By Dubai, UAE, 6th April 2024, ZEX PR WIRE, The Kinetex team arranges the last details before launching Flash Trade. The upcoming arrival of Flash Trade is causing excitement among the Kinetex team. Following the successful development of Aggregation Liquidity, the team focused on transitioning from a liquidity aggregation service to an innovative intent-based trading platform. Throughout this process, the team reached several significant milestones that were instrumental in laying the groundwork for the creation of Flash Trade.
From Liquidity Aggregation to Flash Trade
Kinetex was created to resolve issues impeding crypto development and adoption. The team first developed the Liquidity Aggregation mode to fix problems linked to insufficient liquidity, often encountered on decentralized platforms. Later, the team realized that a more overarching strategy was needed to address the most pressing DeFi issues at once, leading to the creation of Flash Trade.
Flash Trade presents an entirely different crypto trading approach based on intents and resolvers. By enabling direct trades between users and resolvers, Kinetex can eliminate widespread blockchain issues, such as long execution, price slippages, MEV attacks, and others, while significantly enhancing the user experience. As a result, Kinetex provides user-friendly, one-transaction trading, whether on-chain or cross-chain.
Unique Approach to Trading Crypto
Intents provide a unique solution to the difficulties of making transactions, allowing for more flexibility during trading. Instead of conventional transaction-based processes, which limit the validator to following a single pre-defined route, intents allow for any route that meets specific criteria. Therefore, users do not need to select the most optimal swap routes themselves and, at the same time, can enjoy more favorable outcomes.
This trading approach is based on ZK technology, mainly ZK light clients. The latter was created by the Kinetex team specifically for Flash Trade. Light clients allow Kinetex to conduct instant swaps between users and resolvers without relying on third-party validators, employing cross-chain bridges, or incurring high gas fees.
Bitcoin Support
Another innovation of Flash Trade is Bitcoin support. In February of this year, Kinetex announced the creation of the ZK light client for Bitcoin called BTCX. This innovation was built with Succinct Labs’ plonky2x framework. Trading BTC on decentralized platforms has traditionally been challenging. Wrapped versions of Bitcoin have been needed, adding complexity and specific risks to the trading process. With the creation of BTCX, Kinetex has made it possible for EVM-compatible networks to verify Bitcoin’s state without intermediaries, allowing Bitcoin to be added to the list of crypto assets supported by Kinetex’s Flash Trade.
Security
Flash Trade’s security is guaranteed through the use of Hashi adapters and ZK light clients. To begin with, Kinetex leverages Hashi’s redundancy approach, which ensures the security and reliability of cross-chain interactions by gathering messages and block headers from various sources and rigorously validating them through multiple independent mechanisms.
In addition, Flash Trade employs ZK light clients, thus removing the need for third-party validators, a major vulnerability in many decentralized solutions. By adopting ZK proofs, Kinetex eliminates any risks associated with malicious actors bribing validators or compromising them in other ways to manipulate their decisions. As in the case of the light clients for Bitcoin, ZK light clients were created with the help of Succinct Labs.
Flash Trade’s Advantages
Aside from Bitcoin support, Flash Trade’s most significant benefit is its fast execution speed. This mode has an average execution time of 1 to 10 seconds (1 confirmation block), allowing users to enjoy an instant swapping experience.
Another advantage is MEV protection. MEV refers to the profit validators can acquire by exploiting users’ transactions. Kinetex does not rely on validators so that no validator can exploit its users’ trades.
Zero slippage is the third significant advantage. Kinetex’s intent-based approach lets users choose the swap conditions, including rates. This approach ensures that no price changes are possible during the swap, making the trading process far less nerve-racking.
Finally, Kinetex’s lack of liquidity pools is the last notable benefit. Hackers cannot steal the funds stored in liquidity pools because there aren’t any. Resolvers provide all liquidity while they complete user orders. They can collect necessary funds across the blockchain universe, ensuring adequate liquidity for practically any token.
Flash Trade’s official launch will be announced shortly. In the meantime, check out the Kinetex dApp on the new domain.
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