Kine Protocol Review: Derivatives Trading Made Easy With 200x Leverage

Uniswap reigns supreme in the spot/swap transactions on DEX platforms, but the derivatives market lacks prominent players. Kine Protocol was created to fill this gap. Check out the Kine Protocol review article below to discover Kine Protocol’s unique features and compare it with other derivative DEX exchanges such as dYdX and Perpetual Protocol.

Introduction

Kine Protocol is a decentralized derivatives platform aimed at building a derivatives market with unlimited liquidity and making derivatives trading simple, quick, and transparent for users. It is powered by a point-to-point engine and the most advanced cross-margining tool, which enables it to maximize capital efficiency under the optimal leverage ratio. KINE has become the leading platform in the current decentralized derivatives market.

The team consists of 20 members with a background in traditional investment banks or technology companies, including reputable financial institutions such as Merrill Lynch, HSBC, Standard Chartered, and Citigroup. The core members have over 5 years of experience working and collaborating together, with an average of 7 years of research and development experience.

Kine Protocol is a decentralized exchange (DEX) that operates on a Layer 2 Network. It has a 24-hour trading volume of $260 million and boasts over 100,000 registered users. Kine achieves on-chain staking and zero gas fees trading by leveraging its Layer 2 Network. It currently holds the second spot in ranking on CoinMarketCap and has been in professional operation for over two years.

Key highlights of Kine Protocol

1. Trade leverage up to 200x, which is higher than other derivative DEXs that typically offer up to 25x leverage. Kine Protocol also offers 24/7 liquidity and transparent fees.
2. Cross Margin for many asset classes means users can trade derivatives on various assets, including BTC, ETH, altcoins, gold or fiat.
3. Zero Slippage ensures that all trades will be executed based on real-time price data with no slippage. Liquidity is always guaranteed as collateral is always higher than user leverage.
4. Cost savings, as Kine Protocol, executes the user’s transaction off-chain to reduce gas fees.

At 17:00 on January 06, 2023 [UTC+8], Kine Protocol set to introduce trading pairs for BTCUSDT and ETHUSDT 200 times leverage contracts, with both cross-margin and isolated-margin modes supported. Trading can be experienced through the webpage and APP.

Overall, Kine Protocol is a good DEX that offers high leverage, cross-margining for many asset classes, zero slippage, cost savings, and improved transaction speed.

Why Kine Protocol?

Kine Protocol is a DeFi platform that allows for fast, transparent, and easy trading of derivative products on Ethereum and Binance Smart Chain. It offers unlimited liquidity, up to 200x leverage, instant execution, and no slippage with cross-margin support. It also boasts ultra-low latency and high throughput compared to any other DeFi derivatives market.

Users’ assets are staked on-chain, providing high security, transparency, and anonymity. Kine adapted the peer-to-pool liquidity model to address the inadequacies of AMM, providing unlimited liquidity, no slippage, and instant order execution to traders without the constraints of market makers or order books.

Latency and gas fees are Kine’s second most significant challenge to tackle. To overcome this challenge, Kine utilizes a hybrid infrastructure that takes the execution engine off-chain while keeping the staking and settlement of assets on-chain, resulting in zero gas fees for users and no lag. Kine also implements high-performance oracles to address front-running and applies sponsorship fees to tackle long/short imbalances.

Kine Protocol Token (KINE)

Token Name	Kine Governance Token
Token Ticker	KINE
Token Type	ERC-20
Token Supply	100,000,000

KINE is Kine Protocol’s native protocol token, currently issued on Ethereum following ERC-20 standard. The KINE token is a utility token designed to facilitate community governance and incentivize the virtuous circle of the Kine Ecosystem.

Token Utility

Governance

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, and risk limits.

Staking

• KINE is accepted as a staking asset of the liquidity pool.
• KINE stakers to receive a dedicated share of the fee pool, allowing higher returns than other collaterals.
• Trading fee revenue from Kine. The exchange will be converted to KINE before being distributed as a reward.
• Long-term KINE stakers will accumulate more voting power for governance.

Token Distribution

Allocation	Description
Balancer Liquidity Bootstrapping Pool (LBP)	5,000,000 KINE tokens (5%)Initial DEX Offering in the form of LBP in March 2021
Seed supporters	13,000,000 KINE tokens (13%)Sold at $0.20Tokens are vested; 10% unlocked after IDO; see release schedule below.
Private-sale participants	12,000,000 KINE tokens (12%)Sold at $0.50 – $1.00Tokens are vested; 25% unlocked after IDO; see release schedule below.
Team and advisors	20,000,000 KINE tokens (20%)Team helps launch the initial version of Kine Protocol and future upgrades.Tokens are vested; Unlock begins 6 months after IDO; see release schedule below.
Liquidity partnership	10,000,000 KINE tokens (10%)Strategic market liquidity providers with mandates to maintain orderly secondary markets for KINE, kUSD and related underlyings.Tokens are vested in 12 months; 25% unlocked prior to initial listing; see release schedule below.
Ecosystem Grant	40,000,000 KINE tokens (40%)Ecosystem Grant with the mandate to grow and promote Kine Ecosystem.Tokens are released over a period no less than 48 months; further details to be announced.

