Kyber Network is one of the most popular DEXs in the Ethereum and Polygon Ecosystem. It promises the best trading rates in DeFi. So, we recently interviewed Imran Mohamad, Head of Marketing, Kyber Network, on our Telegram Channel and talked about the building blocks that make Kyber.
Segment 1: Introduction to Kyber Swap
Q – Tell us a bit about yourself and your involvement with Kyber Swap.
I came from a marketing agency background, then in e-commerce, before diving deep into blockchain & crypto after catching the *buzz*. Now, I’m the Head of Marketing at KyberSwap. We’re the place in DeFi to swap, and earn at the best rates. My role involves being a brand champion, a customer champion and doing market outreach, including in-person events which I love, and AMAs like these which I love even more!
Q – Give us a broad overview of Kyber Swap, and its various offerings.
KyberSwap is a Decentralized Exchange (DEX) & Aggregator, the best place to swap and earn in DeFi! You get more with KyberSwap because:
- You can swap at the best rates on 12 chains (including Ethereum, BNB, Polygon, Arbitrum, Optimism, Avalanche, Fantom, and more), and access more than 20,000 tokens! We’ve surpassed the $10B trade volume!
- You can EARN with our liquidity pools & farming rewards on 12 chains, you don’t need a lot to start, even a hundred dollars is fine. We have rewarded $33m to farmers so far.
- You can use the world’s first on-chain tool to predict tokens before they trend (Discover).
- Participate in trading & referral campaigns to earn more rewards.
- Reliable and secure, Kyber has a history of 5 years of associating with the top names in the industry, Vitalik Buterin being our founding advisor. Also, being technically innovative. We invented wrapped BTC, and dex aggregation among other things. Also has no exploits or rug-pull associations.
Segment 2: Deep Dive
Q – Tell us more about KyberSwap. You promise to provide traders with the best rates. How do you achieve that?
KyberSwap aggregates your swap through all the DEXs & liquidity pools in DeFi to give you the BEST rates. Think of us like an AGODA but for your crypto. You always get the most money back! Just try us out on any chain (e.g. Polygon) and compare us with Uniswap, Quickswap, etc and you will see how much you can save.
This is a result of DEEP INTEGRATION into the ecosystem where we work with 12 chains and their foundations, more than 67 DEX & liquidity sources to route through all of defi so that you get your maximum money’s worth.
Combine that with GAS EFFICIENT CONTRACTS + ZERO FEES for aggregation. You will always get the best rate with KyberSwap on-chain.
Q- You have 2 kinds of protocol, Elastic and Classic. How does the Elastic work and how is it different from the Classic?
KyberSwap Classic is our Dynamic Market Maker which we pioneered. When the market is too volatile, fees can dynamically increase to reflect better the risks involved in each trade. When the market is stable and volatility drops, fees decrease. The DMM automatically recalculates fees by analyzing on-chain volume data for each liquidity pool.
This system is quite similar to ride-sharing apps like Uber. During high-demand hours, such as rush hour, the price of Uber rides goes up. Likewise, prices decrease when there is a lower demand for rides.
On the other hand, KyberSwap Elastic inherits all the powerful features of KyberSwap Classic while giving you concentrated liquidity and the flexibility to take your earning strategy to the next level.
Here is a simple comparison of these 2 protocols:
Concentrated Liquidity: In the Classic pool, the price range is extremely wide, so the liquidity in each price is very small, which leads to the slippage rate being also high. Whilst Elastic allows you to control the range in which your assets are traded. So with the same amount of money, if the token price keeps trading in that area, you will receive a higher reward (as an LP) compared to Classic.
Flexible fee: With Classic protocol, each liquidity pool will earn dynamic fees. While Elastic has different fee tier levels introduced: 0.008%, 0.01%, 0.04%, 0.3%, and 1%, it helps LPs take on more risk in non-correlated pairs like stMATIC/USDT and, conversely, take on minimal risk in correlated pairs like DAI/USDT.
Risk Control: Since Classic spent $20 million for decentralized insurance, Elastic introduced a brand new risk control system called JIT/Snipe Protection. It helps protect LPs from this type of attack that jump in front of normal LPs by adding and removing liquidity just before and right after a huge swap.
Q – Tell us more about the available farms. I can see a very high incentive in some pairs. How is the payment made and can you recommend some highlighted pairs on Kyberswap?
