Author: ZEX PR WIRE

Dubai, UAE, 12th January 2024, The cryptocurrency world is rapidly evolving, and the future of this space depends on the communication between decentralized finance (DeFi) and centralized finance (CeFi). The entire crypto industry’s course will be shaped by how those two spheres interact, adopting features, approaches, and technologies from each other or not. Moreover, the continuously changing regulatory landscape also has a big influence on the development of crypto, increasing the sense of uncertainty that grips the industry’s participants. This is why it is so intriguing to think about how these complex systems can develop and impact both the development of crypto and the evolution of traditional finance as we know it today. 

CeFi

CeFi has been a favored choice for users seeking crypto-related services for a long time. Having more control over user assets and processes, centralized exchanges and services are able to offer users a more user-friendly experience, active support, and sufficient liquidity compared to their DeFi counterparts. However, centralization that enabled many advantages poses a critical danger, particularly security risks and lack of transparency. To comply with regulations and offer fiat services freely, CeFi platforms request users to go through several identification and verification procedures, including KYC and AML. While this may help to prevent crimes, it goes against the main principles of crypto, which prioritize decentralization and privacy.

As the crypto world matures, CeFi platforms increasingly explore ways to connect with DeFi. One possible approach to this integration is through hybrid models that combine elements of DeFi to provide users with the benefits of both centralized and decentralized systems. Alternatively, creating solutions linking CeFi and DeFi is more feasible, offering users the best of both worlds. Whatever the outcome, it could improve traders’ efficiency, liquidity, and user experience.

Another exciting development in the CeFi space is the growing interest of major financial organizations in joining the blockchain space. For example, some of them are looking to tokenize traditional assets such as stocks and real estate to connect conventional financial markets with crypto. First, such a solution will help more conservative investors enter and explore the crypto market. Secondly, it allows them to attract crypto holders and encourage them to invest in more conventional assets while preserving a more decentralized approach.

DeFi

The DeFi sector has been inaccessible to many inexperienced users for a while, unlike CeFi, as it requires expertise and experience to navigate decentralized products and services successfully. However, the DeFi space has recently undergone a drastic shift, with decentralized projects working hard to make the DeFi ecosystem more user-friendly. This trend will likely continue as new, enhanced protocols and dApps emerge. Consequently, users can expect to have access to a wider variety of advanced and cutting-edge solutions.

Another vital area of development in the industry is interoperability. As the industry expands, uniting it together has never been more critical. Consequently, it will enable builders to resolve many acute issues slowing the DeFi space’s growth, including excessive gas costs, long wait times, and inadequate rates. Effective cross-chain integrations and other solutions can help projects create a more united and collaborative DeFi ecosystem, thus fostering a more robust and efficient financial system for users worldwide.

In addition, the DeFi community is currently working on addressing scalability challenges to expand the projects’ reach and allow them to handle more considerable transaction volumes. One of the solutions being explored by developers is the integration of layer-2 solutions, which can substantially increase transaction throughput and decrease fees. This approach will help the DeFi space achieve greater efficiency and speed, drawing and retaining more users in the long run. 

Regulation of Crypto

Cryptocurrencies are still largely operating outside of government control. However, it does not mean governments are not interested in regulating them. Regulators across the globe are working on legal frameworks to ensure safe and beneficial crypto transactions. However, their diverse approaches are confusing more than anything. As the cryptocurrency industry continues to expand, there is a growing need for global regulatory frameworks to tackle issues such as money laundering and fraud.

When it comes to regulations, one of the most debated topics is finding a way to safeguard users while preserving the unique qualities of the crypto industry so that it does not become just another extension of traditional finance. As such, regulators are expected to strike a balance between providing consumer protection while ensuring innovation and decentralization are not forgotten and forbidden.

Conclusion

While DeFi is pushing forward financial innovation, and CeFi is expected to incorporate decentralized elements into its operations, regulators are working on establishing frameworks that balance innovation with consumer protection and compliance. The future of finance will depend on the evolution of these three components and their ability to coexist in a complementary way. To ensure it happens and build a solid and enduring financial ecosystem, the crypto community must work closely together as the industry matures.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 10th January 2024, Decentralized finance (DeFi) projects have been experimenting with various liquidity solutions as they strive to develop more streamlined and user-friendly alternatives to traditional order book systems used on centralized exchanges. Automated market makers (AMMs) have emerged as a popular solution. However, it does not mean that they work without their challenges, which users and liquidity providers alike must take into account. Let’s look at some of them.

Pool Imbalance

The sufficient amount of available liquidity in pools and the balance between liquidity pairs are vital for successful trading using AMMs. When liquidity is imbalanced, trading crypto assets at advantageous prices and within a reasonable time becomes impossible. If pools remain imbalanced for long, the DEX system may become unreliable, provoking discontent among traders and driving them to other platforms. 

Despite the automatic rebalancing of pools by AMMs, the process can sometimes be challenging due to unfavorable market conditions and insufficient liquidity. Therefore, it is vital to exercise caution, remain aware of market trends, trade on trustworthy decentralized platforms, and leverage protective tools to guard against unfavorable conditions.

High Gas Costs

High gas fees have become a big issue for decentralized platforms due to their increasing popularity. This problem is mainly caused by the congestion and excessive demand on networks and naturally has a harmful influence on user experience. Significant delays can occur when an overwhelming demand for transactions exceeds a network’s capacity. As a result, there is a growing need to reflect on the scalability solutions currently being developed or implemented to address this problem.

In addition, high gas fees can create a sense of exclusion in the DeFi market by making it difficult for small-scale traders to participate. In some cases, trading on DEXes may be completely uneconomical for them. As a result, they may turn from the DeFi space, limited in their abilities to benefit from DeFi products and services.

Impermanent loss

Impermanent loss (IL) is another severe problem that liquidity providers constantly face. IL occurs when the value of tokens deposited in a liquidity pool diverges from one if holding them in a wallet over time. This value discrepancy makes liquidity provision risky and sometimes highly disadvantageous, worrying many liquidity providers who are thus hesitant to engage in a market with volatile conditions.

Although it is impossible to eliminate impermanent loss in pools completely, liquidity providers can take steps to reduce the risk. Some providers choose pools that offer some insurance against IL and good incentives. Others, with lesser risk tolerance, prefer staking stablecoin pairs, as their prices typically fluctuate very little, thereby considerably reducing volatility risks. However, such a tactic may also reduce profits considerably, too. 

Choosing pairs with no history of instability or high volatility is also a sound strategy to minimize IL risk. Conducting thorough research and opting for assets with a record of retaining their value is paramount. It ensures that liquidity providers can confidently offer liquidity, as they know that their investment is relatively protected against market fluctuations.

Price Slippages & MEV Attacks

Price slippages and MEV are two concealed risks of AMM that crypto users need to pay special attention to. The first refers to the difference between a trader’s expected price for an asset and the actual price of a trade. This difference arises due to the limited availability of assets in the liquidity pool. The second term (MEV) refers to the highest profit traders can obtain from manipulating transactions during block production. It is possible because AMMs make transactions public before execution, allowing so-called MEV searches to exploit transactions waiting in the mempools. 

These risks can ultimately lead to financial losses, eroding trust in the fairness of the DeFi trading environment. Traders concerned about MEV attacks and price slippage may prefer to use decentralized exchanges with advanced security measures or explore alternative trading methods that offer better protection against these risks.

Conclusion

AMMs have proven to be a valuable tool in the realm of DeFi, revolutionizing decentralized trading and offering users greater flexibility. Nonetheless, it is important to recognize the underlying problems of this approach, including issues such as IL, gas costs, MEV attacks, and others, which demand novel solutions. 

As the DeFi community navigates these problems, a concerted effort toward creating innovative, effective, and risk-free solutions will be imperative for ensuring the long-term sustainability and resilience of many DeFi platforms, not only those using AMMs. The Kinetex team supports this sentiment and is working on introducing solutions that make swapping crypto safer and more straightforward, such as the upcoming Flash Trade. 

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 9th January 2024, Completing the series of posts dedicated to the Liquidity Aggregation mode, let’s focus on the last aspect the team has not yet discussed – measures aimed at mitigating risks common during cross-chain swaps. The Kinetex team has repeatedly stressed the importance of security while developing the Liquidity Aggregation mode and following innovative solutions. Security, along with accessibility, arguably plays the utmost importance in ensuring the growth of the DeFi industry. From ensuring more stable prices to MEV protection, Kinetex employs several measures that make swapping more secure and advantageous.  

Rates & Slippage Tolerance

Managing price slippages and impacts is one of the most significant difficulties while using DeFi services. These sudden fluctuations in cryptocurrency prices can make trading assets slow-moving and unprofitable, especially for those only starting to navigate decentralized finance. In cross-chain swap scenarios without atomicity assurance, both price slippage and impact can quickly get out of hand, making things even harder.

One solution to avoid significant price changes during transfers is to detour bridges. Kinetex allows users to do so by providing direct cross-chain transactions with guaranteed rates, achieved with the help of the Kinetex atomic cross-chain protocol and integration with Hashflow. 

Such an approach eliminates concerns regarding possible dissatisfying trading results. 

The second solution is to employ slippage tolerance, a helpful tool that enables the selection of the maximum acceptable variation between a swap’s supposed and final rates. With this tool, Kintex users can narrow slippages when building routes, allowing them to better manage expectations about the pricing of transactions.

Last but not least, Kinetex assures more steady prices by prioritizing routes with intermediate assets that are either the same asset or stablecoins. If a swap fails within the set slippage tolerance, the user’s assets get fixed in the original token or a stablecoin, considerably minimizing risks related to price volatility.

