Recently, there have been continuous malicious attacks targeting Hyperliquid; choosing a healthy and positive decentralized derivatives platform for investment arbitrage is crucial. Today, we introduce #KiloEx, a decentralized derivatives exchange backed by Binance, currently the largest derivatives DEX in the BNB Chain ecosystem, which will soon launch at @pancakeswap TGE. Early participants in staking should remember to claim airdrops and stay tuned.
In recent years, the ratio of DEX/CEX trading volume has gradually increased, with more and more users turning to DEXs. Data from 2024 shows that the trading volume of derivatives on the top 10 CEX exchanges is four times that of spot trading, reaching 28 trillion USD. In contrast, the trading volume in the DEX field is only 0.55 trillion, less than 1/50 of CEX. Events like FTX have increased the demand for decentralized trading, and with the future improvement of AA wallets and infrastructure, decentralized derivatives DEX undoubtedly has enormous growth potential.
#KiloEx (@KiloEx_perp) is a decentralized derivatives exchange based on the BNB Chain ecosystem, aiming to provide a seamless trading experience while prioritizing user security and privacy. KiloEx has received funding from Binance Labs in the MVB VI program and has quickly grown into the largest derivatives DEX trading platform on the BSC chain.
Unlike traditional exchanges, KiloEx operates on a decentralized model without requiring KYC for users, providing traders with a freer and safer trading environment. KiloEx incentivizes users to actively participate through various innovative features, such as copy trading, trading mining, and trading competitions, creating a vibrant trading ecosystem.
Core advantages of the project
1️⃣ Good user experience
#KiloEx adopts a user-friendly interface and trading mechanism, making it easy for novice traders to get started. One of the core objectives of the platform is to lower the trading threshold, enabling more users to participate seamlessly in digital asset trading.
2️⃣ High-speed order matching
#KiloEx adopts an innovative Point-to-Pool operating model, ensuring fast order matching and liquidity provision, greatly reducing trading delays and improving user trading efficiency.
3️⃣ Low trading fees
#KiloEx's trading fees are highly competitive, at only 0.1%, well below most centralized exchanges. Effective strategies have reduced trading costs and increased user trading profits.
4️⃣ Diversified asset support
#KiloEx currently supports trading in various asset classes, including cryptocurrencies, foreign exchange, and commodities, helping users achieve asset diversification and reduce market volatility risk.
5️⃣ Cross-chain compatibility
#KiloEx is compatible with multiple blockchain networks, including opBNB and Manta, providing broader asset liquidity and enhancing user convenience for cross-chain trading.
6️⃣ Hybrid vault solution
In addition to traditional crypto assets, #KiloEx is one of the few derivatives DEXs that supports LST (Liquid Staking Tokens) offering additional returns, allowing users to stake LST in a hybrid vault and earn real returns settled in USDT.
KiloEx ecosystem introduction
1️⃣ Traders (core users)
Traders are the core users of the KiloEx platform, where they can open positions and manage trading risks through features like stop-loss and take-profit. Additionally, traders can invite friends to trade together and share profits.
2️⃣ Liquidity providers (LP)
Liquidity providers deposit funds in USDT to provide liquidity for the platform and receive kUSDT tokens in return. Liquidity providers enjoy a share of trading fees, ensuring capital utilization and profit maximization.
3️⃣ Vault
The vault acts as the counterparty for trades, bearing the profits and losses of traders and earning returns from trading fees, borrowing fees, etc. Liquidity providers can participate in vault profit distribution by holding kUSDT.
Security: DEX security is a key concern for users
#KiloEx places a strong emphasis on security and transparency. The platform employs robust security protocols and measures, such as multi-signature technology, and provides users with visibility into trading activities and fund management. The project's code has undergone multiple security audits and has partnered with Secure3, ANCILIA, and SCALEBIT to avoid vulnerabilities in smart contracts. Additionally, Binance Labs' investment has rigorously reviewed the project’s technical strength, innovation, team capability, and market potential, which undoubtedly enhances investor and user confidence.
Investment institutions
#KiloEx project has received investment from well-known institutions such as YZi Labs, Foresight Ventures, 7upDAO, Crescendo Ventures, among others, with the investment amount not yet disclosed.
Competitive analysis: Differentiation from #dYdX and #GMX
#KiloEx: Point-to-Pool model
• Utilizes a vault mechanism, allowing traders to interact with a central liquidity pool (Vault) instead of an order book.
• Profits and losses directly affect vault funds; LPs (liquidity providers) profit through trading fees and capital fees.
• Advantages: Liquidity providers can share trading income, support a broader range of assets (such as foreign exchange), and multi-chain deployment strategies enhance accessibility.
• Innovation: The 2.0 version vault introduces a 'base + buffer' mechanism to optimize risk management.
#dYdX: Order book model
• Traders place buy and sell orders, with market makers providing liquidity, similar to traditional exchanges.
• Advantages: High trading volume, operates on Cosmos SDK, strong order book depth.
• Disadvantage: Users cannot directly participate in platform liquidity pool shared earnings; TVL may be lower than GMX.
#GMX: Liquidity pool model
• Utilizes GMX liquidity pool (GLP), with LPs as counterparties, sharing trading fees with GLP holders and $GMX stakers.
• Advantages: Strong network effects, extensive DeFi ecosystem integration, mature profit-sharing model.
• Disadvantage: Asset selection may be less than KiloEx, mainly supporting Avalanche and Arbitrum.
KiloEx combines GMX's LP shared earnings and dYdX's efficient trading model, providing more flexible asset choices and decentralized liquidity management. Compared to dYdX, KiloEx is more friendly to LPs and offers a broader range of trading pairs. Compared to GMX, KiloEx optimizes risk management through a vault mechanism and supports a wider range of asset classes. Core difference: KiloEx occupies a unique position in the decentralized derivatives market through its innovative vault mechanism and multi-chain support.
Future outlook
1️⃣ Leverage trading optimization
Currently, KiloEx allows leverage from 2x to 100x, and in the future, it will further optimize the leverage mechanism to improve capital utilization efficiency.
2️⃣ Cross-chain bridge integration
KiloEx is collaborating with Stargate to integrate cross-chain bridging features, supporting cross-chain asset flow and enhancing users' asset management flexibility.
3️⃣ Expand trading pairs
Increase the introduction of more RWA assets, such as foreign exchange, commodities, and US stocks.
Summary: KiloEx, as a decentralized perpetual exchange, excels in trading experience, fee structure, liquidity support, and cross-chain compatibility. Its no-KYC trading, low trading fees, and high-speed matching mechanism give it a significant advantage in the DEX field. In the future, with the launch of cross-chain bridges, expansion of trading pairs, and other features, KiloEx is expected to occupy a more important position in the DeFi space, becoming a leader in the decentralized derivatives trading market, deserving of attention.
