With the fierce competition in the cryptocurrency derivatives market, the entire crypto industry is accelerating, and the layout of the capital market is also advancing rapidly. KINE, a decentralized derivatives trading platform that focuses on providing “infinite liquidity and infinite trading options,” has completed two rounds of financing totaling $24 million before the launch of its mainnet. The investors include renowned Silicon Valley angel investors Naval Ravikant and Alexander Pack, and the investment matrix includes Angellist, OKX Ventures, Blockchain Capital, Spartan Group, Divergence Capital, CMS Holdings, Ascensive Assets, Bixin Ventures, DeFi Alliance, Origin Capital, Hypersphere, NGC, SevenX, and others.
KINE has attracted the attention of many capital investors due to its experienced founding team, innovative product design, and competitive advantages. We invited the KINE team to discuss the design and core advantages of KINE, hoping to help users truly understand the value of KINE.
Index:
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Naval Ravikant and Alexander Pack’s Understanding of KINE
What is the Derivatives Market in the Eyes of the KINE Team?
KINE Design Logic: Adopting the Peer-to-Pool Model
Core Advantages of KINE: Infinite Liquidity / Variety of Trading Options
Infinite Liquidity
Support for a Rich Variety of Trading Options
Highlights of the Token Economic Model
Synthetic Funding Rates and Full Position Leverage
Professional Security System
What Are the Advantages Compared to Competitors?
Conclusion
Naval Ravikant and Alexander Pack’s Understanding of KINE
The recognition and support of renowned angel investors Naval Ravikant and Alexander Pack are sufficient to prove their endorsement of KINE.
Naval Ravikant, an Indian immigrant and the co-founder and CEO of the equity crowdfunding platform AngelList, has invested in companies such as social media giant Twitter, ride-hailing giant Uber, and the globally popular Clubhouse. In the cryptocurrency field, Naval Ravikant previously co-founded the cryptocurrency fund MetaStable Capital, which received investments from well-known venture capital firms such as a16z, Sequoia Capital, and Union Square Ventures. Additionally, Naval Ravikant has also invested in projects such as blockchain interoperability layer Axelar, another derivatives platform dYdX, prediction market Polymarket, and decentralized code collaboration protocol Radicle. His investment in KINE demonstrates his firm confidence in the derivatives field.
In the eyes of Silicon Valley angel investor Naval Ravikant, KINE shows great potential.
Alexander Pack, a former founding partner of Dragonfly Capital and an employee at AngelList, also holds a positive view of KINE.
What is the Derivatives Market in the Eyes of the KINE Team?
The core team members of KINE come from well-known traditional financial institutions such as Merrill Lynch, HSBC, Standard Chartered, Citigroup, as well as technology companies like Baidu and Siemens, with an average of more than 7 years of research and development experience. In their view, an excellent derivatives trading platform must possess four core conditions: sufficiently high capital utilization efficiency, low trading costs, high performance (supporting high concurrency and high-frequency trading without affecting user experience), and a rich variety of tradable assets.
In the eyes of the KINE team, “the main bottleneck in the current derivatives market is the transparency of data, the security of assets, and the possibility of exchange manipulation. The core pain points in the DeFi market are gas costs, liquidity, and transaction delays. In any field, to stand out, one must target pain points and continuously innovate. After gaining insights into real user needs, KINE systematically resolves and optimizes these market pain points, continuously providing users with a better experience.”
Specifically, KINE solves security and transparency issues by using on-chain data. In the Peer-to-Pool trading model, the price cannot be manipulated by the platform, and the counterparty for customers’ trades is the liquidity pool rather than the platform, eliminating the motive and possibility of platform manipulation. On the other hand, KINE eliminates user gas costs and greatly improves transaction efficiency through off-chain trading engines, providing a trading experience comparable to or even surpassing centralized exchanges.
KINE team states that
KINE Design Logic: Adopting the Peer-to-Pool Model
KINE adopts the Peer-to-Pool liquidity pool trading model, providing users with infinite liquidity and supporting leveraged trading and low gas fees. By integrating data from multiple exchanges, the KINE platform can provide real-time prices and trading data to assist users in making informed investment decisions. In addition, KINE has developed the first AI trading assistant, which can provide real-time trading signals to traders. Whether it’s quantitative trading or technical analysis, the KINE platform provides users with rich tools and indicators to help them better grasp market trends and conduct efficient trading operations.
Core Advantages of KINE: Infinite Liquidity / Variety of Trading Options
In addition to having a team from top-tier investment banks, hedge funds, and leading cryptocurrency exchanges, KINE also possesses significant core competitiveness in terms of liquidity, trading variety, token design, and professional security systems.
Infinite Liquidity
Due to KINE’s Peer-to-Pool model, users trade with the liquidity pool as the counterparty, and the trading does not rely on traditional order books.
Support for a Rich Variety of Trading Options
Any asset with a reliable price index can be a trading option on KINE. KINE users can trade multiple asset classes, including cryptocurrencies, innovative derivatives, and future emerging fields, all in one platform.
Highlights of the Token Economic Model
KINE has a total supply of 100 million tokens, with up to 50% allocated for ecosystem incentives and distribution to liquidity partners, 25% allocated to seed round and private round investors, 5% for public offering, and the remaining 20% allocated to the team. In other words, half of the total token supply will be distributed to KINE ecosystem participants, demonstrating KINE’s commitment to ecosystem development.
In late 2023, KINE officially launched the function of using Kine tokens to offset contract fees and additional fee discounts. This feature aims to empower users, optimize and improve the product, and provide users with better value and experience.
Synthetic Funding Rates and Full Position Leverage
In terms of derivatives trading, KINE introduces leveraged trading and synthetic funding rates, significantly optimizing the risk-return ratio of the liquidity pool and enhancing the efficiency of asset utilization. KINE’s synthetic funding rates are derived from the soft-peg mechanism of perpetual contracts, effectively balancing long and short positions of various assets and providing security for sustainable system growth.
On the other hand, KINE supports full position leverage, allowing users to hold long and short leveraged positions in multiple currencies, greatly enhancing asset utilization.
Professional Security System
Kine Protocol always prioritizes the protection of user assets. It maintains transparency and openness, with every transaction recorded on the blockchain. Users can view each transaction through the “Funding Pool” page and blockchain explorer or search for Kine Protocol’s smart contract address to view transaction activity, liquidity pool status, and other on-chain transactions.
User assets are completely held by smart contracts, without relying on centralized exchange storage. The smart contracts are audited and the code is publicly available, ensuring the security, transparency, anonymity, and efficiency of user assets and transactions. This means that users have absolute ownership and complete control over their digital assets. KINE holds an MSB license, ensuring a secure and reliable environment for trading popular cryptocurrencies. Users can trade with confidence and experience the security provided by a platform that prioritizes asset security.
So, what are the significant advantages of KINE compared to centralized derivatives platforms and decentralized derivatives platforms like Synthetix, Hegic, and dYdX? The KINE team summarized:
Support for higher leverage and higher-frequency derivatives trading.
Lower trading costs and better liquidity compared to traditional order book market maker models.
Developed a high-performance language machine to achieve real-time quotes to solve user losses caused by front-running.
Conclusion
Finally, when sharing the opportunities and challenges of KINE, the KINE team expressed:
As a newcomer in the cryptocurrency derivatives field, KINE has shown superior development potential and core competitiveness in design patterns, token economic models, and core functionalities. As the derivatives market gradually expands, KINE remains firm in its innovative concept and continues to move forward.
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