Kyber and Avalanche Foundation collaborate to launch KyberDMM with $5.8M in Liquidity Incentives!
By: Kyber Network
Tags: Featured, Avalanche, English

DeFi’s first multi-chain dynamic market maker will enable dynamic fees and higher capital efficiency for liquidity providers on Avalanche

Kyber Network is bringing KyberDMM, DeFi’s first multi-chain dynamic market maker, 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, KyberDMM 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. KyberDMM will play a vital role in providing critical liquidity infrastructure for the thriving DeFi ecosystem on Avalanche.

Bringing Better Capital Efficiency and Liquidity to Avalanche

With powerful features such as amplified liquidity and dynamic fees, KyberDMM is 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, KyberDMM 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.

A portion of KyberDMM trading fees on Avalanche will go to KyberDAO and subsequently to KNC voters, complementing the existing KyberDMM 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 KyberDMM 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

Phase 1

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

Phase 2

The remaining ~$4.8M in AVAX and KNC incentives will be distributed equally across the other 5 pools in Phase 2. Starting date TBD.

USDT-DAI (AMP=400)

AVAX-DAI (AMP=1.5)

WBTC-ETH (AMP=2)

KNC-AVAX (AMP=1.5)

KNC-ETH (AMP=1.9)

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.

**Note: KNC tokens are NOT available on the Avalanche network at this time. We are working closely with the Avalanche Foundation and other bridges to support KNC.

Switching from Ethereum to Avalanche Network: On the KyberDMM 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 DMM LP pool tokens in your wallet representing your pool share and start earning 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.

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 ‘Yield’ page. You can view the corresponding yield farms for the eligible pools here. Stake your DMM 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 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: 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, 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 KyberDMM?

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

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.

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.

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. KyberDMM is already integrated with 1inch, 0x, Matcha, and Slingshot, with more aggregators and Dapps on the way.

Anyone can create a pool or add liquidity to existing pools; while any Dapp, DEX aggregator, or end user can access this liquidity. KyberDMM is already integrated with 1inch, 0x, Matcha, and Slingshot, with more aggregators and Dapps on the way. Reliable and Secure: KyberDMM’s codebase has been audited by external auditors such as Chain Security 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.

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 KyberDMM 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 KyberDMM, please check out our developer documentation.

Follow us on Twitter and Discord to stay updated!

Onward, Kyber Network!

About Kyber Network

Kyber Network aims to deliver a sustainable liquidity infrastructure for DeFi. As a liquidity hub, Kyber connects liquidity from various protocols and sources such as KyberDMM to provide the best rates to Dapps, DEX aggregators, DeFi platforms, and retail traders.

Anyone can contribute liquidity to Kyber Network and Dapps can integrate different protocols depending on their liquidity needs. Using Kyber, developers can build innovative applications, including instant token swap services, payment flows, and financial DApps — helping to build a world where any token is usable anywhere.

Kyber is powering more than 100 integrated projects and has facilitated over US$6 billion worth of transactions since its inception.

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