Unsuccessful Transactions

Any transaction will fail if the desired slippage tolerance cannot be achieved. If transactions fail at the beginning, initial assets are returned to users. In other cases, users are given equal amounts in one of the available stablecoins. When more suitable conditions emerge, Kinetex relay nodes have time to restart failed swaps automatically. Usually, the deadline time for retrying is set at 20 minutes. 

MEV Protection

Decentralized trading is vulnerable to MEV attacks, especially during cross-chain swaps. Kinetex has taken several steps to minimize the impact of such attacks, one of them being concealing transactions from MEV searches. Relay nodes allow Kinetex to manage the publication of transactions in the mempool and prevent the details from being revealed prematurely. For that, Kinetex currently uses the Flashbots infrastructure. 

Additionally, Kinetex utilizes upgraded Swap structures. The team updated the contract to include the SwapStealth structure that only publishes the user-signed hash set of each SwapStep structure during the first transaction, while the data of the route’s each step is published successively during the swap. 

Managing Token Approvals

The last risk-related challenge is linked to token approvals. The Liquidity Aggregation mode allows users to choose between two token approval options. The first option involves a one-time approval for the amount a user wishes to swap. This approval needs to be reissued for any new swap. The second option is infinite approval, which provides access to the user’s full balance. While the first option is more secure, the second is more convenient. To ensure a safe and seamless experience, the team intends to create an interface where users can manage approval given to the Kinetex contract.

Final Thoughts

Ensuring the security of swapping in DeFi is a top priority for the Kinetex team (alongside accessibility, discussed in more detail in previous posts). By improving safety and user-friendliness within the DeFi space, projects can attract more users who may currently prefer traditional CeFi platforms. Through these efforts, the team aims to provide users with a decentralized, streamlined, secure, efficient, and empowering crypto experience while expanding the adoption of DeFi’s benefits to a broader audience.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Gurugram, India, 8th January 2024, FX Stock Token (FXST) is thrilled to announce the commencement of Round 2 of its highly anticipated airdrop campaign, marking a significant milestone in the evolution of digital finance. This airdrop is not just an opportunity for participants to join our thriving community but a chance to unlock unprecedented value and be part of a dynamic ecosystem shaping the future of decentralized finance.

The Value Proposition:

FXST Token stands at the forefront of digital finance innovation, and Round 2 of the airdrop underscores our commitment to delivering value to our growing community. Participants in the Round 2 airdrop will experience user-centric features designed to elevate their engagement and interaction with the FXST ecosystem.

Innovative Features: Round 2 introduces innovative features that enhance the user experience, providing a glimpse into the future of digital finance. From intelligent staking mechanisms to seamless integration with emerging technologies, FXST Token continues to push the boundaries of what is possible in the crypto space.

Community Growth: Participating in the Round 2 airdrop is not just about individual benefits but contributing to the overall growth of the FXST community. The more participants, the stronger and more vibrant our community becomes, fostering collaboration, knowledge-sharing, and a sense of belonging.

Exciting Rewards Await:

As participants embark on this journey with us, they can look forward to exciting rewards that go beyond the traditional airdrop offerings. The FXST Token Round 2 airdrop is designed to provide tangible incentives for active engagement and commitment to our community.

Token Bonuses: Earn additional FXST tokens by completing specific tasks outlined in the airdrop campaign. From social media interactions to referrals, participants have multiple avenues to accumulate tokens and boost their holdings.

Exclusive Access: Round 2 participants gain exclusive access to upcoming features, partnerships, and announcements within the FXST ecosystem. Stay ahead of the curve and be among the first to experience the latest developments in our digital finance journey.

Priority Participation: As the FXST ecosystem evolves, Round 2 participants will enjoy priority participation in future events, programs, and governance initiatives. This exclusive access ensures that our community members have a voice in shaping the trajectory of FX Stock Token.

How to Participate:

Participating in the FXST Token Round 2 airdrop is straightforward and accessible to everyone interested in joining our community:

1. Visit the Airdrop Page: Navigate to our official airdrop page at [Airdrop Link].
2. Complete the Tasks: Engage in the outlined tasks, from social media interactions to referrals.
3. Unlock Rewards: As you complete tasks, watch your rewards accumulate, unlocking value within the FXST ecosystem.

Join Us on the Journey:

FX Stock Token Round 2 airdrop is not just a campaign; it’s a journey towards redefining digital finance. As we unlock value together, the possibilities are endless. Join our dynamic community, be part of the future of decentralized finance, and experience the excitement of the Round 2 airdrop.

Important Date:

Fxst Airdrop Round 2

Start Date : 01/01/2024 End Date: 31/01/2024

Fxst Airdrop Distribution Date: 01/02/2024 to 05/02/2024

Follow us on social media for real-time updates and announcements:

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Join Our Telegram Group To Know More Updates about FXST Token.

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About FX Stock Token:

FX Stock Token (FXST) is a pioneering digital asset at the intersection of artificial intelligence and decentralized finance. With a commitment to innovation, transparency, and community growth, FXST Token aims to redefine the landscape of digital finance, providing users with intelligent and accessible solutions.

Disclaimer:

This press release is for informational purposes only and does not constitute an offer or solicitation to purchase or sell any security or financial instrument. The information provided is subject to change without notice and does not represent a commitment on the part of FX Stock Token.

Dubai, UAE, 29th December 2023, Overcoming the unreasonable complexity often found in DeFi products and services has been one of Kinetex’s priorities. The team quickly realized the tremendous importance of user-friendliness and simplicity when it comes to ensuring the successful future of the DeFi industry. Therefore, Kinetex has been focusing on creating solutions that are not only innovative but also effective and accessible. 

In the Liquidity Aggregation mode, the Kinetex team implemented the Kinetex Advanced Router, discussed recently, and an automation feature. Both help to simplify user experience when swapping via the Kinetex dApp, allowing even less tech-savvy users to take advantage of many opportunities DeFi has to offer. Let’s look more closely at automation in this post. 

The Significance of Automation

Despite the constant enhancements and appearance of new solutions, cross-chain technologies still have a couple of downsides, especially when dealing with complex, multi-network routes. Such routes often go through cross-chain bridges known for their high gas costs and slow processing speeds. For instance, the transfer of assets through one bridge can take anywhere from 15 to 30 minutes, depending on the technology utilized and the block confirmation time of the networks engaged in the swap. Additionally, the need for manual control can be pretty exhausting for users, as they must stay online throughout the swapping process.

Guided by a desire to enhance the efficiency and ease of use of the DeFi industry as a whole, with a special focus on cross-chain solutions, Kinetex launched an automated swap execution available on all big EVM-supporting networks such as Ethereum, BNB Smart Chain, Arbitrum, Avalanche, Polygon, and others. 

Automation is implemented through relay nodes that conduct each smart contract automatically in all supported networks. These nodes not only execute transactions but also determine gas costs, find optimal routes, and handle intermediate assets without requiring additional user input. As a result, Kinetex streamlines the swapping process, releasing users from confirming each of a swap’s steps individually.

Moreover, relay nodes can seriously enhance the security of user funds during crypto transfers. As transaction relays, they facilitate the transfer of assets to designated points and back to users’ balances, ensuring no unnecessary interactions with liquidity or account balances exist.

How Does It Work? 

When users want to start an automatic swap, they only need to grant access to the tokens they wish to swap and sign the relevant route data. Once the relay nodes receive the signature, they can take over and complete the swap on their own, allowing the users to exit the dApp without wasting time waiting. 

As previously mentioned, relay nodes will also handle gas payments, eliminating the need for users to manage native coins for gas fees. Relay nodes facilitate fee payments either by charging from the swapped assets (available for tokens supporting the EIP-2612 standard) or by offering the escrow method (in which users must make a small deposit first).

Bridge-related Challenges

It is common practice to utilize bridges that can perform a callback to the target network while the token transfer is happening. Thus, using the cross-chain messaging protocol, which can transfer liquidity and data within a single transaction, allows for sending additional swap instructions. 

However, this approach has some disadvantages. First, only certain bridges support simultaneous data and liquidity transfer. Next, this method incurs additional gas costs. Last, the entire swap route is exposed to the public, increasing predisposition to MEV attacks.

Kinetex was able to overcome those disadvantages with the automation solution. The relay nodes help interact with funds received from any bridge by transferring them to a user-owned minimal proxy smart contract and then launching the subsequent swap steps following the route signed by the user. 

To protect users from potential MEV attacks, Kinetex splits the routes into several parts, equivalent to the number of networks they consist of. As the swaps progress, each part is passed to the appropriate network. This route-splitting enables Kinetex to avoid disclosing the complete route during swap initialization.

Conclusion

The team at Kinetex has been putting in a lot of effort to ensure that their products are designed with users in mind and are easily accessible. Their first solution, Liquidity Aggregation, is a clear example of their commitment to making the DeFi space more accessible and encouraging. Since all trades made using the Liquidity Aggregation mode are executed automatically, Kinetex users are able to crypto in a more straightforward, painless, and efficient way.

As the team moves ahead with the next version of the dApp, Flash Trade, they remain dedicated to providing the best possible user experience and security.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 28th December 2023, The team at Kinetex has developed Liquidity Aggregation to tackle common challenges faced in the DeFi field. Famously, liquidity is spread out across numerous networks and pools, creating difficulties for users trying to navigate the crypto space and trade their assets in the most efficient way possible. The team has implemented a cutting-edge aggregation solution to address this problem and make accessing liquidity more effortless for everyone.

The Kinetex Aggregation brings together all the dispersed liquidity in one place, simplifying the user experience by allowing them to access everything they need in just one click. This approach saves users valuable time and effort by streamlining the complex process of managing their cryptocurrencies across blockchains.

