Hello fellow Kyberians,
And here it is! Kyber 3.0, the most ambitious and important change to Kyber Network since launch! Consisting of a major architectural overhaul, this upgrade will shape Kyber’s future and allow a new wave of innovation to take place previously not possible on the existing infrastructure. The major overhaul is being accompanied by a dynamic automated market maker built from the ground up by the team and a KNC migration proposal that puts KNC at the heart of the KyberDAO.
The easiest way to think of the new architecture is as a hub of multiple purpose-built liquidity protocols. AMMs, derivative protocols, professional market maker protocols, new and novel protocols, can all feed liquidity to Kyber. On the taker side, traders, end users, and dapp integrations can take liquidity directly from specific protocols that meet their needs (thus benefitting from gas optimization amongst other technical benefits) and overall, the new model is much more flexible to both takers and makers.
The new dynamic automated market maker (DMM) is also a first in DeFi with its combination of programmable curves and dynamic volume-based fees and will bring improvements in capital efficiency and impermanent loss. As has been long requested by our community, it will also be completely permissionless.
With these new changes, the KyberDAO will have an enhanced role in overseeing and governing this network. It will be responsible for incentivizing new liquidity protocols to join and grow the network and will have the power to determine how value is captured and how fees are distributed. To fully realize these capabilities we are also proposing an upgrade to KNC itself.
Getting all this right is very important to us and we’ve therefore launched a new governance forum, gov.kyber.org, where we can have an open dialogue with you, our community, and get feedback on our ideas and proposals. We believe these changes will usher in the next period of growth for Kyber Network and together with a strong community we look forward to continuing to build the future of Decentralized Finance.
Kyber Network Stats
Crypto markets have been abuzz with trading activity over the last few months and this was especially evident in January’s volume data. Kyber Network saw a new monthly all time high volume of $858M, more than doubling its previous all time high from December. Although these are impressive numbers and long term trends have seen a 10x increase in volume every year since launch, we know competition in the liquidity provision space is heating up and Kyber needs to aim much higher. As described in the intro we believe our new ideas will make Kyber Network the best avenue to both give and take liquidity from and this will translate to even higher users, trades, and volume.
With DeFi activity at an all time high it’s not surprising 1inch, Fulcrum, and DeFiSaver have taken the top spots of the Kyber volumes table. DEXs on Ethereum in general have carried out more than $55Bn in trading volume in January and this is a testament to how far this space has come over such a short period of time.
This increased liquidity has mostly been served by professional market makers who now make up 75% of all trades on Kyber while the Curve bridge is another popular source of liquidity accounting for almost 20% of total network volume.
Stablecoins continue to make up a majority of Kyber’s volumes with wBTC in second place and a handful of popular ERC20 tokens making up the rest of the top trading pairs.
KyberDAO BRR Snapshot
With 60M KNC worth $114M currently staked in the KyberDAO, the current fee distribution to Kyber Network stakeholders as decided by the KyberDAO in the latest epoch are as follows:
- 6.2% burn (% of ETH rewards converted to KNC and burnt)
- 67.32% reward to KNC stakers who vote in the KyberDAO (rewarded in ETH)
- 26.48% rebate to FPR liquidity providers (rebate in ETH)
We’ve been pleased to see extensive coverage of Kyber 3.0 in the media and the response in general on twitter, telegram and across other social media sites has been overwhelmingly positive. We’ve linked a select few articles below:
Cointelegraph, The Defiant, Decrypt, CryptoBriefing, Coindesk, CoinPost, AltcoinBuzz, BitcoinExchangeGuide, BeInCrypto, Publish0x, CryptoTicker, AMBCrypto, CryptoCoinNews, BtcManager, U.Today, BCTR.com, Investing.com,
As you can tell fellow Kyberians, we are incredibly excited and optimistic about Kyber Network’s future. Four years of navigating through a fast growing crypto world has taught us a lot and we draw on a wealth of experience with which to build the next phase of Kyber’s evolution. 2021 is going to be an important year for the whole Kyber family and once again we thank you, our community, our users, our dapp partners, our stakeholders, our KyberDAO participants, for being a key part of this journey and for supporting and growing Kyber every step of the way.
Happy Lunar New Year and onwards and upwards!
January Photo Gallery