Kyber Network Presents Uber-style Spike pricing for DeFi token swaps

Dynamic prices will improve capital performance on the new DMM.
Decentralized exchange Kyber has launched a Dynamic Market Maker, or DMM, in what it claims is a planet first.The new stage, that was announced on April 5, has been designed to optimize fees and enable very significant capital performance for liquidity providers.One of the major differences between Kyber’s brand new platform and periodic Automated Market Makers, or even AMMs, is the fee generation system. While platforms like Uniswap charge a predetermined trading fee of 0.3 percent, the brand fresh DEX will calculate prices , increasing during times of high volatility and demand, and decreasing when markets are silent. This motivates traders to make the most of cheaper trade opportunities that improve capital efficiency for both LPs as well as the stage. The system mimics the Uber-style surge pricing that increases prices whenever there’s a great deal of demand for rides, like in poor weather or even rush hour, and then drops them whenever there is less traffic and demand levels have returned into normal.Kyber Network is the on-chain liquidity protocol that has a DEX called KyberSwap, which enables users to swap crypto resources with no central order book or operator. Much of the inspiration for the new DMM has been removed in the existing Uniswap interface. According to the DMM dash, liquidity on the platform is now $20.5 million with a total volume of $490,000. Kyber’s native market, KNC, has retreated over the past 24 hours falling 5.7percent to $3.13 based on Coingecko.The new DMM also functions a”programmable pricing curve” which allows liquidity pool creators to personalize pricing via an”amplification factor” according to the nature of the relationship between the two tokens.In essence, tokens that have a decrease deviation from their prices such as stablecoins can have a higher amplification factor that enables the liquidity to increase without needing more tokens in the pool. These features also have been included in the Uniswap v3 update that also aims to enhance capital efficiency by maximizing the bonding curve.Pool creators can place their own AMP factor which increases the liquidity based on the kind of tokens in the pool — steady tokens can have a higher factor, whereas volatile ones will be put lower. “This usually means that given the same liquidity pool and trade dimensions, Kyber DMM can offer far better liquidity and slippage in comparison with AMMs. Slippage could be more 100X greater than AMMs for longer stable pairs!” The announcement added that the code has been completely reviewed and audited multiple times by the internal team and external auditors with no critical problems discovered. It said that the complete audit will be published soon but added that the protocol remains in beta.

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