KTX Twitter Spaces with Vaultka

In KTX’s Twitter Spaces which took place on March 19, 2024, Derek hosted Crypto Royalty to discuss decentralized perpetual exchanges, DeFi investment strategies, market dynamics, and more! Read our notes below to learn more.

Background

Derek (Host) – Growth & BD at KTX Finance

Crypto Royalty (Guest) – Investor & Vaultka Contributor

KTX Finance – a decentralized perpetual trading protocol that is live across multiple blockchain networks including Mantle, BNB Chain, and Arbitrum

Vaultka – a protocol with market positioning as the catalyst of Decentralized Perp DEX on Arbitrum.

Decentralized Perpetual Exchanges and DeFi Opportunities

Crypto Royalty shares his background as a former stockbroker and financial advisor with a decade of experience, having been involved in crypto since 2016. He describes his initial interest in DeFi as an investor, his belief in the potential growth of decentralized perpetual exchanges, and the overlooked value of DeFi.
He highlights the low user engagement with decentralized perpetual exchanges and anticipates growth in the sector due to the demand for direct token control and the competitive landscape.
Derek notes the untapped potential of decentralized exchanges compared to centralized ones and expects growth for perpetual exchanges, including KTX.
Crypto Royalty explains discovering Vaultka as an early investor and his knack for identifying promising projects. He highlights the potential resurgence of DeFi, comparing it to selling shovels during a gold rush, and predicts the importance of perpetual exchanges in providing leverage for amplified returns.
He discusses Vaultka‘s unique position in the perp DEX sector, its partnerships, and its utility in staking and governance through voting and bribe wars. He explains the concept of supporting the trading platform’s house edge for better returns and details the mechanics of leveraging returns with Vaultka and its partnership with KTX.
Derek asks for a rundown on the source of yields for perp DEXs like KTX finance, highlighting their goal to minimize trade-offs for traders while allowing them to trade against a multi-asset pool instead of traditional market makers. He mentions that liquidity providers (LPs) earn yields by acting as counterparties and receiving a portion of trading fees.
Derek highlights the partnership with Vaultka to introduce innovative DeFi strategies, like leverage exposure to KLP yields, and notes the popularity of leverage products due to the market’s risk aversion.
CryptoRoyal shares enthusiasm for the undervalued opportunity of investing in projects like KTX and Vaultka that share revenue, contrasting with traditional platforms. He commends the competitive advancements in decentralized projects, highlighting the benefits of decentralized perpetual exchanges over centralized ones and the advantage of leveraging returns.
CryptoRoyal discusses the benefits of leverage in the current volatile market, where traders tend to lose, and encourages investment in DeFi as a winning strategy.

Vaultka: Leveraging DeFi Success and Sustainable Growth

Derek attributes the motivation for their project to the success of GMX’s GLP model. He explains that liquidity providers can profit from trading and liquidation fees without necessarily betting on traders’ losses, presenting this as an attractive investment opportunity in the DeFi space.
CryptoRoyal says that Vaultka is applying for an LTIPP grant through Arbitrum, which looks promising in terms of voting and getting through. This grant is expected to propel Vaultka to the next level by supporting projects, attracting new customers, and paying staff.
CryptoRoyal mentions Vaultka’s upcoming leveraged launchpad, set to launch in a few weeks, as a potential additional revenue source. He highlights other products and the deflationary nature of the $VKA token, where 30% of daily revenue goes to a buyback and burn program.
CryptoRoyal says that 2.1% of the $VKA supply has been burnt in a short time, potentially reaching 6% yearly. He highlights Vaultka’s consistent revenues and notable revenue days, praising projects with real revenue over vaporware.
CryptoRoyal appreciates Vaultka for providing exposure to the DeFi and perpetual trading spaces, producing real revenues, and having a lasting presence. He advises investing in such blue-chip DeFi projects for substantial future gains.
Derek agrees about the value accrual model of $VKA tokens and the importance of cash flows. He sees Vaultka as a proxy for decentralized perpetual trading DEXs’ performance, highlighting the benefits of a diverse investment in the DeFi space.

