Kyber Community Call #5 July ’21 Recap

KyberDMM progress, Polygon partnership, Rainmaker Liquidity Mining, KNC on Revolut, and more!

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Kyber Network

7 min readAug 2, 2021

In the last call, we announced several big initiatives, including KIP-8, which added KyberDMM (Dynamic Market Maker) to Kyber’s liquidity hub and established a Kyber Ecosystem Growth Fund with 42 million KNC to be distributed over 12 months for Kyber’s growth initiatives.

In this call, we are excited to share some amazing milestones in Kyber’s ecosystem growth! This includes the successful deployment of KyberDMM on Polygon as well as the record-breaking launch of KyberDMM’s ‘Rainmaker’ Liquidity Mining program!

In addition, Kyber’s Discord has grown by 2x to 9000+ members! As a part of the growing Kyber Network Community; we welcome your ideas, insights, opinions and feedback on our Discord and Forum.

You can listen to KyberDAO Community Call #5 here:

KNC Migration

The KNC migration continues to be implemented with the world’s best exchanges having already executed the migration:

We are also working with major exchanges Coinbase and Gemini to support the new KNC token.

KNC on Revolut!

Most mainstream apps only support Bitcoin, Ethereum, Litecoin, and Bitcoin Cash; KNC is one of a select few cryptocurrencies supported by fintech superapp Revolut recently in certain countries: see more details here.

KyberDAO Updates

KIP-8 added KyberDMM to Kyber’s liquidity protocol hub and established a Kyber Ecosystem Growth Fund with 42 million KNC.

KIP-9 approved the deployment of KyberDMM on Polygon, with a portion of trading fees generated on Polygon going to KyberDAO. 6% of the KNC Ecosystem Growth Fund, amounting to 2.52M KNC to Polygon, has also been allocated as incentives to bootstrap liquidity and adoption on the Polygon-deployed KyberDMM. This complements the other 12.6M KNC used for KyberDMM liquidity mining on Ethereum.

KyberDMM was deployed on the Polygon network on 30th June along with the launch of ‘Rainmaker’ — Kyber’s very first liquidity mining program on Polygon and Ethereum with an estimated total of $25M in rewards (based on KIP-9).

New KyberDAO Fee Liquidation System

We have a forum discussion topic on KyberDAO’s Fee Liquidation System. KyberDAO underwent a migration as part of the Kyber 3.0 upgrade, and we now need to determine a new fee liquidation and reward distribution system for voters. Each protocol will subsequently send a portion of its collected fees from trading activities to the KyberDAO’s Treasury smart contract, in accordance with what was approved by KyberDAO. For example, the most recent voting campaign assigned 10% of KyberDMM protocol fees to KyberDAO to be distributed as rewards for KNC holders who stake and vote.

Since protocol fees will be collected by KyberDAO in many different tokens, these fees should be liquidated/converted to one standard token before being distributed as rewards to voters.

KNC is currently being proposed as the reward token. By receiving rewards in KNC, voters can easily stake them on KyberDAO again for more voting power and rewards, without the hassle of making another swap. If you have any opinions on this, please share them on the forum discussion.

Note: Voting rewards for the previous epochs are being accumulated and will be distributed to voters only after the new fee system has been determined in the upcoming KIP-11. Audits are still ongoing for KIP-11 (expected to be completed soon) but you can view the proposal details here.

KyberDMM Progress

KyberDMM has been live since April, followed by a series of marketing activities and successful integrations. Its advantages include amplified pools with extremely high capital efficiency when compared to typical AMMs, lower trade slippage due to high capital efficiency, dynamic fees to optimize returns for liquidity providers and reduce the impact of impermanent loss, no third-party or centralized oracle risks, and fully open and permissionless liquidity contribution.

June 28 marked KyberDMM’s first major milestone, reaching $100 million in trading volume! This milestone was achieved even before the June 30 launch of the highly anticipated KyberDMM ‘Rainmaker’ Liquidity Mining Program.

We recently crossed $500M in trading volume, $400M in TVL and $35B in amplified liquidity!

Promoting KyberDMM

Several marketing initiatives for KyberDMM also took place over the course of the last couple months, before and after the launch of ‘Rainmaker.’

