😎Why K-BIT?

The first PerpDEX on Kaia, aiming to be the no.1 PerpDEX in the world.

K-BIT is the first PerpDEX on Kaia, and aims to be the no.1 PerpDEX in the world. We are targeting the Big Three K as our milestones.

Klean UIUX

If you have experienced some of the DeFi applications around the blockchain world, you must have faced very complicated UIUXs. For example, you need to store seed-phrases, get some native tokens for transactions fee and approve and sign the every single transaction you made. Even after you complete every tasks to use dApps, if you change the network, you have to do the same things from the beginning.

We are concerned with these difficult process, and decided to make an application, which is, easy and intuitive at least when using our application. By leveraging Kaia Infrastructures and seamless product design, we are planning to build a product that anyone had never used before.

To achieve this milestone, we have set the following KPIs. Please keep in mind that KPIs may change depending on market and product conditions.

• Mobile-based K-BIT

• KAS Integration

• Gas Fee Support for Trading

• 1CT (1 Click Trading)

• Multichain Deposit

Kommunity

We believe that what sets CEXs and DEXs apart are Kommunity and Decentralization. In this section, we would like to highlight the Kommunity aspect and the direction we aim to take.

In both CEXs and DEXs, it is common to see that discussion about the price fluctuations or the micro/macro economy are not allowed. As a result, kommunities are often limited to focusing on the protocol itself, which is not the main interest for core users. We want our users to be the trading enthusiasts. They do not need to worry about the protocol’s logic, business model, or other aspects. They only need to focus on trading.

We would like to propose the following topics for our kommunity. These topics may change based on user feedback.

• Changes in the Micro/Macro environment

• Trends in recent price fluctuation of cryptocurrencies

• K-BIT event schemes

• Trading Profits or Losses

Komplimentary

In this section, we want to discuss Decentralization. The word decentralization is frequently mentioned by many people in the blockchain world. Some see it as a core principle that every protocol value as their top priority, while others consider it a fancy term to attract people.

Decentralization is difficult to define, so we will focus on its application in the business model. Let’s examine how other DeFi protocols pursue decentralization and reward their users. In the DeFi world, regardless of the specific category - whether it is AMM DEXs, Lending Protocols, Derivatives, Restakings, or PerpDEX - the main earnings come from fees. For AMM DEXs, these are swap fees, and for Lending Protocols, it’s the Loan-deposit margin.

Protocols typically encourage users to provide liquidity or trade as much as possible to maximize revenue. In return, they reward users through airdropping protocol tokens. This is akin to selling their tokens to core users rather than truly achieving decentralization.

At K-BIT, we plan to distribute the fees we collect to core users. This has nothing to do with tokens but is solely related to the trading environment. Some traders may incur losses if they are not familiar with trading, or misjudge the timing. When this happens, they may leave our service, and K-BIT losses a valuable trader. To prevent this, we will distribute some of fees to those users, calling it “Komplimentary”.

Details on Komplimentary will be disclosed later once the feature is developed.

Improving the trading environment for low market cap/low trading volume assets

Most exchanges that we are familiar with are places where one currency or asset is used to purchase another asset. And the purchased assets can be resold over time based on market prices. For example, if 1 KAUA is trading at 0.2 USDT, so you buy 100 KAIA for 20 USDT, and over time, if 1 KAIA is trading at 0.18 USDT, you will be able to sell these 100 KAIA for 18 USDT. This is what a typical exchange looks like.

The biggest feature of the existing trading environment is that all users can only enter ‘Long(Buy)’ positions. In other words, all users should only expect prices to rise. In situations where prices are falling, you should consider closing existing positions even if you incur losses, or lowering the average purchase price by purchasing additional positions even at falling prices. Anyone can easily see that this is quite unreasonable and unfair treatment.

A simple solution to this is to enable short selling positions. Even if a price drop occurs, if exchange users can take a short selling position, they will be able to respond more actively rather than simply maintaining existing positions or waiting.

For this reason, the demand for short positions is very high, and perpetual futures trading is very active on major centralized exchanges (Binance, OKX, Bybit, etc.), and all of the actual trading volume on these exchanges is generated from perpetual futures trading. However, existing centralized exchanges also have clear limitations, which is that futures trading is initiated only for assets that have large trading volumes in spot trading and have a large number of traders, depending on the interests of the exchange. In other words, futures trading is still not possible for low market capitalization assets or assets with low trading volume. Since these assets cannot be traded in futures anywhere, trading demand for these assets is still being ignored and holders of the assets are also experiencing difficulties.

K-BIT has planned an perpetual futures trading service to improve the convenience of exchange users and the unreasonable trading environment listed above. As the service develops in the future, assets that were previously unavailable for perpetual futures trading will be provided as tradable assets. Please note that in the initial service, trading may be possible mainly with high market capitalization assets in order to provide service stability and a better trading environment.

K-BIT

Perpetual futures trading is widely used in major centralized exchanges such as Binance, OKX, and Bybit, and the service is also provided in decentralized exchanges such as GMX and dYdX. Unlike the exchanges mentioned above, K-BIT will mainly conduct perpetual futures trading for 1) major tokens based on the Kaia network and 2) tokens that can only be traded in spot and cannot be traded in futures on major centralized exchanges. This will provide new opportunities for long/short two-way trading for users who have difficulty managing appropriate risk due to the inability to trade traditional futures.

For example, Kaia-based tokens such as BORA and SCNR are tokens that are ranked at the top in terms of market capitalization on CoinMarketCap, but there is no exchange that supports perpetual futures trading, making it difficult for exchange users to properly respond to price drops. Through K-BIT, you will be able to enjoy an improved trading experience based on appropriate risk management through leverage long or leverage short for the corresponding tokens.

Warning

K-BIT is a decentralized exchange that anyone can use without restrictions and does not guarantee users' trading results. Users may incur profits or losses as a result of trading, and K-BIT is not responsible for any choices or results. Additionally, K-BIT is a decentralized exchange in the early stages of development and may be exposed to the following risks. The risks below may occur regardless of K-BIT's will, and K-BIT is not responsible for them, so users must be aware of the risks below.

• Contract risk: If a defect is found in the contract used in K-BIT, it may be attacked from the outside, and as a result, the user's assets may be stolen regardless of the transaction result.

• Token risk: The USDT (Portal) used on K-BIT is an asset bridged from an external blockchain network. If an issue occurs with the bridge, the value of USDT (Portal) may fluctuate significantly.

• Oracle risk: Every transaction on K-BIT is settled based on the oracle price. The oracle price may differ from the price traded on specific exchanges. Since the oracle price is provided by Bisonai and Pyth Network, both are well known players for oracle providers, the price accuracy may not always be guaranteed regardless K-BIT’s effort. Since oracle price instability could affect trading, K-BIT will prepare for tail events, but it does not mean K-BIT can prevent all scenarios.