Happy New Year fellow Kyberians,
We hope you had a festive season with your families and are ready to kick off 2021 with a bang. As we closed off 2020, here at the Kyber team we started preparing for the next major innovation in decentralized liquidity provision. EtherDelta introduced liquidity 1.0 on Ethereum, while Kyber Network, Uniswap, and a whole cohort of liquidity protocols followed up with version 2.0, and we now believe we have the technical expertise and product-market-fit understanding to deliver the next level of liquidity provision and evolve to 3.0.
We will be unveiling full details of what we are building in due course but it is important to acknowledge the foundations that were laid over the past year for us to be able to take this next step.
Twelve months ago when we announced the KyberDAO, we knew it would serve as the backbone to an ever-growing network of liquidity sources. Since launch, this DAO has proved itself capable of coordinating between a large number of stakeholders to vote and enact governance proposals and we feel confident in its future ability to be at the core of Kyber Network.
In parallel, demand for Kyber Network’s liquidity continued to increase throughout the year and 2020 ended with an almost ten-fold increase in volume over 2019. A large group of stakeholders including the DeFi Alliance, ParaFi Capital, and multiple staking partners validated Kyber’s direction by building strong bridges with it while a wide range of DApps from Axie Infinity to Gelato Finance hooked into its smart contracts for their liquidity needs. KNC continued to list across large exchanges including Coinbase and Kraken, and we can say Kyber Network and its ecosystem have grown in leaps and bounds in 2020.
It is also true that some liquidity protocols outpaced Kyber Network’s growth this past year but as narratives have come and gone, we’ve learnt important lessons from these. The growth of DeFi has taught us a lot about market dynamics, retail liquidity contribution, new and novel liquidity provisioning types, and the importance of open and flexible network architectures. These learnings will reflect in Kyber’s future path and together with the strong foundations we’ve built since launch, we’re confident we will deliver a Kyber Network that will cater for this space’s future liquidity needs and can keep growing 10x annually as it has over the last three years.
We look forward to communicating our future plans with you soon and as ever, we are incredibly grateful for your ongoing support.🙏
Kyber Network Stats
With December capping off the year with $424M volume and setting a new record for highest volume in a single month, we close another year off strongly. Compared to 2019, 2020 as a whole saw unique users and new users triple in number while volumes are up 10x year-on-year, and this is in spite of users facing increasingly high gas costs and the proliferation of new yield farming options that have sucked some of the liquidity away from established liquidity venues.
Coming back to monthly performance, in December we saw 1inch.exchange extend its volume lead over other Kyber integrations and this is a testament to the team’s agile product building capabilities as well as strong demand within crypto for liquidity aggregation from a single and simple-to-use end-point.
On the reserve side we saw significant volume increases from all FPRs while APRs (similiar to AMMs) were slightly down demonstrating again the power of manual professional on-chain market making and the value of having an end-to-end onboarding framework like KyberPro to accommodate these pro market makers.
Stablecoins stood out in December by cumulatively doubling their growth over their non-stable counterparts and now make up 65% of all ETH/TOKEN pair volumes while ETH/ERC20 make up another 20%, and ETH/BTC-derivatives the remaining 15%.
Kyber Tracker Overhaul
The Kyber Tracker is the most widely used source of on-chain Kyber data ever since Kyber’s launch and provides useful information on volumes, tokens and reserves. Overhauled by the Kyber dev team over the last few months, users are now also able to look at DeFi-specific volume rankings, new data points, and Kyber news updates and we invite you to explore it at tracker.kyber.network
With the proposal and approval of KLP1 and KLP2, we got to see the KLP framework in action for the first time. By streamlining the listing process, the KLP framework provides a straightforward and transparent path to list tokens and reserves on Kyber Network and the first batch of tokens to be voted on and approved were 1NCH, GRID, EVEREST, NRG, MITX, OM, RFOX, STRONG, and NTB.
Anyone wishing to submit a listing request is now able to do so by following the process here.
With 55M+ KNC staked and voting on each epoch, the current state of fee distribution to Kyber Network stakeholders are as follows:
- 6.2% burn (% of ETH rewards converted to KNC and burnt)
- 67.32% reward to KNC stakers who vote in the KybeDAO (rewarded in ETH)
- 26.48% rebate to FPR liquidity providers (rebate in ETH)
In light of the festive period it’s been a quiet month for the team in terms of online conference appearances, interviews and podcast participation and we will be back to covering our appearances in the next ecosystem blog.
We really look forward to 2021. As a team we’re ready to put our heads down and build something that unlocks the next big step in liquidity provision. As we do this, hundreds of other teams are working equally hard to bring their vision to life, and collectively, we are getting closer and closer to a truly global and decentralized financial future. The future is bright fellow Kyberians! 💪
December Photo Gallery
Kyber Ecosystem Report December 2020 was originally published in Kyber Network on Medium, where people are continuing the conversation by highlighting and responding to this story.