This guide provides a technical overview of the KiloEx Perpetual DEX, focusing on its hybrid liquidity model and risk management features on the KiloEx on opBNB network.
Step 1: The Hybrid Liquidity Model
KiloEx utilizes a dual-liquidity model to ensure capital efficiency and low slippage.
The KiloEx Vault: This is a single, central liquidity pool where LPs can deposit assets (like USDC). It acts as the primary counterparty for most trades, allowing for a zero-slippage execution model.
Automated Hedging: To mitigate risk for liquidity providers, the vault automatically hedges a portion of its exposure on external centralized exchanges. This is a key part of the KiloEx Risk Management system.
Step 2: Placing a Trade
When you Trade on KiloEx, you are not trading against another user in a traditional orderbook.
You submit your trade (e.g., long ETH-USD).
The protocol quotes a price based on its high-speed oracle feeds.
The trade is executed against the KiloEx Vault. Because of this model, the KiloEx Fees Explained are highly competitive, as there is no orderbook spread.
Step 3: Understanding the opBNB Advantage
Building on opBNB is a key architectural choice. It allows KiloEx to offer a CEX-like user experience with near-instant confirmations and extremely low transaction fees, which would be impossible on a more congested L1.
Step 4: Security Considerations
The question "Is KiloEx Safe?" is addressed through its security model:
Audited Contracts: All smart contracts are regularly audited.
Decentralized Oracles: Price feeds are secured by a network of decentralized oracles to prevent manipulation.
Self-Custody: Users always retain control of their funds in their own wallets.
For a full breakdown of the hedging mechanism and vault architecture, refer to the Full Official Documentation.
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