Kyber Network, the on-chain liquidity protocol, is on course with its plans for 2021 as per its community call. The team covered its progress and discussed the goals laid out for Kyber 3.0 Phases 1 and 2, Kyber DMM beta launch, KNC token, KyberDAO Migration, and addressed questions from its community.
The team discussed the Kyber Ecosystem Growth Fund and Liquidity Mining and celebrated the company reaching a Total Value Locked of $36 million.
Kyber’s Progress So Far And Plans Going Ahead
In their latest community call, the team covered the progress of Kyber 3.0’s Phase 1: Katana. Kyber 3.0 is made up of two phases. Phase 1 is scheduled for Q1 to 2 and will include KNC Token and KyberDAO Migration, ️Kyber DMM protocol launch.
Phase 2 - Kaizen - is scheduled for Q3, where the full network upgrades with other plans will be completed, and new liquidity protocols will be developed for DeFi. It will also include updates regarding Kyber’s scaling and its L2 research and potential implementation.
Kyber DMM beta
Kyber DMM was launched this quarter. It is a next-generation AMM designed to dynamically react to market conditions to optimize fees and enable high capital efficiency for liquidity providers (LPs).
The key advantages of the DMM are dynamic fees, amplified liquidity pools, and being fully permissionless. Protocol fees are adjusted dynamically to meet market conditions. This maximizes returns and reduces impermanent loss for LPs and will automatically accrue the fees in the pools.
LPs can customize the price curve and create a customized price curve early on to create amplified pools. This is great for improving capital efficiency and can reduce trade slippage. The DMM pools are permissionless, and so anyone can add liquidity, and any taker can access the pools.
New Integration For Kyber DMM
The Kyber DMM protocol has been integrated by aggregators such as 1inch and Matcha, and more aggregators and dApps will join them over time as they can provide better rates for its users. Individual pools such as Uniswap don’t source liquidity, but dApps like Krystal and DEX aggregators such as 1inch and Matcha do.
Kyber’s stats reflect how powerful and advantageous the protocol has become. The company hit a total value lock of $ 36 million, reaching a total trading volume of $73 million. Its top liquidity pairs include USDC-USDT, ETH-KNC, and USDC-EURS, while top volume pairs include ETH-KNC, USDC-USDT, and USDC-EURS.
KNC Ecosystem Growth Fund And Token Migration
The team at Kyber has submitted a proposal, the Kyber Ecosystem Growth Fund. The team claims the protocol can use KNC to bootstrap liquidity and act as a catalyst for Kyber DMM’s growth. The feedback regarding the growth fund, liquidity mining for selected pools, and Kyber DMM fees will be considered when the next KIP is submitted.
The KNC token is undergoing an upgrade and migration following the approval of KIP-6. 63 million tokens have been migrated so far. The migration has no hard deadline. However, the Epoch 2 of the new KyberDAO is scheduled for May 11th.
Users who stake their KNC tokens by then will gain voting access in campaigns of Epoch 2 to get ETH rewards. The team has been working with exchanges, Dapps, staking pools, data sites, etc., to support the KNC migration.
KyberSwap Introduces Krystal
The KyberSwap dApp has announced a new initiative called “Krystal: One Platform, All DeFi.” The dApp will consolidate the best DeFi services under one roof. These include seamless token swaps, lending tokens for interest/yield, hassle-free portfolio management, multichain support, NFTs, etc.
Krystal is independent of the Kyber Network even though it was incubated there. It won’t be drawing any resources from Kyber Network, will not be a direct participant of KNC tokenomics. However, The two teams will be working closely to provide the best value for both sets of users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.