Let’s look at the Kinetex Aggregation Protocol from a more technical perspective.  

Protocol Architecture 

The Kinetex Aggregation solution consists of four layers, each with a specific important role.

The first layer, called the Aggregation Layer, handles the task of collecting a wide range of solutions to ensure adequate liquidity for trouble-free trading of thousands of crypto assets around the clock. These solutions include DEXes, DEX aggregators, cross-chain bridges, various protocols, and more. By bringing together such diverse options, Kinetex enables users to quickly secure the necessary liquidity without ever leaving the Kinetex dApp. 

The Routing Layer creates optimal swap routes using aggregated liquidity sources. All essential data (quotes, fees, etc.) is accumulated and examined to construct the most optimal routes. Then, the Routing Layer generates data for launching the Kinetex Aggregation mode’s on-chain infrastructure. 

Moving on to the third layer, the UI Layer is responsible for the experience users receive while interacting with the Kinetex dApp. With its flexible and easy-to-use interface, users can smoothly navigate the swapping process, starting with selecting the crypto assets they wish to swap, configuring the swap parameters, viewing the route and cost details, and monitoring the swap status. 

The fourth layer in this architecture is called the Execution Layer. Its main responsibility is completing user swaps using smart contracts and the infrastructure necessary for their deployment. It is done with the assistance of Kinetex relay nodes, which run Kinetex Aggregation contracts on all supported networks. 

Main Benefits

The Kinetex Aggregation Protocol is equipped with several benefits that make it an ideal option for trading crypto. It comes with an interface that is easy to use, automated swaps execution, built-in route building, gasless flow, and continuous liquidity. Let’s focus on two main benefits that are the most interconnected with the four-layered architecture of this solution discussed above.

Firstly, Kinetex simplifies cryptocurrency transactions by utilizing relay nodes to automate their execution and estimate all gas costs associated with swaps. Thus, Kinetex eliminates the need for users to remain online during transaction execution, manage native coins for gas payments, and make fee calculations themselves.

Secondly, Kinetex has routing algorithms that analyze all available liquidity sources to build the most profitable and time-efficient routes. This feature eliminates the need for users to manually compare rates and create routes, saving them a lot of time and energy. Significantly, Kinetex’s algorithms can increase user profits further by splitting the swap and using several liquidity sources simultaneously.

Final Thoughts

Kinetex’s Aggregation Protocol achieved exceptional efficiency and accessibility thanks to its four-layered architecture. It allowed Kinetex to address some of the most common issues users encounter while using DeFi products and services. For instance, it helped simplify complex interfaces that are often too challenging for ordinary users and enabled Kinetex to overcome the problem of insufficient liquidity often spread out across blockchains. Lastly, the intricate swap process that usually poses a challenge to users was made more straightforward, thanks to relay nodes.

While users enjoy swapping with Kinetex’s Liquidity Aggregation mode, the team is preparing to launch Flash Trade soon. It is an innovative solution from Kinetex that offers a new crypto trading approach.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 19th December 2023, Throughout the history of the cryptocurrency industry, liquidity has been a topic of intense discussion, with numerous debates surrounding the associated challenges and potential solutions. This issue has been particularly contentious within the DeFi sector, as it has long been in competition with centralized exchanges (CEXes) and other centralized solutions for users. These users were initially drawn to CeFi for various reasons, including accessibility, making it difficult for DeFi to attract and retain them.

Liquidity pools were created to overcome the limitations of order books, which are almost exclusive to centralized platforms. The order books consist of buy and sell orders, and centralized exchanges employ market makers to ensure sufficient liquidity at any point. This approach has been criticized for inefficiency, centralization, and the power it gives to exchanges as middlemen between users. 

The model using automated market makers (AMMs) and liquidity pools was developed to maintain the main crypto principle during trading: decentralization. Such an approach enables a steady swapping experience that relies less on other traders because it utilizes assets provided by crypto holders instead. As a result, it allows for trading or, in the case of lending protocols, lending 24/7. 

With advances in the DeFi industry’s developments, liquidity pools evolve too. For example, some projects are building multi-token pools that can simultaneously hold more than one pair.

Maintaining Pool Balance

The constant observation and balance maintenance of liquidity pools is crucial, which is where AMMs come in. Initially, each liquidity pool begins with a predetermined asset ratio, and users must deposit funds in a specific proportion to not destroy it.

AMMs use specialized formulas that ensure asset prices stay balanced by adjusting the ratio of the two assets as users trade against the liquidity pool. This automatic price adjustment helps maintain liquidity and reduce possible slippages.

Such formulas can vary depending on the project’s goals and market conditions. This flexibility is necessary as market conditions and user behavior tend to change a lot, occasionally leading to significant pool imbalances. In these cases, AMMs must be able to adjust quickly by, for instance, relocating liquidity to different pools or optimizing pools in other ways to adapt to ever-changing market demands.

Liquidity Providers

The smooth functioning of liquidity pools depends on two key components: AMMs, which we touched upon earlier, and liquidity providers. As the name suggests, the latter refers to individuals or entities providing liquidity, mainly to pools. 

Liquidity providers play a crucial role in maintaining the pool operation and bear all the risks associated with changes in asset prices, such as impermanent loss. Therefore, projects must offer different incentives, including LP tokens or a share of trading fees, to encourage them to place their assets in pools despite all potential risks.

Role in DeFi

Liquidity pools enable users to swap crypto assets quickly and around the clock, regardless of the demand for particular assets or active hours, which affect trading on some centralized exchanges. 

From the providers’ point of view, liquidity pools are very advantageous, too, as they provide opportunities for passive income. By participating in the provision of liquidity to pools, also called yield farming, individuals can sustain cryptocurrency trading across networks and make a profit.

Lastly, liquidity pools have a significant role in supporting lending protocols that allow borrowers to access crypto assets they require and lenders to earn from lending their assets. By consolidating funds from various parties, liquidity pools allow traders without considerable funds to engage in trading, promoting the overall development of the DeFi industry.

Final Thoughts

Liquidity pools are an integral part of the DeFi ecosystem and play a critical role in enabling a wide range of financial transactions, including lending, borrowing, and trading. However, despite their benefits, liquidity pools can also pose notable risks, such as frequent hacker attacks or impermanent losses. These risks can result in substantial financial losses for users, which is why many DeFi projects, including Kinetex, are actively researching and developing methods to mitigate these risks and eliminate vulnerabilities associated with liquidity pools.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 15th December 2023, The Kinetex team would like to talk more about Kinetex’s first solution – Liquidity Aggregation – as the launch of Flash Trade approaches. This solution was created to address the challenges faced in DeFi, especially when exchanging assets across different blockchains.

DeFi poses a significant liquidity challenge because liquidity is spread across multiple pools that cannot be accessed simultaneously. Finding enough liquidity, sometimes even for small transactions, can take a lot of time and effort. Moreover, each pool has different prices, and when combined with high volatility, it can lead to losses during multi-part swaps. Therefore, the need for a universal and user-friendly solution for cross-chain asset swaps in DeFi is as evident as ever. Its absence causes several problems, including unfavorable swap rates and increased price slippage, which may discourage users from participating in the market.

Kinetex Advantages

Kinetex offers a solution for users to find liquidity quickly and easily, addressing common concerns. The platform has a simplified and user-friendly interface that ensures accessibility for users with varying levels of experience. This way, Kinetex helps to make DeFi more inclusive and user-friendly.

Kinetex has introduced two unique features that simplify crypto transactions for users; both are made possible through relay nodes. They calculate gas costs and manage user transactions automatically, including assisting with gas payments. As a result, users do not need to worry about native coins or stay online throughout the execution of transactions. With these features, Kinetex makes crypto transactions genuinely easy and painless.

Kinetex’s approach to ensuring adequate liquidity is another key characteristic that sets it apart from other solutions on the market. The team has worked towards creating “infinite liquidity” by aggregating hundreds of liquidity sources, including bridges, DEX aggregators, and protocols. Such an approach allows Kinetex to construct beneficial swap routes at any time of the day or night rather than attempting to generate new liquidity within the platform.

Kinetex, as a meta multi-chain aggregator, can avoid deteriorating liquidity conditions across chains by choosing not to create new wrapped tokens. Wrapping leads to fragmented liquidity and frozen liquidity. The first phenomenon occurs when one asset is wrapped on multiple networks, causing liquidity to be divided between those networks. Apart from that, wrapped tokens also have significant security risks as they often become targets of hackers. Thus, minimizing work with wrapped tokens makes Kinetex more secure and contributes to a healthier liquidity environment.

The last advantage is algorithms, which Kinetex has integrated to automatically explore and analyze all liquidity sources and create the most cost-effective and time-efficient routes. As a result, Kinetex enables its users to swap numerous crypto assets profitably without the hassle of manually searching and comparing different platforms.

Liquidity Sources

Kinetex aggregates hundreds of sources of liquidity, including DEX aggregators, protocols, market makers’ liquidity, etc. It creates an extensive liquidity ecosystem, enabling users to find various swap options in one place. The team works to integrate more liquidity sources based on community requirements.

Conclusion

Liquidity Aggregation mode enables access to a large number of liquidity sources through a single user-friendly interface, greatly enhanced by automation and gasless flow. This mode allowed Kinetex to improve trading efficiency and reduce the time and costs needed for trading crypto, particularly cross-chain. Stay tuned for more in-depth posts regarding this mode in the following weeks.

