Is One Cosmos Setting the Ecosystem on a Collision Course or Alliance with Polygon?

Sep 28, 2023, 9:02PM
4 min, 8 sec READ
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Kinetix is the rising DeFi star that has taken it upon itself to breathe life into a vibrant DeFi ecosystem on the Kava app-chain.

In the last couple of months, an information contagion has been on the move around the web3 space. Almost every active account on X, the social media platform where all web3 traders, technologists, and enthusiasts congregate, has bumped into Kinetix, the rising DeFi star that has taken it upon itself to breathe life into a vibrant DeFi ecosystem on the Kava app-chain. What most don’t know, however, is just how deep Kinetix’s game plan may run and what the long-term goals of its holistic DeFi hub may have in store not only for Kava but the broader Cosmos ecosystem and IBC (Inter-Blockchain Communication protocol) where Kava lives.

Kinetix’s First Big Steps Out of the Gate

Kinetix has wasted no time making waves with major product launches and marketing campaigns that made summer 2023 one to remember for the Kava community. The project kicked off the action by launching its debut platform, a perpetual exchange that supports up to 50x leverage on blue-chip assets from across the Cosmos ecosystem, including $ATOM, $KAVA, $USDt, $axlBTC, and $axlETH. The perpetual exchange rapidly rose in popularity on the back of an attractive LP (liquidity provision) opportunity that offered yields upwards of 300% for a pool composed of 50% USDT. The platform has processed more than $12 million of total volume and currently supports a liquidity pool worth more than $6 million. Kinetix then added to its perpetual exchange by launching a decentralized exchange (DEX) that came equipped with a palette of enticing yield offerings of its own.

Meanwhile, alongside the strides Kinetix has been making in building up its DeFi hub within the Kava ecosystem, Kava has been making major strides in building up its resources and positioning within the Cosmos ecosystem. Thanks to a powerful partnership with Tether formed earlier this year, Kava is now the go-to platform for Cosmos-native USDt minting, with over $100 million already minted on-chain. With Kinetix and Kava both on the rise together, many around the Cosmos ecosystem are starting to pay closer attention.

The Breadcrumbs for Something Big 

Kinetix has not shied away from revealing some of its core contributors and their backgrounds, many of which come from QuickSwap, the leading DeFi suite in the Polygon ecosystem. Kinetix’s founder, Alexis Atlas, served as the Head of Business Development at QuickSwap, while Kinetix advisors Roc Zacharias and Sameep Singhania both played major roles in QuickSwap’s development. Zacharias even made a resounding appearance on a recent Twitter Space co-hosted by Kinetix to vouch for the project.

QuickSwap originated as a DEX but has blossomed into a robust DeFi suite in its own right that is at the forefront of the Polygon ecosystem. Since its early days, QuickSwap acted as a pioneering force developing on and supporting Polygon’s Layer 2 scalability technologies long before the chain grew into the mass market web3 powerhouse it is today. Quite clearly, the Kinetix core team has deep experience building out DeFi ecosystems from ground zero, and they are not strangers to delivering hits.

The Smoking Gun: A Timely DAO Proposal

On September 9, a proposal was submitted to the QuickSwap DAO to arrange a collaboration between QuickSwap and Kinetix. Per the terms of the proposal, QuickSwap stood to receive an influx of $300-$500 million of near-term liquidity to its platform, with plans to further increase its Total Value Locked (TVL) over time. Kinetix, on the other hand, was said to gain exposure to the QuickSwap community and user base by being added to the QuickSwap DEX’s dropdown menu.

Sure enough, the proposal officially passed on September 13, with more than 78% voting in the affirmative. Not only are Kinetix and QuickSwap committed to moving forward together, but the overwhelming majority of the burgeoning QuickSwap community is on board as well.

But even more important than the concrete terms of the proposal were the principles and vision outlined toward the end. According to the proposal, part of the long-term vision shared by QuickSwap and Kinetix lies in exploring future collaborations not only between the two projects but also between the broader Cosmos and Polygon ecosystems.

The Notion of a United Future

While no official synergies have been discussed publicly, even the notion of a collaboration between two industry giants could lead to significant advancements in the web3 industry, offering new opportunities for users and developers alike.

The potential collaboration between QuickSwap and Kinetix could mark a significant milestone in the evolution of the Web3 industry. By aligning their incentives and working toward shared objectives, the two platforms could foster a symbiotic relationship that benefits both the Polygon and Cosmos ecosystems. As QuickSwap, Kinetix, and Kava continue to explore synergies, it is becoming increasingly interesting to consider that a broader alliance may be on the horizon between the behemoths lurking in the background.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.