This article was first published on Kyber Network - Medium
In this post we will explain Kyber Network’s flexible reserve system and share how DeFi developers can create new reserve models to be deployed on the network to provide liquidity for a wide range of unique use cases.
In order to enhance liquidity and capture greater value, it is imperative that the DeFi space is able to create new liquidity systems catered to different needs, and we believe that there is huge potential for Kyber to be the cradle for liquidity innovation.
To encourage liquidity innovation for DeFi, Kyber will be launching a Reserve Innovation Program, with up to $100,000 in total grants for selected projects. We are looking for talented developers who are interested in liquidity innovation beyond the current Automated Market Maker (AMM) landscape.
Kyber’s Reserve System Overview
Reserves are liquidity sources in Kyber Network that provide liquidity in terms of token inventory and prices on their smart contracts. Once a reserve is deployed to mainnet, it then needs to be added to the network by the KyberDAO. When a taker requests a trade, the protocol will scan the entire network to find the reserve with the best price and take liquidity from that particular reserve.
Reserve models are unique smart contracts which can be deployed and added to the Kyber Network, catering to specific DeFi liquidity provision use cases. Once deployed and added, the liquidity the reserve provides is accessible to all the 100+ DApps integrated with Kyber.
Kyber has a very flexible reserve system, with different reserve models for different use cases. For example, one of the reserve models developed by Kyber, the Fed Price Reserve (FPR), is focused on allowing professional market makers to perform on-chain market making by feeding in prices in a highly gas and capital efficient manner. For token teams looking to ...
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Kyber Network - Medium