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Dubai, UAE, 14th December 2023, The volatility of cryptocurrencies is widely recognized. Even tiny fluctuations in demand can result in considerable price changes, and any liquidity shortage is quickly detected and discussed. Large outflows of traders and subsequent reductions in liquidity can have serious consequences, even for the most popular cryptocurrencies.

Another issue is the current state of the blockchain universe, which is still quite fragmented and disconnected. As the blockchain ecosystem becomes more diverse, liquidity becomes more dispersed and less attainable.

Despite the introduction of more sophisticated solutions on the market, liquidity issues persist. So, what are the most prevalent liquidity problems, and are there any potential solutions? 

Liquidity Problems on CEXes 

Centralized cryptocurrency exchanges (CEXes) rely on order books to match buyers and sellers of digital assets. However, they may sometimes face a problem known as a thin order book. This issue arises when the number of buy and sell orders is inadequate to facilitate a smooth trading experience. As a result, users may experience increased volatility and price slippage, making it difficult to execute large orders without significantly affecting market prices.

CEXes implement various strategies to address the problem of thin order books. For instance, they may offer maker rebates or a share of user fees to motivate market makers to maintain trading. Another possible solution is to use market-making bots to enhance order book depth.

The second problem associated with liquidity on CEXes is known as wash trading. It is a market manipulation tactic that helps to create an illusion of high liquidity and boost prices, attracting interest from other traders. 

It is worth noting that malicious, greed-driven traders are not the only ones engaging in this practice. Crypto exchanges themselves may also use wash trading to inflate their trading volumes, making themselves seem more liquid and robust. While blockchain analytics can help identify wash-trading activities, it can be challenging for novice users.

Liquidity Problems on DEXes

Decentralized exchanges (DEXes) work with automated market makers (AMMs), which use liquidity pools and rely on liquidity providers to supply those pools. Still, DEXes struggle with lower trading volumes, especially compared to the biggest CEXes.

The inability to attract and retain enough liquidity providers is one of the leading causes of liquidity problems on decentralized platforms. Liquidity providers are selective and tend to withdraw their funds if they get better conditions elsewhere. Moreover, they are cautious about impermanent loss, which may discourage some liquidity providers. 

To draw enough providers and prevent possible losses, which can demotivate them, DEXes and other DeFi projects offer different incentives, competing to provide the best conditions. 

Exchange Dependency

At times, the liquidity of some crypto assets can become heavily reliant on only a select few exchanges, resulting in exchange dependency. Because a considerable portion of trading takes place on these few platforms, issues on even one of them can lead to a liquidity crisis.

However, the increasing popularity of DEXes and other DeFi solutions can help to diversify and expand the number of platforms that support crypto assets, thereby mitigating the risks associated with this severe vulnerability.

Liquidity Fragmentation & Frozen Liquidity

Fragmentation of liquidity is the next concern that greatly impacts crypto liquidity across the crypto market. Since the same assets are traded on many exchanges and in different pairs, liquidity spreads throughout platforms, complicating users’ search for sufficient liquidity.

In some cases, fragmentation extends beyond different platforms, as the same assets are also traded across blockchains through cross-chain bridges that wrap tokens and enable users to use them on other chains. As the wrapping process involves locking original assets in smart contracts (or burning them in some cases), it can notably reduce liquidity over time.

Another issue, also connected to cross-chain bridges but not exclusively, is frozen liquidity. This term refers to liquidity that is locked and thus cannot be actively used in trading activities, also negatively impacting available liquidity.

One of the solutions for such issues is aggregation and interoperability protocols. These protocols pool liquidity from different sources to offer users a more straightforward and efficient trading experience.

Final Thoughts

As the cryptocurrency industry continues to expand and develop, it is crucial to address liquidity concerns for the sake of its long-term sustainability and growth. This way, the crypto community can ensure a wider adoption of crypto assets and decentralized solutions globally.

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Dubai, UAE, 13th December 2023, With the launch of Flash Trade just around the corner, Kinetex’s co-founders, Tigran Bolshoi and Mike Shishko, engaged in a short yet detailed discussion about their first product – Liquidity Aggregation. They delved into the inspiration that led them to develop this inventive solution and how it facilitated more convenient cross-chain swaps.

The interview started with the co-founders talking about the story behind the Liquidity Aggregation mode of the Kinetex dApp. This mode was mainly inspired by the co-founders’ personal experiences with crypto trading. Along with many other crypto users, they struggled with excessively long execution times and many gas fees. Additionally, they had to spend time searching for a platform with reasonable rates and ensuring they had enough native assets for gas payments. While this may seem like a minor issue for someone who makes transactions once a month, it can be irritating and discouraging for someone who wants to trade frequently.

Shishko supported this sentiment, adding that the thought that they were not the only ones who found trading too time-consuming and ineffective had increased their motivation to move forward and create a new solution. 

When asked to pinpoint the main problems addressed through the Liquidity Aggregation mode, Shishko explained that the team focused on tackling one of the most pressing challenges in the industry – finding adequate liquidity. Therefore, they developed a meta multi-chain aggregator that allows users to access sufficient liquidity for thousands of crypto assets. By aggregating DEX aggregators and cross-chain protocols, they were able to maximize available liquidity across many blockchains.

Bolshoi also highlighted the automation feature, which made the swap process more straightforward for users. The feature was presented early on, providing users with an opportunity to enjoy an effortless swap experience. Users only had to sign the transaction once and could leave without worrying whether each step would be completed. Automation is possible due to the network of relay nodes that execute each smart contract automatically in every network.

Another aspect contributing to the streamlining of the swap experience is gasless flow. Swapping cryptocurrencies has always been challenging due to the need to calculate the right amount of gas, store it, and manage multiple wallets. It requires a certain level of expertise to understand the details involved. To solve this problem, Kinetex created a Gasless solution that allows users to pay for gas effortlessly, even if they do not have the native coins required. The first version of the solution enabled users to pay for gas with any permit token, while the improved version allowed them to pay for gas with any supported token using the escrow approach. 

Next, Shishko and Bolshoi discussed the importance of approvals in Kinetex’s Liquidity Aggregation. Shishko explained that approvals help to ensure that only authorized individuals have access to tokens, which is crucial for ensuring the security of funds. They also allow users to monitor the usage of their tokens and detect any suspicious activity. 

Bolshoi explained that Kinetex Aggregation provides two options for token allowance: a one-time approval and an infinite approval. While it is recommended to use the first option since it offers better security by not granting access to the entire token balance in the user’s wallet, infinite approvals have the advantage of higher convenience by eliminating the need for users to reissue approvals each time they want to make a transaction. Besides, the infinite approach can help users save on gas costs by reducing the actions required in the Metamask wallet.

Lastly, when discussing their feelings regarding Liquidity Aggregation and Kinetex’s plans, Bolshoi proudly said they have created an amazing product that enables users to swap cryptocurrencies quickly and effortlessly, which is exactly what they wanted. However, the team continues working to make cross-chain even more accessible and efficient.

Shishko agreed with Bolshoi and mentioned Flash Trade, Kinetex’s upcoming innovation. It will offer an entirely different approach to swapping cryptocurrencies, allowing direct trades between Kinetex users and a network of professional market makers known as resolvers. The solution will provide the most satisfactory rates, quick execution times, and a seamless user experience. 

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The current crypto world is still fragmented. The abundance of platforms and liquidity pools and a lack of seamless connections constantly supply users with many arbitrage opportunities.

Dubai, UAE, 9th December 2023, By enhancing bots and creating more complex trading strategies, arbitrageurs have been able to open a new area for trading — cross-domain. So, what is it exactly? Let’s take a closer look.

Cross-domain Arbitrage & MEV

Cross-domain arbitrage involves exploiting price differences for the same asset across different domains, which may include blockchains, layer-2 networks, side-chains, centralized exchanges, and any other entities with relatively separated liquidity. This type of trading overlaps with cross-exchange and cross-chain arbitrages that take advantage of price differences between different exchanges and chains, allowing for greater flexibility than standard trading.

Cross-domain arbitrage is often linked with MEV, which enables traders to enhance their profits by creating more intricate trading strategies. MEV, which stands for Maximum Extractable Value, has a significant impact on the security and impartiality of blockchain networks. It is made feasible by the existence of mempools, where transactions wait to be verified and confirmed. Since mempools are public and the order of transaction validation is not predetermined, traders can scrutinize transactions and use strategically placed orders to gain profits.

Arbitrageurs look for transactions that can impact the price of particular assets, opening opportunities for arbitrage trading across platforms. They place their trades before, after, and on both sides of a target transaction to take advantage of possible price movements, thus engaging in so-called MEV attacks.

For instance, such an MEV attack as back-running involves placing a transaction immediately after the target transaction. This way, a trader can take advantage of price fluctuations caused by the target transaction and increase profits by trading across domains. This MEV tactic is relatively harmless because it does not cause any harm to the target transaction and the user who placed it. However, front-running, sandwiching, and suppression are other types of MEV tactics that can seriously affect the execution of user orders and their cost-effectiveness. Nevertheless, these tactics are widely used by traders, who also employ bots to automate and optimize their strategies for maximum profit and flash loans to find extra liquidity.

Cross-domain Challenges

Making a substantial profit through cross-domain arbitrage is possible, but it entails numerous challenges and risks. One of the most significant obstacles is the absence of cross-chain atomicity, which severely restricts the potential for cross-domain arbitrage. Cross-chain atomicity refers to the capability to execute a transaction that involves multiple blockchain networks without intermediaries and in a way that guarantees the full completion or cancellation of the transaction. This aspect is critical for the efficient execution of cross-domain arbitrage. 

Moreover, transferring assets between different domains can be time-consuming and expensive, presenting another challenge traders should be mindful of. Such costs can seriously impact their margins, and even using bots can only partially prevent mistakes.

