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Over the last three months, Kinetex has undergone a significant transformation. In particular, Kinetex co-founders participated in the ETHDam hackathon in Amsterdam and two other ETHGlobal hackathons held in Lisbon and Paris and were honored with multiple prizes. This experience provided them with an opportunity to re-evaluate Kinetex, its potential growth trajectory, and the way it can help the DeFi community to expand and succeed.
Although existing cross-chain technologies have enhanced interoperability between networks, it is certainly not a flawless solution, which is evident from many hacks that the crypto community experienced this year. Kinetex has been aggregating bridges and decentralized exchanges (DEXes) in its Liquidity Aggregation mode to offer users the most seamless, advantageous, and fast cross-chain transfer of crypto assets. However, the recent failure of big bridges made Kinetex’s co-founders, Tigran Bolshoi and Mike Shishko, reassess the safety and efficiency of current bridge solutions. They quickly realized that they could not be satisfied with the existing cross-chain solutions, first and foremost, because of insufficient security.
It has inspired Bolshoi and Shishko to find ways to eliminate bridges from routes altogether by employing zero-knowledge technology and light clients they have successfully presented at the ETHGlobal hackathons. Bolshoi explained that such a solution does not mean they felt any superiority over other bridges or message protocols on the market. Instead, they were committed to the idea of creating a unified, composable, and more secure DeFi. In other words, the Kinetex team works to be more than just another aspiring DeFi project, dreaming to eventually create an ecosystem of solutions that can help enhance the DeFi industry.
During their presentation at the ETHGlobal hackathon in Paris, Kinetex co-founders felt ready to announce their plans to release a decentralized cross-chain public resolving solution that will allow for secure and direct transfers between users and market makers. This solution will use Zk lights clients presented at the hackathon. Such clients will help enable the optimization of gas payments and the improvement of transaction speed and security.
Shishko noted that introducing Zk technology in Kinetes light clients has allowed the team to optimize the process of verifying and processing transactions even more. Compared to traditional light clients, Kinetex Zk light clients require fewer data and computational resources, making them more efficient. While conventional light clients must start from the beginning (or where they last stopped) and compute headers sequentially up to the target, which can sometimes include millions of blocks, Zk light clients can verify all of them with just one proof and a few public input hashes.
Kinetex on-chain light clients are versatile and can be deployed on any EVM network, which opens limitless perspectives for their employment. Learn more about award-winning light clients in this post.
A new approach to the cross-chain liquidity movement proposed by Kinetex involves abandoning a more centralized control still used by many DeFi projects. Instead of utilizing centralized liquidity pools, which are usually vulnerable to various attacks, Kinetex co-founders suggest fostering a decentralized market where traders can interact more freely: users can create swap orders, and professional resolvers (or market makers) compete to fill them. This approach encourages a fair and decentralized market the crypto community has always dreamed of.
Resolving will work alongside the liquidation system, which will back all orders. First, all resolvers will deposit collateral that will always cover the order they want to fill. If resolvers will not be able to complete orders in time, liquidators will have a chance to do them instead and claim corresponding collateral. This resolvers-liquidators relationship will enable Kinetex to ensure that all orders are executed in a fair and timely manner.
The past couple of months have been very eventful for the Kinetex team. During this time, Kinetex co-founders have been busy testing and refining their ideas while also trying to understand the current and most pressing needs of the Defi market. Success on the hackathons of such a level gave them the motivation to work even harder towards their goal of building a cross-chain solution that can revolutionize how we approach cross-chain transactions.
Stay tuned for future Kinetex updates! Thanks for the ongoing support!
Kinetex Network: Website | Kinetex dApp