Token Release Schedule (excluding Ecosystem Grant)

• Balancer Liquidity Bootstrapping Pool: No lockup — tokens are liquid upon purchase.
• Team and advisors: 25% will be unlocked 6 months after IDO; the remaining 75% will be vested linearly over the next 18-month.
• Seed supporters: 10% to be unlocked immediately after IDO; 60% to be vested linearly over the next 12-month; the remaining 30% to be vested over the 2nd year.
• Private-sale participants: 25% will be unlocked immediately after IDO; 75% will be vested linearly over the next 12-month.
• Liquidty partners: 25% to be unlocked prior to initial listing; the remaining to be unlocked in monthly batches in the next 12 months.

Stake and Mint

1. Stake

Connect to Kine Finance dApp, and enable the token you want to stake. Let’s say you want to stake WBTC.
click “Enable,” then “Use WBTC as Collateral.”

Approve the transaction and wait for a bit, your WBTC will be enabled. Now click “Add”

Approve WBTC for staking

Approve the transaction and wait for a bit, the approve button will change to “STAKE”.

Now input your staking amount, or click “Max” to stake all the token balance. Then click “STAKE”

Approve the transaction and wait for a bit, your staking value will increase.

2. Mint kUSD

Mint kUSD now that you have spare staking value.

80% is the predefined max percentage that you can mint into kUSD from your staking value. Input amount then click “MINT”

Approve the transaction and wait for a bit, you will be able to see your kUSD balance increased and available for wallet transfer. Click on the “+” button to add kUSD or Kine to your wallet.

Trading

On the Kine Protocol interface, the layout is intuitive, with a price chart on the left and order placement tools on the right. It also displays information such as profit/loss and trading position.

The data table in the Kine Protocol interface displays key information such as the total trading volume, staking volume, and asset and token prices.

Project team – Investors – Partners

Project team

The Kine Protocol team comprises experts who have been in the derivatives business for years. The founders of Kine Protocol have previously led Huobi’s institutional business, which is one of the world’s largest crypto trading businesses. Before their foray into the crypto industry, the team spent five years working at major investment banks such as Merrill Lynch, HSBC, and Citi. With their extensive experience across traditional finance and crypto-native centralized trading platforms, the team is excited to bring their deep expertise to the world of DeFi.

After learning and participating in the DeFi space for two years, the team decided to go all-in on DeFi. They believe that DeFi has the potential to disrupt not only CeFi but the entire financial system. Having witnessed pioneers like Uniswap and Compound revolutionize token trading and lending, the team believes that it’s finally time to do the same for the derivatives market.

Investors

Kine Protocol has the backing of experienced investors in the crypto space, including Alexander Pack, who managed Dragonfly Capital and Bain Capital Ventures and is an early investor in projects such as Compound, 1Inch, and MakerDAO, among others. He is also an advisor to the Huobi exchange.

Naval Ravikant, co-founder and CEO of Angel List and an experienced investor in companies such as Uber and Twitter, is also an investor in Kine Protocol. With such powerful backers, especially in the field of exchanges, Kine Protocol is well-positioned to overcome the current challenges faced by decentralized exchanges. By synthesizing the best features of the industry’s major players, Kine Protocol’s roadmap is set to revolutionize the derivatives market.

Partner

PeckShield, the same unit that has audited for popular AMM platforms such as DODO, Sushiswap, and Perpetual Protocol, has also audited Kine Protocol. This means that users can be assured that the smart contracts and security measures in place have been reviewed by a reputable third-party, reducing the risk of errors and potential hacker attacks.

Roadmap

Conclusion – Kine Protocol Review

In conclusion, while Uniswap currently reigns supreme in the spot/swap transactions on DEX platforms, the derivatives market lacks prominent players. Kine Protocol was created to fill this gap, and it has become the leading platform in the decentralized derivatives market. Kine offers high leverage, cross-margining for many asset classes, zero slippage, cost savings, and improved transaction speed. Its hybrid infrastructure enables it to tackle latency and gas fees, while its peer-to-pool liquidity model provides unlimited liquidity, no slippage, and instant order execution to traders.

KINE, Kine Protocol’s native protocol token, is a utility token designed to facilitate community governance and incentivize the virtuous circle of the Kine Ecosystem. Overall, Kine Protocol is a DeFi platform that allows for fast, transparent, and easy trading of derivative products on Ethereum and Binance Smart Chain. It offers unlimited liquidity, up to 200x leverage, instant execution, and no slippage with cross-margin support, making it a good option for traders looking for a robust and efficient derivatives platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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