Dubai, UAE, 13th December 2023, With the launch of Flash Trade just around the corner, Kinetex’s co-founders, Tigran Bolshoi and Mike Shishko, engaged in a short yet detailed discussion about their first product – Liquidity Aggregation. They delved into the inspiration that led them to develop this inventive solution and how it facilitated more convenient cross-chain swaps.
The interview started with the co-founders talking about the story behind the Liquidity Aggregation mode of the Kinetex dApp. This mode was mainly inspired by the co-founders’ personal experiences with crypto trading. Along with many other crypto users, they struggled with excessively long execution times and many gas fees. Additionally, they had to spend time searching for a platform with reasonable rates and ensuring they had enough native assets for gas payments. While this may seem like a minor issue for someone who makes transactions once a month, it can be irritating and discouraging for someone who wants to trade frequently.
Shishko supported this sentiment, adding that the thought that they were not the only ones who found trading too time-consuming and ineffective had increased their motivation to move forward and create a new solution.
When asked to pinpoint the main problems addressed through the Liquidity Aggregation mode, Shishko explained that the team focused on tackling one of the most pressing challenges in the industry – finding adequate liquidity. Therefore, they developed a meta multi-chain aggregator that allows users to access sufficient liquidity for thousands of crypto assets. By aggregating DEX aggregators and cross-chain protocols, they were able to maximize available liquidity across many blockchains.
Bolshoi also highlighted the automation feature, which made the swap process more straightforward for users. The feature was presented early on, providing users with an opportunity to enjoy an effortless swap experience. Users only had to sign the transaction once and could leave without worrying whether each step would be completed. Automation is possible due to the network of relay nodes that execute each smart contract automatically in every network.
Another aspect contributing to the streamlining of the swap experience is gasless flow. Swapping cryptocurrencies has always been challenging due to the need to calculate the right amount of gas, store it, and manage multiple wallets. It requires a certain level of expertise to understand the details involved. To solve this problem, Kinetex created a Gasless solution that allows users to pay for gas effortlessly, even if they do not have the native coins required. The first version of the solution enabled users to pay for gas with any permit token, while the improved version allowed them to pay for gas with any supported token using the escrow approach.
Next, Shishko and Bolshoi discussed the importance of approvals in Kinetex’s Liquidity Aggregation. Shishko explained that approvals help to ensure that only authorized individuals have access to tokens, which is crucial for ensuring the security of funds. They also allow users to monitor the usage of their tokens and detect any suspicious activity.
Bolshoi explained that Kinetex Aggregation provides two options for token allowance: a one-time approval and an infinite approval. While it is recommended to use the first option since it offers better security by not granting access to the entire token balance in the user’s wallet, infinite approvals have the advantage of higher convenience by eliminating the need for users to reissue approvals each time they want to make a transaction. Besides, the infinite approach can help users save on gas costs by reducing the actions required in the Metamask wallet.
Lastly, when discussing their feelings regarding Liquidity Aggregation and Kinetex’s plans, Bolshoi proudly said they have created an amazing product that enables users to swap cryptocurrencies quickly and effortlessly, which is exactly what they wanted. However, the team continues working to make cross-chain even more accessible and efficient.
Shishko agreed with Bolshoi and mentioned Flash Trade, Kinetex’s upcoming innovation. It will offer an entirely different approach to swapping cryptocurrencies, allowing direct trades between Kinetex users and a network of professional market makers known as resolvers. The solution will provide the most satisfactory rates, quick execution times, and a seamless user experience.
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