CVP Proposal: 1KXTrade

Ecosystem proposals
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Introduction

1KXTrade is a pioneering decentralized platform that specializes in high leverage perpetual trading, offering up to 1000x leverage. Eager to expand our reach, we propose deploying 1KXTrade on the Metis Andromeda Network, bringing unprecedented high leverage trading opportunities directly to Metis users in a secure and decentralized framework.

Proposal Details

Project Name: 1KXTrade

Website: 1kx.trade

Documentation: docs.1kx.trade

Objective:

To integrate high-stakes, high-leverage trading within the Metis ecosystem, equipping users with powerful tools to engage in leveraged trades, supported by the security of decentralized technology.

Uniqueness Factor

1KXTrade stands out by providing:

Extreme Leverage Options: Users can engage in leveraged trading at levels rarely seen in the DeFi space, up to 1000x, allowing for significant market exposure.

Decentralized Liquidity Provision: Unlike traditional platforms, our liquidity is entirely decentralized, contributing to a more secure and robust trading environment.

Integrated Reward System: Through reward structures, traders and liquidity providers earn real-time rewards, enhancing user engagement and investment returns.

Benefits for Users

Access to High Leverage: Traders can significantly amplify their trading positions, offering the potential for substantial returns.

Being both sides of trading: Users have the unique opportunity to engage on both sides of the trade by contributing liquidity to the decentralized vault. This innovative approach not only empowers users to leverage their positions in the market but also enables them to participate in the ownership of the platform’s financials. Thanks to our distinctive fee structure, participants can earn a share of the continuous and sustainable platform’s earnings, effectively making them co-owners of the trading ecosystem.

Enhanced Security: Fully decentralized trading eliminates many of the risks associated with centralization, such as server downtime and single points of failure.

Community Participation: Users can influence future developments via governance tokens, directly shaping the platform’s roadmap.

Benefits to the Metis Network

Increased Transaction Volume: High-leverage trading is likely to drive significant transaction volumes, boosting network utilization and fee generation.

Diverse User Base: Attracting a niche group of high-risk traders and liquidity providers who are
looking for advanced trading capabilities.

Boositing Liquidity: The introduction of 1KXTrade will significantly boost liquidity on the Metis Network, as it attracts a substantial volume of capital through our innovative trading mechanisms and liquidity provisions. This influx not only enhances transaction capabilities but also stabilizes the network, fostering a more robust trading environment for all users.

Strengthening DeFi Offerings: Enriches the Metis ecosystem by adding a unique trading product, setting Metis apart in the competitive DeFi landscape.

Technical Integration:

Deployment of smart contracts on Metis Andromeda.

Integration with Metis’s native features for optimized transaction speeds and cost efficiency.

Utilization of Metis oracles for accurate, real-time market data.

Roadmap:

Q2 2024

  • Development & Partnerships

  • Completion of Smart Contract Audits & Private Testnet

  • Incentivized Public Testnet Launch Campaign & KOL Onboarding

  • IDO Launch & Genesis 1KLP Public Sale

Q3 2024

  • Mainnet Launch on Metis & Campaigns

  • New Pair Campaigns & Ecosystem Partnerships

  • 1KX AI Development & Private Testnet

Q4 2024

  • Public Pair Launches on Testnet

  • RWA Trade Pairs Launches

Q1 2025

  • Public Pairs Launches on Mainnet

Conclusion

Supporting 1KXTrade’s introduction to the Metis Andromeda Network will not only broaden the trading horizons for its users but also affirm Metis’s position as an innovator in the DeFi space. We commit to maintain transparency and active engagement with the community to ensure 1KXTrade aligns with and propels Metis’s vision.

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  1. How does 1KXTrade’s provision of up to 1000x leverage impact risk management strategies for traders, and what measures are in place to mitigate the potential for significant losses in such a high-leverage trading environment?

  2. In what ways does the decentralized liquidity provision model of 1KXTrade contribute to the security and robustness of the trading environment compared to traditional centralized platforms, and how does this model affect liquidity providers?

  3. How does the integrated reward system in 1KXTrade enhance user engagement and investment returns, and what implications does this have for the long-term sustainability and growth of the platform within the Metis ecosystem?

  4. What are the expected impacts of integrating 1KXTrade on the transaction volume and liquidity of the Metis Network, and how might this influence the network’s overall utilization and competitiveness in the DeFi landscape?

3

Thanks for the questions.

  1. Robust Risk Management: The high leverage offered by 1KXTrade significantly increases the potential for gains but also heightens the risk of substantial losses. To manage these risks, 1KXTrade has implemented robust strategies, including:

  • AI-Powered Risk Management: Utilizes advanced algorithms to dynamically adjust risk parameters based on market conditions and individual trading behaviors.

  • Margin Requirements and Liquidation Protocols: Enforces strict margin requirements and uses automated liquidation processes to protect traders and the platform from excessive losses due to market volatility.

  • Oracle Integrations: Only assets with reliable price feed data are traded and added, preventing unusual activities and unexpected price spikes, thereby creating a safe and profitable trading ecosystem.

  1. Decentralized Liquidity Provision Enhances Security: By distributing control and ownership via 1KLP token across a wider base, decentralized liquidity provision on 1KXTrade reduces the risk of manipulation and eliminates central points of failure:

  • Enhanced Security and Lower Risk: The platform minimizes risks associated with centralization, such as hacks or administrative corruption, through audited public immutable 1KLP contracts, ensuring a trustless environment.

  • Incentives for Liquidity Providers: Providers are rewarded with a share of trading fees and losses, incentivizing sustained and stable liquidity provision, which attracts substantial Total Value Locked (TVL) to the Metis Ecosystem and ensures profitable liquidity pools.

  1. Integrated Reward System: 1KXTrade’s reward system is designed to boost user engagement and provide attractive returns:

  • On-Chain Activity Rewards: Traders and liquidity providers receive rewards based on their activities, enhancing engagement and encouraging continuous participation. Regular rewards such as weekly and monthly incentives attract farmers to engage with our contracts on Metis L2.

  • Sustainability and Growth: This reward system not only attracts more users but also retains them, critical for the long-term growth and sustainability of the platform. The ultimate goal is to foster the growth of a self-sustaining decentralized trading platform on Metis L2’s self-sustaining decentralized sequencers.

  1. Impact on Metis Network: The introduction of 1KXTrade is poised to significantly affect the Metis Network:

  • Onboarding Users from Other Networks: Launching 1KXTrade in the Metis ecosystem with unique features and rewards will attract users searching for high-leverage, high-reward trading platforms. We envision Metis as the ultimate hub for decentralized finance where futures trading is fully decentralized, self-sustaining, and rewarding.

  • Increasing Transaction Volume: High-leverage trading options are expected to attract a large volume of transactions, boosting network utilization and generating more fees.

  • Enhancing Network Liquidity: Attracting a diverse group of traders and liquidity providers, 1KXTrade will significantly enhance network TVL, boosting its stability and competitiveness in the DeFi. Although high-leverage trading pools may pose risks in the short term, the anticipated APR% is expected to be much higher in the long term.

4

Hey team! This is goodnews for Metisans who love high-stake perpetual leverage trading. High-risk trading isn’t really my thing, but I do have a few questions:

  • How are liquidations handled on 1KXTrade? What measures do you have in place to prevent cascading failures during extreme market conditions?

  • Also, how exactly do you intend to use Metis’s native features to improve transaction speeds and cost efficiency?

  • Finally, are there any regions or countries where users won’t be able to access 1KXTrade because of regulatory issues?

Wish you goodluck in the votes guys!