How to Invest in KiloEX on Notum

The emergence of cryptocurrencies has revolutionized the financial world, offering new investment opportunities, unique strategies, decentralized lending, and much more. In addition, more and more people began to get involved in trading and study the movement of trading pairs to generate income.

The popularization of cryptocurrency has led to the need of trading platforms that will have the proper level of security and decentralization. Exchanges like Binance and OKX are some of the most popular in the world, offering users deposit rewards, educational videos, and numerous unique benefits. However, since such exchanges are centralized, the need for more decentralized options was still there.

KiloEX is a derivative DEX, or, to put it another way, a decentralized trading platform that offers a greater level of security and transparency compared to centralized options. With KiloEX, users can directly participate in trades through smart contracts, thereby ensuring fair transactions. The platform also offers more innovative trading methods that make trading on this DEX more successful and comfortable.

Notum will introduce you to KiloEX, its distinctive features, operating principles and risks. In addition, we will look at how users can get income on KiloEX in addition to trading and what is needed to receive a $KILO token airdrop.

KiloEX: the Essentials

• TVL: $17,04M
• Risk Level: Medium
• Blockchains: opBNB, Manta Pacific, BNB Chain
• Foundation Date: 2023

KiloEX is a perpetual decentralized exchange that provides users with incredibly fast trades, real-time tracking of market activity, and a user-friendly interface with a simplified trading experience. A unique feature of the platform is the provision of risk-neutral positions and solutions for liquidity providers.

Important! At the moment, the platform operates on three networks - BNB Chain, opBNB and Manta. However, BNB Testnet and Taiko Katla L2 are also in practice.

KiloEX peer-to-pool perp DEX aims to revolutionize decentralized trading by combining trading and risk management. The principles of the platform are that both traders and liquidity providers should be able to freely and securely control their investments.

To allow users to manage risks themselves, the platform has listed them on the “Earn” page. This way, traders can decide for themselves whether hedges are worth the risks based on their knowledge and preferences. In the future, the platform plans to provide users with hedging tools.

KiloEX’s Vault

KiloEX uses the vault, which serves as the counterparty for all transactions happening on the platform. Thus, when traders win, their winnings are received from the vault. In case of loss or negative PnL, users' losses are sent to the vault accordingly.

Interesting fact: In return for its counterparty services, the vault receives all the borrow fees, part of the trading fees, as well as the funding fee rate for the long and short spread portion. All these fees are distributed among kUSDT shares, which incentivizes stakers to use the vault.

«kUSDT Vault is a USDT vault following ERC-4626, a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 asset. For this vault, kUSDT shares represent the underlying USDT asset» - KiloEX Gitbook.

Vault’s collateralization also depends on traders and their PnL. As long as the commissions received exceed the PnL payout, stakers receive a positive profit. More information about the vault with examples can be found here.

$KILO/$xKILO Token Airdrop

KiloEX DEX has announced the release of its own token, KILO, which will allow community members to enjoy the growth of the platform. The KiloEx Airdrop plan consists of several stages, the first of which is KiloEx Points Airdrop Program V1.0. and the launch of the Points Airdrop product system on the platform website. After receiving points, users will be able to convert them into $KILO tokens.

Interesting fact: KiloEX has officially become the first Perpetual DEX on opBNB. In addition, the KiloEX points program will be available in all KiloEx's mainnets.

According to the platform's official documents, to earn more points, users will receive more airdrops when the $KILO token is released. More detailed information about the program and airdrop can be found here. You can also visit the KiloEx Genesis Pass for more details.

By investing $KILO in the platform’s single-sided staking pool, users will receive a $xKILO illiquid and non-transferable token. Platform users can mint $xKILO at a one-to-one ratio using their $KILO tokens.

Moreover, while depositing $KILO into the KiloEX pool, investors will earn not only $xKILO, but also $USDT for rewards. Besides, when exchanging $xKILO to $KILO, users can choose the date and time to complete the transaction. You can get more information about $xKILO and its trading fees here or on KiloEX’s discord.

Why Try Earning with KiloEX?