Lastly, arbitrage bots are critical in the crypto market as they exceed humans’ abilities to find opportunities, analyze market conditions, and rapidly execute trades. However, operating bots is a complex task that requires understanding the technical side and having a good grasp of how the crypto market works. Over-reliance on bots can lead to substantial losses, so it is essential for arbitrageurs to carefully evaluate the potential risks before participating.

Conclusion

Cross-domain arbitrage trading opens up a whole new area of potential profit but also requires creating new, more advanced solutions. Although such solutions (for instance, decentralized multi-chain block production) are being explored by researchers and developers, achieving cross-chain atomicity remains a lofty goal for current traders. Nevertheless, there is optimism that it will become more attainable in the near future.

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Dubai, UAE, 9th December 2023, Liquidity rebalancing in crypto refers to changing the ratio of crypto assets. Such changes might be necessary for several reasons. For example, traders may end up with assets they do not want to store for a long time, or a cross-chain bridge’s multi-chain pool might become unbalanced, struggling to keep up a seamless operation. In both cases, liquidity rebalancing can help return the proper ratio of assets, thus stabilizing the system. 

Personal Portfolio Rebalancing

Periodically, it is important to review and adjust the allocation of your crypto investments to maintain the asset ratio that supports your chosen investing strategy. It can be risky to have too much of your portfolio invested in one cryptocurrency, especially if its value has increased significantly. Rebalancing by selling some of the cryptocurrency and investing in others can help you minimize risk and maximize returns over the long term.

Since the crypto market is highly volatile, and portfolio rebalancing may be required more frequently than expected, crypto owners can benefit from using bots to manage the rebalancing process more efficiently.

There are different methods for rebalancing your investment portfolio, each with advantages and disadvantages. The most popular methods are Threshold Portfolio Rebalancing, Constant Proportion Portfolio Insurance (CPPI), and Periodic Crypto Rebalancing.

Rebalancing in Arbitrage and Market-making

Rebalancing is a crucial part of arbitrage trading and market-making. During a trading session, the balance of assets constantly changes. Depending on a chosen arbitrage strategy, a trader buys and sells crypto assets to fix profits and balance assets across networks following the used strategy or emerging profit opportunity. For that, traders use various exchange platforms to trade assets, including CEXes, DEXes, platforms allowing P2P trading, etc., making sure that rebalancing does not swallow a significant portion of profits. 

The process of liquidity rebalancing for market-making is similar in principle. Some market makers and traders prefer manual rebalancing, while others use software to speed up the process and maximize profits.

Rebalancing of Liquidity Pools

Another area where liquidity rebalancing is essential is in liquidity pools used by decentralized exchanges (DEXes), cross-chain bridges, lending protocols, etc. Constant trading challenges the pool’s balance, sometimes leading to liquidity imbalances, especially when there is too much one-sided demand for a particular asset. Such pools are often optimized automatically using formulas that each project creates. 

Conclusion

Liquidity rebalancing is crucial for efficient markets and preventing disruptions. It is vital for maintaining healthy DeFi markets and ensuring portfolio sustainability.

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Dubai, UAE, 6th December 2023, Kinetex’s Tigran Bolshoi and Venom Foundation’s CCO, Faraj Abutalibov, had a conversation at the Genesis XBT Crypto Conference last month. During their discussion, they covered several aspects, including common cross-chain problems, the innovative approach the Kinetex team is working on, and the team’s plans. 

Initially, Bolshoi and Abutalibov discussed some of DeFi users’ primary challenges, such as security, prices, and poor UX. Among the most significant security challenges are the need to trust third-party validators and the constant risk of depreciation of wrapped tokens, which can severely impact users. Additionally, there are non-guaranteed rates and price slippages. Lastly, there is the issue of poor user experience, which discourages many users from trying decentralized services.

Next, Bolshoi expressed his opinion on cross-chain bridges, pointing out several issues they create, such as security concerns related to wrapped tokens and the high cost of using bridges, sometimes including up to nine fees and commissions. In addition, Bolshoi stressed the complexity of finding liquidity and suitable bridges, which can take a lot of time, even for experienced users.

While discussing possible solutions, Bolshoi suggested that intents are the way forward, as they allow users to delegate their requests in a decentralized manner. Kinetex proposes a decentralized solution in the form of a network of professional resolvers motivated to compete for users and their orders, executing them according to the conditions that users define at the beginning. This way, Kinetex can provide users with guaranteed rates and gasless flow, thus solving many issues discussed at the beginning of the interview. 

Toward the end of the discussion, Abutalibov inquired about the Kinetex team’s plans. Bolshoi responded by stating that Bitcoin usually sets the pace for the market. So, the team is currently dedicating its efforts towards developing a specialized solution for DeFi — Zk light clients for Bitcoin. In addition, the team is also exploring the possibility of enabling instant and commission-free swaps for stablecoins, which can be of great interest to many users.

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Excellent news from Kinetex! 

Dubai, UAE, 6th December 2023, The team is happy to announce integration with Connext, a modular interoperability protocol that securely passes data and funds between chains. 

As the crypto world grows and evolves, understanding new technologies and choosing among thousands of services becomes increasingly difficult. The Kinetex team made it their goal to make crypto more user-friendly by designing cross-chain solutions that are both straightforward and efficient. Liquidity Aggregation is one solution that makes trading easy by uniting liquidity from tens of protocols, including Connext, in a single point. With this mode, users can transfer their crypto assets between networks quickly and at advantageous prices while enjoying a streamlined user experience. 

Connext places a high priority on security and aims to minimize the trust that users have to put in third parties. The project’s architecture underwent comprehensive audits to ensure the achievement of these goals. Moreover, the team does not stop there; they stay in close contact with the security community, always eager to keep up-to-date with the latest developments in this field. 

Kinetex co-founder Tigran Bolshoi stated that integrating Connext is a significant step towards creating a unified and interconnected DeFi ecosystem while promoting decentralization, which helps to balance power between big crypto companies and users and enhance provided solutions. Moreover, Connext’s focus on prioritizing the security of cross-chain transactions aligns with the values of Kinetex’s team, making it a perfect match. Therefore, by including liquidity provided by Connext, Kinetex can expand the liquidity coverage of the Kineetx dApp without compromising its security or simplicity of use.

The Kinetex team highly values the support of promising and respected DeFi projects like Connext and is happy to work together towards building technologies and solutions that can positively transform the DeFi future. 

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Dubai, UAE, 30th November 2023, DeFi traders have many arbitrage opportunities thanks to the rising popularity of the industry. Unlike trading on centralized exchanges, DeFi trading offers advantages such as improved privacy, lower fees, access to flash loans, etc. Let’s explore various crypto arbitrage, potential risks, and such a valuable tool as a flash loan.

Popular Arbitrage Strategies

Arbitrage trading utilizes various strategies, one of which is cross-exchange arbitrage. It involves buying cryptocurrency on one exchange and selling it on another to make a profit. Exchanges can be placed in different countries or time zones, leveraging differences in supply and demand across the world. Alternatively, traders can combine decentralized and centralized exchanges to find more opportunities. 

The second popular strategy is triangular arbitrage, which exploits pricing inefficiencies between three cryptocurrencies instead of two. This strategy is more complicated and requires traders to accurately estimate their potential profits before taking action, even more than cross-exchange arbitrage. 

The third popular strategy is cross-domain arbitrage (In crypto, domains mean separate entities, such as exchanges, side-chains, L2 networks, blockchains., etc.). This type of trading is closely linked to the concept of MEV — traders who work as validators engage in the practice of manipulating transactions to earn as much as possible. 

Flash Loans

Suppose two exchanges sell the same token at different prices. Any trader can buy the token from one exchange and sell it on another, earning a profit. Since price differences are often tiny, profit largely depends on the trading amount. Since not all traders have thousands of dollars on their hands, flash loans can help them take advantage of a good profit opportunity, even without significant funds. 

Flash loans let a user borrow assets with no upfront collateral as long as the borrowed assets are paid back within the same blockchain transaction. Such loans offer many possibilities to traders engaged in arbitrage, yet they have one major downside: technical complexity. Flash loans can be quite challenging to execute since they require advanced technical knowledge that is often beyond the scope of regular traders. Furthermore, automated arbitrage bots have dominated the flash loan market, making it even more difficult for not-advanced traders to find profitable opportunities.

Potential Risks

Arbitrage trading involves several risks, such as excessive fees, time delays, and problems related to arbitrage bots. To mitigate these risks, traders can limit their activities to exchanges with reasonable fees, deposit funds on multiple exchanges to diversify platforms they can quickly use, consider all possible delays, and take time to learn how to work with bots most efficiently and securely. 

Conclusion

It is essential to have a comprehensive understanding of the market, its risks, and opportunities when engaging in DeFi arbitrage. It involves an analytical approach to assessing the market state, identifying potential opportunities, executing trades at the right time, and acquiring enough knowledge to operate bots. Moreover, staying up to date with the latest developments in the DeFi space can offer insights into emerging opportunities for arbitrage. 

With all this in mind, DeFi arbitrage presents a lucrative opportunity for those willing to learn, devise strategies, and assume responsibility for potential risks.

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Dubai, UAE, 30th November 2023, Kinetex dApp offers two modes of operation: Liquidity Aggregation and Flash Trade. These two modes of operation are a testament to the Kinetex team’s commitment to providing users with a comprehensive and user-friendly platform that can cover their crypto trading needs.

Liquidity Aggregation mode addresses the liquidity struggles that have plagued the DeFi industry for some time. With liquidity concentrated on popular centralized platforms, decentralized projects have struggled to provide enough liquidity for seamless operation. 

