Roles

The main participants in the Kinetex protocol are the following four categories: Users, Resolvers, Maintainers, Liquidators, and Liquidity Providers.

Users can make cross-chain swaps just by providing approval for their assets. There are no gas fees for the transactions and no hidden fees from protocol. Users of the Kinetex protocol receive the best possible rates from Resolvers, while Resolvers compete to provide the best swap rate and duration.

Resolvers are the key players in the Flash Trade protocol. Resolvers are supposed to be professional market players. They set the rates, hold the liquidity for executing orders, and provide collateral to ensure the security and timely execution of the orders. Resolvers must analyze the market, build their trading strategies, hold liquidity between networks, be able to rebalance liquidity, manage their collateral, prevent attacks, and have their own risk management strategy. Each Resolver is responsible for its own liquidity and should set rates only after a thorough risk analysis.

Maintainers maintain the protocol and constantly update the state of the Kinetex Light Clients (contracts that store the state of a blockchain) of the networks where Resolvers perform transactions. By having the current state of the blockchain stored in the LightClient contract, Resolvers can validate and confirm their transactions.

Maintainers can perform several types of tasks, including: Generating proofs for ZK light clients (this task requires sufficient computing power but has a higher reward); Updating light clients based on Hashi (cross-chain adapters); Order matching and aggregation and management of resolvers; Other tasks related to the stable and consistent operation of the system.

Anyone with tokens staked in Kinetex DAO can become a Maintainer. DAO staking is mandatory because the amount of staked tokens will affect the consensus, the number of tasks executed by the staker’s node, and the share of fees charged to Resolvers and other protocol users of the protocol. These fees can be used to increase the stake in the DAO or withdrawn without any restrictions. In addition, a Maintainer can be penalized with a stake in the DAO in case of the inability to complete a task or an attempt to attack the system trying to appropriate more rewards than they should.

Liquidators ensure that the whole system works fairly for Users and that all transactions are completed on time. If a Resolver takes a user's funds but fails to execute an order, their collateral will be liquidated. If a Liquidator finds a transaction that the Resolver did not complete on time, they can finish it for a reward. The Liquidator needs to transfer the desired assets to the user and provide a proof of a transaction to be able to unlock the Resolver's collateral. The liquidation process is described on the Liquidation page.

Liquidity Providers can provide liquidity to Liquidity Pool, which offers multi-chain over-collateralized loans and can be used by resolvers as additional liquidity to execute the orders. Once the asset is borrowed, a resolver must pay a fee to Liquidity Providers, constantly generating income for them. Due to the multi-chain nature of Liquidity Pool, supported assets are strictly limited and primarily include stablecoins.