Crypto-liquidity ecosystem Kyber will deploy its new market maker protocol on Polygon »CryptoNinjas
This announcement by Kyber is combined with the launch of “Rainmaker”-Kyber’s first liquid mining plan on Polygon and Ethereum; an estimated $30 million reward.
Zoom with polygon
Polygon, formerly Matic Network, is a platform Ethereum expansion And infrastructure development. Polygon’s expansion solution is built for DeFi users; it has lower gas costs and fast block processing time.
Kyber + Polygon enhance DeFi liquidity
Designed as a capital efficient and flexible liquidity protocol; Kyber DMM will cater to Polygon’s DApp and DeFi use case ecosystem.
The goal of Kyber DMM is to enable liquidity providers to maximize their capital. In addition, using Kyber DMM on Polygon can provide a cost-effective user experience during trading and liquidity provisioning.
In addition, with the deployment of Kyber DMM on Polygon; part of the transaction fees incurred will be donated to KyberDAO. This complements the existing Kyber DMM protocol deployment on Ethereum.
“Liquidity is a key element in any DeFi ecosystem. We are very happy to work with Kyber to help improve Polygon’s liquidity through the Kyber DMM agreement!”
– Sandeep Nailwal, Co-founder and COO of Polygon
New rainmaker mobility mining plan
Starting on June 30, Kyber’s new Rainmaker liquidity mining plan will distribute an estimated total of 30 million U.S. dollars in rewards to eligible Kyber DMM liquidity providers (LP) within 3 months.
The purpose is to encourage liquidity providers and developers to use Kyber DMM by providing high returns for eligible token pairs; at the same time, it also enhances the liquidity of the Polygon and Ethereum DeFi ecosystems.
Liquidity providers receive DMM LP tokens (representing their share of the liquidity pool), and they can pledge these tokens in eligible liquidity mining pools to obtain additional KNC or in addition to protocol fees during the plan period MATIC (Kyber and Polygon governance token) rewards.
1. Liquidity mining on Polygon
The polygon phase of the plan will run for 2 months. Kyber and Polygon will respectively distribute 2.52 million KNC tokens (approximately USD 5 million) and MATIC tokens worth USD 500,000 in six eligible enlarged pools:
- USDT-USDC (AMP=200)
- USDC-ETH (AMP=1.6)
- USDC-DAI (AMP=200)
- MATIC-DAI (AMP=1.5)
- KNC-ETH (AMP=1.9)
- KNC-MATIC (AMP=1.7)
KNC and MATIC rewards can be used to increase liquidity for KNC or MATIC pools to earn more. In addition, KNC can be pledged on KyberDAO to join Kyber’s governance and receive voting rewards.
2. Ethereum’s liquidity mining
The Ethereum phase of Rainmaker’s plan will run for 3 months, and 12.6 million KNC (approximately US$25 million) rewards will be distributed to five eligible enlarged liquidity pools:
- USDT-USDC (AMP=200)
- USDT-ETH (AMP=1.5)
- USDT-WBTC (AMP=1.5)
- WBTC-ETH (AMP=2)
- KNC-ETH (AMP=1.9)
Advantages of Kyber DMM
In addition to gaining additional KNC and MATIC benefits, Kyber DMM liquidity providers also enjoy many benefits that typical AMMs do not:
- Enlarged pool: LP retains the flexibility to choose to enlarge the liquidity pool, which greatly improves capital efficiency and helps reduce transaction slippage. Under the same pool and transaction size, compared with other platforms, stable token pairs with smaller price fluctuations (such as USDC/USDT) can reach up to 100-200 times. Liquidity providers can provide better prices and earn more fees with less capital.
- Dynamic cost: Agreement fees are dynamically adjusted according to market conditions to maximize returns and reduce the impact of LP’s non-permanent losses; fees are automatically accumulated in the pool.
- No permission required at all: Anyone can add liquidity to the Kyber DMM pool; and any DApp, aggregator or end user can access this liquidity. Kyber DMM has integrated 1inch and Matcha.
- No 3rd party oracle machine: Not susceptible to the risk of external oracles.
- safety consciousness: Kyber DMM’s code base has been audited by its team and external auditors such as Chain Security, and no critical issues have been found.It is open source GitHub For review by the community. Kyber DMM too Underwriting up to 20 million U.S. dollars Provided by Unslashed Finance, a decentralized insurance provider.
Invite DeFi builders and liquidity providers
The Kyber team believes that the cooperation with Polygon and the USD 30 million Rainmaker liquidity mining plan will help demonstrate the powerful advantages of the Kyber DMM protocol.
“Through this partnership, Polygon’s vibrant ecosystem will obtain a capital-efficient and flexible Kyber DMM agreement. We believe this will enable more liquidity providers, traders and developers to effectively participate in decentralization. The world of modernized finance.”
– Loi Luu, co-founder of Kyber Network
For developers who want to build with Kyber DMM, please check out Kyber’s developers file.