KyberPRO: The Only Professional Framework for On-chain Market Making

This article was first published on Kyber Network - Medium
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Kyber Network’s flexible reserve framework enables the bridging and development of liquidity systems that cater to the needs of key segments, including professional market makers, token teams, and developers. As one of the most used and integrated protocols for decentralized token exchange, liquidity provided on Kyber is accessed by the vast majority of dapps, aggregators and users in decentralized finance (DeFi).

Previously, based on research conducted with The DeFi Alliance, we wrote about the huge potential and opportunities for on-chain market making in the decentralized finance (DeFi) space. Many critical DeFi use cases and transactions (pricing, matching, settlement) are performed fully on the blockchain (fully on-chain) and they provide much higher profit opportunities compared to off-chain systems such as centralized exchanges, with much less volume needed to achieve profitability. There is also an urgent need for active and professional market makers (MMs) who will be able to bring substantial liquidity and value to the DeFi space.

However, there is an absence of a suitable system which allows MMs to easily get started and run a profitable operation. On-chain implementations of order books are too gas and capital inefficient. Automated Market Makers (AMM) are not suitable as they do not utilise inventory efficiently and offer no control over pricing. This means that liquidity providers often lose capital due to impermanent loss, an important fact that many miss amidst the yield farming craze.

Today, we are announcing KyberPRO, an end-to-end framework for professionals to easily onboard and run a profitable market making operation on-chain with minimal smart contract knowledge. It provides a robust liquidity system, tools, documentation, and technical support to enable professional market makers to easily onboard to DeFi.

“Working with the Kyber team has been an efficient and pleasant experience. They gave us professional and responsive support on every ...

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Kyber Network - Medium

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