KiloEx： Analyzing the DEX breakout methodology of Binance's legitimate forces As KiloEx is about to launch a new version of Binance Wallet, let's talk about what makes this project special, especially after the Hyperliquid trust crisis broke out. Can KiloEx truly shoulder the banner as a benchmark for the new generation of DEX? Below is my analysis. _________ 1、 Starting from Hyperliquid: What exactly is DEX's time bomb? Last night, the battle around Hyperliquid was exceptionally exciting. When Hyperliquid was forced to launch a default self rescue due to a whale sniper, the entire DeFi community was once again poured with ice water. Looking back, in the Hyperliquid incident, the attacker exploited the liquidity vacuum and directly breached the vault, exposing the vulnerability of the single pool order book model in extreme market conditions. Recently, in 2022, Mango Market was attacked due to a price oracle vulnerability, resulting in losses exceeding $100 million, and it remains a textbook level negative example to this day. These lessons actually exposed the three major risks that Dex has always had: high leverage trading, liquidity black holes, and oracle manipulation. Almost all of these fatal injuries are like time bombs, which can leave users penniless at any time. More fundamentally, DEX is facing a dilemma in its operations due to the three risks mentioned above: either sacrificing security to pursue high leverage, such as Hyperliquid, or castrating functionality to disguise decentralization, such as dYdX. KiloEx has indeed made impressive products and ideas, and it is difficult to say whether there will be new risks in the future. At least from the current perspective, it does have the potential to become a leader _________ 2、 How KiloEx broke through: dual pool vault, risk prevention; Experience revolution, focus on usability From the perspective of product and risk logic, the source of all risks lies in whether there is sufficient liquidity support, which is also why centralized exchanges such as Binance are more respected. After upgrading Vault 2.0, KiloEx achieved a significant breakthrough, mainly by upgrading the liquidity structure of perpetual contracts from a "single reservoir" to a "dynamic risk protection structure with multiple reservoirs". The simple disassembly mainly includes: 1. Liquidity stratification and risk isolation: Base+Buffer dual pool structure Base pool: This pool is composed of stable assets injected by LP, which consume platform fee income. The pool aims to achieve stable growth in net asset value (NAV) per unit, with APR anchored at around 15% -30%. Simply put, the main purpose of this pool is to resist volatility, or to buy insurance for market volatility. Buffer pool: It is mainly used for traders' profit and loss settlement+net income from fund rates. Short term fluctuations can be quite intense, but in the long run, it mainly accumulates value through trading wear and tear (equivalent to a casino draining a fund pool). When this pool is greater than 0, it will automatically inject benefits into the Base pool, otherwise, the Base will be replenished. The two pools address Dex's innate resistance to weak unilateral market conditions. 2. User Experience Disruptive Revolution: 0 Gas, 0 Slippers, 0 KYC, Real Revenue No transaction cost: Based on opBNB technology (ERC-2771), user transaction gas is close to zero Extremely low slippage: KiloEx has chosen the liquidity pool's direct trading mechanism, allowing users to exchange directly with the fund pool without relying on order book matching. The slippage control is full, approaching the CEX experience No KYC: This is the basic operation of DEX. Real returns: One of the biggest upgrades in version 2.0 is to allow users to provide liquidity with multiple assets, rather than just stablecoins or single asset pairs, especially with a diverse range of mixed asset types supported by different chains. Provide high-yield real USDT returns for LSTs (such as stETH, slisBNB) and other assets, solving the industry pain point of LSTs lacking real returns. Compared with traditional Vault models, KiloEX's Hybrid Vault greatly expands asset applicability. In addition, to break down inter chain barriers, KiloEx has been deployed on multiple mainstream blockchains such as BNB Chain, opBNB, Manta, Taiko, Base, etc. It has built-in cross chain bridging functionality, allowing users to seamlessly switch network environments and enhance the smooth experience of the entire cross chain transaction. 3. Project comparison: The advantages are very obvious After the above analysis, having a certain perception of KiloEx's innovation, comparing several mainstream funding pool models can better clarify the specific advantages. From the above table and the previous analysis, it can be seen that KiloEx has significant leaps and advantages in resisting unilateral market trends, stable LP returns, and asset diversity. _________ 3、 Behind the scenes team of the project: Binance's legitimate troops+Capital Team Team background: The team of KiloEx is composed of core members from top exchanges such as Binance and OKX, with rich experience in CEX operations, DeFi protocol development, and traditional financial derivative design. Capital support: Binance Labs incubation+participation from Foresight Ventures, Manta Foundation, CrescendoVentures, and others. It is worth noting that in the early stages of the project, strategic investment was obtained through Binance Labs MVB incubator. During the incubation period, the rapid product validation capability impressed the entire funding team and led to investment. _________ 4、 Valuation analysis: premium of leading effect+potential support from Binance The project is about to undergo TGE, and in terms of valuation, compared to competitors, TVL is an important indicator for measuring the scale of DeFi projects, which usually has a strong correlation with project valuation. According to on chain data, KiloEx's TVL has reached $47 million, showing a good growth momentum. Considering the industry average level, taking a reasonable multiple range of three times, it is estimated to be $150 million. Combined with various premiums, it is estimated to be around $200-500 million. From the perspective of benchmark projects, the daily trading volume of KiloEx is on par with traditional projects. KiloEx outperforms benchmark projects in both innovation and user experience, with a slight trend of surpassing the former. With better user experience and security, it is easier to gain user favor, and the potential expectation is to significantly increase its valuation level. The leading effect is obvious. As the top ranked perpetual exchange on OPBNB, with its first mover advantage, it can lock in potential users in advance and enhance brand influence. From past cases, as a leading project, its valuation often has a significant premium space. The key positioning in the Binance ecosystem is also another driver of valuation. As the champion project of Binance MVB, it is bound to receive Binance's traffic and resource tilt, similar to Jupiter's position in the Solana ecosystem, giving it higher growth potential. _________ 5、 Current participation opportunities Multiple exchanges have announced that their tokens will soon be launched, and KiloEx has launched a trading carnival event in front of TGE, rewarding 1 million tokens! Worth following and participating, link: https://app. (kiloex.io)/referrals On March 27th, the BN Web3 wallet event will launch KiloEx new releases, and a large number of pork trotters should not be able to escape from a single account. _________ 6、 Conclusion KiloEx's ambition is not just to patch vulnerabilities, but to redefine the underlying logic of decentralized derivatives with a dual pool vault: For users: LPs can also enjoy a high APR earnings experience. For the industry: Break CEX's monopoly on high leverage trading and push the contract market towards true on chain freedom. In addition, with the launch of the project on BN Web3, it indirectly means that it will be launched on Binance in the future, which will further release the brand value and market potential of KiloEx. As the leader of the opBNB ecosystem, Perp DEX, KiloEx brings users a safe and efficient trading experience while also setting a new benchmark for the industry.