Dialogue with the KINE Team: A Deep Dive into KINE Design Principles and Six Core Advantages

Amidst the intensifying 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 tradable assets," had already completed two rounds of funding totaling $24 million before its mainnet launch. The investor lineup includes renowned Silicon Valley angel investors Naval Ravikant and Alexander Pack, with investments from Angellist, OKX Ventures, Blockchain Capital, Spartan Group, Divergence Capital, CMS Holdings, Ascensive Assets, Bixin Ventures, DeFi Alliance, Origin Capital, Hypersphere, NGC, SevenX, and others.

With a team boasting over ten years of experience in traditional finance, KINE is committed to decentralization, security, and user-centric principles. Its strong data-driven capabilities, secure trading environment, flexible trading options, and innovative social trading features position it as a potential leader in derivatives trading.

The favor KINE has received from numerous investors is closely tied to the experienced founding team, innovative product design, and inherent advantages. We have invited the KINE team to discuss the design principles and core advantages of KINE, aiming to help users truly understand the value of KINE.

Insights from Angel Investors Naval Ravikant and Alexander Pack on KINE

Receiving recognition and support from renowned angel investors Naval Ravikant and Alexander Pack underscores their confidence in and support for KINE.

Naval Ravikant, an Indian immigrant and co-founder/CEO of the large equity crowdfunding platform AngelList, has invested in companies such as Twitter, Uber, and the globally popular Clubhouse. In the cryptocurrency field, Naval Ravikant previously co-founded the cryptocurrency fund MetaStable Capital, which received investments from notable venture capital firms such as a16z, Sequoia Capital, and Union Square Ventures. Naval Ravikant's investment in KINE demonstrates his unwavering confidence in the derivatives domain.

According to Naval Ravikant, "I believe derivative trading is the next big application of DeFi, possibly larger than the sum of all other applications. In traditional finance, the volume of derivative trading is an order of magnitude larger than spot trading. The KINE platform allows users to trade derivatives of almost any financial product, not just cryptocurrencies, which is the future advantage of the KINE platform."

Alexander Pack, formerly a founding partner at Dragonfly Capital and an employee of AngelList, expressed, "The reason why derivative trading has not developed as rapidly as spot trading on DeFi is because there hasn't been professional-grade infrastructure like KINE. I am very happy to support KINE." This indicates Alexander Pack's strong belief in KINE.

How Does the KINE Team View the Derivatives Market?

The core members of the KINE team come from renowned traditional financial institutions such as Merrill Lynch, HSBC, Standard Chartered, and Citi, as well as tech companies like Baidu and Siemens, with an average of over seven years of R&D experience. In their view, an excellent derivatives trading platform must possess four core conditions: high capital utilization efficiency, low trading costs, high performance (supporting high concurrency and high-frequency trading without affecting user experience), and a wide range of tradable assets.

According to the KINE team, "In the current derivatives market, the main bottlenecks of CeFi are the transparency of data, the security of assets, and the potential for subjective malpractice by exchanges. The core pain points in the DeFi market are gas costs, liquidity, and transaction delays. To stand out in any field, the key is to target pain points and continually innovate. After identifying the real needs of users, KINE systematically addresses and optimizes these market pain points, continuously providing users with a superior experience."

Specifically, KINE addresses security and transparency issues by using on-chain data, ensuring that prices cannot be manipulated under the Peer-to-Pool trading model, where the counterparty for clients is the liquidity pool rather than the platform, thereby eliminating the motive and possibility of malpractice by the platform. Additionally, through the off-chain trading engine, KINE eliminates user gas costs and greatly enhances trading efficiency, resulting in a trading experience that can rival or surpass centralized exchanges.

The KINE team states, "KINE's goal is to prioritize users and continually provide a more efficient, low-cost, and secure product for the vast majority of users, thus leading more users into the world of DeFi."

KINE Design Logic: Adopting the Peer-to-Pool Model

KINE employs the Peer-to-Pool liquidity pool trading model, offering users infinite liquidity and supporting leveraged trading and extremely low gas fees. By integrating data from multiple exchanges, the KINE platform can provide real-time prices and trading data, helping users make informed investment decisions. Furthermore, KINE has developed the first AI trading assistant, providing 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 trades.

KINE Core Advantages: Infinite Liquidity / Tradable Assets

In addition to its team's background in top-tier investment banks, hedge funds, and leading crypto exchanges, KINE possesses extremely distinct core competitive strengths in terms of liquidity, tradable assets, token design, and a professional security system.

Infinite Liquidity

Due to KINE's use of the Peer-to-Pool model, users trade against the liquidity base pool, and trading does not rely on traditional order books.

Support for a Wide Range of Tradable Assets

Any underlying asset with a reliable price index can become a tradable asset on KINE. KINE users can trade multiple asset categories, including cryptocurrencies, innovative derivatives, and future new fields, all in one place.

Highlights of the Token Economic Model

Of the total issuance of 100 million KINE tokens, up to 50% will be used for ecosystem incentives and distributed to liquidity partners, 25% will be allocated to seed round and private round investors, 5% will be used for public offering, and the remaining 20% of tokens will be allocated to the team. This underscores KINE's commitment to ecosystem development.

In late 2023, KINE officially launched the function of deducting KINE token contract fees and additional fee discounts, centered on empowering the product, continually optimizing and improving the product, and providing better value and experience for users.

Synthetic Funding Fees and Full-Position Leverage

In the field of derivative trading, KINE has introduced leverage trading and synthetic funding fees, significantly optimizing the risk-return ratio of the liquidity base pool and improving the efficiency of asset use. KINE's synthetic funding fees stem from the soft anchoring mechanism of perpetual contracts, effectively balancing long and short positions of various assets and providing assurance for the sustainable growth of the system. Furthermore, KINE supports full-position leverage, allowing users to hold leveraged long and short positions of multiple currencies, greatly enhancing asset efficiency.

Professional Security System

The KINE Protocol always prioritizes protecting user asset security. Ensuring transparency and openness, every transaction is recorded on the blockchain. Users can view each transaction through the "liquidity pool" page, blockchain browser, or search the smart contract address of the KINE Protocol to check transaction activities, liquidity status of the pool, and other on-chain transactions. User assets are entirely safeguarded by smart contracts, without relying on centralized exchange storage. Smart contracts are audited by reputable auditing agencies, with code transparency, ensuring users' assets and transactions are secure, transparent, anonymous, and efficient. This means users have absolute ownership of their digital assets and can independently control and manage them. KINE holds an MSB license, ensuring a secure environment for trading popular cryptocurrencies. Users can trade with confidence in the platform's prioritization of asset security.

What Advantages Does KINE Have Compared to Competitors?

So, what are the distinct advantages of KINE compared to centralized derivatives platforms and decentralized derivatives platforms like Synthetix, Hegic, and dYdX? The KINE team summarized:

1. Supporting higher leverage and higher-frequency derivative trading.

2. Providing lower trading costs and better liquidity compared to traditional order book market-making models.

3. Developing a high-performance language machine to achieve real-time quoting, addressing user losses caused by front running.

In Conclusion

Finally, when sharing the opportunities and challenges of KINE, the team expressed, "DeFi is developing rapidly, and one must maintain strong learning and continuous innovation capabilities to stay at the forefront of DeFi, which is precisely an area where the KINE team excels."

As a newcomer in the cryptocurrency derivatives field, KINE has demonstrated superior development potential and core competitiveness in design patterns, token economic models, and core functionalities. As the volume of the derivatives market gradually expands, KINE remains steadfast in its innovative approach, continuously pushing forward.