Kinetex has solved this issue by aggregating over 400 liquidity sources, including DEXes, DEX aggregators, cross-chain bridges, and protocols. Additionally, Kinetex has created a network of relay nodes to automate the swap process, making the app more user-friendly and efficient. 

Flash Trade mode, on the other hand, approaches cross-chain from a completely different angle. It solves several industry problems, including expensive gas fees, long execution times, and MEV attacks, by enabling direct trades between users and professional market makers. 

Let’s compare those two modes by looking at their approach to liquidity, speed, rates, asset and network coverage, and gas payments. 

Comparison

Kinetex users can access close to infinite liquidity through Liquidity Aggregation and Flash Trade. The former mode provides a way to aggregate liquidity across chains, while the latter relies on market makers, called resolvers in the Kinetex ecosystem, to offer sufficient liquidity to users. Resolvers can search for and compare liquidity from CeFi and DeFi platforms or even use their own funds.

Speed-wise, Flash Trade enables instantaneous swaps directly with market makers. If a swap exceeds 2 minutes due to some complications on a resolver’s side, a liquidation system is triggered to complete an order. 

Users can enjoy favorable rates in both modes. Liquidity Aggregation provides one of the best rates on the market thanks to search algorithms that automatically build optimal routes using aggregated liquidity sources. There is also the ability to modify slippage tolerance to suit user requirements. In Flash Trade, advantageous rates are possible due to the big competition among resolvers, which motivates them to offer better prices. 

Kinetex supports over 5,000 crypto assets across eight networks in the Liquidity Aggregation mode. In Flash Trade mode, liquidity depends on resolvers, which can source liquidity across DeFi and CeFi. 

Kinetex offers a gasless flow for both modes. In Liquidity Aggregation, users can pay gas fees using Universal Gasless. In Flash Trade, resolvers handle all gas payments for a more straightforward swap experience.

Conclusion

In summary, Liquidity Aggregation and Flash Trade are two modes that offer significant improvements to the crypto user experience. Despite the completely different approaches to executing transactions, these modes have a lot in common: they are designed to make swapping crypto more effortless and efficient for all users.

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Dubai, UAE, 30th November 2023, Kinetex co-founder Tigran Bolshoi finished the chain of his performances at different Devconnect events in Istanbul with the Cross-chain Interoperability Alliance Roundtable. There, he participated in discussions of ways to achieve cross-chain interoperability by creating innovative solutions that can help to make trading between chains more user-friendly and cost-effective. This way, the blockchain community can ensure the efficiency and successful adoption of DeFi.

Additionally, Bolshoi had a chance to present Kinetex’s new resolving approach and intents in a more informal setting with industry leaders who share Kinetex’s vision of a secure, collaborative, and innovation-driven decentralized future.

Initially, Bolshoi pointed out the challenges that cross-chain interoperability faces, such as safety concerns, poor user experience, and excessive gas payments and fees. Firstly, the two main factors that can compromise the security of cross-chain orders are the reliance on third-party validators and the use of wrapped tokens. While the former can be compromised, the latter causes liquidity fragmentation and insufficiency, worsening the stability of the crypto market. Secondly, inexperienced users are discouraged by poor user experience and long execution periods. Users are regularly taken aback by the number of actions that must be done during cross-chain transfers and forced to return to more user-friendly centralized services. Thirdly, cross-chain trades are often disadvantageous cost-wise due to excessive gas payments and fees.

Bolshoi showed a new approach based on intents and resolvers designed to overcome the problems mentioned above. The Zk light clients presented by Kinetex at the ETHGlobal hackathon this year help to enable instantaneous swaps between users and resolvers, eliminating the need to rely on third-party validators, use cross-chain bridges, and pay excessive gas fees. Moreover, the use of intents shifts all responsibility to the resolvers, allowing for more flexibility when completing orders. 

Bolshoi and the rest of the team were glad to participate in such a motivating event and discuss solutions that can positively affect the future of the crypto industry and DeFi in particular. 

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Dubai, UAE, 28th November 2023, Zero-knowledge technology (Zk) has the potential to revolutionize many areas where privacy and security are paramount. Specifically, Zk proofs are becoming increasingly popular in applications that require identity verification. Zero-knowledge identity (Zk-ID) is an innovative approach that provides a secure and trustworthy way for users to authenticate themselves without disclosing any personal data that hackers often seek. This way, users will not need to disclose such sensitive information as login credentials, personal identification numbers, biometric information, etc. 

Zk-ID can lead to a rethinking of how digital identities will be managed in the near future as more and more users start to interact with multiple applications on a daily basis, particularly fintech ones. By allowing users to confirm their identities without exposing sensitive information, Zk-IDs will considerably reduce the risk of identity theft and fraud.

“With its ability to provide robust identity verification while maintaining user privacy, Zk-ID has the potential to transform the way we interact with digital services and applications.”- Mike Shishko, co-founder of Kinetex, noted.

The Kinetex team has been exploring Zk’s potential throughout this year, both in Kinetex developments and at international hackathons in Europe. At ETHDam in Amsterdam, Mike Shishko and Tigran Bolshoi, another Kinetex co-founder, presented a concept for a Sybil-resistant NFT marketplace and launchpad. This concept was awarded by 1inch Network and Sismo, two notable DeFi projects, with the latter being a privacy-preserving protocol based on Zk. 

In a short interview given after the ETHDam, Shishko expressed their fascination, stating that this technology can bring immense value to all decentralized products, including Kinetex. Zk can help the DeFi project to provide robust verification and identification systems while preserving user privacy, which is highly valued by many crypto enthusiasts. Moreover, it is arguably one of the most defining qualities of crypto, which has been hard to maintain. 

Bolshoi agreed with Shishko that introducing Zk can offer the privacy and security the crypto community has long sought. For example, thanks to Zk technology, Kinetex can create efficient and truly decentralized products without compromising user safety. The team is currently working on incorporating Zk technology in the new Kinetex mode, Flash Trade, which will provide enhanced security and gas optimization. Furthermore, Bolshoi and Shishko plan to continue developing Zk-based solutions to expand the technology’s use in Kinetex, including identity management.

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Dubai, UAE, 27th November 2023, Kinetex’s latest innovation, Flash Trade, will provide a highly efficient and secure environment for trading cross-chain. The Flash Trade protocol depends on four participants: resolver, worker, liquidator, and user, where resolvers and liquidators work together to ensure the guaranteed execution of all user orders.

While liquidators focus on expired orders, resolvers help to maintain the smooth swap experience. They are responsible for various critical tasks, such as setting swap rates, finding liquidity to complete orders, making gas payments, etc.

Resolvers are expected to be professional market makers with a deep understanding of the market who can analyze it, predict possible trends and adapt to them, develop effective trading strategies, and manage their own collateral. Additionally, they must be skilled enough to supply and maintain adequate liquidity, rebalance assets if needed, and have a comprehensive risk management plan to succeed in this role and make a profit. Therefore, this role is challenging and unsuitable for beginners.

Resolvers & Swap Process

The swap process involves four steps that resolvers need to follow. The first step is depositing collateral, which is necessary to protect users’ funds during swaps. Upon receiving a resolver’s deposit, CollateralManager updates its records, including the total collateral amount it currently holds and the amount of unlocked collateral. Each time a new deposit is made, the CollateralManager updates its records. If the resolver fails to process a transaction correctly, the collateral deposit ensures the order’s execution by liquidators (read more about liquidators in this post). Note that resolvers have a maximum 2-minute window to finalize each order.

The second step is order filling. Firstly, resolvers provide rates for user requests, competing to offer better deals. If the user agrees to a rate and there is enough collateral, a resolver can confirm the order. If the collateral is insufficient, it will not be able to proceed. After successfully confirming the order and receiving the order asset in the initial blockchain, the resolver fills the order in the destination blockchain. Since resolvers complete orders, they are responsible for paying gas fees on their part, maintaining a gasless flow for users.

The third step is unlocking collateral after the successful order filling. The resolver confirms that the order has been appropriately filled with the CollateralManager, and the latter checks if it is accurate or reverts the transaction otherwise. If everything is in order, the CollateralManager adds the collateral amount locked for this order back to the rest of the resolver’s collateral.

The last possible step is collateral withdrawal. The resolver can request it back if needed for any reason. The CollateralManager checks to ensure the amount being withdrawn does not exceed the amount of locked collateral still used for filling ongoing orders. If it does not, the resolver receives its collateral back; if it does, the withdrawal is rejected.

Collateral & Liquidation

As mentioned above, collateral helps ensure user funds’ security and the trouble-free swap experience. It motivates resolvers to fill orders promptly and also keeps away individuals with malicious intent. However, there is still a chance of something going wrong. This is where liquidation comes into play.

Liquidation is another process essential for the security of the Kinetex ecosystem. It allows unfilled orders to be completed and users to receive the assets they want, even if resolvers cannot complete orders for some reason. If an order reaches its timeout and expires uncompleted, liquidators (another of the Flash Trade protocol participants) can fill it instead. They transfer users their desired assets and can claim collateral allocated for those orders by resolvers in return.

Such an approach creates a resilient model that enhances the system’s security, where everyone is motivated to perform their duties to the best of their abilities.

Smart Bots

Smart bots will be one of the features that resolvers will be able to use to streamline and improve their trading experience in Flash Trade. Resolvers will be able to create unique trading strategies, helping to maximize profits from the resolving process. By doing so, they will be able to support the Flash Trade’s operation, provide users with the most beneficial rates and fastest execution times, and take advantage of available profit opportunities.

