This article was first published on Kyber Network - Medium
Kyber Ecosystem Report #24 (Feb ‘21)
Hello fellow Kyberians,
Development of Kyber 3.0 is now in full swing and the team have started shipping important components of the upgrade. One such component is the upgrade to the KNC token itself which will vastly expand its role in growing Kyber Network and this important upgrade is currently being voted on by the KyberDAO. We provide more information on this below.
Another important component is the Dynamic Market Maker and the team recently released the DMM Whitepaper which covers how this new model combines Dynamic Fees and preset Amplification Factors to allow for highly optimized and capital efficient market making. This innovation on existing AMMs will improve on impermanent loss and provide increased profitability to LPs and we look forward to our community and LPs participating in such pools.
As we deliver on Katana and Kaizen, the two major phases of the Kyber 3.0 releases (you can read full details here) the next few months include the deployment of various Kyber 3.0 pieces and we are incredibly excited to be working on these and revealing them as they are ready.
KNC Token Contract Migration
In essence, the new KNC migration proposal is about adding flexibility to the token to allow it to both undergo upgrades more efficiently, and give the KyberDAO the ability to use KNC to bootstrap and support various growth initiatives.
The current KNC smart contract is not upgradable, not integrated into the KyberDAO, and has a fixed supply. This fixed supply characteristic has meant that although KNC has been a deflationary asset, it has missed out on funding opportunities which other DeFi projects with elastic supplies have used to great effect to increase their trade and volume activity significantly and this reflects in ...
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Kyber Network - Medium