This article was first published on Kyber Network - Medium
World’s 1st Dynamic Market Maker: Automated market making with greater flexibility and extremely high capital efficiency
After months of extensive research, we are very excited to unveil the mainnet beta release of the long-awaited Kyber Dynamic Market Maker (DMM) protocol! Starting from today, any liquidity provider can make optimal use of idle tokens by adding them to Kyber DMM pools, while any taker (e.g. Dapp, aggregator, or end user) can access this liquidity.
Kyber previously established the first liquidity aggregation protocol and on-chain endpoint in DeFi, as well as the KyberPRO framework catered to professional market makers. Kyber DMM is a novel liquidity protocol specially designed for retail liquidity providers and token teams, and is the first of many new protocols that will be launched on the Kyber 3.0 liquidity hub
This launch marks a new era for DeFi, where open, permissionless liquidity contribution is coupled with extremely high capital efficiency and flexibility for the very first time. Advantages of the Kyber DMM include:
- Amplified pools with extremely high, if not the highest capital efficiency possible when compared to AMMs.
- Lower trade slippage due to high capital efficiency.
- Dynamic fees to optimize returns for liquidity providers and reduce the impact of impermanent loss.
- No third-party or centralized oracle risks.
If this is your first time hearing about Kyber DMM, this video will bring you up to speed:
Visit the Kyber DMM beta at dmm.exchange
Using the Kyber DMM beta
When developing the Kyber DMM beta, we were inspired by the intuitive and user-friendly interface of the popular AMM Uniswap, so users should find certain operations such as swapping tokens and the protocol analytics page very familiar. However, there are a few important differences that we will highlight below. We also plan to further innovate on the UI in the ...
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Kyber Network - Medium