Kine Protocol (KINE) Review
What is Kine Protocol?
A decentralized protocol, Kine establishes general purpose liquidity pools that are backed by a portfolio of digital assets. Traders are able to open and close derivatives positions based on trusted price feeds as a result of the liquidity pool, eliminating the need for third-party counterparties.
By extending the collateral base to any Ethereum-based assets and by also allowing third-party liquidation, Kine solves the problems encountered by many existing peer-to-pool or peer-to-contract trading protocols. Kine Protocol is essentially a decentralised exchange that offers on-chain staking, no slippage and zero-gas fees for derivatives trading.
Kine Protocol has a peer-to-pool model that provides traders with a market without limitation on liquidity or underlying. Kine is already live on Ethereum, Binance Smart Chain, Polygon and Avalanche.
Since Kine is a decentralized protocol, users can access the platform via a Web3 wallet such as MetaMask and choose the chain they want to use.
What Are The Benefits of Using Kine Protocol?
Users of the Kine ecosystem can choose to:
Staking and Minting – in order for users to stake digital assets in Kine Finance decentralised application (DApp), the ‘staking value’ has to be increased and the user has to get a ‘debt limit’. Once those have been established, they can then be minted into kUSD, reflective of actual debt to the system. 0.8 kUSD can be minted for every dollar worth of debt limit.
Trading – minted kUSD can be transferred as trading margin to Kine Exchange. Since all profits and losses are settled in kUSD, the token has demand and is being traded on decentralised exchanges such as Uniswap and DODO and centralised exchanges such as OKEx and Gate.io.
Token burning and unstaking – in order for a user to withdraw the asset they are staking, they’d need to effectively pay back the outstanding debt by simply burning the equivalent amount of kUSD.
Claiming rewards – Kine incentives users with outstanding debts by distributing rewards periodically which the users can claim.
Affiliate/referral passive income – Kine Protocol’s affiliate program allows users to earn 28% of fees that the protocol charges your referees.
KINE is the protocol token which is traded on exchanges such as OKEx, Gate.io, etc. Kine Protocol’s KToken contracts implement the staking assets as collateral functionality for users. Stakers receive kTokens for staking assets to KToken contracts. These kTokens represent their staking balances and these balances can be used as liquidity in order to boost the Multi-Collateral Debts (MCD) Limit required to mint kCurrency. kTokens that are minted are redeemable in full or partially in order to withdraw the assets. Kine Protocol has been audited by Peckshield.
Kine Protocol Ecosystem Participants
There are three key players in the ecosystem currently:
Stakers who stake digital assets and mint kUSD in order to receive KINE token rewards, issued in the form of token incentives and trading fee distribution.
Traders who use the DEX to take advantage of leveraged cross margin trading and zero slippage. These traders pay fees which are used to incentivise stakers. Originally designed to support kUSD as the only margin currency, Kine now also supports USDC/USDT margin which means that traders who do not stake on the Kine DApp don’t have to worry about obtaining kUSD as they can simply participate directly. Kine also provides a margin currency switch option which makes it easy for users to adopt a multi-currency margin framework.
Liquidators who pay back debt on behalf of insolvent stakers and essentially help protect the liquidity pool from under-collateralization. Upon successful liquidation, they can take a sizable portion of the staked assets which they can sell for profit.
Kine Protocol NFT Marketplace
Users can connect to the NFT marketplace where they can buy and sell simply accessing the marketplace via MetaMask for example. Users can use the Binance Smart Chain or Avalanche.
What Kine Protocol is trying to achieve with its innovations is worthy of note and interesting. We’ll be keeping up with developments within the ecosystem as the project continues to develop.
Originally published on Decentralised News
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