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.