The DeFi space is intensely competitive, where constant improvement appears to be the only way to stay on top. True to its style, KyberSwap recently rolled out a new protocol in addition to its already high-performance offerings.
The KyberSwap Elastic is the latest protocol that wields all the features of the existing protocol, the KyberSwap Classic, which was the world’s first Dynamic Market Maker. In this article, you will learn the benefits that the latest KyberSwap protocol has.
KyberSwap Elastic Takes Things A Step Further
Before the launch of the KyberSwap Elastic protocol, the Dynamic Market Maker protocol in the KyberSwap Classic served to optimize fees and yields for liquidity providers based on current market conditions. However, the latest KyberSwap protocol will take the experience to a new level with its concentrated liquidity. The new protocol offers:
- More Efficient Liquidity providers (LPs): KyberSwap Elastic ensures that liquidity providers can concentrate liquidity by using a narrow price range for the token pair. As a result, there is more efficiency in the usage of liquidity in the pool. This results in improved:
- LPs yields.
With 5 competitive fee tiers, LPs can select and earn yields based on individual liquidity needs and risk appetites. This works particularly well for stablecoins and associated pairs with little price volatility, such as USDC-DAI.
Noticed anything different on #KyberSwap lately?👀
That’s right! Officially announcing #KyberSwapElastic! Redefining Liquidity Protocols to bring you #ConcentratedLiquidity & the flexibility to take your earning strategy to the next level😎🚀
📚Learn more: https://t.co/ZEIgy9WMpT pic.twitter.com/4f7pVMt2mh
— Kyber Network (@KyberNetwork) July 7, 2022
- Optimize risk management: Essentially, the flexible pricing range of Elastic pools gives LPs these features. It also rewards them for adopting a strong liquidity strategy. Liquidity providers have a chance to earn a higher APY since the Elastic pool fees are auto-compounded.
In a nutshell, KyberSwap Elastic offers unmatched flexibility, security, and rewards. It also offers a wide range of features, mainly for LPs with different liquidity needs and risk appetites. The protocol has what it takes to boost KyberSwap’s overall liquidity, which will be advantageous to both KyberDAO and KNC holders.
Advantages of the KyberSwap Elastic Protocol
Without a doubt, this novel protocol is a game-changer for DeFi users. Here are some of the benefits KyberSwap Elastic offers:
- Risk Control: KyberSwap Elastic is customizable. This means that users will have more flexibility and control over the buy/sell range of the tokens. This can reduce losses caused by impermanent losses.
- Customizable Concentrated Liquidity: KyberSwap Elastic enables LPs to get more precise with their approach. Users can add liquidity to a chosen price range in this protocol. This is unlike Kyber Classic which adds liquidity to a predetermined price range.
- Flexible Strategies: This is one of the core benefits of using this protocol. Users will generally have more control of their game. They will be able to effectively plan investment and exit strategies, based on their risk tolerance with more customization options.
- Auto-Compounding of Fees: KyberSwap gives users an improved chance of earning more. It reinvests the earnings of LPs in the pool, increasing their profit. Also, LPs can always withdraw their tokens and take their trading commissions.
✅Customizable Concentrated Liquidity
✅Full Range Fees Compounding
✅New Farming Mechanisms
— Kyber Network (@KyberNetwork) July 7, 2022
There are other known benefits to using this protocol. Additionally, the KyberSwap Elastic pool is well secured. The KyberSwap Elastic protocol was audited by Chainsecurity and the report is available for public download here.
For further details on KyberSwap Elastic, check out this article from the KyberSwap team!
KyberSwap Partners With Optimism
As mentioned earlier, KyberSwap is often seeking ways to take things a notch higher. So it recently integrated with Optimism as its chain number 12. The partnership will make DeFI more accessible to a wide range of users. Optimism is a security-conscious Ethereum Layer-2 scaling solution. It offers cheaper transaction fees. And near-instant transaction finality.
Due to this integration, KyberSwap users will have yet another inexpensive and quick location to exchange tokens at the best possible rates. Furthermore, Optimism users can now swap at the best prices, and LPs get larger fee returns on KyberSwap. This blog post details all there is to know about this partnership and how to get started.
Pleased to announce that @1inch has completed integration of #KyberswapElastic on 7 chains @ethereum @BNBCHAIN @0xPolygon @optimismPBC @arbitrum @avalancheavax @FantomFDN to take advantage of the competitive rates of the newly launched liquidity protocol. pic.twitter.com/TAuKs4f1TJ
— Kyber Network (@KyberNetwork) July 8, 2022
Kyber Network is the team behind the KyberSwap protocol. The team intends to create a world where every token can be used anywhere. KyberSwap is the main Decentralized Exchange aggregator and liquidity platform. It gives DeFi traders the best rates while maximizing rewards for liquidity suppliers.
Since its launch, KyberSwap has powered over 100 integrated projects and enabled over $7 billion in transactions for thousands of users. KyberSwap is presently operational on 12 different chains. This includes names such as Ethereum, BNB Chain, Polygon, Avalanche, and Fantom.
If you like to stop losing money on your DEX exchange fees, start using Kyber’s aggregator and get access to best prices from 11 chains and 80 DEXs today.
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