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Krav is the first-ever decentralized perpetual quanto exchange
A Quanto BTC/USDT futures contract, fundamentally, is characterized by its fixed multiplier which remains unaffected by the USDT price fluctuations of any given altcoin, such as "COIN". This unique financial instrument offers traders the latitude to position themselves either long or short on the BTC/USDT exchange rate without the necessity of directly interacting with BTC or USDT. This process involves traders depositing margin in the form of COIN. Consequently, their COIN holdings will experience gains or declines in alignment with the fluctuations of the BTC/USDT exchange rate.
At Krav, we're all about creating a robust DeFi infrasturcture where you, whether as a trader or a liquidity provider (LP), can truly thrive. If you're a trader, you'll love how you can use altcoins such as PEPE as collateral to open long or short positions on Bitcoin (BTC). And if you're an LP, you'll appreciate the steady income from transaction fees every time a trade happens.
We've built Krav with a focus on decentralization. That means you can create and customize your own liquidity pool. On top of that, Krav also offers limit orders, giving you more control over your trading strategies.
In terms of risk management, Krav has a funding fee mechanism to balance long and short positions, and a fail-safe forced liquidation process if a position value exceeds 90% of the pledged collateral.
Catering to Traders and Liquidity Providers (LPs): Project Krav's unique mechanism allows traders to utilize altcoins to open long or short positions on Bitcoin (BTC), catering to a broad spectrum of trading strategies. Meanwhile, LPs have an opportunity to earn transaction fees each time traders modify their positions, offering a potential for steady income.
Enabling Strategic Trading with Limit Orders: The ability to set limit orders offers users enhanced control over their trading strategies. The added layer of execution fees attached to limit orders means traders can further fine-tune their strategies to optimize potential profits.
Risk Mitigation Measures: Krav incorporates critical risk management tools to safeguard the interests of its users. The funding fee mechanism balances the distribution of long and short positions, mitigating systemic risk. Additionally, a forced liquidation is initiated if a user's open position exceeds 90% of their pledged collateral, protecting the liquidity pool's overall health.
Krav makes it possible to enter leverage trades and have exposure to BTC and ETH price using any altcoin as collateral.