Final Thoughts

Kinetex’s latest innovation, Flash Trade, provides a highly secure and efficient environment for crypto swapping, and resolvers play a vital role in the process. They take all responsibility for executing swaps, including providing rates, finding liquidity, ensuring gasless flow, etc. Through collateral, resolvers are motivated to complete orders diligently and quickly, freeing users from worrying about delays or technical issues and allowing them to focus on the various possibilities offered by the DeFi industry instead. By doing so, Kinetex offers a new approach to handling swaps, which is more reliable, secure, and efficient.

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Dubai, UAE, 22nd November 2023, The Flash Trade protocol is a decentralized trading protocol involving four essential participants, each with specific roles. These participants are known as resolvers, workers, liquidators, and users.

In this post, we will focus on the role of liquidators. Who are they, what is their place in the swapping process, and what motivates them to perform their duties?

Liquidators & Decentralized Liquidation System

Liquidators are crucial in ensuring the fairness and timely completion of transactions within the Flash Trade protocol. Long execution periods and expired orders are two widespread blockchain issues that keep crypto from becoming a more reliable tool, suitable, for example, for on-the-go payments. When a trade expires for any reason, users usually have to remake it again. Considering the volatility of the crypto market, such a process can be truly frustrating and time-consuming. Moreover, it can be loss-making when an expired order means losing an advantageous trading opportunity.

Flash Trade was designed to enable users to trade crypto almost instantly, eliminating such issues. It operates by having professional resolvers (market makers) compete for orders, prompting them to fill them as quickly as possible. However, some resolvers may fail nonetheless. To ensure that all orders get filled and filled in a timely manner, Kinetex created the in-built liquidation system. The liquidation process is automatically triggered if a resolver takes a user’s funds but fails to execute the order. In such cases, liquidators can intervene and complete the outstanding order.

The Kinetex protocol is unique in that it is entirely decentralized and uses Zk-based liquidation to avoid having a single point of control. Decentralization was achieved by designing the liquidation system to be open and public so that anyone could become a liquidator and help maintain the security and integrity of the Kinetex system.

Liquidation Process & Its Security

Unlike in the case of resolvers (read more about them in this post), a potential liquidator does not need to make a deposit to show their commitment. The liquidation system works so that liquidators do not have a chance to do their job poorly or hurt the system.

There are two ways liquidators can fill expired orders. Firstly, they can transfer the crypto assets the user is waiting for and receive a reward, namely the failed resolver’s collateral. Alternatively, the liquidator can fill the order in one transaction using flash loans when the resolver’s collateral is in a token from the same network where the user awaits tokens. A flash loan is a DeFi feature that allows crypto users, in this case, liquidators, to borrow assets without any collateral as long as the borrowed assets are returned within the same transaction. Flash loans enable liquidators to complete the liquidation process more efficiently without additional trades. Both ways are completely safe for users and liquidators themselves.

Furthermore, Kinetex uses ZK proofs in Flash Trade to ensure that only liquidators who have filled transactions receive collateral deposited by resolvers. Liquidators use Zk proofs to confirm that they indeed completed orders and claim the resolvers’ collateral before being rewarded.

As liquidators work alongside many other liquidators, they must act fast (sometimes making decisions in a matter of seconds) to be the first to complete an expired order. Such a rewarding model enhances competition between liquidators, motivating them to act as quickly as possible, thereby enhancing the stability and security of the system.

Additionally, liquidators are motivated by arbitrage opportunities. Suppose a user wants to swap 3990 on the Gnosis network for 2 ETH on the Ethereum network, and a resolver puts 4000 USDT tokens as collateral. If the resolver, for some reason, fails to complete the transaction within the given time, a liquidator can step in and take 4000 USDT at the price of 2 ETH by sending ETH to the user who initiated the swap.

As a result, Kinetex can maintain the security of the swap process, liquidators can profit by completing unfilled trades, and users can expect quick and efficient fulfillment of their orders.

Final Thoughts

Flash Trade, Kinetex’s latest innovation, will offer users a highly secure and efficient environment for conducting swaps, and liquidation will contribute to that enormously. Overcollateralizing each transaction incentivizes liquidators to compete for liquidations and execute them as rapidly as possible, enabling users to stop worrying about delays or technical issues and focus on all the possibilities the DeFi industry provides instead. Consequently, Kinetex improves the system’s reliability and overall security while enhancing the attractiveness of cross-chain swaps to a broader mass of users, whether seasoned traders or beginners.

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Dubai, UAE, 16th November 2023, Kinetex co-founders Tigran Bolshoi and Mike Shishko attended the zkDay event in Istanbul on Monday, November 13. During the zkDay Istanbul Pitch Competition, Bolshoi took the stage to present Kinetex’s innovation – cross-chain Zk light clients. These clients have the potential to revolutionize the way we approach cross-chain transactions, offering a more secure and efficient alternative.

Firstly, Bolshoi shed light on the challenges that cross-chain bridges regularly face. He highlighted several critical issues, including safety concerns, high gas payments, lengthy wait times, and excessive commissions.

All these issues can hinder the growth of the DeFi industry, preventing it from reaching its full potential. Safety concerns lead to a lack of trust in the system, resulting in fewer users and less liquidity. High gas payments and lengthy wait times make transactions costly and time-consuming, discouraging users from using DeFi products and services altogether, and excessive commissions do not improve the situation. Therefore, addressing these challenges and finding solutions to make cross-chain transfers more time- and cost-effective is pivotal to the future of DeFi.

During his presentation, Bolshoi proposed that light clients could be the ideal solution to the industry’s current struggles and could bring about significant benefits. Light clients enable the optimization of transaction validation, thereby reducing both the time and cost involved in the process. Incorporating zero-knowledge technology (Zk) makes the process even more efficient and secure.

While traditional light clients still need to compute all blockchain headers either from the beginning or from where they ended last time, which can span millions of blocks, Kinetex Zk light clients can verify the chain from the beginning of the previous verified block up to the target using just one proof and a few public input hashes.

During the event, Bolshoi introduced the audience to a new resolving standard for cross-chain that will be used in Kinetex’s upcoming Kinetex dApp mode. This new mode will employ Zk light clients to allow instantaneous swaps with professional resolvers (market makers) without relying on third-party validators and paying high commissions.

Such an approach has multiple serious advantages. Firstly, there is no need to store funds in pools since all liquidity is supplied by resolvers, eliminating the possibility of attacks on pools and thus ensuring increased security during the transaction process. Secondly, the absence of bridges further increases security while enabling Kinetex to avoid creating new wrapped tokens, which are often associated with worsening liquidity struggles with frozen and fragmented liquidity. Thirdly, Zk light clients help to lessen gas costs during cross-chain trades, including multi-part ones, which are often unnecessarily expensive for users.

The team was excited to be at the event and talk about zero-knowledge technology with people who shared their excitement and optimism about the potential of Zk to address some of the challenges the crypto industry faces. Stay tuned for any updates on Kinetex Zk light clients and revolutionary Flash Trade!

Kinetex Network: Website | Kinetex dApp | Twitter | Blog | YouTube

Dubai, UAE, 16th November 2023, Tigran Bolshoi, one of the co-founders of Kinetex, attended the ZK Community Meetup in Istanbul to report on the new cross-chain standard that allows instant swaps using intents.

Major Problems

Cross-chain faces three significant issues: security, user experience, and unfavorable conditions. Let’s look at each of them closer.

The first problem is security. Several factors may compromise it. First, projects must put their trust in third-party validators to validate new transactions. While this approach allows many users to participate in the maintenance of the blockchain ecosystem, it unfortunately also threatens its soundness. Validators can be attacked, damaged, or compromised in any other way, thus threatening the system’s security, users, and funds. Therefore, approaches without validators are highly advantageous.

The second problem is the poor user experience, which arguably scares away even more users than security issues. Users have to perform a lot of actions to be able to swap various assets, such as switching wallets, searching for the optimal routes for multi-part swaps, finding better rates, and so on. The complexity and non-user-friendliness make it almost impossible for users, especially novice ones, to figure out, so they tend to stay on the bigger centralized platforms instead of exploring DeFi.

The third big problem is unfavorable conditions. There are too many commissions and fees to consider when swapping crypto assets. Users have to pay for gas in each network for each data transfer, as well as pay liquidity providers, validators, smart contracts, bridges, DEXes, and so on. Additionally, they must think about other factors affecting rates, such as slippage and price impact. Finally, users must store all native coins for all gas payments and always calculate a sufficient amount, which can often be almost impossible.

Intent-based Approach

Intents represent a new approach to making transactions that can help to overcome the challenges described above. With intents, users can achieve their desired results without choosing the methods to achieve them. While in a standard transaction-based flow, a transaction signature enables the validator to follow precisely one route, intents allow any route that meets certain criteria to be taken.

Such an approach enables two things. Firstly, it removes the burden of making decisions from users, delegating it to professional players. Secondly, it allows for more flexibility while making swaps, which can be helpful in a volatile and always-changing crypto market.

Intents & Resolvers

The proposed Kinetex approach looks as follows. First, a user sends a request for an order. Then, resolvers (professional market makers) compete with each other by offering prices. Whoever wins executes the order, including making all gas payments. Note that all resolvers must deposit collateral to be able to complete orders, which can be liquidated if something goes wrong. As a result, users can enjoy an easy, instant, and profitable swap process, forgetting about choosing routes, storing native coins specifically for gas payments, and worrying about possible security implications.

Another vital component of this intent-based approach is Zk light clients presented by Kinetex at the ETHGlobal hackathons in Lisbon and Paris this year. They can perform on-chain verification of block headers, allowing transactions across different networks to be validated as efficiently and securely as possible.

