BlockTalks x Kine Protocol AMA Transcript!
Hello! BlockTalkers & Blockchain Enthusiastic!
We recently hosted an AMA with Kine Protocol, on June 23rd at 2 PM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Lei, Founder & CEO of KINE. So here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.
Introduction Questions Asked By Team BlockTalks!
Q1. Could you please introduce KINE PROTOCOL to our community in layman’s term?
Ans — Kine is a defi protocol you can trade derivatives in a a fast, transparent, and effortless way on Ethereum, BSC and other blockchain. It offers unlimited liquidity, up to 100x leverage, immediate execution, 0 slippage, 0 gas fee with cross margin support, extremely low latency with high throughput that is comparable with any defi derivative markets.
Like any other defi protocol, user assets are staked on-chain not custody in any third party, means user can enjoy defi level of asset security, transparency and annomasity - user can simply connect metamask wallet and start trading, and cefi level of efficiency and low cost.
Q2. What are the advantages of KINE PROTOCOL to other alternatives in the Blockchain field?
Ans — 1. Kine accepts a wider range of pledged assets, almost all major crypto assets can be used for pledge, which expand our user group.
2. Kine can support higher leverage and higher frequency derivatives trading.
3. Most importantly we solve the biggest issue of the current defi derivative space, the high gas fee and latency by combining on chain staking, clearing and settlement and off chain trading engine.
4. The funding fee and ADL mechanism are adopted to effectively reduce the net position of the platform and reduce the impermanent risk for staking users.
5. Kine developed a high-performance oracle to realize real-time pricing feed to solve the problem of user loss caused by the front-run.
Unlimited liquidity, 0 slippage, 0 gas fee, immediate execution, enabled API trading these are all pretty unique feature that you cannot find anywhere else cross defi/cefi solutions, none of the current defi solution is able to offer these features except Kine as far as I know of, that’s why Kine could achieved such trading volume significantly larger than any other defi derivative markets within the short 3 months.
This is today’s daily report.
Q3. What are the major milestones KINE PROTOCOL achieved so far & what are in the future pipeline?
Ans — 1. We have already launched our mainnet including staking, mining, LP farming and trading on March 26th.
2. launched to BSC on June 10th and our TVL has reached $45M
3. Built the partnership with Bitkeep in June
4. Our 24h trading volume has reached $300M, daily active user over 5000
1. More cross chain solution will be launched for Kine Protocol – Heco & Polycon.
2. start experimenting non-crypto asset trading, including S&P 500, FTSE 100, Nekki, Gold/silver future.
For update, please join our telegram group and follow our twitter.
Questions Asked on Twitter For KINE Team!
Q1. Kine Protocol have two tokens namely $KINE and $KUSD,so can you tell us the basic utilities of this two tokens in your platform? Why do you need to launch two tokens in your platform? How essential and important is this two tokens in Kine Protocol?
Ans — kUSD is the stable coin user can use to trade on kine.exchange, all trading is settled in KUSD, users can obtain kusd in 2 ways, staking and mint or buy/sell it on pancakeswap.
The KINE token is a utility token designed to facilitate community governance and incentivize the virtuous circle of Kine Ecosystem.
70% of the transaction fee will be used to buyback KINE and distribute to liquidity provider - staker and farming user, 20% will be distribute to KINE holders if they lock their kine.
Once mature, Kine will gradually transition to community governance, allowing the community to decide the future of the protocol. KINE token holders may stake their KINE to vote on or propose new ideas to improve Kine Protocol. Some of such decisions could be:
Addition/removal of staking assets on Kine.Finance
Addition/removal of trading assets on Kine.Exchange
Protocol parameters such as collateral factor, supply cap, risk limits
Long-term KINE stakers will accumulate more voting power for governance.
Q2. One of the key features of Staking pool with Kine is having a Multiplied Staking Rewards. So can you explain more about this Multiplied Staking Rewards? How can anyone get a double or more times of staking rewards? Is this Multiplied Staking Rewards Program will be for long-term?
Ans — You can stake WBTC, ETH, USDT or USDC on Ethereum or stake BTC、ETH、BNB、BCH、XRP、LTCon BSC to gain staking reward and mint kusd. And if you use the minted kUSD to provide liquidity in uniswap or pancake LP pool, and stake your LP token with Kine farming, there is LP farming reward.
Kine token holders can get triply rewarded. use Kine token for staking , you will be able to get transaction fee share rewards when you lock kine on top of staking and LP farming rewards.
Here is the latest APY for both ETH and BSC.
Q3. Safety and security are always of the utmost importance. So, what are the security mechanisms of Kine Protocol to ensure that users' assets are not targeted by hackers?
