KyberDMM Launches on Binance Smart Chain with $4M in Liquidity Mining Rewards
By: Kyber Network
Tags: Featured, Ethereum, English

KyberDMM Launches on Binance Smart Chain with $4M in Liquidity Mining Rewards

With the approval of KIP-12, we are excited to share that KyberDMM, DeFi’s 1st multi-chain dynamic market maker protocol, is now deployed and LIVE on Binance Smart Chain (BSC)!

In celebration of BSC’s 1st Year Anniversary, we are also including the BSC network in our ‘Rainmaker’ Liquidity Mining Program. ~$4 million in KNC incentives will be up for grabs for liquidity providers, starting September 2nd! To support the KyberDMM launch, Binance has listed the BEP-20 version of KNC and will enable the deposit/withdrawal of KNC to the BSC network.

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. 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.

What is Binance Smart Chain (BSC)?

Binance Smart Chain (BSC) is an Ethereum Virtual Machine (EVM)-compatible sidechain that has grown in popularity as an alternative to Ethereum mainnet due to its speed and lower transaction costs. Tokens on BSC follow the BEP-20 standard and you can transfer assets between Ethereum and BSC using the Binance Bridge. There are already hundreds of projects on the network today, with over $19B in total value locked.

Kyber also plans to work with several popular projects on BSC, including Coin98, DeFi Warrior, Faraland, Bunicorn, My DeFi Pet, Wanaka Farm and others to help grow the DeFi and NFT ecosystem.

Bringing High Capital Efficiency to the BSC Ecosystem

KyberDMM is an extremely capital efficient and flexible liquidity protocol that enables liquidity providers to maximise the use of their capital. At a fraction of the TVL compared to typical AMMs, KyberDMM is able to provide amplified liquidity and very low slippage for popular token pairs. This would improve the overall trading and liquidity provisioning experience for BSC ecosystem users, Dapps and games.

With the deployment of KyberDMM on BSC, a portion of trading fees will go to KyberDAO and subsequently to KNC voters, complementing the existing KyberDMM protocol deployments on Ethereum and Polygon.

Rainmaker Liquidity Mining Program with ~$4M in Incentives

Starting from September 2nd, 2 million KNC tokens, worth approximately $4 Million, will be allocated as incentives as part of the Rainmaker Liquidity Mining Program. Incentives will be distributed to liquidity providers of 4 eligible pools over the course of 2 months.

You can already start adding liquidity now to prepare!

Rainmaker: Important Details

Starting Block: 10,557,000 (~Thur, September 2nd. 13:52:33 GMT+07)

Reward Vesting Duration: 400,000 blocks (~14 days)

Liquidity Mining Duration: 1,672,000 (ends at block 12,229,000 ~Mon, Nov 1st. 13:39:05 GMT+07)

KNC Token Smart Contract Address on BSC:

0xfe56d5892bdffc7bf58f2e84be1b2c32d21c308b

How to Participate in Rainmaker?

Important Notes

Bridging Assets to BSC: If you do not already have assets on BSC, you first need to deposit ERC20 tokens to Binance Exchange and withdraw them to your BSC wallets as BEP20 tokens. Alternatively, use the Binance Bridge to transfer ERC20 to your BSC Metamask wallet.

Switching from Ethereum to BSC Network: On the KyberDMM site, click the Ethereum button at the top to switch your network to Binance Smart Chain or change your network to ‘Binance Smart Chain’ on your Metamask Wallet extension directly.

Step 1: Add Liquidity

First, enter the ‘Pools’ page. Connect your wallet e.g. Metamask on the BSC network and add liquidity by depositing the required tokens into one (or more) of the eligible pools. You will receive DMM LP pool tokens in your wallet representing your pool share and start earning standard protocol fees for that pool.

View Liquidity Positions: On the ‘My Dashboard’ 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.

4 Eligible Pools

*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 ‘Yield’ page. You can view the corresponding yield farms for the eligible pools here and add liquidity for the pool if you haven’t done so. Stake your DMM LP tokens in the corresponding farming pool contract. You need to approve the tokens if this is your first time here. After staking, 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. APY refers to the annualized percentage yield based on pool fees + rewards.