Despite its short history of existence, KiloEX is popular among users due to its innovative features and a large number of trading opportunities. Let's look at the main advantages of KiloEX DEX.

Pros

One click trading

KiloEX offers investors one-click trading (1CT) that maximizes the transaction process. 1CT eliminates the need for traders to engage with a wallet, which also reduces trade execution time.

User-friendly interface

The platform offers investors convenient trading methods and features, making the user experience more comfortable.

Combination of trading and community

KiloEX strives to unite trading with community building, thereby encouraging users to participate in various activities on the platform, such as copy-trading and trading competitions.

Variety of trading methods and assets

The platform offers the widest trading pairs and flexible trading options to suit users' wants and needs.

Low trading fees

KiloEX charges relatively low trading fees, which also helps reduce trader costs and improve the user experience.

Decentralized referral

The platform also offers users to earn a referral bonus by inviting friends to use KiloEX.

Low liquidation risk

By choosing KiloEX, users also protect themselves from the high risk of liquidation. By receiving prices from multiple spot exchanges, they can avoid price fluctuations.

Other distinctive features of the platform also include the highest leverage available, decentralized copy trading, hedging tools, and much more.

KiloEX: Investment Strategies

The KiloEX app offers users two options - Trade and Earn.

1. Trading on the platform provides users with familiar trading pairs. To start working on KiloEX, the user need to connect one of the proposed wallets and choose the network. For now, KiloEX operates on opBNB, Manta Pacific, and BNB Chain.
   
   Investors can choose from a huge variety of pairs and track their activity in real-time. KiloEX offers long and short options with adjusting leverage and order placement preferences. You can watch the tutorial «how to trade» on the Tutorials tab.
    
2. By visiting the Earn tab, users are taken to the KiloEx Vault, where they can deposit USDT to receive rewards. As stated, the platform's vault acts as a counterparty of traders. The return from the vault largely depends on the traders’ behavior. As liquidity providers on KiloEX, users can stake USDT into the vault and share 30% of the platform’s income. Currently, the rewards for staking USDT on the platform are 142.39% APY.
   
   By clicking the deposit button users can enter the amount they want to invest, after which they will see the amount of kUSDT they’ll receive. The exchange rate is 1USDT = 0.92 kUSDT. On the left, users will see some tips about depositing, along with the benefits and risks. The advantage of the platform is that there is no lock-up period for deposits and rewards. 24 hours after depositing funds, the user can withdraw them. You can watch the tutorial «how to earn» on the Tutorials tab.

Important! By signing up in the KiloEX app every day, users receive points that can then be exchanged for KILO token after the airdrop. Traders on the platform can receive 28 points for 7 consecutive days. For every completed trading on the platform, users also receive points.

KiloEX: Risks and Disadvantages

Even though KiloEX is a decentralized exchange, which already eliminates some of the risks, it is still not without its drawbacks.

Cons

Risk of smart contracts

Despite the fact that KiloEX has undergone a large number of audits from professional security firms to ensure its safety, there is no absolute guarantee of smart contract security. If contacts are hacked or have vulnerabilities, users may lose their funds.

Private key loss

The platform allows users to have control over their assets using private keys, which eliminates the security risks associated with CEX. However, key leaks or loss of private keys can also lead to losing assets.

Liquidity provider risks

When operating as counterparties, LPs will always be exposed to certain risks. Thus, every time the user makes a profit, the LP incurs losses.

Liquidity risk

Any DEX including KiloEX is subject to liquidity risk. It can be the result of many factors, from the average trading volume on DEXs to the decentralized nature of such exchanges.

Notum’s Verdict

KiloEX is a popular perpetual DEX offering users lightning-fast trades, market activity trading, and the opportunity to earn rewards by staking assets in a vault. It has a user-friendly interface and simple navigation, making the platform convenient for traders and investors around the world. KiloEX supports three networks and allows investors to control their investments independently.

By using the KiloEx Vault and depositing their USDT assets, users can earn quite large rewards of 142.39% APY. With an average risk level and a TVL of over $17.04M, the platform is a good option for both experienced traders and beginners looking for a DEX with the proper level of security and decentralization.

Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.