On June 8, Binance Staking Launched the 5th “High-Yield Staking Offer” Promo with KNC at 30.34% APY. KyberDMM Learn & Win Quiz had 4200+ participants!

Shane Hong, Head of Marketing, and Bo-yeon Beon, Marketing Manager, participated in several AMA’s with Binance, OKEx, Defi Pulse, and GAINS, discussing the benefits of KyberDMM.

Kyber Network Co-Founder and CEO Loi Luu participated in Avalanche’s “What’s Next for Automated Market Makers?” Panel and a DeFi interview with OKEx CEO Jay Hao.

KyberDMM was also featured in articles by Unchained, Bankless, The Defiant, Cointelegraph, Coindesk, CryptoBriefing, Delphi Digital, AltcoinBuzz, dapp.com, defipulse, DeFi Dad tutorials, Yahoo Finance, and many more!

KyberDMM at ETHGlobal HackMoney

Kyber Network participated in ETHGlobal HackMoney, a 3-week online DeFi hackathon which took place from June 18 to July 9, where over a thousand developers learned how to build DeFi apps with the highly capital-efficient KyberDMM protocol. See the workshop on Building with Kyber here.

Integrations and Partnerships

KyberDMM DEX on Polygon: Along with the the ‘Rainmaker’ Liquidity Mining program, Kyber Network has partnered with the popular Ethereum scaling solution Polygon network to enhance DeFi liquidity and give liquidity providers access to the many benefits of Polygon’s ecosystem, including reduced gas fees and transaction time. The initiative has already been a success, and KyberDMM was ranked as the top project by TVL growth on Polygon in its first week and has continued its strong growth in the following weeks.
Coin98 integration: Fast-growing cross-chain wallet Coin98 has integrated KyberDMM and added it to their Dapp browser so that its users can also enjoy the benefits of the KyberDMM on both Ethereum and Polygon. See more info here.
Firebird integration: Firebird has integrated KyberDMM as part of its yield aggregator. Their vaults will be utilized as a channel to provide liquidity to the Rainmaker program on Polygon for Firebird users.

‘Rainmaker’ Liquidity Mining Program

Rainmaker is still ongoing! Liquidity providers can stake their LP tokens into select pools to start earning rewards on KyberDMM on both Ethereum and Polygon. Approximately $25 million worth of KNC and MATIC rewards is being distributed over 3 months!

For detailed instructions on participating in ‘Rainmaker’, please watch the tutorial, which has timestamps for each section in the video description, and read the blog and the FAQ page.

Some KyberDMM ‘Rainmaker’ milestones

In less than 24h since the launch, the KyberDMM TVL skyrocketed 15x to $200M, with $21B in amplified liquidity!
After 2 days, the KyberDMM TVL rose 22x to over $300M!
As of today, July 14, the KyberDMM TVL has reached over $400M, with over $35B in amplified liquidity, which is the equivalent TVL when compared to typical AMM’s.

More detailed KyberDMM stats can be found on Ethereum here, and on Polygon here.

Help us spread the word about KyberDMM and Rainmaker!

Join the conversation

If you haven’t done so, join us on Discord! You can use the following channels to keep discussions focused on specific topics:

#kyberdao: for general discussion and feedback around the KyberDAO
#kip: for discussions about the latest KIP proposals
#kyberdao-updates: for important governance-related updates
Voice Chat: for listening and speaking during our community calls

As always, all updates and calls will be announced on Twitter, Discord, and our new Kyber Governance Forum. These discussions are part of Kyber’s commitment to transparency and community engagement on the path of progressive decentralization.

See you at the next KyberDAO Community Call!

Onward, Kyber Network!

About Kyber Network

Kyber Network is delivering a sustainable liquidity infrastructure for DeFi. As a liquidity hub, Kyber connects liquidity from various protocols and sources to provide the best token rates to Dapps, aggregators, DeFi platforms, and traders.

Through Kyber, anyone can provide or access liquidity, and developers can build innovative applications, including token swap services, decentralized payments, and financial Dapps — helping to build a world where any token is usable anywhere. Kyber is powering more than 100 integrated projects and has facilitated over US$7 billion worth of transactions for thousands of users since its inception.

KyberDMM DEX, the latest protocol in the liquidity hub, provides the best rates for traders and maximizes returns for liquidity providers.