Decentralized finance (DeFi) is a rapidly changing space. That is why new platforms and technologies are developing to offer users more efficient and accessible trading experiences. One such innovation is Kana Perps, a perpetual trading platform deployed by Kana Labs on the Aptos mainnet. This new platform provides a faster, cheaper, and far more transparent alternative to existing DeFi perpetuals. Through this, it combines both the benefits of gasless trading and a CLOB (Central Limit Order Book) model. Kana Perps offers an eye-opening experience for new and experienced traders alike. It’s the best guide on how to trade perpetual contracts on-chain safely and effectively. ThrowingToken.com is on hand to explain what this exciting new development means for you.
Overview of Kana Labs' Launch
After months of beta testing and community development, Kana Labs has officially launched Kana Perps on the Aptos mainnet. This is a historic landmark for the perpetual trading being traded on-chain. With this launch, we are creating a remarkable DeFi trading experience. Today, traders can take advantage of a new market-defining combination of speed, efficiency and transparency that was previously unattainable. Kana Perps leverages the unique strengths of the Aptos blockchain. This strategy addresses one of the biggest obstacles to entry for users on traditional DeFi platforms, such as substantial gas fees and slow transaction speeds.
With Kana Perps, we have a true game changer. It’s strategic in that it seeks to bring DeFi by default to everybody in a way that’s seamless and super easy to use. Kana Labs has really focused their effort on building a beautiful, intuitive user experience. All types of traders—from beginners to experts—will find it simple to use the platform and maximize what it can do. Kana Perps welfare to accessibility. This commitment, combined with its cutting-edge technology, positions the platform as a serious game-changer in the DeFi sector. The move has the potential to change how traders engage with perpetual contracts on-chain.
Introduction to the First Fully On-Chain Perpetuals DEX
Kana Perps is unique for many reasons. Most importantly, it’s the first fully on-chain CLOB-based Aptos Perpetuals DEX built on the network. This difference is very important. Perhaps most importantly, it represents a stark contrast to the hybrid models prevalent throughout the DeFi industry. Kana Perps’ fully on-chain architecture ensures completely transparent trading. Each step, from order entry to order fill, is perfectly observable by all market participants. Establishing trust and confidence amongst users of the platform necessitates extreme transparency. This is work that is especially important in an environment where security and reliability are top-of-mind.
The choice of a CLOB model is of course an important one. CLOBs give traders the ability to place limit orders directly on the order book at desired prices. This distinguishes them from Automated Market Makers (AMMs), which rely on liquidity pools and algorithms to price assets. This leads to better price discovery and better spreads, leading to better outcomes for traders. Kana Perps has emerged as one of the most unique and innovative platforms in the Aptos ecosystem. Its fully on-chain architecture and CLOB model makes it unique from the above though.
Key Features of Gasless, CLOB-Based Trading
Prior to release Kana Perps promises a lot of unique core features to distinguish it from the other perpetual trading platforms. To begin with, perhaps the most significant is its gasless trading functionality. Kana Perps makes trading much simpler by getting rid of complicated gas fees altogether. By extension, traders are able to make their moves with greater ease and less expense. This is especially advantageous to the small-time traders who would otherwise be discouraged by excessive transaction fees.
These features, combined with the benefits of a CLOB model, make Kana Perps an attractive option for anyone looking to trade perpetual contracts on-chain.
0% maker fees: This incentivizes traders to provide liquidity to the platform, further improving price discovery and reducing spreads.
One-click trading: This simplifies the trading process, allowing users to quickly and easily enter and exit positions.
Up to 50% margin refund on liquidation: This provides a safety net for traders, reducing the risk of significant losses in volatile market conditions.
Intuitive UX: The platform is designed to be user-friendly, making it easy for traders of all levels to navigate and use its features.
To fully understand what Kana Perps is capable of, let’s take a look at the kinds of assets that the platform natively supports. Consider the basic order functionality that’s made available to traders. These factors have a palpable effect on both the user experience of trading and the types of strategies that users are able to use.
