DeFi’s first multi-chain dynamic market maker will enable dynamic fees and higher capital efficiency for liquidity providers on Avalanche
UPDATE: DMM has now rebranded to KyberSwap.com! Learn more.
Kyber Network is bringing KyberSwap, DeFi’s first multi-chain dynamic market maker protocol, to the Avalanche network! Kyber is also collaborating with the Avalanche Foundation on a US$5.8 million liquidity mining campaign as part of the Avalanche Rush program.
After our recent success on Ethereum, Polygon and BSC, where total trade volume and total value locked (TVL) have exceeded US$1.4 Billion and US$400 Million respectively, KyberSwap (formerly known as DMM) is now providing improved liquidity and rates for Avalanche’s DeFi ecosystem.
What is Avalanche?
Avalanche is an open, programmable smart contracts platform with high throughput and near-instant transaction finality. Its high performance has led Avalanche to become a popular, rapidly growing venue for DeFi Dapps and NFTs. KyberSwap will play a vital role in providing critical liquidity infrastructure for the thriving DeFi ecosystem on Avalanche.
Bringing Better Rates, Capital Efficiency and Liquidity to Avalanche
With powerful features such as amplified liquidity and dynamic fees, KyberSwapis an extremely capital efficient and flexible liquidity protocol that enables liquidity providers to maximize the use of their capital.
At a fraction of the TVL compared to typical static AMMs, KyberSwap is able to provide better liquidity and very low slippage for popular token pairs. This would improve the overall trading and liquidity provision experience for Avalanche ecosystem users, Dapps and NFT games.
With DEX Aggregation, KyberSwap users get better rates on Avalanche compared to trading on individual DEXs. This is possible via our Dynamic Trade Routing feature which aggregates liquidity from multiple DEXs, including our capital-efficient KyberSwap pools!
A portion of KyberSwap trading fees on Avalanche will go to KyberDAO and subsequently to KNC voters, complementing the existing KyberSwap protocol deployments on Ethereum, Polygon and BSC. This is part of Kyber’s strategy to provide greater flexibility and capital efficiency for liquidity providers across different chains and networks.
“Kyber is excited to provide the infrastructure necessary for enhanced liquidity and seamless token swaps on Avalanche — an increasingly popular network for all things DeFi. We look forward to collaborating with the Avalanche community to grow the ecosystem together.” — Loi Luu, CEO and Co-Founder, Kyber Network
Rainmaker Liquidity Mining with ~$5.8M in Incentives!
KNC and AVAX tokens worth approximately $5.8 Million will be allocated as incentives as part of the Rainmaker + Avalanche Rush Liquidity Mining Program.
Incentives will be distributed to liquidity providers of 7 eligible pools. This will be done in 2 phases to give users more time to get familiar with KyberSwap on Avalanche. Phase 1 begins on Friday, 17 September, 9PM SGT (GMT+8).
Prepare your liquidity! Pools will be live soon, stay tuned
“Enhancing liquidity opportunities is a key factor in growing the DeFi ecosystem and welcoming new participants into the community,” said Emin Gün Sirer, Director at the Avalanche Foundation. “We support Kyber’s vision to deliver a sustainable liquidity infrastructure and welcome their protocol to establish a more valuable ecosystem on Avalanche.”
Rainmaker: Important Details
Starting Time: Friday, 17 September, 9 PM SGT (GMT+8).
Reward: $1M in AVAX
Vesting Duration: 14 days
Campaign Duration: 2 months
- USDT-USDC (AMP=400): 0xe1dAd9E06380bC8962e259dDd6a5257A4f56d525
- AVAX-ETH (AMP=1.5): 0x0f0fc5a5029e3d155708356b422d22cc29f8b3d4
~$1.05M in AVAX and KNC incentives will be distributed in Phase 2 . Starting date TBD.
Other potential pools
- USDT-DAI (AMP=400)
- AVAX-DAI (AMP=1.5)
- WBTC-ETH (AMP=2)
- KNC-AVAX (AMP=1.5)
- KNC-ETH (AMP=1.9)
The remaining ~$3.75M in AVAX and KNC incentives will be distributed in Phase 3. Starting date TBD.
How to Participate in Rainmaker?
Bridging Assets to Avalanche: Ethereum assets can be easily migrated via the Avalanche Bridge (AB), a cross-chain bridging technology that transfers assets between blockchains. Use the Avalanche Bridge to transfer ERC20 assets to your Avalanche C-Chain (Mainnet) Metamask wallet. Other bridges are coming soon.
After bridging assets, they will be displayed as asset.e (ex. WETH.e, USDT.e); and users will have to add custom token addresses to display them in Metamask wallet. Please see all addresses of all supported assets on the proof of assets page.
Note: KNC tokens were not available on the Avalanche network previously. It is now available through the Multichain version of KNC:
- KNC Token Contract (Avalanche): 0x39fC9e94Caeacb435842FADeDeCB783589F50f5f
Switching from Ethereum to Avalanche Network: On the KyberSwap site, click the Ethereum button at the top to switch your network to Avalanche or change your network to ‘Avalanche C-Chain Mainnet’ on your Metamask Wallet extension directly.
Step 1: Add Liquidity
First, enter the ‘Pools’ page. Connect your wallet e.g. Metamask on the Avalanche network and add liquidity by depositing the required tokens into one (or more) of the eligible pools. You will receive KyberSwap LP pool tokens in your wallet representing your pool share and start earning fees for that pool.
