KyberSwap is a DEX (Decentralized Exchange) aggregator aimed at offering the best token prices for traders across multiple exchanges. It also helps to maximize earnings for liquidity providers using an effective AMM in one decentralized platform.
KyberSwap has had a good 2022, from multiple strategic partnerships and announcements to growing its community and welcoming new users. KyberSwap provides optimal swap rates on chains such as Ethereum, Polygon, Arbitrum, Optimism, BNB Chain, and Avalanche. It also offers liquidity pools, opportunities to earn LP fees, and yield farms on all chains as well.
Liquid staking giant Lido Finance recently partnered with KyberSwap, to enhance Wrapped Lido Staked Ether (wstETH) liquidity on Ethereum. Kyber already has offerings with Lido Staked Ether (stETH) and Lido Staked MATIC (stMATIC) on top platforms like Optimism, Polygon, and Arbitrum. And the results have been phenomenal. As of last month, the campaign yielded about $15 million in daily trading volume across all Lido pools.
Will Kyber Take Top Spot on Ethereum?
Earlier this month, KyberSwap ranked as the highest-ranking DEX on both Arbitrum and Optimism. And the recent partnership with Lido Finance was geared at bolstering Ethereum with more varied wstETH liquidity. KyberSwap already launched the first phase of wstETH pools on Ethereum’s mainnet last month. So, the big question is “can KyberSwap take the top spot on Ethereum?”
4/ #Layer2Season continues as more and more protocols are expanding beyond their native L1s.@KyberNetwork has seen significant increases in volume this week, with its concentrated liquidity AMM (KyberSwap Elastic) now ranked as the top DEXs on @arbitrum and @optimismFND. pic.twitter.com/R6jGjyzYH1
— Exponential DeFi (@ExponentialDeFi) December 6, 2022
Lido and KyberSwap launched two farms to bootstrap wstETH liquidity across more diverse pairs:
The two farms and their corresponding pools will complement the new wstETH-ETH pool which Kyber has seeded $10 million into. We already wrote an article explaining Wrapped stETH (wstETH). Click here to read it.
In a nutshell, Lido allows anyone to stake ETH and get stETH, a derivative token in return. You can lend this stETH or even trade it on other platforms. So, Lido’s Wrapped stETH (wsETH) is simply stETH deposited into the stETH wrapper, creating the new wstETH token.
So, wstETH is non-rebasing. This means it’s stable and doesn’t change to reflect staking rewards. As said earlier, Lido and KyberSwap’s pools were a huge hit on Arbitrum and Optimism. And looks like they can take the top spot on Ethereum too.
Here’s another cool thing: Wrapping stETH gives you a DeFi-compatible version of the stETH token. This token allows you to easily integrate with protocols such as KyberSwap and farm on pools there for more rewards. Now, that’s a good way to put the ETH token to use.
Liquid staking, Staking, and Wrapping
Staking isn’t a new term in crypto. However, not everyone knows how it works. So, staking is more or less the crypto equivalent of putting your funds in a savings account in a bank. Staking involves committing your token to a protocol to secure the network and earn rewards. You can say staking is locking up your cryptocurrency to receive rewards.
There are two types of staking;
- Locked: this involves committing your token within a specific duration and earning rewards on it.
- Flexible staking: this type of staking isn’t so rigid. You can withdraw your tokens at any time.
Aside from regular staking, we’ve got another concept called liquid staking. This is an alternative to locking your stake. So, you can stake, for example, any amount of ETH without enabling the requirement of transactions.
A platform like Lido Finance is best known for liquid staking. So, they’ll issue you a tokenized version of the staked ETH, stETH. This is a sort of derivative. You can use it and trade it as a regular token.
So, wrapping stETH produces another token known as Wrapped stETH or wstETH. This new token gives you access to the farms on KyberSwap which we mentioned earlier. These farms offer a good way to earn revenue from your staked token.
Wrapped tokens like wsETH offer interoperability between blockchains. So, you can move your assets and enjoy features on other blockchains. Some of these features include
- yield farming opportunities.
- faster transaction times.
- lower fees.
You Need a Stable Chain
With the market currently in shambles, knowing where to safely use your tokens is of high value. So a stable chain simply means reliable networks and trustworthy projects, unlike volatile and highly unstable ones. Some projects even rug pull and take users’ funds in the process.
But a combination of Ethereum and Lido Finance and KyberSwap offers trust and security for DeFi users. Ethereum is the top DeFi chain with a good reputation for security. Lido Finance is arguably the top choice for liquid staking. And KyberSwap offers the best DeFi experience.
So, the wstETH farm on KyberSwap is one of the best ways to use and earn from your ETH. Check out this article on how to farm on KyberSwap.
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