- >KuCoin Expands with Derivatives, Staking Platforms
KuCoin Expands with Derivatives, Staking Platforms
Although the world appears to be in a recession, there are a number of cryptocurrency exchanges that have not stopped their efforts to broaden their platforms and provide more value to their customers.
Keegan Francis | Oct 12, 2020
Crypto.com for example, continues to expand their exchange that is currently still in BETA, adding soft-staking, and continuing with their syndicate events on a semi-monthly basis. KuCoin, an exchange based out of Hong Kong, just launched several new initiatives including expansions to their staking platform Pool-X, their derivatives platform KuMex, and a brand new engagement program called KuCoin Candy.
KuCoin Candy has been out for a week at the time of writing. It is simply a program that aims to increase engagement within the KuCoin mobile application. KuCoin will reward users with “Candy”, specifically, 50 per day, if they log in, click a button, and watch a 3 second advertisement. The incentive to do so is not clear yet, although KuCoin has declared that all participants will share a 2000 USDT prize pool. This is likely the first of many diverse incentives to come. KuCoin has a reputation of creating a wide range of mechanisms and incentives for their user base. For example, KuCoin frequently lists new coins, and regularly performs airdrops. It’s not inconceivable to think that they will carve off a portion of rewards for users that show their loyalty with a daily log in.
KuCoins staking liquidity platform is a novel addition to the cryptocurrency space in general. Individuals can choose to stake their tokens on Pool-X, and sell their staked tokens any time they like, exiting their staked position on demand. This is not normally possible if you’re staking from your private wallet. For example, if you’re staking ATOM, and would like to un-stake your tokens to sell, then you need to wait 21 days to do so. Pool-X allows you to sell your staked ATOM to someone else who wishes to earn a daily ROI on the staked amount. In Exchange, you may receive un-staked ATOM.
The applications for this platform are clear, people have been pointing out this pitfall in cryptocurrencies that use staking for as long as they have existed. Pool-X is the first platform to attempt to provide liquidity, so that users can move from staked coins, to un-staked coins without waiting long periods of time.
KuMex is the KuCoin derivatives platform. Essentially, derivatives markets allow traders to bet on whether or not cryptocurrencies will rise or fall in the future. Derivative markets sometimes go by the name contract markets, or futures markets. At the end of the day, they all mean the same thing. KuMex allows traders to leverage collateral, in order to take bigger risks on the platform. However, the risk can go both ways, leading to much higher profits, or losses.
KuMex regularly incentivizes users to trade on the platform by offering low interest rates on collateralized loans. This is appealing to investors, as it allows them more flexibility, and less risk when trading in derivative markets. Finally, as part of KuCoins promise, 50% of the fees collected from KuMex, as well as the regular KuCoin exchange are given back to the holders of KuCoin shares on a daily basis.