Insights on LTIPP Proposal, Vaultka Rewards, and Strategic Crypto Investment

Derek asks about the LTIPP proposal and how Vaultka plans to reward users if the proposal is approved, focusing on attracting lending and the challenge of encouraging stablecoin deposits.
CryptoRoyal says that there’s a significant demand for products allowing leverage and borrowing, highlighting a grant’s potential impact on increasing TVL across the board for all partners. This, in turn, should enhance Vaultka’s level and encourage reading and supporting the proposal through Twitter or voting platforms.
CryptoRoyal questions KTX’s involvement, confirming their participation and advocating for support not only for KTX but also for Vaultka, highlighting a collective effort in the perpetual exchanges space despite competition.
CryptoRoyal criticizes the use of centralized exchanges for trading due to past losses and security issues, highlighting GMX as a pioneering but now outdated leader in decentralized trading spaces. This opens opportunities for newer entities to innovate and thrive.
CryptoRoyal advises against investing in transiently hyped assets like meme coins, noting their rapid decline post-hype. Instead, suggests buying into undervalued sectors of DeFi and perpetual exchanges during market lows for substantial future gains.
CryptoRoyal expresses optimism for the entire perpetual space, predicting significant growth potential and specifically forecasting $VKA’s price increase, highlighting personal investment beliefs rather than financial advice.
CryptoRoyal denounces the influence of inconsistent and opportunistic influencers (KOLs) in the crypto space, stressing his genuine approach to investment based on research and financial background. He contrasts this with the irresponsibility and superficiality prevalent in parts of the crypto community.
CryptoRoyal advocates for strategic investment in earning and staking platforms like KTX finance, highlighting long-term financial security over speculative gains in volatile meme coin markets.

Crypto Trends: Liquidity, Tokenomics, and Market Dynamics

Derek highlights the benefits of being a liquidity provider for KTX, highlighting that funds can be withdrawn at any time without loss due to its multi-asset liquidity pool structure. He mentions his interest in Vaultka’s economics revamp.
CryptoRoyal predicts a new golden age for Vaultka with upcoming tokenomics changes, suggesting significant revenue for stakers and a potential price increase for $VKA. He compares the anticipated ve(3,3) model, to successful strategies used by Pendle and other major DeFi players, indicating a shift towards long-term protocol support and the discontinuation of the $esVKA token.
Derek congratulates the Pendle team on their achievements and TVL milestone, noting their successful project adaptation to current market trends. He expresses optimism for Vaultka’s future developments.
CryptoRoyal discusses recent reductions in Ethereum gas fees and the positive impact on user engagement and competition with other networks. He forecasts a resurgence for Arbitrum as the DeFi capital of Layer 2 solutions, citing its dominant TVL compared to other platforms.
Derek highlights the timely arrival of the Dencan EIP-4844 upgrade, anticipating it will enhance the trading experience on decentralized exchanges by reducing gas fees. He suggests this upgrade will benefit the entire ecosystem.
CryptoRoyal hints at potential cross-chain expansions for their projects, acknowledging ongoing discussions and the possibility of exploring new ecosystems supported by attractive grants.
Derek expresses his interest in partnering with the Mantle on a depot level, highlighting KTX’s achievements as the first perpetual DEX in the ecosystem, leading in TVL, trading volume, and user numbers. He asks about market forecasts for the next one to three months.
CryptoRoyal shares his optimism for the crypto market, citing the upcoming Bitcoin halving and increased inquiries from his contacts. He says the early stage of crypto adoption despite visible signs like Bitcoin ATMs and highlights the importance of diversification and investing in innovative projects.
Royal advises against chasing after new, trendy coins promoted by influencers, advocating for a focus on a few solid investments and avoiding constant portfolio checks. He stresses the importance of not panicking during market downturns and suggests utilizing financial instruments like vaults for stable yield during market cooldowns.
He speculates on Bitcoin’s potential to reach a hundred thousand dollars but cautions that significant wealth is unlikely to be made from Bitcoin alone due to its already high market capitalization.
Royal reinforces the need for caution with malicious links and scams, sharing his personal involvement in crypto since 2016 and the common experience of being scammed. He promotes his Crypto Royalty Kingdom Discord as a resource for safe, scam-free crypto discussions.

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Show Information

Medium: Twitter (Audio)
Show: KTX Twitter Space
Show Title: Inside the Vault: Unlocking the Liquidity Floodgates on Arbitrum
Show Date: March 19, 2023