CFTC settles charges against companies behind 0x (ZRX), two other DeFi protocols

cyptouser9 months ago356
The U.S. Commodity Futures Trading Commission (CFTC) announced settlements with multiple DeFi compan...

CFTC Commissioner proposes sandbox scheme for digital assets amidst crackdown on DeFi platforms

cyptouser9 months ago274
Caroline Pham, a Commissioner of the U.S. Commodity Futures Trading Commission (CFTC), proposed that...

Liquid staking outperforms bearish market as Lido growth fuels $20B TVL

cyptouser10 months ago258
The total value of assets locked (TVL) in liquid staking projects has continued to climb despite&nbs...

Solana co-founder backs Ethereum amid MakerDAO fork consideration

cyptouser10 months ago298
Solana co-founder backs Ethereum amid MakerDAO fork consideration
Solana’s (SOL) co-founder, Anatoly Yakovenko, has cautioned the blockchain community against harbori...

Uniswap Labs, VC backers cleared of liability in scam token case as judge dismisses complaint

cyptouser10 months ago230
A judge for the United States District Court of Southern New York dismissed a class action suit agai...

Kinetix eyes GMX’s path, aims to revolutionize Kava Chain with perpetual swaps

cyptouser10 months ago267
Kinetix eyes GMX’s path, aims to revolutionize Kava Chain with perpetual swaps

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and leverage trading and it made a big splash in the DeFi community.

If you haven’t heard about GMX, let’s get you up to speed: GMX’s launch on Arbitrum was seen as a major DeFi milestone. Aside from proving Arbitrum as an effective Ethereum L2 scaling solution, GMX stood out for two big reasons:

  1. The first DEX and perpetual market to launch on the Arbitrum ecosystem.

  2. A shared liquidity pool system minimizes price impact on trades of all sizes without affecting the market price.

Within a month of launch, GMX grew its TVL to over $30 million, averaging ~$1.4 million in daily trades. GMX has evolved into a liquidity mining program, an NFT marketplace, and a yield farming platform. Its ongoing growth puts it at TVL of over $450 million and boasts a 24-hour trading volume of $1 million at the time of writing.

GMX’s growth and adoption also accrued value to the GMX token. The GMX token market price on Sept 13th of 2021 was $14.74. One month later, it was $22.33. A year later, it is $46.27, and at the time of writing, it sits at $36.66 — a more than 200% price appreciation since launch.

Looking back, it’s safe to say that GMX’s launch on Arbitrum was a great success. Demand for a decentralized perpetual market on Arbitrum was and still is – high.

But why did a perpetual market and shared liquidity pool system impact Arbitrum’s growth? And what does this have to do with Kinetix and Kava Chain?

Perpetual Propulsion

The evolution of DEXs and derivatives markets (like perpetual swaps) in crypto presents builders with novel tools to push DeFi forward and provide users with incentives for early adoption.

Kinetix Finance, a state-of-the-art v3 perpetual DEX, brings the same potential to Kava Chain that GMX brought to Arbitrum. The flywheel effect works like this: the launch of the first DEX and perpetual market protocol on an ecosystem creates positive market sentiment, which accelerates liquidity growth and user activity on the protocol and, by extension, its ecosystem.

GMX offered Arbitrum users the flexibility of perpetual swaps without an expiry, so it drew a larger pool of seasoned and novice traders into the ecosystem, contributing to more liquidity and activity.

This led to a surge in the TVL, reflecting a heightened capital allocation within the Arbitrum ecosystem. The non-expiring nature of GMX’s perpetual contracts stimulated higher trading volumes among these new users, who could adjust their positions without being bound by contract end dates.

This heightened activity enhanced the overall liquidity of Arbitrum and incentivized more people to onboard and participate in the Arbitrum ecosystem.

So why is Kinetix Finance ripe to experience the very same flywheel effect?

The Kinetix v3 DEX & Perpetual Market

The Kinetix team is building from their past successful experience with Quickswap, the largest DEX on Polygon for over 3 years, which at its peak had ~1.5 billion in TVL and ~1 billion in 24h trading volume.

For their next venture, they’ve decided to build on Kava Chain, a layer-1 blockchain that combines the speed and interoperability of Cosmos with the developer power of 

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and levera...

DeFi Bubble bursts for as key metrics tumble by over 90%

cyptouser10 months ago238
After a blistering start to life that saw it generate much hype and interest from the cryptocurrency...

New $5M exit scam fears as DeFi grows on Base with 1inch Network launch

cyptouser10 months ago247
1inch Network has announced its expansion to Base, a Layer-2 Ethereum scaling solution incubated by...

PancakeSwap v3 launches on Ethereum layer 2 Linea

cyptouser10 months ago275
PancakeSwap v3, a popular multi-chain DeFi exchange, announced its launch on the Ethereum ...

Bots net $2M in profits on decentralized platform amid rising user activity

cyptouser10 months ago252
Maximal extractable value (MEV) bots on the decentralized social media application have...