Introducing KTX.Finance | A secured and decentralized derivatives exchange on BNB smart chain
Andreas Antonopoulous, a greek entrepreneur, popularized the saying:
“Your Keys, Your Bitcoins.”.
Counterparty risk had never been so relevant and apt until the collapse of FTX two weeks ago. The second largest centralized exchange (CEX) was valued at a startling USD 32bn before filing for Chapter 11 Bankruptcy on 11 November 2022.
FTX was the golden goose of the industry and was backed by reputable financial institutions including Temasek Holdings, Sequoia Capital and Tiger Global Management. The aftermath of its collapse affected millions of livelihoods. As the contagion continues to propagate throughout the industry, we expect greater uncertainty around regulation and trust.
At inception, cryptocurrencies were created to democratize the power held by financial institutions and return it back to individuals. By trusting a CEX, practical drawbacks can be broadly segmented into 3 categories: Counterparty Risks, regulatory concerns and loss of control.
1. Counterparty Risk
Security risks refer to the risk of server hacks and system failure.
Examples include the hacks that happened to Crypto.com and Binance in the earlier months of 2022. Trusting a CEX creates a single point of failure and users are at the mercy of the CEX. When servers are under maintenance and trading is frozen, users are unable to utilize their digital assets when they are in custody of the CEX.
2. Regulatory Concerns
As regulatory concerns escalate, more CEXs will be targeted by regulatory entities.
For example, China forced Huobi to stop servicing China-based users in 2021 and CEXs like Binance clamping down on KYC. Such actions could potentially result in higher barriers of entry into cryptocurrencies and drive more trading volume on-chain.
3. Loss of control
By “staking” cryptocurrencies on CEXs, users are essentially lending their digital assets to the CEXs while they lend it out to others. As a result, the CEXs operate a “lending” business with an opaque balance sheet.
For example, Gemini Earn recently halted withdrawals due to the fears of DCG / Genesis Lending collapsing. By lending customer’s digital assets to Genesis, Gemini took on increased counterparty and credit risk for additional yield.
KTX.Finance (KayTeeX) — A Decentralized Perpetuals Exchange
KTX.Finance (KayTeeX) is designed and built precisely to solve these dire problems (and no, KTX.Finance has no links with FTX).
KTX.Finance (KayTeeX) is a decentralized derivatives protocol which enable traders to trade on-chain with up to 50x leverage.
KTX.Finance (KayTeeX) aims to provide traders with a CEX-like trading experience coupled with (1) Low Swap Fees (2) Fast Execution and (3) a robust & sustainable financial ecosystem.
KTX.Finance (KayTeeX) believes that the transition from CeFi to DeFi is not a matter of “if” but a matter of “when”.
A set of robust financial instruments (derivatives, market making capacities, etc.) is required for this transition. KTX.Finance (KayTeeX) aims to provide a piece of the puzzle by enabling leveraged trading on chain.
Users can participate in KTX.Finance (KayTeeX) by being either a trader or a liquidity provider.
There are two tokens to the KTX.Finance (KayTeeX) protocol: the $KLP token for trading liquidity, and the $KTC token for governance and utility.
Liquidity Providers
Using a multi-asset liquidity pool, liquidity providers (LP) can provide liquidity with any of the underlying assets in the multi-asset pool in exchange for $KLP tokens. The KLP pool will consist of 50% stablecoins ($BUSD and $USDT) and 50% blue-chip assets ($ETH, $BTC and $BNB). $KLP is essentially a liquidity receipt that represents a user’s claim to the KLP pool.
Traders
As a trader on KTX.Finance (KayTeeX), you can utilize up to 50x leverage and enjoy ZERO slippage when making spot transactions. At inception, there will be 3 BUSD trading pairs offered on the platform.
(1) $BUSD — $ETH
(2) $BUSD — $BTC
(3) $BUSD — $BNB
Unlike most other perpetual trading platforms, either centralized or decentralized, KTX.Finance (KayTeeX) distributes ALL of the trading fees to $KTX stakers (30%) and $KLP holders (70%). All of these create a flywheel to increase liquidity, margin trading volume, and fees generated by the platform.
KTX.Finance (KayTeeX) seeks to engage the general population into DeFi and takes pride in conscientiously refining and revamping traditional finance in a decentralized manner.
The lack of effective infrastructure was the biggest reason why decentralized derivative exchange adoption is still nascent but now that time has passed. KTX.Finance (KayTeeX) will overcome these blockers of high transaction costs and a lack of infrastructure by launching on the BNB smart chain. Significant amounts of revenue will be generated that can no longer be ignored compared to their centralized counterparts. With a high potential upside in this DeFi space, KTX.Finance (KayTeeX) is confident in generating substantial value to the token holders.
Conclusion
KTX.Finance (KayTeeX) aims to be a leader in the on-chain derivatives trading scene and is well-positioned to take advantage of structural tailwinds in the sector.
KTX.Finance (KayTeeX) will provide traders with a CEX-like trading experience with (1) Low Swap Fees (2) Fast Execution and (3) a robust & sustainable financial ecosystem.
Trading
No registration or account required. You can start trading immediately by simply connecting your wallet.
Referral
Invite your friends and earn from paid trading fees.
More information on KTX.Finance (KayTeeX)Testnet 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