Supported Assets and Key Order Features in Kana Perps
Kana Perps allows for an extensive range of assets to be traded perpetually. This accommodates a wide variety of trading styles and strategies. The exact enumerated list of assets is subject to change. The platform generally lists trending cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Aptos (APT), and other altcoins with potential. The availability of these assets provides traders the opportunity to diversify their portfolios and capitalize on various market opportunities.
Types of Assets Available for Trading
Each supported asset is selected with an eye towards material liquidity with an extremely low risk of manipulation. Kana Labs tracks the market in real-time to determine trending and high-demand assets, iterating the list of assets available as demand fluctuates with market conditions. This gives the traders confidence that they are trading on a strong and stable trading platform.
Kana Perps provides a variety of order types to suit various trading approaches and risk management preferences. These order types include:
Core Order Functionality Explained
These order types level the playing field by giving more power to traders. First, they enable them to better manage risk and second they allow them to execute trading strategies. The platform’s friendly, intuitive interface makes it simple to place and manage orders quickly, without significant learning curve—even for the most inexperienced traders.
Market Orders: These orders are executed immediately at the best available price. Market orders are ideal for traders who prioritize speed and certainty of execution.
Limit Orders: These orders are placed at a specific price and will only be executed if the market reaches that price. Limit orders allow traders to control the price at which they buy or sell an asset.
Stop-Loss Orders: These orders are designed to limit potential losses. They are triggered when the market reaches a specific price, at which point a market order is executed to close the position.
Take-Profit Orders: Similar to stop-loss orders, take-profit orders are designed to automatically close a position when the market reaches a specific price, allowing traders to lock in profits.
The beauty of Kana Perps is, at least for us, in its on-chain matching engine and order book system. These crucial elements place buy and sell orders, and decide at what price trades are made. Knowing how these systems operate behind the scenes is important for understanding the efficiency and transparency built into Kana Perps.
On-Chain Matching Engine and Order Book System
The matching engine is the heart of Kana Perps’ CLOB model. It even constantly analyzes the order book for compatible buy and sell orders. Once a match is found, the engine completes the trade at the specified price. The engine’s sophisticated matching engine brings high speed and efficiency. Most crucially, it guarantees that trades will execute instantaneously and at low slippage.
How the Matching Engine Operates
Additionally, the engine performs all matching activity on-chain, with all matching activity recorded on the Aptos blockchain. This offers a new degree of transparency and auditability, because anyone can independently verify the execution of any trade. The on-chain nature of the matching engine eliminates the risk of manipulation, as all trades are governed by the rules of the blockchain.
The order book is a live, continuously-updated list of all open buy/sell orders on Kana Perps. It provides traders with key information on prevailing market conditions. They should be able to see how deep their liquidity is at any particular price and what the current market price is. The order book, now a dynamic dataset, is updated in real-time as orders are continually placed and orders are filled.
Benefits of the Order Book Infrastructure
The combination of a robust matching engine and a transparent order book infrastructure makes Kana Perps a reliable and efficient platform for trading perpetual contracts.
Knowing the margin requirements and fee structure of Kana Perps is key to proper risk management and maximizing profitability. These criteria directly affect the cost of trading and the potential profit traders are able to realize.
Price Discovery: The order book allows traders to see the prices at which other traders are willing to buy and sell, facilitating efficient price discovery.
Liquidity: The order book provides a measure of the liquidity of the market, indicating how easy it is to buy or sell an asset without significantly impacting the price.
Transparency: The order book is publicly accessible, providing traders with a transparent view of the market.
Margin requirements affect the amount of capital that traders have to put up in order to open and hold a position. Kana Perps uses a dynamic margin structure. The amount of margin needed depends on both the size of the position and the risk profile of the asset. Higher-risk assets typically require higher margin.
