KTX.Finance
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This is a compilation of Frequently Asked Questions (FAQs) from trading communities and usrs.
  1. 1.
    What is KTX.Finance and what are the main selling points for traders?
KTX.Finance is a decentralized derivatives protocol that enables the trading of perpetual contracts with leverage of up to 100x. Perpetual contracts are unique in that they do not have an expiration date, allowing traders to hold leveraged positions for longer durations. These contracts provide the flexibility to exit trades at the desired time, as long as the trader maintains a sufficient margin.
KTX.Finance can offer traders the following advantages:
A. Complete custody of your assets and mitigate custodian risk By utilizing KTX.Finance, your assets are securely stored in your non-custodian wallet, and all transactions are transparently signed on-chain, ensuring full control of the assets you own. Unlike most centralized exchanges (CEXes), our platform does not hold or have custody over your assets. This offers peace of mind, especially in light of recent issues with CEXes such as FTX and Genesis, where customer funds and assets were frozen. To learn more about how to trade securely on KTX.Finance, please visit this link
B. High leverage trading with perpetual contracts KTX.Through perpetual contracts, finance enables traders to leverage their positions by up to 100x. This feature is particularly beneficial for traders looking to maximize the advantages of leverage. Our sustainable multi-asset pool mechanism ensures liquidity from our liquidity providers.
C. Trade and earn high real yield simultaneously As a perpetual DEX, KTX.Finance caters to traders as one of the three key stakeholders, alongside liquidity providers who stake their $KLP tokens to provide deep liquidity and facilitate high-leverage trading. To incentivize liquidity providers, the protocol allocates 70% of the generated fees to pay a competitive real yield. Currently, the yield paid out in wBNB to KLP stakers is 144%, with a real yield of 26%.
D. Smooth and user-friendly CEX-like trading experience KTX.Finance offers a seamless trading platform with a smooth and intuitive user interface. Advanced traders can benefit from incorporated trading view charts and trading tools. At the same time, complex order functionalities allow for efficient order execution and the ability to set take-profit and stop-loss levels with just one click.
  1. 2.
    How credible is KTX.Finance and why should I trust it?
KTX.Finance is proud to be incubated by ByteTrade Lab, a Singapore-based Web 3.0 incubator that provides crucial support in technology expertise, product definition, business planning, and go-to-market strategies. This partnership enhances our credibility and ensures the delivery of a robust and reliable platform.
KTX.Finance has also successfully raised US$ 4 million in Seed Round Funding in July 2023 led by Hashed. Other renowned crypto investors include Alpha Lab. CRIT Ventures, Trinito, GSR Ventures, Kucoin Ventures, Sky9 Capital and Morpheus.
  1. 3.
    What Oracle do you use? How do you manage any Oracle-related risks?
KTX is a price taker. We have built a custom oracle that calculates the median price of assets from 7 different CEXs. It is unlikely for Oracle manipulation to happen due to the size of the assets within the KLP pool (BTC, ETH, BNB) and the distributed dataset across 7 CEXs.
  1. 4.
    What is KTX.Finance and KLP?
KTX.Finance is a decentralized derivatives protocol that allows you to trade perpetual with up to 100x leverage. Perpetual contracts allow users to hold on to their leveraged positions for longer duration without expiring. Perpetual contracts or futures do not have a settlement period so traders can hold a trade for as long as they want, as long as they have enough margin to keep it open. This gives them the flexibility to exit their trades at the right time.
The decentralized exchange liquidity pool model is backed by $KLP. It uses a multi-asset liquidity model which is a pool of tokens that liquidity providers pooled together, earning fees from KTX and profit and losses of traders. $KLP is marketed as an index token that farms because essentially you are holding a basket of tokens and earning fees from KTX.Finance. The weighting of each token within $KLP is constantly re-balancing.
$KLP is a hybrid multi-asset pool with 50% $BUSD on one side and 50% assets on the other (comprising $BTC.B, $WETH and $BNB). Hence, based on the minting/burning fees of $KLP, LPs can choose to deposit either $BUSD, assets OR both. Through our token design, $KTC stakes will accrue 30% of protocol transaction fees in the form of $BNB while $KLP will accrue 70%.
