Aaron from Kalata's core team was invited to join Chainlink live and discussed the BSC synthetics, derivatives, and how DeFi protocols grow alongside secure infrastructure.
Please read the transcript, to learn more about Kalata.
And you can also watch the Q&A replay: https://www.youtube.com/watch?v=0YWzsgfkRIo
Q&A with Host
Host: Tell us about Kalata, how it works, what makes it special?
Aaron: Sure, so first of all we welcome everybody joining and of course Kalata is a derivatives trading platform and a protocol for synthetic assets. The current version supports a 1:1 peg to the asset prices, which allows users from traditional finance field to get into DeFi trading easily.
The user will only need to connect his/her decentralized wallet to Kalata DApp, and he or she can start trading the global assets provided. More specifically, Kalata synthetic protocol allows everyone to mint synthetic asset tokens by locking in collaterals, so the user can gain the equity of assets without actually obtaining them. Currently, Kalata uses BUSD to mint synthetic asset tokens and will support more stable coins in the future. Through the Auto Market Maker mechanism deployed in the decentralized exchange, transactions of synthetic asset tokens can be automatically executed without matching buy and sell orders. For providers of synthetic assets’ trading liquidity, they can earn transaction fees paid by the traders. This is a brief introduction to the operation mechanism of Kalata. For those who are interested in details, please visit our official website to download the white paper.
And then, we want to be special, and of course, we want to develop our edge. Our focus is always on the user experience. We will provide the highest level of support whether it’s through communications, social media, specific demos, guides, or technologies. On the other hand, we customized a popular list of assets from the global mainstream to be launched, such as TSLA.US, BIDU.US, COIN.US, Dow Jones, ARK Innovation ETF (ARKK), SPCE.US (Virgin Galactic Holdings Inc), PACB.US (Pacific Biosciences of California), etc. With all these pairs offered and initial support on the BSC chain, Katala aims to help with the goal of making DeFi trading the mainstream to everybody through its own development. And hope this gives some ideas.
Host: What are the typical barriers to derivatives trading that platforms like Kalata solve?
Aaron: Very good question. Bringing in the statistics, the market size of unmet financial needs globally is at least 5.2 trillion US dollars, relative to the current DeFi market which has only reached a scale of tens of billions of US dollars. And here it comes to the disadvantages of traditional finance, such as typical geographical barriers it’s subject to. To give an example this could mean that you are not allowed to trade certain types of assets, let’s say US stocks, from part of the world. This will be solved by the emergence of DeFi synthetic asset trading protocols such as Kalata. And of course, the barrier could also mean high transactions costs and restricted liquidity of traditional assets, which becomes the high threshold of common people to hold these assets. With Kalata’s help, users can gain equity of assets without obtaining them, in other words getting the opportunity to benefit from changes in the value of assets without having to hold them. I think synthetic assets will be able to provide a larger market relative to native crypto assets. For users from the traditional finance industry with some knowledge of the instruments or derivatives, they could also accept synthetic assets very easily. We believe with the development of DeFi, the types of assets that can be synthesized will continuing growing, which will lead to more growth and popularity of the field. And hope this brings some insights into the problems we are trying to solve.
Host: Was there any custom integration work that the Chainlink Labs teams helped to conduct?
Aaron: Yes, of course. Chainlink Labs team has been very considerate in helping us with the integration process, as Kalata Protocol is currently working on fulfilling strong personalized needs from the users for US stock synthetic assets. I hear good stories from our management and technical groups, so, again, we Kalata team are very appreciative for the support provided by Mr. Oliver Birch, and of course the whole Chainlink Labs team.
Host: Your blog said you are also looking to expand to other chains.
Aaron: Yes I think so. In our case, Kalata Protocol thinks highly of the Ethereum L2 release, and also we are preparing to implement it into Polygon, Solana, Near Protocol, etc. We like to say that DeFi is like composed of lego pieces, while in the process of replacing the role of traditional finance, there will come with a variety of needs. What we are working on is to provide the users with what they need, so then you see these lending and derivatives trading start to make sense. With the security of users’ assets been granted, we would like to keep exploring what’s less known in the Blockchain world. And I would say a lot of these steps are related to further development, we look to keep working with Chainlink. And your support has been pretty helpful.
Host: What’s next for Kalata on the roadmap?
Aaron: About our roadmap, I think we can find some information on the document and website, and I would say there could be some small changes or timeline adjustments for, what’s the first what’s the second, but in general, the bullet points on our roadmap are realized based on the market conditions at the specific point, while the overall roadmap framework should keep the same. So what’s next? If we have the premise that Kalata has a stable decent base of users and supporters, the plan for next is to extend the available types of base assets. So more users can access the US stock assets representing the trend, as well as the global market indices as another example. In the meantime, we are planning to develop leverage in our derivatives trading. We understand that leverage application in derivatives trading would be something that requires caution and professionalism, so this is likely to come on next, given that security and stability are ensured. To realize the goal, support from Chainlink is also indispensable to our team. So I think I can hand it back to you.
Host: I appreciate your time. Will you come back and talk to me again once your live.
Aaron: That would be great, definitely. In the meantime, we have our Twitter, telegram, discord, and blog if you want to follow us you are free to. The support team including myself will work hard and help with any concerns.
Host: Hey man it’s been nice to have you here, everyone please join the Kalata communities I’ve posted the links below.
Kalata: https://www.kalata.io/
Kalata Twitter: https://twitter.com/KalataOfficial
Kalata Telegram: https://t.me/kalata_group
Kalata Discord: https://discord.com/invite/xTVCaJhS8U
Kalata Blog: https://kalata-io.medium.com/kalata-i...