Margin Requirements and Fee Structure Breakdown
The margin requirements are there to protect the trader and the platform from taking on too much risk. By forcing traders to put up enough margin, Kana Perps makes sure that a trader has enough capital to cover the losses they’ll incur. The platform uses an automatic liquidation mechanism, which automatically closes a user’s position if the margin goes below a predetermined level. Kana Perps provides a margin refund of up to 50% on liquidation, delivering a substantial safety net for traders.
Understanding Margin Requirements
Kana Perps takes a relatively low trading fee of 0.1% for both makers and takers on the platform. We are confident that we have developed a competitive and transparent fee structure. It has five distinct tiers depending on your trading volume and your balance of its native token.
To top it all off, the platform uses 0% maker fees, creating an incentive for traders to supply liquidity into their market. Taker fees These fees come into play when a trader takes someone else’s order from the order book by executing a buy/sell order directly into the order book. The fees vary by trader volume and token holdings from 0.03% down to 0.0005%. The bigger the fee cut, the more enticing it is for frequent traders.
Overview of Fees Associated with Trading
Kana Perps charges a funding rate. This is essentially a periodic fee paid in the form of a payment between perpetual contract buyers and sellers. The funding rate ensures that the price of the perpetual contract is pegged to the price of the underlying asset. This makes sure that both underlying prices stay aligned. Their tiered-based fee structure ensures equity and long-term community benefit. Continuing to fund the platform helps ensure it can continue to operate and provide high value to its users.
Connecting Kana Perps with the OKX Wallet is a revolution! Beyond improving user experience, this move significantly expands the platform’s potential user base. This integration, along with Kana Labs' vision for the future of on-chain trading, highlights the platform's commitment to accessibility and innovation.
This integration is part of Kana Labs’ ongoing effort to deliver an intuitive and secure trading environment.
Integration with OKX Wallet and Future of On-Chain Trading
Kana Labs believes on-chain trading should be available to all, not just a few. The company is committed to the development of cutting-edge solutions. These solutions help simplify and reduce costs for end users looking to participate in the new, exciting DeFi ecosystem. By eliminating unnecessary intermediary trades, we make trading easier and gas fees lower. Beyond that, we’re building educational resources to equip users in understanding the risks and opportunities that on-chain trading brings.
Benefits of Integration for Users
Kana Labs is passionate about enabling new markets through on-chain trading. It provides much improved transparency, efficiency and accessibility for all stakeholders. By continuing to innovate and improve its platform, Kana Labs aims to play a leading role in shaping the future of on-chain trading.
Seamless Trading: Users can easily connect their OKX Wallet to Kana Perps, allowing them to trade perpetual contracts without having to transfer funds between different wallets.
Enhanced Security: The OKX Wallet provides a secure and reliable way to store and manage digital assets, protecting users from potential hacks and scams.
Increased Accessibility: The integration makes Kana Perps more accessible to a wider range of users, as OKX Wallet is a popular and widely used wallet in the crypto community.
With recent turbulent events in the cryptocurrency market, this topic has gained much interest. These days, Proof of Reserves (PoR) is the hot new catchphrase. It’s one of the most valuable mechanisms for ensuring transparency and building trust between crypto platforms and their users.
Vision for On-Chain Trading Accessibility
Proof of Reserves (PoR) is a third-party audit process. It conducts a real-time proof of reserves to confirm that a crypto exchange or custodian truly has the assets it says it does, stored on behalf of users. In practice, this means cryptographically proving that the platform has enough reserves to redeem all user balances. At its core, PoR is a promise that the platform isn’t operating on a fractional basis and can honor redemptions to its users.
The way Proof of Reserves (PoR) is implemented is not consistent across platforms. Essentially, it uses cryptographic methods such as Merkle trees to aggregate user balances and prove that the platform’s total reserves are equal to or greater than the total user balances. This mechanism would not involve disclosing specific user balances, protecting the privacy of all users while still making it clear whether or not the platform is currently solvent.
Importance of Proof of Reserves in the Crypto Space
Proof of Reserves is critical for institutions and individual users of the crypto space. Lastly, for institutions, PoR offers an opportunity to prove their financial stewardship and grow confidence among their own stakeholders. This is especially key for regulated entities, such as banks, that face stringent capital stress tests.
