KyberDAO Community Call #4 Recap

This article was first published on Kyber Network - Medium
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Kyber 3.0 Phase 1, Kyber DMM launch, KNC token migration, and more!

In the latest community call, we covered the progress of Kyber 3.0’s Phase 1: Katana and addressed some of the common questions by the community. You can listen to a complete recap of the call here:

In case you didn’t know, Kyber 3.0 is a process made up of 2 phases in 2021.

Phase 1: Katana (Q1–2)

  • KNC Token and KyberDAO Migration
  • ️Kyber DMM protocol launch

Phase 2: Kaizen (Q3)

  • The full network upgrade with all the other planned improvements will be complete, with new liquidity protocols being developed for DeFi
  • Updates regarding Kyber’s scaling/L2 research and potential implementation

Launch of Kyber DMM beta

This quarter marked the launch of Kyber DMM, a next-generation AMM designed to dynamically react to market conditions to optimise fees and enable extremely high capital efficiency for liquidity providers.

Key advantages

✅Dynamic Fees: Protocol fees are adjusted dynamically based on market conditions to maximise returns and reduce the impact of impermanent loss for liquidity providers, with fees accruing automatically in the pools.

✅Amplified Liquidity Pools: Liquidity providers can customize the price curve in advance to create amplified pools that greatly improve capital efficiency and reduce trade slippage.

✅Fully permissionless: Anyone can add liquidity to Kyber DMM pools, while any taker (e.g. Dapp, aggregator, or end user) can access this liquidity.

Looking at the example of the amplified USDT-USDC pool, with actual deposits of $9.8M, an AMP of 100 means effective liquidity is actually 100 x $9.8m = $980M. With such high capital efficiency, any liquidity provider here can achieve better liquidity on Kyber DMM compared to using the same amount of capital on other platforms.

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Kyber Network - Medium

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