Project Name: KyberSwap by Kyber Network
Basic Description: KyberSwap is a multi-chain DEX aggregator and liquidity platform
Proposal author contact info:
- Shane Hong
- Email: [email protected]
- Telegram: shaneHk
- Twitter: shaneMkt
Grant Amount requested: $160,000 in AXL
Recipient address for AXL (Axelar) incentives:
- KyberDAO Multisig: 0x91c9D4373B077eF8082F468C7c97f2c499e36F5b
Summary
KyberSwap is requesting $160,000 in AXL incentives over a period of 3 months to bootstrap and deepen liquidity for selected pairs. KyberSwap intends to focus first on Ethereum, Polygon, Arbitrum, and Optimism, before slowly supporting more chains together with Axelar:
Pools selected for incentivization would be those paired with axlUSDC and AXL, for instance:
- axlUSDC-USDC
- AXL-USDC
KNC incentives would also be provided to further benefit liquidity providers in these pools.
By posting our proposal in this forum we hope to first get a temperature check and collect feedback from the Axelar community.
Project description
Kyber launched on Ethereum in February 2018 and is a pioneer in the DeFi space, having developed one of the earliest decentralized exchange protocols (DEX) with Vitalik Buterin as an advisor. Kyber was the most used DeFi protocol in 2019 and also launched WBTC (Wrapped Bitcoin) - the most popular ERC20 version of Bitcoin.
Today, our flagship product KyberSwap is a leading multi-chain DEX aggregator and liquidity platform that aims to provide the most optimal rates for traders, while enabling liquidity providers to get the best returns through capital efficiency and concentrated liquidity. KyberSwap has been deployed on 13 chains including Ethereum, Polygon, Arbitrum, Optimism, Avalanche, and BNB chain and has facilitated over $20B in trading volume.
Project links
- Website: https://kyberswap.com/
- Twitter: kybernetwork
- Discord: /kyberswap
- Github: /kybernetwork
- KyberSwap Elastic smart contracts on Github: /KyberNetwork/ks-elastic-sc
Motivation
Axelar’s AXL incentives would be used by KyberSwap to drive user and liquidity growth for AXL and axlUSDC, as well as leverage our large community to increase the number of Axelar users.
KyberSwap is expanding to a wide variety of chains (already on 13 chains, zkSync Era next), which is aligned with Axelar’s multi-chain efforts.
KyberSwap and Axelar teams are already working together on a few initiatives and are discussing further collaborations. For example, KyberSwap has integrated Axelar and Squid for seamless cross-chain swaps on our swap UI. Axelar may also be used as another solution to bridge the KNC tokens across chains.
In addition, as a proactive gesture, KyberSwap has created and started incentivizing the axlUSDC-USDC pool on Optimism with our own KNC tokens, and the pool has already attracted $343K+ in TVL within a week.
Running joint liquidity mining campaigns together would be another positive step forward in our relationship.
Impact: KyberSwap brings substantial benefits to the Axelar ecosystem
- For Traders: KyberSwap aggregates liquidity from different DEX pools (including KyberSwap’s), getting the optimal trade route and best price for AXL and axlUSDC. This may even route volume to external DEXes on the quality of liquidity, thus further contributing to the overall Axelar ecosystem. Traders can identify potential trading opportunities by using KyberAI, which leverages artificial intelligence to track tokens’ on-chain and off-chain metrics and discover exclusive alpha for traders.
- For Liquidity Providers: LPs deposit tokens into liquidity pools and earn compounding fees. Pools are flexible and have features such as anti-sniping and concentrated liquidity, mimicking higher levels of liquidity and achieving better capital efficiency, volume, and returns. By extension, this means AXL and axlUSDC liquidity providers would be able to enjoy higher capital efficiency, and AXL grants used as incentives on KyberSwap would result in a much bigger impact on liquidity and swap rates compared to other DEXes.
- For Developers: Dapps and wallets can easily integrate with KyberSwap pools and aggregation API to provide the best swap rates (including AXL and axlUSDC) for their own users, saving time and resources.
- For AXL token holders: With KyberSwap users receiving AXL incentives via selected yield farms, AXL awareness and adoption would increase; growing the overall Axelar ecosystem. This would be on top of users being able to buy AXL at the best rates. In addition, KyberSwap has a large community on our social media channels (e.g. 249K Twitter followers). KyberSwap can also provide marketing support and resources to promote the launch of Axelar liquidity pools, thereby spreading more awareness about Axelar. We can run a marketing campaign with the Axelar team and provide KNC incentives.
Goals, Deliverables, Timeline, Milestones, KPI: How AXL incentives would be used on KyberSwap
Goals:
KyberSwap plans to use Axelar’s AXL grants to bootstrap and deepen liquidity for AXL and axlUSDC pairs. This is achieved by incentivizing liquidity providers to deposit liquidity (and yield farm) into KyberSwap’s concentrated liquidity pools, which would enable much more efficient use of precious capital and enable greater trading volume for the tokens involved.
Deliverables:
KyberSwap is requesting $160,000 in AXL to be used as yield farming incentives over 3 months for axlUSDC and AXL-based pairs (e.g. axlUSDC-USDC, AXL-USDC) on chains such as Ethereum, Polygon, Optimism and Arbitrum. KyberSwap would work with the Axelar team closely to create and optimize the liquidity pools. KyberSwap would also be investing marketing resources to raise awareness for the yield farming campaign involving axlUSDC and AXL.
KyberSwap would endeavour to utilize the AXL grants in a sustainable manner so that liquidity is retained beyond the yield farming period. Moreover, KyberSwap will be using our own KNC funds to encourage more trading, further contributing to volume and fees earned by liquidity providers on KyberSwap. Even external DEXes that are integrated by KyberSwap aggregator, such as Uniswap, QuickSwap, and Curve, benefit when we direct volume to them (via liquidity aggregation for the best rates).