What is Proof of Reserves?
PoR promises what we can only assume are unsophisticated individual users that their money is protected. It reassures them that the platform they’re using is steering clear of risky or fraudulent activity. This provides some assurance against funds being lost through insolvency or mismanagement of a platform. Consumers get the new ability to audit a marketplace’s reserves. This new capacity enables them to make better decisions about where to warehouse and trade their digital assets.
The future of stablecoin stability is at the core of the ecosystem’s success. Recent pandemic-related failures underscore the need for robust assurance mechanisms. These mechanisms are key for preventing stablecoins from straying too far from their pegged currencies.
Significance for Institutions and Users
Kana Labs is dedicated to leading assurance practices for stablecoins and their ilk. This means regularly auditing the reserves backing its stablecoins and making those reports available to the public, in a transparent way. The company has been looking into more cutting-edge ways to improve the transparency of its stablecoin reserves. One particularly promising strategy is leveraging on-chain proof of reserves to increase auditability.
Assurance Building trust and confidence in Kana Labs’ stablecoins is a priority. This commitment is what renders their stablecoins trustworthy and stable mediums of exchange within the crypto ecosystem. This commitment to assurance is vital to the long-term success of stablecoins and the entire DeFi market.
The Future of Stablecoin Assurance
The new commitment to stablecoin assurance has far-reaching consequences for the crypto market. It minimizes the chances of stablecoin de-pegging, a phenomenon no one wants. This, in turn, stops the destabilizing ripple effects it could have on the entire market. Increased transparency and accountability will help draw more institutional investors into the crypto space. Assurance practices are essential to making that happen.
Setting a Precedent in Assurance Practices
Widespread adoption of strong assurance practices for stablecoins will help ensure a more stable, more trustworthy crypto ecosystem. That, in turn, will lead to more innovation and more growth.
Kana Perps is a huge leap forward in the evolution of on-chain perpetual trading. Its gasless trading, CLOB model, and deep integration with the Aptos blockchain make it a promising alternative to traditional DeFi platforms.
Implications for the Crypto Market
Kana Labs’ launch of Kana Perps is a harbinger of the future, showing ongoing, creative innovations still transforming the DeFi space. Kana Labs has been able to utilize the unique capabilities of the Aptos blockchain to raise the standard of user experience. This radical design could potentially flip the perpetual contracts market on-chain and lead to new trading dynamics. The DeFi ecosystem is changing so quickly. Platforms like Kana Perps will be integral in pushing that adoption and helping bring decentralized finance to everybody.
Ultimately, the widespread adoption of robust assurance practices for stablecoins can help to create a more stable and trustworthy crypto ecosystem, fostering innovation and growth.
Concluding Thoughts
Kana Perps represents a significant step forward in the evolution of on-chain perpetual trading. Its gasless trading, CLOB model, and integration with the Aptos blockchain offer a compelling alternative to traditional DeFi platforms.
Summary of Key Points
- Kana Labs has launched Kana Perps on the Aptos mainnet, offering gasless, on-chain perpetual trading.
- Kana Perps is the first fully on-chain CLOB-based Aptos Perpetuals DEX.
- The platform offers 0% maker fees, one-click trading, and up to 50% margin refund on liquidation.
- Kana Perps supports a variety of assets and offers a range of order types to accommodate different trading styles.
- The platform is integrated with the OKX Wallet, making it more accessible to a wider range of users.
Final Reflections on Kana Labs' Impact
Kana Labs' launch of Kana Perps is a testament to the ongoing innovation in the DeFi space. By leveraging the unique capabilities of the Aptos blockchain and focusing on user experience, Kana Labs has created a platform that has the potential to revolutionize the way perpetual contracts are traded on-chain. As the DeFi ecosystem continues to evolve, platforms like Kana Perps will play a crucial role in driving adoption and making decentralized finance more accessible to everyone.
