Raised $4 million in funding after being launched for only 43 days, can KTX become the GMX of BSC?

On July 12th, KTX.Finance, a decentralized derivatives trading platform on the BNB Chain ecosystem, announced the completion of a $4 million seed round of financing. The round was led by Hashed and included participation from AlphaLab Capital, CRIT Ventures, 100&100 Ventures, Trinito Corporation / Morpheus, GSG Asset, Lapin Digital, KuCoin Ventures, and Sky9 Capital.

From the official launch of the project on the mainnet to announcing the completion of a $4 million financing, KTX.Finance only took 43 days.

What is KTX.Finance?

KTX.Finance is a decentralized derivatives trading protocol on the blockchain, operated by Alphamesh and incubated by ByteTrade Lab, a Singapore-based Web 3 infrastructure and venture capital firm. KTX.Finance aims to provide traders with a centralized exchange (CEX)-like trading experience while benefiting from the permissionless nature of decentralized finance (DeFi).

Currently, the KTX.Finance platform allows traders to use up to 50x leverage and only offers perpetual contract trading pairs for BTC/USD, ETH/USD, and BNB/USD. The Swap function supports 5 currencies including BTC (BTCB), ETH, BNB, USDT, and BUSD.

According to data from the KTX.Finance official website, during the testnet phase, the platform attracted a total of 15,500 trader users to participate in testing. After the mainnet was officially launched, KTX.Finance accumulated 1346 trader users in 45 days, with a total trading volume of 41.74 million US dollars and an open interest volume of 290,000 US dollars.

New things always attract SmartMoney's attempts. Although the platform is still in a very early stage, perhaps it is not as far away from achieving GMX's goals as imagined (the following picture is taken from Dune).

From the perspective of the entire BSC network, although the network currently has a TVL of 4.8 billion US dollars, the ecological head is lacking in derivative trading platform projects. For BSC, the derivative trading platform track is not crowded, and KTX.Finance sees this opportunity.

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Token Economics

By referring to official materials, we can see from the familiar token economic system architecture of KTX.Finance's project vision - "to become the GMX of the BSC ecosystem".

Like GMX, KTX.Finance adopts a dual-token model in its token architecture, consisting of the LP token KLP and the governance token KTC.

KLP

KLP serves as an "infinite supply" liquidity proof receipt in the token architecture. By minting KLP, LPs provide liquidity to a single liquidity pool consisting of 50% stablecoins (BUSD and USDT) and 50% blue-chip assets (ETH, BTC, and BNB).

KLP is minted using the underlying assets in the pool and redeemed by redeeming the assets. A certain fee will be charged during the minting/redeeming process, and 70% of the fee on the platform will be rewarded to KLP holders (paid in BNB).

KTC

KTC's total supply limit is temporarily set at 100 million tokens. Token minting that exceeds the maximum supply will be subject to a 28-day lock-up period. This restriction will only be considered when more products are launched and liquidity mining needs to be increased. In addition, whenever KTX.Finance wishes to make any changes, token holders will be called upon to use KTC for governance voting to ensure community participation and consensus on these decisions.

As the governance and utility token of KTX.Finance platform, KTC staking users can receive an additional 30% of protocol transaction fees, which are also paid in the form of BNB.

When users pledge KTC, they will receive multiplier points at a fixed rate of 50% APR. Points can be earned by pledging through the "Earn" page using the "Compound" button to earn fee rewards. Each multiplier point can receive the same amount of BNB rewards as normal KTC tokens. This means that long-term holders can earn more BNB rewards over time.

And when the user decides to release the pledge, all the multiplier points obtained will be cleared to zero.

The current distribution plan for the 100 million KTC tokens by the project team is as follows:

· 10 million KTC tokens are used to provide liquidity for trading pairs on PancakeSwap.

· 30 million KTC tokens are used to support the ecosystem.

· 10 million KTC tokens allocated to early investors.

· 20 million KTC tokens are distributed by the project team themselves.

· 30 million KTC used for paying esKTC rewards.

esKTC

In addition, users who pledge KTC and KLP will receive esKTC tokens. The amount of KTC or KLP tokens required for pledging depends on the amount of esKTC tokens the user receives and the average pledge amount on the platform.

According to official documents, if a user has 100 KTC tokens and receives 10 esKTC tokens within a month, they can convert the 10 esKTC tokens into 10 KTC tokens by staking the 100 KTC tokens and the 10 esKTC tokens together. (The actual ratio depends on the average staking amount and rewards earned by the account.)

The use cases of esKTC token on KTX.Finance include:

· Pledge Pool: esKTC can be used for pledging and receiving rewards, including KTC tokens, esKTC tokens, and multiplier points. By pledging esKTC, users can earn compound rewards and receive the same rewards as pledging KTC tokens.

· Lock-up: KTC pledging users can convert KTC into esKTC tokens, which cannot be sold, and once converted, will automatically lock-up for 1 year. The process of converting esKTC back to KTC will be linearly carried out within one year, gradually unlocking over time.

Summary

According to data from the official website of KTX.Finance, there are currently only 1.45 million KTC tokens in circulation, of which 36% are currently being staked. The market value of KTC tokens is only about $1.197 million.

Meanwhile, the project team has also showcased the project vision in the product roadmap. KTC.Finance is currently launched on the BNB chain, but will work on implementing cross-chain compatibility in the future to meet the needs of all traders.

Although currently investors can only obtain KTC assets through PancakeSwap, the presence of KuCoin Ventures in the list of investors may suggest that KuCoin will be one of the first CEXs to support KTC trading. Looking further ahead, it is believed that "listing on Binance" is the ultimate goal for all excellent projects in the BSC ecosystem. DYOR.

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