ALL AXL grants will be distributed to Axelar users for their benefit. The KyberSwap team members will not be receiving any of the funds.
Timeline: 3 months
Milestones and KPI: During the 3 months, we aim to attract close to $1M in TVL for the selected pairs on each chain; improving liquidity and trading volume for the selected pairs.
Risks
KyberSwap Elastic and Classic pools have been audited by ChainSecurity, while KyberDAO & KNC have been audited by Hacken. You can find the audit reports in our KyberSwap documentation.
KyberSwap statistics
- 60+ DeFi/GameFi Dapp integrations
- Over $20 Billion+ worth of lifetime trading volume
- 400K web visits (Average last 3 months - similarweb)
- 7,000 average DAU
- 15,000 average daily transactions
- Current total TVL on all KyberSwap pools: $48M+
- Total TVL from aggregated DEXes: $35B+
KyberSwap is a high-performing DEX on various chains in terms of volume. Source: Defillama
- Top 4 DEX on Polygon
- Top 4 DEX on Optimism
- Top 5 DEX on Arbitrum
- Top 7 DEX on Avalanche
- Top 21 DEX on Ethereum
Key KyberSwap Features
- DEX Aggregation Algorithm and API
KyberSwap’s aggregation algorithm aggregates liquidity, automatically searching multiple DEXes on a chain to identify and select the optimal trade routes and prices for users. KyberSwap makes trading more efficient and saves time and money for thousands of users. KyberSwap sources liquidity from over 70 different DEXs such as Uniswap, Sushi, Curve, and many others to achieve the most optimal rates for traders on supported chains.
- Concentrated/Amplified Liquidity Pools
Elastic Pools: Liquidity providers (LPs) can deposit tokens into Elastic pools and earn compounding fees. Pools have customizable price ranges and features such as anti-sniping and concentrated liquidity, mimicking higher levels of liquidity and achieving much better capital efficiency, volume, and returns.
Classic Pools: On Classic pools, LPs have the flexibility to create or select amplified liquidity pools with an amplification factor that greatly improves capital efficiency and help reduce trade slippage.
As such, liquidity providers (such as AXL or axlUSDC LPs) can achieve greater capital efficiency, rates, volume, and returns compared to other platforms. LPs earn more in an efficient manner. Moreover, LPs earn trading fees that are automatically claimed when you withdraw your liquidity.
- Limit Orders
KyberSwap users can set Limit Orders to ensure they automatically buy/sell assets at a desired price. A buy limit order will be executed only at the limit price or a lower price. A sell limit order will be executed only at the limit price or a higher one. This is another useful trading feature for AXL holders who want to buy more AXL at lower prices without staring at the screen 24/7.
- KyberAI
KyberAI leverages artificial intelligence to track tokens’ on-chain and off-chain metrics and discover elusive alpha for traders. For example, users are able to analyze various factors such token CEX net inflow, funding rate, trading volume, transactions, holders, and price, as well as viewing which tokens are ‘Bullish’, Trending’ and ‘Trending Soon’ based on aggregated data from CoinGecko and Coinmarketmap, and our proprietary KyberScore.
Previous projects KyberSwap has contributed to
Kyber is a mature project that is a pioneer in the Ethereum and DeFi space and has been operational for 4+ years.
- The team initiated and co-launched Wrapped Bitcoin (WBTC), the most used wrapped version of BTC in the DeFi space today, and we aim to bring similarly innovative initiatives to the Axelar ecosystem.
- Created the Waterloo Cross-chain Bridge in 2019, a decentralized practical bridge between EOS and Ethereum, which inspired NEAR protocol’s Rainbow Bridge.
- Kyber was the most used DeFi protocol in 2019, according to Binance Research.
- KyberSwap has partnered with Lido Finance to bring low slippage, optimized liquidity for liquid staking pairs such as wstETH (as well as USDC, ETH, LDO liquidity) on Ethereum and other chains.
- KyberSwap collaborated with QiDAO to open a KNC vault and support KNC as collateral on Polygon, Arbitrum, and Optimism, while also optimizing liquidity for the MAI stablecoin using KyberSwap Elastic pools.
- Kyber has organized and participated in various hackathons that contributed to the launch of top DeFi projects. Examples:
- Kyber DeFi Hackathon 2019 with our partners Enzyme Finance (previously called Melon), Synthetix, Chainlink, bZx, Compound, and WBTC, helped launch Zapper (previously called DeFiZap)
- Kyber’s bounties in Ethereum hackathons such as ETHSingapore and ETHBerlin helped launch 1inch
- InstaDappwon a Kyber bounty with their integration in ETHIndia 2018, contributing to their successful launch
About KNC (Kyber Network Crystal)
If KyberSwap is able to receive AXL incentives from the Axelar grant, the team will also supplement them with KNC incentives to further benefit Axelar and KyberSwap users. We are happy to discuss with the Axelar team and community about a suitable amount of KNC incentives for Axelar liquidity pools.
KNC is Kyber’s utility and governance token, and is an important part of KyberSwap operations. KNC holders can stake KNC on KyberDAO to vote on Kyber Improvement Proposals. In return, KNC voters receive rewards coming from fees collected through KyberSwap trading activity. As more trades are executed and new protocols added, more rewards are generated.
KyberSwap Social channels
- Twitter: 249K followers
- Telegram: 14K members
- Discord: 21K members
- Forum: 834 members
- Youtube: 3.5K subscribers
- Facebook: 23K followers
- Reddit: 12.7K members
Note: Let us know if you require more information. Only 2 url links were allowed on this forum post.
Please give us feedback and thank you for considering our proposal!
From: KyberSwap team