DeFi's first multi-chain dynamic market maker will provide liquidity providers on BSC with dynamic fees and higher capital efficiency.
SINGAPORE - SEPTEMBER 1 - Kyber Network announced that its KyberDMM protocol (i.e. DeFi's first multi-chain dynamic market maker) is now available on BSC for traders, liquidity providers and Yield farmers (farmers), and Initiated a liquidity mining campaign worth approximately $4 million. In order to support the launch of KyberDMM, Binance has launched the BEP20 version of KNC and will allow deposits and withdrawals from KNC to the BSC network.
KyberDMM previously launched in beta on the Ethereum and Polygon networks, where the total transaction volume and total value locked (TVL) exceeded $1 billion and $500 million, respectively. Kyber plans to emulate the previous success story on BSC and as part of its strategy, expand the adoption of different chains and networks to provide liquidity providers with greater flexibility and capital efficiency.
“Binance Smart Chain has been a popular channel for DeFi and NFT Dapps as well as users. KyberDMM will provide BSC ecosystem participants with a capital-efficient and reliable protocol to meet their liquidity needs and help them maximize capital utilization. ” - Loi Luu, Co-Founder, Kyber Network
KyberDMM is a next-generation AMM protocol that offers several key advantages over existing solutions. Unlike the static nature of most liquidity models in the space, KyberDMM is designed to be extremely capital efficient and low slippage, while reacting to market conditions to optimize liquidity provider fees, thereby maximizing capital utilization .
This is achieved through two innovative mechanisms:
1. Amplified Liquidity Pooldynamic fee
2. dynamic fee: The protocol fee will be dynamically adjusted according to market conditions to maximize returns and reduce the impact of impermanent losses for liquidity providers, and the fee will be automatically accumulated in the pool.
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Rainmaker liquidity mining activity on BSC
As an extension of this launch, the KyberDMM “Rainmaker” liquidity mining campaign currently running on Ethereum and Polygon will also be extended to 4 eligible liquidity pools on BSC.
A total of 2 million KNC tokens (approximately $4 million) will be distributed to these 4 pools within 2 months.
● USDT-BUSD (AMP=400)
● USDT-BNB (AMP=1.5)
● ETH-BNB (AMP=2)
● KNC-BNB (AMP=1.9) *AMP = amplification factor.
Larger pools are more capital efficient. The higher the magnification factor, the higher the capital efficiency within a given price range.
If users have no assets on BSC, they need to first deposit ERC20 tokens including KNC to Binance Exchange, then withdraw them as BEP20 tokens to their BSC wallet, or use Binance Bridge ) to transfer the ERC20 tokens to the BSC Metamask wallet. Liquidity providers in the aforementioned pools receive DMM-LP tokens (representing their share of the pool) which they can stake to earn additional KNC rewards on top of protocol fees. The reward amount will depend on their share in the pool.
At the same time, any project on BSC is also welcome to contact Kyber and propose more joint liquidity mining activities based on this framework.
Kyber's vision is to provide a sustainable liquidity infrastructure for DeFi and expand it to networks such as BSC. KyberDMM will add value to the BSC ecosystem with its better capital efficiency and flexibility, as well as more dynamic trading and liquidity supply solutions. This will also bring more DeFi users, developers, and other participants to the Kyber and BSC ecosystems. KyberDMM's code base has been audited by the team and external auditors such as Chain Security, and no critical issues have been found, and it is maintained on Github Open source for review by community developers. KyberDMM is also underwritten by Unslashed Finance, a decentralized insurance provider, for up to $20 million in coverage.
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About Kyber Network Kyber Network
It aims to provide a sustainable liquidity infrastructure for DeFi. As a liquidity hub, Kyber aggregates liquidity from various protocols and sources, offering the best interest rates to takers such as Dapps, aggregators, DeFi platforms, and retail users.
Anyone can contribute liquidity to Kyber Network, and Dapps can integrate different protocols according to their liquidity needs. Using the Kyber protocol, developers can build innovative payment processes and applications, including instant token exchange services, ERC20 payments and financial DApps - helping to build a world where people can spend various tokens anytime, anywhere.
Since its inception, Kyber has supported over 100 integration projects and facilitated transactions worth over $6 billion.
To learn more about Kyber Network, please visit: https://kyber.network/
