Ethereum-based decentralized exchange, Kyber Network, has announced its partnership with Polygon to enhance the DeFi liquidity.
It continues to be an excellent run for Polygon (formerly Matic) as the number of decentralized finance (DeFi) users and developers on the Layer 2 scaling solution have increased tremendously.
We're also launching the 🌊Rainmaker liquidity mining program on both Polygon and #Ethereum with ~$30M in rewards!
— Kyber Network (@KyberNetwork) June 16, 2021
Disclosing the partnership via an official blog post, Kyber Network noted that it will be deployed on the Polygon network on June 30, 2021. This will be facilitated by the Kyber DMM (Dynamic Market Maker), a new protocol in Kyber’s liquidity hub.
As a result of the partnership, Kyber Network will collaborate with Polygon’s team to ensure Kyber DMM’s successful deployment. This partnership aims to enhance liquidity for DeFi, increase the number of users, developers, and dApps within the Polygon ecosystem.
Additionally, Kyber DMM will also cater to Polygon’s ecosystem of Dapps, and DeFi use-cases. It will also enable liquidity providers to maximize the use of their capital through cost-efficient and user-friendly experience during trading.
Kyber Network further revealed that it integrated on Polygon due to the network’s attractive Ethereum scaling solution for DeFi users, cheap gas fee, and faster block processing time.
Sandeep Nailwal, co-founder and COO, Polygon also expressed his delight with the partnership. Noting that “Liquidity is a crucial element in any DeFi ecosystem and we’re glad to work with Kyber Network to help enhance liquidity on Polygon through the Kyber DMM protocol.”
Kyber Network Launches Liquidity Mining Program
Kyber Network also announced the launch of the ‘Rainmaker’ program, which is the first liquidity mining program on Polygon, and Ethereum.
The Ethereum-based decentralized exchange (DEX) disclosed that the Rainmaker program will distribute an estimated total of $30 million in rewards to eligible Kyber DMM liquidity providers (LPs) over the period of three months.
According to Kyber, the initiative aims to incentivize LPs, and developers to use Kyber DMM. To do so Kyber sets out to provide high yield on eligible token pairs; boosting liquidity for Polygon, and the entire Ethereum DeFi ecosystem.
Notably, Polygon’s phase of the liquidity mining program is scheduled to run for two weeks. Six eligible liquidity pools will receive 2.52 million Kyber Network tokens (KNC) and Polygon’s MATIC tokens worth $500,000.
Additionally, participants can employ KNC, and MATIC tokens for more liquidity mining. KNC tokens can be staked in KyberDAO to participate in Kyber’s governance and earn voting rewards.
“[…]we believe this will empower more liquidity providers, traders, and developers to effectively engage in the world of decentralized finance,” he added.
At the time of publication, MATIC’s price has dropped by 10.6% and was trading at $1.35. It currently has a market cap of $8,497,916,662 and a 24-hour trading volume of $1,315,037,047.
Meanwhile, Kyber Network Crystal (KNC) price at the time of publication has fell by 10.5%. The token was trading at $1.77 with a market cap of $89,484,545 and a 24-hour trading volume of $9,246,361.
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