This LP model together with our Feeder oracle (providing real-time, aggregated prices over 6 exchanges — Binance, Bitfinex, OKX, Kucoin, Kraken, and Coinbase) allows for perpetual trading with low cost and zero price impact.
  1. 5.
    How can $KTC and $KLP tokens be earned and consumed?
Users can only obtain $KTC via 2 means. Users can purchase $KTC from the $KTC/$USDT pool on PancakeSwap. There is no burn mechanism for $KTC, however, holders of $KTX can stake their tokens for $esKTC and Multiplier Points. $KLP tokens can only be minted/burned through the KTX.Finance Dapp. The $KLP token only serves as a liquidity receipt for LPs.
  1. 6.
    What are the key roadblocks or challenges that may prevent the project from succeeding?
We believe that a key roadblock to the success of KTX.Finance would be the bearish macro environment that the crypto industry is facing. Across all CEXs and DEXs alike, trading volume has gone down drastically.
However, we believe that a good product will eventually be adopted. We remain confident in our ability to ship user friendly products that have product-to-market fit. Additionally, most users trade on CEXs for the leveraged exposure that comes along with it. KTX will be launched on the BNB Chain. With the narrative of self-custody, having an outlet for on-chain leveraged trading on BNB Chain would help with building the ecosystem. BNB Chain has a wide user base with a long contingent of retail users who having utilized Binance are making their first forays into self-sovereign ownership of assets. The chain has consistently been in the top three of transactions, unique wallets, and Total Value Locked, providing a clear addressable market. BNB Chain is also home to protocols like Venus (lending markets), Beefy (autocompounder), key Oracle partner Chainlink and most uniquely Binance-peg asset-backed tokens in addition to large supplies of other bridged tokens. KTX can have a mutually beneficial partnership within the BNB Chain and Mantle Network ecosystem.
  1. 6.
    What do you think will drive demand and value for your token? We believe there will be several demand & value drivers for $KTC.
A. There is a lack of on-chain derivatives trading platforms on BNB Chain and Mantle Network. With the support of BNB Chain, Mantle Network and other leading investors, KTX.Finance will have a significant headstart. KTX.Finance is the first perp DEX on Mantle Network.
B. KTX.Finance has a well-thought-out pipeline of “defi lego blocks” that we believe users will enjoy. By using KTX.Finance as a fundamental layer, more and more features would keep users within the ecosystem.
  1. 6.
    What can “Boost Percentage” be used for?
The “Boost Percentage” is the numerical result of “Multiplier Points” , a feature to reward long-term holders of $KTX.
When $KTC holders stake their $KTC, they receive multiplier points at a fixed rate of 50% APR. Each multipler point will earn the same amount of $BNB rewards as a regular $KTX token. The APR boost that $KTC holder receives will be calculated using the “boost percentage”. The Boost Percentage is shown on Slide 8 within the KTX Deck.
  1. 7.
    Have you engaged any third parties to conduct a code design and security audit? If so, please share the reports/documentation.
MetaTrust
  1. 8.
    Why GMX-like design and not GNS-like?
While we acknowledge the flexibilities the GNS model, we chose not to adopt that model for several reasons:
A. Higher Risk of the pool being drained
Since everything is denominated in $DAI / Cash-Settled, traders that make a windfall have a higher chance of draining a higher % of the pool when they profit. GNS prevented this by capping the winning % on each trade at 900%. However, we did not want to implement such a feature.
B. Oracle Manipulation
Given that GNS had the flexibility to list exotic assets - the reliability of these assets in terms of liquidity depth and CEX price reliability is still yet to be tested.
C. Single Stablecoin Risk
This risk only came to light due to the $USDC saga. The $USDC saga posed a big risk to $DAI and could have potentially brought GNS to its knees.
Such a big dependency on a single asset was a risk that our team wasn’t ready to take.
Last modified 1mo ago