Resolving Liquidity #4: KyberSwap
It’s an exciting day as Entangle begins our collaboration with KyberSwap in our conquest to resolve liquidity!
KyberSwap is a DEX aggregator and is the flagship product of Kyber Network, one of the OG’s of DeFi. Having been innovating in the DeFi space since 2017. KyberSwap has been dedicated to empowering DeFi users through efficient trade routings, providing deep liquidity sources, and offering a suite of tools available on their UI for traders of all levels to chart their DeFi strategy as efficiently as possible, its most recent being KyberAI, a newly released AI feature created with the purpose of consolidating valuable market data, enabling KyberSwap users to supercharge their trades through the power of on-chain data and AI. This tool is currently in its Beta phase and is available to a select number of whitelisted users.
Generating over $20 billion in trading volume and $50 million in TVL, it’s safe to say this team knows a thing or two about DeFi. Let’s take a look at how our collaboration can benefit you.
Entangle Integrates KyberSwap
Kyber Network is building a world where decentralised finance (DeFi) is accessible, safe, and rewarding for everyone. Their flagship product, KyberSwap, is a next-gen decentralised exchange (DEX), aggregator and liquidity protocol that provides the best rates for traders and maximises returns for liquidity providers in DeFi. KyberSwap offers capital-efficient protocols designed to optimise rewards for liquidity providers through:
- KyberSwap Classic is DeFi's first market maker protocol that dynamically adjusts LP fees based on market conditions.
- KyberSwap Elastic is a tick-based AMM with concentrated liquidity, customizable fee tiers, reinvestment curve, TWAP function and other advanced features specially designed to give LPs the flexibility and tools to take their earning strategy to the next level without compromising on security.
Its user interface grants access to a wealth of DeFi solutions, while its innovative features, such as an AI tool for trading insights, cross-chain swaps, and a bridge solution for multi-chain token transfers, streamline the DeFi experience.
KyberSwap is renowned for the vast array of diverse, deep liquidity pools they offer, which essentially represent idle capital. Beginning with liquidity pools on their Classic protocol, these pools employed a concept similar to UniswapV2 pools. While these Classic Pools have served Kyber Network effectively, the team identified opportunities for further innovation.
In order to further enhance capital efficiency, Kyber introduced and deployed liquidity pools on its Elastic protocol which allowed liquidity providers to utilise Concentrated Liquidity. The key advantage here is that they allow users to provide liquidity within a narrower range, creating more customization and consistency for users returns.
In simpler terms, this means that instead of supplying liquidity to a decentralized exchange in the style of UniV2 - where liquidity is provided across the entire price spectrum from zero to infinity, users can specify the price ranges in which they want their liquidity to be active. This tailored approach to liquidity provision marks a significant step forward in the optimization of idle capital.
Building a DeFi Future with KyberSwap
Entangle aims to significantly increase the flexibility of LP assets of KyberSwap through our native Synthetic Vaults dApp. With respect to the 'Classic Pools', Entangle can effortlessly generate composable liquid-staked derivatives of LP assets staked in their pools.
Take protocols like Gamma Strategies, for instance, which are designing automated liquidity manager positions. Essentially, these are DeFi products that actively manage the ranges within which the users' capital is active. The primary benefit of this is the potential for increased fees, achieved by ensuring that the capital is consistently active for trading purposes. This active management invariably results in higher yield generation.
Furthermore, the Entangle Protocol is capable of creating Liquid-Staked Derivatives (LSDs) from these automated positions, particularly when the source pair originates from KyberSwap's Elastic Pools. This expands the realm of possibilities for liquidity management and fee generation within the DeFi space.
Interested to find out how you can get more from your portfolio? We’ll show you a user journey on how you can turn LP assets on KyberSwap into LSDs to supercharge your yield:
Classic Farms:
1. User provides liquidity to KyberSwap (For example MAI-USDC.e on Arbitrum)
2. User receives LP Token in return
3. User stakes LP Token via Entangle - Entangle stakes and autocompounds the staked LP Tokens
4. Entangle issues the user an LSD based on provided LP Tokens as a receipt called "Synthetic Vaults"
5. User increases capital efficiency by utilizing the LSD of the LP Token, Synthetic Vaults, for further use-cases such as Lending & Borrowing on partner protocols
Later during Testnet V2 Entangle will integrate Elastic Pools including ALM Providers building on top of KyberSwap such as Arrakis and Gamma with similar mechanics
About Kyber Network
Kyber Network is building a world where any token is usable anywhere. KyberSwap.com, its flagship Decentralized Exchange (DEX) aggregator and liquidity platform, provides the best rates for traders in DeFi and maximizes returns for liquidity providers.
KyberSwap powers 100+ integrated projects and has facilitated over US$20 billion worth of transactions for thousands of users since its inception. Currently deployed across 13 chains including Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, Aurora, Oasis, BitTorrent, Optimism and Solana.
About Entangle
Entangle is an omnichain dApp chain designed to unify fragmented liquidity and unlocking value of yield bearing assets via liquid staked derivatives. Entangle deploys a unique oracle solution to facilitate cross-chain smart contract automation.