earning fees from KTX.Finance and profit and losses of traders. $KLP is marketed as an index token that farms because essentially you are holding a basket of tokens and earning fees from KTX.Finance. The weighting of each token within KLP is constantly re-balancing.
KLP is a hybrid multi-asset pool with 50% $BUSD on one side and 50% assets on the other (comprising $BTC.B, $WETH and $BNB).
Hence, based on the minting/burning fees of $KLP, LPs can choose to deposit either $BUSD, assets OR both.
Through our token design, $KTC stakers will accrue 30% of protocol transaction fees in the form of $BNB while $KLP will accrue 70%.
This LP model together with our Feeder oracle (provide real-time, aggregated prices over 6 exchanges — Binance, Bitfinex, OKX, Kucoin, Kraken and Coinbase) allows for perpetual trading with low cost and zero price impact.
3) How can $KTC and $KLP tokens be earned and consumed?
Users can only obtain $KTC via 2 means. At inception, a portion of $KTC will be airdropped to users that participated in Testnet. Upon launch of Mainnet, users are able to purchase $KTC from the $KTC/$BUSD pool on PancakeSwap.
There is no burn mechanism for $KTC, however, holders of $KTC can stake their tokens for $esKTC and Multiplier Points.
$KLP tokens can only be minted/burned through the KTX.Finance DAPP. The $KLP token only serves as a liquidity receipt for LPs.
4) What are the key roadblocks or challenges that may prevent the project from succeeding?
We believe that a key roadblock to the success of KTX.Finance would be the bearish macro environment that the crypto industry is facing. Across all CEXs and DEXs alike, trading volume has gone down drastically.
However, we believe that a good product will eventually be adopted. We remain confident in our ability to ship user friendly products that have product-to-market fit.
Additionally, most users trade on CEXs for the leveraged exposure that comes along with it. KTX.Finance will be launched on the BNB Chain. With the narrative of self-custody, having an outlet for on-chain leveraged trading on BNB Chain would definitely help with building the ecosystem. BNB Chain has a wide user base with a long contingent of retail users who having utilized Binance (the largest centralized crypto exchange) are making their first forays into self sovereign ownership of assets. The chain has consistently been in the top three of transactions, unique wallets and Total Value Locked, providing a clear addressable market. BNB Chain is also home to protocols like Venus (lending markets), Beefy (autocompounder), key Oracle partner Chainlink and most uniquely Binance-peg asset backed tokens in addition to large supplies of other bridged tokens. KTX.Finance can have a mutual beneficial partnership within BNB Chain ecosystem.
4) Who are your closest competitors and what is your competitive edge? What is the entry barrier of building something similar?
Our closest competitor would be GMX.
The competitive edge of KTX.Finance could be segmented into several points. By studying GMX very closely, we have identified several ways to circumvent some challenges that GMX faces.
- Creating a better UI/UX for traders through implementing TradingView charts and complex orders. Complex Orders would allow traders to open a position, take profit and stop loss all within one click. On the other hand, this process in GMX would take traders many more clicks.
- The challenges for GMX have been identified and KTX.Finance will be aiming to solve it through social trading and extensive partnerships with other BNB Chain DeFi protocols (Bracket Labs, Asteria, Radiant Capital etc…)
5) Please share your roadmap for the next 12 months
Moving ahead, our product offerings can be split into 2 streams:
(1) Structured Products — including Delta-Neutral Vaults, Collateralize Debt Positions and Option Integrations
(2) Trading Add Ons — including Social Trading and Trading Add-Ons (Complex Orders)
Upon launch of Mainnet, the next focus will be placed on Complex Orders & Social Trading before integrating structured products.
6) Can tell me more about the current Testnet Airdrop Campaign
KTX.Finance is airdropping $KTC tokens to early users who’ve traded on KTX.Finance. Users who’ve actively traded on KTX.Finance Testnet during the testing stint are eligible to claim $KTC packages. $KTC packages can be opened for KTX Community tokens when KTX.Finance launches the tokens in Q1 2023.
Eligible users who participated during the entire KTX.Finance Testnet period will have to place a perpetual trade with a margin of 100 BUSD within 14 days after Mainnet launch to claim the package. This 14 days window of rewards claiming only starts after KTX.Finance launches on Mainnet and after a perpetual trade is being placed and filled.
This airdrop mechanism ensures that traders who actively use KTX.Finance will be the ones who get the most tokens and control of the protocol.
The KTX.Finance airdrop is distributed in $KTC packages to eligible web 3.0 wallets that connect to the KTX platform.
There are different level of packages for users to claim depending on their past trading history. Eligible users will be able to open their packages when the token launches in Q1 2023 after Mainnet launches.
The more you trade, the more realised % P/L you have on Testnet, the more campaign badges you have, the more active you are on KTX.Finance various socials, the bigger your blind $KTC packages will be.
More information on KTX.Finance Mainnet launch and token related products will be announced shortly.
Connect with KTX.Finance
- Website: https://www.ktx.finance
- Twitter: https://twitter.com/KTX_finance
- Telegram: https://t.me/KTX_officials
- Discord: https://discord.gg/zwWnGEUWUy
- Deck: https://docsend.com/view/j9wd585trjrb8kni
- Doc: https://docs.ktx.finance/
