Decentralized Futures Trading Revolution: Exploring KiloEx for Commission-Free Control of Your Assets

In the span of 16 years, cryptocurrencies have evolved from a niche hobby for tech enthusiasts into a thriving industry boasting a market capitalization exceeding $2.8 trillion. One of the prominent ways to profit in this space has become trading perpetual futures contracts.

In collaboration with the decentralized exchange (DEX) KiloEx, we delve into this financial instrument and outline strategies to reduce fees without jeopardizing your assets.

Perpetual futures, often referred to as perps, are a category of futures contracts that do not have a predetermined expiration date. Traders utilize leverage to open such positions, potentially amplifying their profits.

To ensure that the price of perpetual futures remains close to that of the underlying asset, exchanges implement a funding rate mechanism. Every eight hours, holders of long positions compensate short position holders, and vice versa.

“The ability to multiply small investments through leverage is a defining advantage of perpetual futures contracts. This has contributed to the emergence of a crypto derivatives market on centralized exchanges that sees trading volumes in the trillions of dollars annually,” representatives from KiloEx noted.

However, they believe that trading perpetual futures on a CEX comes with several downsides:

Major players such as GMX, dYdX, and KiloEx have entered the perpetual futures market, introducing innovative trading solutions on decentralized platforms.

While CEXs are not flawless, they offer a significant advantage in processing client transactions with minimal costs. Conversely, DEX users are required to consistently pay transaction fees.

Decentralized exchanges are addressing this challenge in two ways:

After refining their smart contracts, the exchange has developed a trading environment that incurs nearly zero gas fees. KiloEx representatives highlight that while this method requires improvements in certain blockchains, it has already been implemented in EVM-compatible networks such as opBNB, BNB, and Base.

Additionally, KiloEx has introduced one-click trading (1-Click Trading) and optimized the speed of trade execution. According to the exchange’s representatives, their execution speed surpasses that of 90% of derivatives DEXs in the market.

KiloEx is a decentralized protocol for trading perpetual contracts with leverage up to 125x. It supports over 70 digital assets, including Bitcoin (BTC), Ethereum (ETH), meme coins, DeFi tokens, and AI tokens across six blockchains.

As of the publication date, this DEX ranks 13th in the DeFi Llama standings with a TVL of $42.5 million, catering to over 800,000 users.

KiloEx’s daily trading volume exceeds $128 million, leading in this metric within the opBNB network and the derivatives markets on Manta.

The TGE for KiloEx’s utility token, KILO, is scheduled for April 2025. After this event, platform clients will be able to exchange KILO for xKILO at a 1:1 ratio. Stakers of xKILO will receive a share of the exchange’s fees and VIP privileges.

The exchange was founded by former employees of Binance and OKX. In 2022, KiloEx participated in the sixth season of the Yzi Labs incubation program (formerly Binance Labs), where it was recognized as the most valuable project (MVB).

Investments in the platform have come from Yzi Labs, Foresight Ventures, Crescendo Ventures, Manta Foundation, and other entities.

“KiloEx is redefining the standards of perpetual contract trading through a philosophy of ‘CEX experience, DEX control.’ Our team sees immense potential in crypto derivatives and believes that continuous efforts in product development and ecosystem strengthening will genuinely foster mass adoption,” stated representatives of the exchange.

Other notable features of KiloEx include:

The KiloEx team has streamlined the platform’s interface, ensuring that the process of opening and closing trades involves no more than three steps.

Additionally, the exchange’s position-closing mechanisms are designed to limit losses, thereby preventing deposit losses from single market fluctuations.

Perpetual futures serve as a tool for seasoned traders aiming to enhance their returns through leverage. Their growing popularity underscores the maturity of the industry, where high-risk instruments are supported by increasingly sophisticated infrastructure.

The rising interest in decentralized crypto derivatives platforms like GMX, dYdX, and KiloEx could pave the way for a more transparent ecosystem, allowing users to manage their assets without sacrificing trading convenience.