No Lock-up for Liquidity: You can unstake your DMM 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: Please use the official KyberDMM user interface to stake LP tokens. Direct transfers to the liquidity mining pool address will result in the loss of your deposited tokens to KyberDMM.

Step 3: Harvest and Claim Rewards

After being allocated KNC rewards, you will have to harvest your rewards (also on the ‘Yield’ page). When you harvest rewards, 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. You can also view your current and past vesting periods.

KNC Rewards

KNC rewards can be added back into the KNC/BNB pools or staked on KyberDAO (kyber.org) for additional KNC rewards. With high yield for eligible token pairs, the Rainmaker program will enhance liquidity on BSC, showcase KyberDMM’s powerful benefits, and bring more users and developers into the Kyber ecosystem. Read more about KNC here.

We welcome BSC projects to reach out and propose joint liquidity mining campaigns with Kyber! Learn more here.

“Binance Smart Chain has been a popular avenue for DeFi and NFT Dapps and users. KyberDMM will provide BSC ecosystem players with a capital efficient and reliable protocol for their liquidity needs and help them maximise their use of capital.” - Loi Luu, Co-Founder, Kyber Network

Why use KyberDMM?

Liquidity providers enjoy important benefits that are not available on typical AMMs on BSC.

Amplified Pools: Liquidity providers have the flexibility to select amplified liquidity pools that greatly improve capital efficiency and help reduce trade slippage. With the same pool and trade size, stable token pairs with low variability in the price range (e.g. USDT/BUSD) can enjoy up to 200–400 times better slippage compared to other platforms. Liquidity providers can provide better prices and earn more fees with less capital.

Liquidity providers have the flexibility to select amplified liquidity pools that greatly improve capital efficiency and help reduce trade slippage. With the same pool and trade size, stable token pairs with low variability in the price range (e.g. USDT/BUSD) can enjoy up to 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.

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, aggregator, or end user can access this liquidity. KyberDMM is already integrated with 1inch and Matcha, with more aggregators and Dapps on the way.

Anyone can create a pool or add liquidity to existing pools; while any Dapp, aggregator, or end user can access this liquidity. KyberDMM is already integrated with 1inch and Matcha, with more aggregators and Dapps on the way. Committed to security: KyberDMM’s codebase has been audited by both the team and external auditors such as Chain Security with no critical issues found, and is open source on Github for community review. KyberDMM doesn’t use 3rd-party oracles so it is not vulnerable to external oracle risks. Kyber DMM is also covered up to $20 Million by decentralized insurance provider Unslashed Finance.

Welcoming DeFi Builders and Liquidity Providers on BSC

Kyber’s vision is to deliver a sustainable liquidity infrastructure for DeFi, which includes popular networks such as Binance Smart Chain (BSC).

This $4M Rainmaker program will kickstart KyberDMM’s presence on the BSC network and is the first major step in building a sustainable and scalable liquidity infrastructure for the BSC DeFi ecosystem. KNC rewards distributed will give BSC liquidity providers a stake in Kyber Network.

Rainmaker on BSC starts at block: 10,557,000 (~Thur, September 2nd. 13:52:33 GMT+07)

We welcome BSC ecosystem players to add liquidity on the KyberDMM to enjoy dynamic fees, higher capital efficiency and KNC rewards! BSC projects can also propose joint liquidity mining campaigns with Kyber!

For developers looking to build with KyberDMM, please check out our developer documentation.

Follow us on Twitter and Discord to stay updated!

Onward, Kyber Network!

Learn & Win

💰$3000 in prizes! 10 lucky winners get $300 each!

Learn about KyberDMM’s advantages and the $4 Million Rainmaker liquidity mining program on BSC, and stand a chance to win!

Follow the instructions on Twitter: https://twitter.com/KyberNetwork/status/1434866354469830656

Complete this quiz https://forms.gle/yhHsHPuYsvn6yi1E8

Contest ends: Monday, Sep 13, 11pm GMT+8