KyberDMM, from Kyber Network, Arrives on Binance Smart Chain

William Peaster
Jan 10, 2022
|5 minutes read
kyber binance

Earlier this year, Kyber Network unveiled its Kyber 3.0 upgrade, becoming a hub of different liquidity protocols. At the heart of this advance was the rollout of the project’s optimized and highly-efficient Dynamic Market Maker (DMM) infrastructure. 

These days as decentralized finance is rapidly spreading to new multi-chain frontiers, a liquidity hub like Kyber can unleash its full potential by embracing its role as an Ethereum-based cross-chain “money lego.” For Kyber, this means facilitating efficient trading wherever it’s needed around the blooming peripheries of the widening DeFi ecosystem. 

This is precisely the strategy Kyber started undertaking this summer, with the project’s community approving via KyberDAO governance the protocol’s first multi-chain partnership program with Polygon back in June 2021. Next up? Binance Smart Chain (BSC). That’s because this month KyberDAO approved BSC as the third deployment site for the powerful KyberDMM protocol and a fresh 2M KNC liquidity mining program. 

Catching Up on KyberDMM

Before diving further into Kyber’s arrival on BSC, let’s first briefly review what KyberDMM is all about

First and foremost, KyberDMM is the new-and-improved automated market maker (AMM) arm of the Kyber 3.0 liquidity hub. The next-gen AMM notably offers extreme capital efficiency via amplified liquidity pools and optimized returns for liquidity providers (LPs) courtesy of dynamic trading fees. KyberDMM previously launched its beta on the Ethereum and Polygon networks, where total trade volume and total value locked (TVL) have exceeded US$1.1 Billion and US$500 Million respectively. 

These advancements will make Kyber 3.0 an ideal decentralized liquidity service for users, dapps, trading aggregators, and wallets alike. So while Kyber Network has already facilitated over 2M transactions and over $6B in total volume to date, the Kyber 3.0 infrastructure is poised to help level-up these numbers to new heights for years to come!

Expanding to Binance Smart Chain 

In August 2021, KNC token holders via KyberDAO voted +99% in favor of approving the expansion of KyberDMM and KNC liquidity mining to BSC. Kyber plans to emulate this success on BSC as part of its strategy to widen adoption across different chains and provide greater flexibility and capital efficiency for liquidity providers in DeFi.

After Polygon, the KyberDAO governance process determined BSC as the next sidechain to deploy KyberDMM to because:

  1. BSC is compatible with the Ethereum Virtual Machine (EVM) making a deployment relatively straightforward;
  2. The chain offers traders a user-friendly alternative to Ethereum when it comes to gas costs. 

Rainmaker: Bootstrapping Kyber’s BSC Liquidity

In recent times the name of the game for bootstrapping upstart protocols, and now the deployments of already-established protocols on new chains, is liquidity mining (LM) programs

Simply put, a project conducts a liquidity mining program to bring in and maintain new liquidity by rewarding its early users, namely LPs, with the project’s native token.

In the case of Kyber, in June 2021 the project launched a three-month “Rainmaker” liquidity mining program offering ~$30M worth of KNC and MATIC rewards to KyberDMM LPs on Polygon. 

As part of KyberDMM’s deployment to BSC, KyberDAO approved following up Rainmaker with the distribution of 2M KNC, or nearly $4M, in rewards to four pivotal BSC-based KyberDMM liquidity pools: KNC-WBNB, ETH-WBNB, USDT-WBNB, and USDT-BUSD. Read this Kyber blog post to learn more.

Liquidity providers of these pools on KyberDMM can stake their LP tokens to receive a share of the KNC incentives. Watch this video to learn how to participate in Rainmaker. 

Depending on how this inaugural BSC liquidity mining program goes, KyberDAO may decide to greenlight an extension or similar liquidity mining programs in the future. Additionally, BSC projects can opt to work with the Kyber community to offer joint token rewards to KyberDMM’s new BSC users, so be on the lookout for such collaborations. 

Track Kyber’s Expansion

Kyber Network’s multi-chain expansion plans are only just beginning.

With Polygon and BSC deployments complete, KyberDAO has already approved a KyberDMM deployment and liquidity mining program on the EVM-compatible Avalanche blockchain, and further integrations will undoubtedly come in short order. In the meantime, use KyberDAO’s governance dashboard to stay up-to-date on Kyber’s newest cross-chain happenings. 

Lastly, there’s always a lot going on around the Kyber ecosystem so stay on top of all the action by following the project on Twitter, Telegram, and Discord. Also, dive deeper into KyberDMM sometime with this helpful video recap

Disclosure: This post is part of our paid promotional Partners Program; We’ve partnered with Kyber to help educate and inform the community about the Kyber Network. As always, we’re committed to providing the entire community with quality, objective information, and any opinions we express are our own.