Is seamless multichain aggregation really possible?
In this space by Thorswap, Chad THOReau, the communications and content manager at Thorswap and UncleBagers, the API partnerships manager at Thorswap are joined by Imran, the head of marketing for Kyberswap to discuss DEXs, the future of DeFi, crosschain swaps and much more.
Read our notes below to learn more.
An overview of the Kyber Network
Kyber Network was founded and ICOd in 2017-raised $52M, with Vitalik as an advisor.
The team made one of the first DEXs and has been building consistently for 5 years now.
They invented wrapped BTC, created AMM and DAO models, and sponsored multiple hackathons so far.
The main goal of Kyberswap is to make DeFi easily accessible to everyone, the DEX is currently live on 14 chains.
Types of liquidity pools on Kyberswap
There are 2 types of liquidity pools currently, elastic pools ( the newer pools ) and classic pools.
Elastic pools are concentrated pools, which allow people to autoinvest and NFT based liquidity mining- a bit like Uniswap V3.
The elastic pools have grown exponentially and propelled Kyber to be among the top 10 DEX by volume and number one on some chains.
Elastic pools are capital efficient, they can facilitate upto 3-5 times trades-amount wise in a day as compared to their TVL.
The classic pools have a variable fees model- it fluctuates based on the demand and supply. This is done to incentivise volume when traffic is low via lower fees.
The classic pools are live on all chains except SOL, the elastic pools are live on a few chains so far.
Kyber has partnered with Lido Finance to offer staking of liquid staked assets.
The role of the aggregator and its goal
If a user is trading on a DEX that is chain specific likeUniswap on ETH, they won’t get the best rates always.
The aggregator splits a trade through multiple DEXs to ensure best rates, Kyberswap is integrated >70 DEXs currently.
The goal is to ensure the best possible rate for a trade, no aggregation fees,no preference to Kyberswap pools.
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USPs other than the aggregator
Kyberswap has processed >$12B in lifetime volume so far, the team researched on the data and found some patterns.
Through AI and ML, the team is now able to identify what tokens would potentially be trending in the near future.
‘Discover’ is a pro feature that allows users to get access to such insights.
There are 2 more pro features currently, the goal is to have a suite of pro services and products.
Currently doing R&D on new features like limit orders, perp trading, etc.
How the crosschain bridging experience is simplified via Kyberswap
The multichain bridge was integrated 2 months ago.
Currently it is not seamless crosschain swaps but bridging across the chains.
Long term goal is to enable crosschain swaps and liquidity.
Kyberswap integration into Thorswap
The integration allows users to get the best quotes using Kyberswap aggregator.
Currently ETH and AVAX are the chains Thorswap has integrated Kyberswap for.
The vision for Kyberswap crosschain UX
The vision is not public yet.
The ideal UX would be a crosschain swap at one-click seamlessly and under the hood.
Current DEX UX has a lot more friction for users as compared to a CEX which needs to be changed.
The breakthrough moment for Kyberswap team while integrating with Thorswap
The ability to allow users to bridge native assets to other chains, like BTC to WBTC seamlessly is interesting.
As for Thorswap, they were delighted when they realized they were not only integrating an aggregator but also liquidity.
What Kyberswap did differently that resulted in a 900% increase in volume
Black swan events like FTX failure pushed assets to decentralized platforms.
The partnership with Lido pushed the TVL and volume significantly as well.
The aggregator helps users save every cent possible.
A lot of new integrations and partnerships with DeFi protocols.
The team has tried to educate users through campaigns and events.
The utility of the KNC token
KNC is the governance token for KyberDAO.
The team is constantly looking to drive more utility to $KNC.
KNC can be used as collateral at partner protocols like Qi Dao
Frax is also looking to utilize KNC and hosting liquidity on Kyberswap.
Q&A
Q: Is it time for Thorswap to rebrand with a new name to appeal to a broader segment?
A:
Thorchad
The discussion on this topic has been done a few times and it is in plans.
Some alpha would be that the API will have its own independent brand and would be separate from Thorswap.
Bringing more utilities to the $THOR token like governance is also a part of the plan.
Rebranding is a big decision, if the community wants the team to do it, they would look into it.
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