View Liquidity Positions: On the ‘My Pools’ page, you can view all your liquidity positions and remove or add liquidity there. If you cannot see your liquidity position, click ‘Don’t see a pool you joined? Import it’ to add it manually.
Eligible Liquidity Pools: Eligible Rainmaker pools are labelled with the 💧 raindrop icon next to them on the left. These pools are eligible for yield farming.
7 Eligible Pools, 2 Phases
- $KNC and $AVAX tokens worth approximately $5.8 Million will be distributed across 7 liquidity pools.
- This will be done in 2 phases. Phase 1 starts with $1M in AVAX tokens for 2 pools.
- Remaining AVAX and KNC incentives will be distributed to the other 5 pools in Phase 2.
AMP = Amplification factor. Amplified pools have much higher capital efficiency. Higher AMP, higher capital efficiency within a tighter price range.
Step 2: Stake LP tokens and start receiving incentives
Next, enter the ‘Farm’ page. You can view the corresponding yield farms for the eligible pools here. Stake your LP tokens in the corresponding farming pool contract. You need to approve the tokens if this is your first time here.
You can view the amount you staked under the ‘My Deposit’ column. After staking, you will start receiving mining rewards on top of protocol fees. Your reward is dependent on your pool share. APY here refers to the annualized percentage yield based on pool fees + rewards.
No Lock-up for Liquidity: Unstake your LP tokens and withdraw liquidity at any time without a penalty to existing rewards received. If you unstake your LP tokens, your rewards are automatically harvested.
Important: Use the official KyberSwap user interface to stake LP tokens. Direct transfers to the liquidity mining pool address will result in the loss of your deposited tokens to KyberSwap.
Step 3: Harvest and Claim Rewards
After being allocated KNC rewards, you will have to harvest your rewards (also on the ‘Farm’ page). When you harvest, it activates a new ~14-day vesting period. Harvested rewards are locked at the start and vested linearly over ~14 days, with some rewards being unlocked every block.
Depending on how many times you harvest rewards, there could be multiple vesting periods running concurrently. Gas is required for every harvest and reward claim.
Navigating to the ‘Vesting’ tab, you can view how much of your KNC rewards have been claimed, locked, and unlocked since the beginning, and your current vesting periods.
We welcome all Avalanche projects to reach out and propose joint liquidity mining campaigns with Kyber! Learn more here.
Why use KyberSwap?
Liquidity providers on KyberSwap enjoy important benefits that are not available on typical AMMs.
- DEX Aggregation: Get better rates on BSC compared to trading on individual DEXs. This is possible via our Dynamic Trade Routing feature which aggregates liquidity from multiple DEXs, including our capital-efficient KyberSwap pools!
- Amplified Liquidity Pools: Liquidity providers use amplified pools that enjoy excellent capital efficiency with reduced trade slippage. With the same pool and trade size, stable token pairs with low variability in the price range (e.g. USDT/USDC) can enjoy up to 400 times better slippage compared to other platforms. Liquidity providers can provide better prices and earn more fees with less capital.
- Dynamic Fees: Protocol fees are adjusted dynamically based on market conditions to maximise returns and reduce the impact of impermanent loss for liquidity providers, with fees automatically accruing from transactions in the pool.
- Fully permissionless: Anyone can create a pool or add liquidity to existing pools; while any Dapp, DEX aggregator, or end user can access this liquidity. KyberSwap is already integrated with 1inch, Paraswap, 0x, Matcha, and Slingshot, with more aggregators and Dapps on the way.
- Reliable and Secure: KyberSwap’s codebase has been audited by external auditors such as Chain Security and is open source on Github for community review. KyberSwap doesn’t use 3rd-party oracles so it is not vulnerable to external oracle risks. KyberSwap is also covered up to $20 Million by decentralized insurance provider Unslashed Finance.
Invitation to DeFi Dapps on Avalanche
Kyber’s vision is to deliver a sustainable liquidity infrastructure for DeFi, which includes popular networks such as Avalanche. This $5.8M Rainmaker + Avalanche Rush program is Kyber’s first major step in building a sustainable and scalable liquidity infrastructure for the Avalanche ecosystem. KNC rewards distributed will give Avalanche liquidity providers a stake in Kyber, and bring more DeFi users, developers, and other participants into both ecosystems.
We invite Avalanche ecosystem players to add liquidity on KyberSwap to enjoy dynamic fees, higher capital efficiency and KNC rewards! Avalanche DeFi projects can also propose joint liquidity mining campaigns with Kyber and get KNC from our ecosystem fund.
For developers looking to build with KyberSwap, please check out our developer documentation.
Follow us on Twitter and Discord to stay updated!
Onward, Kyber Network!
UPDATE: DMM has now rebranded to KyberSwap.com! Learn more.
About Kyber Network
Kyber Network is building a world where any token is usable anywhere. KyberSwap.com, our flagship Decentralized Exchange (DEX), provides the best rates for traders in DeFi and maximizes returns for liquidity providers.
KyberSwap powers 100+ integrated projects and has facilitated over US$7 billion worth of transactions for thousands of users since its inception. Currently deployed across 11 chains including Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, Aurora, Oasis and BitTorrent.
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