lash Trade is an innovative model of Kinetex dApp

Kinetex Network, a **de**ization protocol based on Zk proof, has launched a new generation of dApp Flash Trade (Lightning Trading), which combines cross-chain analysis, Zk technology and clearing system technologies, allowing users to directly interact with Professional parsers (market makers) conduct crypto asset exchanges, simplifying the entire exchange process.

Flash Trade is an innovative model of Kinetex dApp. Let’s take this opportunity to talk more about the benefits of this model and the technology the Kinetex team employs to achieve them.

Through Flash Trade, users can exchange crypto assets directly with professional parsers (market makers), which greatly simplifies the exchange process. Users simply select the currency they want to exchange and enter the required amount, and the resolver manages the transaction from there. When users agree to an exchange rate, they sign an order, allowing resolvers to access their assets. Before executing an order, the resolver must provide collateral exceeding the order amount to ensure the safety of the user's assets if the order fails to be executed on time.

Flash Trade was created by the Kinetex team after fully considering the key challenges facing the blockchain industry today. While the liquidity aggregation model is useful for moving assets across chains in a convenient way, it does not allow for instant transactions. By leveraging native liquidity, Flash Trade guarantees fast execution times, fixed interest rates, enhanced security, and more.

Speed

Speed ​​is one of the most outstanding advantages of Flash Trade. This mode works by setting a time limit for the resolver to execute its selected orders, usually no more than two minutes. Within this time, the resolver should complete the order, otherwise, the order will be liquidated. During liquidation, orders can be filled with the resolver's collateral or by the liquidator, who will receive the resolver's collateral as a reward (more on the liquidation system below). Therefore, users receive their orders quickly every time. Additionally, competition between parsers greatly speeds up this process. When they compete with each other, they have an incentive to work faster, thereby reducing the time it takes to complete an order.

Secure

MEV Protection

The next advantage consists of several elements: protection from MEV attacks, no need for bridges and third-party validators, and a clearing system. First, MEV is a well-known phenomenon that is increasingly being discussed in the cryptocurrency industry. It stands for **Extractable Value and refers to the profit a validator can make when manipulating the transactions they validate and strategically placing their own transactions.

While it helps attract more validators to help sustain the blockchain operations by providing them with more profit opportunities, it can also lead to a degraded user experience as they can be heavily exploited every time. To protect users from MEV attacks, the Kinetex team decided to stop using validators and mempools in favor of a direct peer-to-peer model. This is made possible by using zero-knowledge techniques, known as Zk proofs. Additionally, third-party validators are often hacked or compromised, posing serious security risks even without MEV. Therefore, running the system without them is a big benefit.

No New Wrapped TOKens

Secondly, Kinetex’s decision to allow P2P orders has a significant advantage: it eliminates the need for Kinetex to create new Wrapped TOKens. This is important because new Wrapped TOKens may cause problems such as hacking attacks and liquidity freezes and fragmentation. Unfortunately, the crypto community still suffers from bridge hacks from time to time, which highlights major security issues that the industry has yet to address. Additionally, locking assets in smart contracts while creating new funds and generating them on different networks can exacerbate liquidity issues, especially for lesser-known crypto-assets. Therefore, by choosing not to create new Wrapped TOKens, Flash Trade prevents the security risks associated with cross-chain transfers through bridges and helps improve liquidity between different chains.

Clearing system

Third, the de**decentralized, Zk-based clearing system is a vital part of Flash Trade** and helps to enhance its security. The Kinetex development team designed the system to be open and public, meaning everyone can be a part of it and support the integrity of the Kinetex system. The liquidator checks the orders and finds expired orders that the resolver was unable to fill on time for some reason. Once such an order is found, the liquidator can fill the order, generate a proof of completion, and claim the collateral allocated by the resolver for this order.

There is a high level of competition among liquidators trying to act as quickly as possible, driven by liquidator collateral. As a result, Kinetex ensures that all users can execute transactions quickly and securely.

Good prices and no slippage

Another advantage of Flash Trade is undoubtedly the rates. In order to compete successfully with others, resolvers need to analyze user requests and provide competitive prices to users they are interested in. Users can then view different proposals and select the one they like best. Therefore, all resolvers are actively offering the cheapest rates possible to maintain demand.

Additionally, there is no price slippage since users exchange directly with the parser after selecting the ** condition. Users get exactly what they want without being deprived.

Gas Optimization

A substantial advantage of Flash Trade mode is gas optimization and gas-free process. Thanks to the innovative zero-knowledge technology used by Kinetex, transactions can be batched together. As a result, Flash Trade mode reduces the number of individual transactions that need to be processed, thereby minimizing the overall cost of executing each transaction, eliminating unnecessary gas payments, and saving time.

In addition, users do not need to pay gas fees themselves when using Flash Trade because the parser handles all operations to complete the order, including gas payments. This approach creates gasless flows, eliminating the need for users to store multiple native keys in their wallets.

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