KINETEX FAQ

Kinetex is a peer-to-peer platform that connects users and professional resolvers, bridging liquidity between decentralized finance (DeFi) and centralized finance (CeFi) ecosystems.

Kinetex is supported by a community of passionate DeFi enthusiasts and experts united in Kinetex DAO. Learn more about Kinetex here.

Kinetex has two modes: Flash Trade and Liquidity Aggregation. 

Flash Trade is ideal for assets with high liquidity. It uses native liquidity to guarantee fast execution times and fixed rates and eliminates the need for bridges and DEXes in swap routes. All orders in this mode are executed by resolvers. 

On the other hand, the Aggregation mode utilizes all available market liquidity, including bridges, DEXes, and more. This mode is beneficial for swapping low-liquidity assets because it has a wide range of assets and networks, supporting over 15,000 tokens across multiple chains. 

You can switch between two modes depending on the assets you need to swap. 

Developers can use Kinetex to build DeFi apps and tools with the help of quickstarts, protocol documentation, a Javascript SDK, and fully open-source code. Check Kinetex docs here.

Each mode has been created with a unique purpose in mind, offering specific features and technologies to ensure an effortless and efficient token swap experience.

Flash Trade is a revolutionary, Zk-backed technology that enables instant asset swaps between networks with the help of professional market makers. Flash trade uses the auction model, motivating makers to compete for orders and provide users with better rates across different crypto markets.

The Aggregation mode aggregated liquidity from over 400 sources, including 1inch and integrated bridges (StarGate, Rango, HashFlow, Hyphen, Connext, cBridge, Symbiosis, and ChainLink), enabling users to swap assets between 8 networks, including Ethereum, Binance Smart Chain, Polygon, Gnosis, Fantom, Arbitrum, Optimism, and Avalanche. 

For a more detailed and technical description, check out the documentation.

Kinetex employs multiple measures to ensure the security of transactions. In Liquidity Aggregation, particular attention is given to maintaining the user's control over their crypto assets during the exchange process. Firstly, users sign routing parameters, which guarantees that the swap is made within the specified parameters across all networks while excluding any distortion of the selected parameters by third parties. Secondly, Kinetex utilizes user-owned delegate contracts implemented as minimal proxies. These contracts enable users to know each address during the swap in advance and can be created by either the xSwap contract or the users themselves. Learn more about security measures in the Liquidity Aggregation mode here.

In Flash Trade, security is ensured through collateral and liquidation. Each resolver must reserve collateral larger than an order size before being able to complete it. Therefore, if a resolver does not fill an order within the time allotted (two minutes maximum), the order will be completed by liquidators. They are incentivized by resolvers' collateral, which they receive as a reward for liquidating expired transactions. Learn more about security measures in Flash Trade here.

Kinetex does not store liquidity at all, thus ensuring the security of user funds. 

Kinetex works with liquidity in two ways. In the Flash Trade mode, professional resolvers (market makers) find and maintain liquidity for all orders, using their own liquidity or bridging some from DeFi or CeFi platforms. This way, Kinetex can eliminate risks associated with liquidity pools and hacker attacks altogether. 

In the Liquidity Aggregation mode, Kinetex does not store liquidity either. Instead, it aggregates liquidity from hundreds of sources, including DEXes, DEX aggregators, cross-chain bridges, and more. As a result, Kinetex can offer infinite liquidity for over 5,000 crypto assets.

Kinetex's Liquidity Aggregation mode operates on a fully decentralized and non-profit protocol, and as such, it does not charge any fees. 

In Flash Trade, resolvers complete all orders and consequently have the ability to determine their own fees, providing a transparent and competitive system for all users.

Note that Kinetex is not responsible for gas or transaction fees.

"Gas fee" is a term first used by Ethereum and now used by several other networks to refer to the costs users must pay to network validators each time they perform a function on the blockchain. Many other blockchains, such as Bitcoin and Solana, use the term "transaction fees" instead. Gas is paid in a coin native to a respective blockchain and is used as an incentive for network validators to motivate them to keep the system afloat. 

Gas fees may come as a surprise to novice users. Moreover, gas fees usually are incredibly inconsistent, changing constantly from minute to minute. It can confuse users and even put them off from using crypto. 

Kinetex found the solution by creating an innovative gas technology called Universal Gasless, simplifying all gas payments in supported networks. All users can forget about storing multiple native coins and swap assets cross-chain effortlessly. In Liquidity Aggregation, users can make a gasless deposit in any of the supported assets, and Kinetex resolvers will calculate gas costs and pay them automatically.

The average time it takes to complete a swap is between 10 to 15 seconds. However, in Flash Trade, resolvers have a maximum time limit of 2 minutes to complete orders. If this limit is exceeded, the system will automatically trigger a liquidation process to close the order as quickly as possible.

Those are three main roles that the Flash Trade protocol relies on. 

Resolvers are market makers that trade with users, providing necessary liquidity. They look through user orders and offer rates, competing with each other. In order to succeed in this role, resolvers must have enough knowledge to analyze the market, build their trading strategies, rebalance liquidity, and manage their own collateral. 

Protocol Maintainers maintain Flash Trade's functioning. They are responsible for updating the state of Zk-LightClients (contracts that store blockchain data) and managing rates and orders. 