Ans — Kine is audited by peckshield, and it’s security has been proven by time - we have been safely running on etherum for last 3 month, time provides the best guarantee for safety.
Whenever we see a attack event of other similar protocol happens on each chain, we carefully review kine’s mechaims against it and run attach similation, so far all attacks we konw of doesn’t work on kine.
Q4. I was reading that Kine is a protocol that offers 0 gas fees in trading activities, could you tell us how it manages to reach a totally 0 gas fee? What kind of mechanism or technology do you apply to achieve this result?
Ans — We take the hybrid solution - offchain trading + onchain settlement to support 0 gas fee for trading.
Derivative trading activity is frequent and very gas comsuming, the most importnt thing for it is speed and low cost, nobody wants to pay $10 gas fee for each trade, but it doesn’t have to be interact onchain for every trade so it’s more sutiable to be offchain, however staking, clearing and settlement the most important thing is safty and transparency it should be onchain, find best solution for each component is the engineers job.
The trading engine report clearing result and settle with on-chain liquidity pool as block every 30 mins to ensure the transparency.
Q5. What is the impact of an asset's price volatility and liquidity on the collateral factor, and how are on-chain oracles used to determine the value of Equity assets?
Ans — The collateral factor can be higher for assets with better liquidity and lower volatility, and vice versa for btc and eth the collateral factor is 80% for other assets they are lower.
We use chainlink as the oracle to determine value of the equity assets.
Questions Asked by our BlockTalks Community Members during live Session to KINE Team!!
Q1. First I would Commend the Kine team for successfully combining onchain and offchian components, I don’t think any project has ever done that before, you must have encountered several difficulties to make this possible, can you tell us about it and how you were able to overcome them? I’m sure perseverance and resilience are part of your key to success?
Ans — Indeed it’s very challenging to build a hybrid solution, it requires the team with cefi development experience and smart contract skill, we have been developing centralized derivative platform during our banking years, and during last 2 years in blockchain business we have also acquired the skill to develop smart contract, so the team has perfect skill for the project, because it’s highly innovative without anything existing we can learn from, we have to solve all problems in the space ourselves, we face different challenge everyday, and team sit together to talk about solutions and execute them, that is super fun, I enjoy this process very much, nothing is like working with smart people on new exciting stuff.
Q2. In your documentation you comment that to design Kine Exchange, you started with a peer-to-pool model and that you spent months identifying all the possible deficiencies of the model when applied to the decentralized derivatives market, can you tell us what were the main flaws you found in that model and what kind of improvements Kine implemented to solve this?
Ans — For example for peer-to-pool to work, long/short position need to be well balanced, 1 thing we implemented funding fee mechanism, the more long/short gap is the higher funding fee to encourage arbitrager to open opposite position to restore the balance, it works very well so far.
Q3. In Kine ecosystem, there are several major roles in play: stakers, liquidators, and trader. Broadly speaking, what is the general function of each role in the Kine ecosystem?
Ans — Stakers provide liquidity for traders and receive transaction fee as reward, traders enjoy the 0 slipage and unlimited liquidity and pay transaction fee, liquidator repays unpaid debt when stakers doesn’t pay back kusd and receives liquidation incentive.
Q4. At the moment there are many scam projects in the market that make people afraid to invest, I want to long term investment in this Project , but I’m in doubts right now,so my question is, how can you convince and assure me this project is safe for investment and profitable?
Ans — Unlike many project that sells concept only, kine’s value is based on the transaction fee cashflow, it’s a real business that makes money, you can see the daily transaction fee from the dashboard and anybody who stakes or buy kine can share the profit.
Q5. Almost every investors sell their tokens immediately in the short term. Could you share with us who is your angel investors and are they ready to support your project for the long-term?
When we raising fund, we did our dd and rejected all non-reputable/short term investors, our angel investors Naval Ravikant is the CEO of coinlist and also angel investor of twitter, uber, clubhouse, Alex pack is the co-founder of dragonfly and early investor of compound and UMA etc, other institutional investors are all high quality and big brand, they are still buying from the open market now, here is the list:
Q6. Apart of the Kine Token is realized that exist other token with the name xKine, so can you please explain us the difference between both tokens?
Ans — xkine is the token you get after locked your kine, and xkine receives the transaction fee share, so it keeps appreciate vs kine, that is how you receive your transaction fee share.
Q7. What differentiates you in providing loan cost and low collateral rate, and how was KINE designed to trade simultaneously at low transaction cost?
Ans — You don’t pay loan cost like futures, transaction fee is 0.1% fixed.