Article source: KiloEx

Project introduction

Users have always faced many problems when conducting leveraged transactions on centralized exchanges. First, users need to conduct KYC and entrust their funds to centralized platforms. Secondly, due to the lack of liquidity of some tokens or malicious market manipulation, plug-in phenomena frequently occur. In contrast, the advantages of Perpetual DEX are fully revealed. As one of the leading players in this track, KiloEx is being sought after by more and more contract users.

KiloEx is the winning project of BinanceLabs Season 6 MVB. So far, KiloEx has received support from BinanceLabs, Foresight Ventures, Manta foundation, Poolz Finance, 7UP DAO, GTS Ventures, Crescendo Ventures and some angel investors.

KiloEx is a decentralized perpetual contract trading platform with high liquidity, powerful functions and user-friendly. Currently, KiloEx is deployed on BNB Chain, opBNB, Manta Network, as well as Taiko and Bsquare. It has long been ranked first in TVL and trading volume among all projects in the entire track of opBNB chain, and has maintained the first place in TVL and trading volume in the Derivatives track of Manta and Taiko. The KiloEx platform has low transaction fees and supports a wide range of leverage and investment targets, covering more than 70 cryptocurrencies and foreign exchange trading pairs, including mainstream tokens such as BTC, ETH, and many other popular digital assets in many tracks such as meme, DeFi, AI, etc. Users can trade with up to 125 times leverage to maximize potential returns.

Basic Principles

In KiloEx, users trade with liquidity pools, namely Vault funds. That is, when traders win (positive P&L), their winnings are deducted from the Vault. When traders lose (negative P&L), their losses are sent to the Vault. In exchange, the Vault will receive a portion of the transaction fees and the long and short funding rates. These fees will be allocated proportionally to the kUSDT shares, incentivizing stakers to stay in the Vault.

Combined with actual data performance, most of the time, users who stake USDT in KiloEx's Vault can obtain returns far exceeding those provided by other mainstream yield aggregators. Taking the current data as an example, KiloEx provides 22% of the 60-day real annualized rate for stablecoin stakers on opBNB (excluding project points and other returns), and this data is even more impressive on Taiko, with a yield of an astonishing 29%.

However, when the market is unilateral, such as at a certain stage of the bull market, most users choose to open long positions and continue to make profits. In this case, Vault needs to continuously pay funds to profitable users. The income of the staker is a certain proportion of the fees earned by Vault minus the income payment. Therefore, the yield that the staker can obtain will be affected at this time.

In order to solve this problem, KiloEx launched Vault 2.0 at the beginning of the year. Vault 2.0 newly supports USDC and solves the above problems to a great extent by introducing new mechanisms. Specifically, the 2.0 version of Vault is divided into two parts: Base and Buffer. The Base part consists of the funds deposited by Vault depositors and the proportion of platform fee income (currently 30%); this part shows a steady growth in the value of the unit net asset, but there is a risk of loss when the Buffer is insufficient. The Buffer part consists of all trading gains and losses and funding fees; this part shows short-term fluctuations, but will gradually accumulate in the long run as a buffer for the Base. In this model, the staker's income comes from the Base part, so as long as the Buffer part is greater than 0, the user's profit and loss will not affect the staker's yield.

Hybrid Vault

At the beginning of this year, the re-staking track was very hot, and re-staking agreements that tried to provide additional income for LST emerged one after another. But the fact is that usually, re-staking applications can only provide users with LST points for the project. This kind of points is just a promise of token airdrops for the project in the future. As for the time, quantity, and value of the airdrop, it is impossible to judge, and the income is very unstable. In this context, the market urgently needs a product that can provide real income for LST.

KiloEx Hybrid Vault perfectly solves the above problems. Combined with the basic principles of KiloEx, it can be seen that users can obtain real income settled in USDT by staking LST in Hybrid Vault.

In addition, it is difficult to find a product on the market that provides real returns for mainstream assets such as BTC, BNB, and MANTA, and the returns are relatively considerable. The newly launched Hybrid Vault by KiloEx is undoubtedly the best choice for holders of these assets. Taking the current data as an example, the real return rate of WBNB on opBNB settled in USDT is 12.87%, and the real return rate of FDUSD is 16.21%. It can be said that it is unique among all products that provide pledge returns.

Currently, KiloEx Hybrid Vault is available on Manta Network, BNB Chain, opBNB, and Taiko. Specifically, the vault supports MANTA and STONE tokens on Manta; STONE and FDUSD tokens on BNB Chain; and WBNB and FDUSD tokens on opBNB.

KiloEx also provides relatively high real returns for these tokens. For example, STONE holders on the Manta network can obtain about 8% of USDT real returns by staking them in the KiloEx Hybrid Vault. FDUSD holders on OpBNB can also obtain more than 15% real returns through staking. The KiloEx Hybrid Vault has been audited multiple times by scalebit, and its core code is very mature and robust, ensuring the security of the Vault.

KiloEx Hybrid Vault consists of two parts, of which USDT accounts for half of the total Vault, and other currencies (non-USDT) occupy the other half of the Vault. For pledgers of other assets other than USDT, their pledge income is related to the market price of the asset and the LTV (Loan to Value Ratio). LTV is used to indicate the maximum asset value that the collateral can borrow. To explain this in a popular way, I will give an example here.

For example, a user deposits 1 million Manta tokens into the Manta network. At this time, the price of Manta tokens is $1. Then, this user deposits $1 million worth of Manta into the Vault. Assuming that the LTV of Manta is set to 60%, the principal that this user actually uses for interest is $600,000. When the price of Manta drops to $0.6, the 1 million Manta deposited at this time is worth $600,000, which is 60% of the initial asset value. In this case, the user's income during this stage will be withdrawn and given to this user. After that, if the user continues to pledge, the value of the assets that can earn interest will be calculated according to 60×60%, which is $360,000, and continue to generate income with this amount as the interest-bearing principal.

In addition, in extreme cases, the Buffer part is less than 0 due to the continuous profit of the trading user. In this case, the Base part will incur a loss. When the loss amount is greater than "initial asset value × liquidation line", the Vault will be liquidated.

For the withdrawal of hybrid assets, it is consistent with the previous version of Vault and also follows the epoch system. There is one epoch cycle every 3 days. Withdrawals need to wait for 1-3 epochs, and system income will also be received during the waiting period.

Summary

As the winning project of BinanceLabs Season 6 MVB, KiloEx has received support from multiple institutions and maintained a leading position in TVL and trading volume on multiple public chains. KiloEx adopts a unique Vault model and stabilizes the returns of stakers by introducing the Base and Buffer mechanisms. The new Hybrid Vault further optimizes the capital structure and provides real and substantial returns for LST and other mainstream assets. Whether you are a trader or a staker, KiloEx is your best choice.

This article comes from a contribution and does not represent the views of BlockBeats.

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