Liquidators help Kinetex to ensure the fairness and safety of the swap system for all users. If a resolver fails to execute an order on time after taking user funds, liquidators can complete the expired order, receiving the resolver's collateral as a reward.

NFTs, or non-fungible tokens, are vital in the Kinetex ecosystem. They grant voting powers to the Kinete DAO members, enabling them to participate in decision-making regarding Kinetex's future. 

Unlike other NFTs, Kinetex NFTs are non-transferable as they are designed to serve Kinetex Network rather than being used for speculative purposes. 

If you want to acquire Kinetex NFT, you can participate in tasks and challenges offered through the Kinetex Ambassador and Testnet Programs. Kinetex DAO created these programs to build a more extensive community and grow the DAO through rewarding participants with NFTs.

Zero-knowledge technology, commonly abbreviated as Zk, is a cryptographic method that uses zero-knowledge proofs (or protocols) to prove the truth of a statement to a verifier without sharing any additional information beyond the statement's truth. Many projects have been interested in this technology because it can be applied in different situations, helping to minimize data that have to be transferred.  

Kinetex incorporates Zk in Flash Trade, the second mode of the Kinetex dApp. The Zk proofs are used in two ways. Firstly, they are used to verify token transfers between different chains and confirm order completion by liquidators. Secondly, Kinetex employs the award-winning Zk light Clients, which use Zk to interact more efficiently with blockchains. Zk light clients can verify the chain from the last verified block to the target with just one proof and a few public input hashes, while traditional light clients need to compute all missed headers sequentially. 

Learn more about Zk light clients in this post.

A decentralized autonomous organization (DAO) is a self-governing entity allowing decentralized governing through community voting. Kinetex DAO was created by the Kinetex community, members of which were passionate about its growth and success and wanted to participate in the development of the Kinetex ecosystem.

Every Kinetex user can become a part of Kinetex DAO by participating in the DAO incentive programs and receiving unique NFTs. After staking these NFTs, you can vote on various proposals and offer your own ideas up for discussion.

With the help of the Kinetex DAO members, the development team can create more effective and user-friendly solutions that align with the needs and desires of the community.

Kinetex DAO created this program to grow the Kinetex community, empower its members, and attract new users to the platform. The program consists of six parts, each with specific tasks: the Media Program, Aggregation Mode Testing, Testnet, Bug Bounty, Gas Refund Program, and Gasless Testing. 

As a participant, you will have to complete several tasks, such as promoting Kinetex on social media, creating educational content for different social media platforms, shooting video reviews, inviting friends to be a part of the Kinetex community, etc. You will be rewarded with unique NFTs that will give you voting power in Kinetex DAO. 

Sign up for participation here and learn more about the program here. 

This program is a part of the Kinetex Ambassador Program dedicated to Flash Trade. It will help the Kinetex development team to ensure the smooth functioning of Flash Trade through a thorough testing process that takes place before the official launch on the mainnet. Users will be able to create a significant load on the system, helping to identify any bugs or vulnerabilities that the development team must address. 

Sign up for participation here and learn more about the program here.

Kinetex has several unique features:

Firstly, Kinetex provides users with a highly efficient automation feature that significantly streamlines the swap process. Kinetex relay nodes execute transactions automatically so that users do not need to stay online throughout even the longest routes. 

Secondly, Kinetex offers a cutting-edge gas solution called Universal Gasless. It eliminates the need to store multiple native coins for gas payments and balance those coins before making swaps. With this innovative technology, users can enjoy a seamless and hassle-free swap experience, while Kinetex will take care of gas payments through relay nodes or resolvers. 

Thirdly, Kinetex employs zero-knowledge technology in the second mode of the Kinetex dApp, Flash Trade. This technology allows projects to validate data without anything except for validity itself, enabling Kinetex to optimize several processes. Kinetex uses zero-knowledge (Zk) proofs to verify token transfers between different chains and confirm order completion by liquidators when resolvers fail to fill their orders. Another application of Zk is award-winning Zk Light Clients that help to interact with blockchains more efficiently, providing users with more advantageous rates, execution times, and gas costs. 

As Kinetex continues to evolve, this list will expand, providing even more unique and beneficial features for the users.

Kinetex came to life at the end of 2022. It was created by Tigran Bolshoi and Mike Shishko, who gathered around themselves a team of crypto enthusiasts as passionate about DeFi as they were. 

First, they have created the Aggregation protocol (Liquidity Aggregation mode). To make it highly user-friendly, the Kinetex team found a way to automate the swap process by using Kinetex relay nodes and created a gasless solution, which enabled gas payments with various tokens apart from native coins. 

Despite the success of the Aggregation protocol, there were issues the team could not resolve, such as price slippages, wrapped tokens, bridge security, etc. To tackle these problems, they started working on the second protocol, Flash Trade. It utilizes zero-knowledge technology to enable direct transfers between users and market makers. This approach is more cost-efficient, secure, and quicker than traditional cross-chain swaps through bridges.

Kinetex currently supports eight blockchains. This number will grow as Kinetex integrates with more projects. 

You can swap over 5,000 crypto assets via the Kinetex dApp. This number will grow as Kinetex integrates more networks. 

Sure. Kinetex provides quickstarts, protocol documentation, a Javascript SDK, and fully open-source code so that any developer can use Kinetex's developments to build apps and tools that can work across chains.