These are some farms on Polygon Chain, right now.
You will see that you can earn on farms, for example in our partnership with LIDO FINANCE (largest DeFi protocol) on Polygon with their staked MATIC (stMATIC) farms. The farm yields are shown there and you will earn rewards in the tokens that are displayed on the right. Sometimes it will be $KNC (our native token) and sometimes it could be the partners’ token like (LIDO) or a mix.
So, farming rewards are BONUS ON TOP OF what you earn on the Liquidity Pools. You can see both sets of lists on KyberSwap.com on the Pools, and Farms, pages. Also, the stMATIC and stable coin (eg USDT, USDC, MAI, DAI) are great options to consider while having some reasonable risk. Do conduct your own research as you go in!
Q – So as I understand, besides guaranteeing the best rate, users can earn fees by providing liquidity AND can earn extra incentives by staking them on farms right? How Kyberswap and partners (for example LIDO) can benefit from providing those farms?
We aim to be your one-stop platform for Decentralized Exchange & yield farming in all of defi.
KyberSwap & Lido Finance are complementary partners. KyberSwap’s goal is to be the most-used and easiest DEX to use in all of DeFi, and Lido Finance to be the primary liquid staking provider in DeFi.
So, here’s why this is really exciting & rewarding for you.
- DeFi grows when there are exciting new & sustainable ways to earn money and welcome users.
- Lido Finance allows staked assets, which used to *not be liquid,* to now be used to earn more fees via liquidity pools & farms.
- KyberSwap allows these assets to have high capital efficiency and facilitate a healthy DeFi ecosystem through the trade volume that is facilitated. The best part is the returns are auto-compounded.
In short, traders, liquidity providers, KyberSwap, Lido, and our partners, all win!
Finally, such partnerships are win-win and high impact on the ecosystem, such that all the biggest crypto media (including Altcoin Buzz of course!) cover them. We’re excited to grow this market with our partners, and with the most important people – you guys, our users.
Q – What are the Kyberswap visions can you share with us Kyber’s future plans?
Our long-term goal is to make DeFi easy, simple, safe, and rewarding for everyone. So we’re really here to be the most-used, non-custodial exchange.
This means in participating in crypto and web3, keep control of your identity, privacy, and assets. We have our 5th anniversary THIS YEAR. You can expect:
- Many more partnership announcements.
- Much more rewards.
- More chain integrations & product innovations.
- More FIRSTS.
- Maybe some surprises.
Also, we just hit $10B in trading volume, and can’t wait to build towards $100B.
Guess which #DexAggregator just hit $10B in Trade Volume👀👀👀
— Kyber Network (@KyberNetwork) August 23, 2022
Ultimately we want to make KyberSwap the only place that you will want to use in DeFi. To trade, earn, and look for insights into the market. To make better decisions. So we promise, to continuously work with you guys, the users, to listen to your pain points and wants and make this a reality.
Segment 3: Community QnA
Q – Is the old KNCL still accepted for deposits and withdrawals on Coinbase after the migration period? Or will this result in a loss of funds?
Do not use $KNCL as it has no utility. $KNC is our native token and is supported by most major central exchanges including Coinbase. If you have $KNCL you can use a wallet like Metamask, go to Kyber to migrate $KNCL to $KNC!
Feel free to explore participating in KyberDAO with your $KNC and also to *farm on KyberSwap with the many $KNC pools* to earn money on your capital.
Q – Kyber Network uses dynamic fees adjusted on market conditions. Can you explain how has the recent market impacted your protocol and through what mechanism have you reduced the impact of price volatility?
Sometimes, sadly, lack of liquidity can affect the prices that you may get on other platforms resulting in some loss. For DEX that does not do aggregation, this may affect your rate, and certainly, they do not hunt in defi for the best rates for you.
Here’s what we do to give you the best rates regardless of volatility as a trader:
- Better Pricing: When compared to one individual DEX, a DEX aggregator can provide a better execution price as they are designed to help traders to liquidate at the highest rates.
- Zero Aggregation Fees: We don’t take any fees for aggregation
- Gas Efficient Smart Contracts: We make the swap efficient
- Dynamic Routing: We route the trade through many sources and split them up, sometimes to 4, 5, or more so in combination, you only get the best price.
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