Kinetex Network: Website | Kinetex dApp | Twitter | Blog | YouTube

Dubai, UAE, 15th November 2023, The decentralized finance (DeFi) sector is growing at an unprecedented pace, with thousands of tokens already in existence on the market and new blockchains continually emerging. Big companies are also putting substantial efforts into creating their networks to carve out their niches and become industry leaders.

However, the emergence of countless blockchains built with different technologies has led to several problems. One is the difficulty in transferring liquidity or data from one network to another. To address this interoperability issue and establish a strong connection between networks, the blockchain community is focusing on the development of cross-chain technologies that enable the direct exchange of coins, tokens, or NFTs between networks.

Cross-chain technologies are still in the early stages of development and generally lack user-friendliness, which can be intimidating for inexperienced users who cannot easily understand complicated interfaces and intricate exchange algorithms. Moreover, users also need to store multiple native coins required for gas payments in various networks, have addresses of all intermediate wallets for storing the crypto assets throughout the multi-part swaps, and stay online to confirm the transaction manually. As you can see, cross-chain transactions seem to be challenging at best.

Together with Gelato, the Kinetex development team is dedicated to addressing such challenges, simplifying the process of trading crypto cross-chain, and thus attracting new users to the DeFi market. Therefore, we present the Kinetex widget, a fully automated cross-chain dApp that makes swapping crypto between various networks easy and quick.

Gelato serves as an executor service for cross-chain exchange routes. Gelato’s distributed network of nodes launches each stage of the exchange reliably and timely, eliminating the need for users to do it manually. Additionally, together with Gelato, Kinetex has implemented the possibility of gasless transfer of tokens, removing one more obstacle for all users, particularly crypto beginners.

Currently, Kinetex supports Ethereum, BNB Smart Chain, Polygon, Arbitrum, Optimism, Avalanche, Fantom, and Gnosis Chain. The team works on supporting an unlimited number of tokens in the future.

Kinetex Network: Website | Kinetex dApp | Twitter | Blog | YouTube

Incredible news from Kinetex! 

Dubai, UAE, 10th November 2023, The team has made it and became the finalists of the ETHGlobal hackathon held in Paris. During the event, Kinetex co-founders Tigran Bolshoi and Mike Shishko presented Kinetex Light Clients, which received fantastic feedback from the hackathon judges. The team is thrilled about this accomplishment and looking forward to implementing this solution in the upcoming second mode of the Kinetex dApp, Flash Trade. 

Flash Trade will provide users with a decentralized cross-chain public resolving solution. With Flash Trade, users will be able to trade directly with professional market makers and benefit from high speed, guaranteed rates, and enhanced security. The team is working hard to make Flash Trade the go-to solution for crypto traders and holders, along with the existing Liquidation Aggregation mode.

Cross-chain Problems & Kinetex Approach

Kinetex stands out from other DeFi projects by prioritizing the concept of composability and unification of DeFi sector solutions rather than striving to become the best bridge or message protocol. 

Following those beliefs, the Kinetex team proposes a new approach to moving liquidity. Rather than relying on a controlled liquidity pool often endangered by hacker attacks, Kinetex shifts control to participants of a decentralized market, professional market makers (called resolvers by Kinetex). Users create swap orders, and resolvers fill them and take all the consequent risks, including finding and maintaining liquidity, paying gas fees, etc. In return, they can access many arbitrage opportunities. Such a resolving model allows Kinetex to foster a truly decentralized and fair market, where resolvers compete to serve users, and users benefit from better prices and speed. 

After executing a comprehensive analysis, the Kinetex team has identified multiple critical issues that must be addressed to ensure the system’s consistency, reliability, and efficiency. One of the primary concerns is the time it takes to validate transactions. On average, it takes between 2 to 5 minutes to validate a transaction, which is not too time-consuming but may add up when a multi-part cross-chain swap is needed. Additionally, the cost of gas and price slippage can fluctuate during the validation process, leading to possible extra losses and complications. Finally, batching, which can help with gas costs, is not accessible on bridges, leading to unnecessary expenses that could have been avoided.

To address these issues, Kinetex Light Clients have been introduced. With their assistance, Kinetex can ensure direct peer-to-peer transactions between users and resolvers while allowing for processing transactions in batches and eliminating the need to wait for validators and, hence, depend on them. As a result, Kinetex is able to reduce gas costs significantly. Furthermore, Kinetex can optimize gas payments even more by introducing zero-knowledge technology (Zk technology) in the batches.

Kinetex Zk Light Clients

Light clients were created to simplify and optimize communication with blockchains. Unlike full nodes that have to download and verify every blockchain block, light clients can do so without needing full synchronization by asking full nodes for more data when needed. 

By utilizing Zk technology in their light clients, Kinetex can optimize the verification process even further. While traditional light clients, though they do not need to copy blockchain completely, still have to check all previous headers, a Zk light client can verify it all with just one proof and a few public input hashes, thus requiring significantly less computational resources and time. Another crucial advantage of the Kinetex on-chain light clients is their versatility, as they can be deployed on many networks, both layer-1 and layer-2. It became possible by employing Hashi adapters developed specifically for various cross-chain messaging protocols. 

Kinetex’s victory in Paris helped the team to realize that such solutions are truly needed today in the crypto industry by users and Defi projects alike. The team is extremely proud of such an achievement and cannot wait for you to try Flash Trade soon!

Kinetex Network: Website | Kinetex dApp | Twitter | Blog | YouTube

Dubai, UAE, 6th November 2023, Following their participation at the ETHGlobal hackathons in Lisbon and Paris and bringing home a couple of prizes, the founders of Kinetex, Tigran Bolshoi and Mike Shishko, talked about their experience at the hackathons, what the crypto industry and users need right now, and how the clear understanding of the community needs helped them to build prize-worthy solutions.

Shishko explains: “The starting point for Kinetex Flash was an exploration of the industry drawbacks, which crypto users and developers face daily. Firstly, there are scalability struggles. We firmly believe that Ethereum has been and will remain the leading network in the cryptocurrency space. However, due to the rapid growth of new projects and the consequent influx of new users, the network’s load is increasing significantly, and scalability is becoming a major concern. While layer-2 solutions may help, they can worsen the situation with liquidity. As most protocols become multi-chain, the need for quick, cost-effective, and secure liquidity movement becomes paramount”.

Bolshoi continues: “In addition, the recent collapse of large bridges, particularly MultiChain, prompted us to reevaluate the security and effectiveness of existing bridge solutions, which we aggregated in the Kinetex dApp. You may say that it was a starting point for Kinetex Flash”.

Another thing that inspired the team was the rise of zero-knowledge technology (Zk). For the last year, crypto enthusiasts have been hearing about this technology more and more as the tech industry has been exploring ways to employ it. Shishko elaborates: “Zk has the potential to resolve many cross-chain problems, including its security, scalability, privacy, and more. Arguably, the most widespread application of Zk is Zk proofs, which allow one party to prove the validity of their statement to another party without revealing any extra information except the statement’s validity. Zk proofs can be used to transfer data securely while ensuring that we transfer only the absolutely essential information. It allows us to achieve two things: minimize the time required to validate transactions and decrease related gas costs”.

By combining Zk and light clients, which the founders presented at the ETHGlobal hackathon in Paris, Kinetex can process transactions in batches and facilitate direct peer-to-peer transactions between users and market makers. While batch processing speeds up the process, the ability to trade with market makers means there is no need to rely on third-party validators, which can be hacked or compromised in other ways. “As a result, Zk light clients can help Kinetex to provide users and projects with a fast, cost-effective, and secure way to move liquidity between networks by simplifying cross-chain data transfers. Additionally, it will optimize gas costs even more and promote a fair and competitive market.” – Bolshoi continues.

Both Bolshoi and Shishko noted the critical role this past hackathon season played in the development of Kinetex. Bolshoi says with gratitude: “We are very grateful for the opportunity to participate in such global events as ETHGlobal hackathons, where we can meet so many like-minded people working to change the DeFi industry for the better. By having this amazing experience, we have the motivation to work harder, think outside the box, and take risks when needed”. Shishko agrees: “On hackathons, we had a chance to try several ideas and receive useful feedback. Winning several prizes was a good sign that we are on the right track and must keep pushing towards making an efficient cross-chain solution a reality”.

Kinetex Network: Website | Kinetex dApp | Twitter | Blog | ETH Global

Welcome to Kinetex!

Dubai, UAE, 6th November 2023, Kinetex is more than a DeFi project; it is a community of like-minded individuals passionate about all things blockchain!

Together, the Kinetex team is dedicated to making Web3 accessible to everyone, regardless of their level of expertise, by developing innovative technologies that can easily integrate with other projects and by creating user-friendly products that do not compromise decentralization and user security.

The team believes that mass adoption of DeFi can only happen by streamlining and automating processes for both personal and business use. That is why Kinetex has been focusing on creating and implementing cutting-edge technologies that can provide users with a seamless experience.

Kinetex’s first project is a meta cross-chain dApp. It aggregates liquidity from hundreds of different sources, including DEX aggregators and market makers, enabling you to swap thousands of cryptocurrencies without leaving the app.

By utilizing relay nodes, Kinetex automates the swap process, eliminating the need for users to remain online. The Advanced Router feature helps to execute swaps as efficiently as possible by identifying the most profitable routes. Lastly, Kinetex’s Multi-chain Gasless technology streamlines the swap process even further by enabling users to pay gas fees with a variety of crypto assets other than native coins.

The team is looking forward to having you join the Kinetex community and try the Kinetex dApp.

So, buckle up! Let’s make DeFi accessible together!

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