Avalanche is an open, programmable smart contracts platform that is starting to be a popular venue for DeFi Dapps and NFTs due to its high throughput and fast transaction finality.
Avalanche Foundation would like to propose that the KyberDMM (Dynamic Market Maker) protocol be deployed on Avalanche, coupled with a joint liquidity mining campaign. We believe this is aligned with Kyber Network’s aim to widen adoption across different networks beyond Ethereum. Since Kyber’s vision is to deliver a sustainable liquidity infrastructure for DeFi, this should also extend to Avalanche’s DeFi ecosystem.
We would like to propose the following:
The deployment of KyberDMM protocol and the creation of amplified liquidity pools on Avalanche.
$3M worth of KNC from Kyber’s ecosystem fund to be utilized as incentives to bootstrap liquidity and adoption of KyberDMM on Avalanche. In return, Avalanche Foundation will contribute $2M worth of AVAX tokens as incentives.
Avalanche Foundation and Kyber to work together on a joint liquidity mining and marketing campaign to educate users on the benefits of both projects.
Separately, we encourage Kyber to collaborate with other Avalanche-based projects to create liquidity pools and run additional liquidity mining campaigns to amplify the impact of the launch.
2. Proposal Summary, Motivation, and Key Details
Why KyberDMM should deploy on Avalanche
The high and volatile gas fees on Ethereum and other chains have sometimes resulted in a poor DeFi user experience. Avalanche provides an attractive venue for users that want a cheaper and faster experience when it comes to DeFi use cases such as trading, liquidity provision, and lending/borrowing.
Avalanche has smart contract functionality and is Solidity and Ethereum Virtual Machine (EVM)-compatible, allowing existing Dapps on Ethereum to be easily ported over to Avalanche using familiar tooling. Ethereum assets can also be easily migrated via the Avalanche Bridge. Kyber will be in good company, as many popular Ethereum projects will soon be launching on Avalanche.
If KyberDMM is deployed on Avalanche, it would also be the first dynamic market maker protocol on Avalanche that enables liquidity providers to maximise their capital by achieving high capital efficiency for any token pair (not just stablecoins) while allowing traders to enjoy minimal slippage.
Why run a Joint Liquidity Mining Campaign
Liquidity incentives have proven to be crucial in attracting initial liquidity on a new network.
A well-designed liquidity mining campaign between Kyber and Avalanche can help:
Bootstrap liquidity for key token pairs
Showcase KyberDMM’s benefits of high capital efficiency and dynamic fees to liquidity providers
Bring more DeFi participants and value into both the Avalanche and Kyber ecosystems
Overall, this will kick start KyberDMM’s role on Avalanche and help Kyber take the first steps in building a sustainable and scalable liquidity infrastructure there.
Exciting proposal! Avalanche is a good, solid project with great functionality as well as a good reputation in the DeFi space. Cheaper gas fees are also a huge plus point. This proposal is also suggesting KNC as a token pair option which is great as it provides an incentive for KNC holders to deposit their liquidity.
Anyway a partnership with Avalanche would bring amazing possibilities in building Kyber’s infrastructure. Hope this proposal passes!
This is a very good project to kick-start our joint LM campaign. Really wish to see more supports from the community.
The ecosystem on Avalanche is growing, and with our early presence there it would be a great opportunity for KyberDMM to claim bigger marketshare when more adoptions on Avalanche grows
Awesome that Avalanche has taken the initiative to work with top blue chip projects like Kyber! Goes to show that Avalanche is serious about growth and getting a big piece of the DeFi pie. $5 million in yield is great. This is a must-have proposal for Kyber and I support it, no brainer here. Should also share some examples on which pools will be incentivized so that we can prepare tokens in advance Getting some AVAX for sure.
This proposal with Avalanche has the potential to allow Kyber Network to reach new levels of growth and development in a sustainable liquidity infrastructure. Deploying KyberDMM on Avalanche would definitely increase widespread adoption and could be the first step in cross-chain initiatives.
That sounds great. I can foresee that Kyber’s recent cooperation with these different popular ecosystems will usher in a new round of trends. hope to know more details of this cooperation as well
100% support this proposal! I believe that these are the steps that Kyber should be taking to increase adoption! looking forward to seeing it implemented!
yup, proposal looks good to me. Just read about avalanche, seems like a great way to set up kyber to be first/fast and big on a cost effective platform.
my one recommendation is that the campaign has two phases
Phase 1: 2 months for half of the incentive
Phase 2: 6 months for the second half. - to encourage people to stick with it.
Yes agree! Kyber should double down on top chains. A prolonged campaign also increases the stickiness of the DMM. Great to see Avalanche and Kyber work together! Hopefully they propose additional incentives in phase 2 after seeing the performance of phase 1. For Kyber, over $3m to a top L1 project like Avalanche makes sense given that Kyber’s strategy now is to deploy on multiple chains.
Kyber is rather late to the party for polygon and bsc. Avalanche is a good opportunity for Kyber to assert its dominance in a new blockchain while it’s still in the growth stage. KyberDMM will be the first and only dynamic market maker there and users will quickly see its benefits. Totally in support of this proposal for joint yield farming with Avax!
Awesome! Kyber is expanding protocol to various L1 aggressively nowadays. I don’t think there are major defi apps built on Avalanche yet and I am (as KNC holder who staked KNC on KyberDAO) def up to supporting to incentivize KyberDMM to become an early mover and win the market share on different chains and create more adoption/volume. KyberDAO will be able to collect more rewards as more integration/volume happens. A strong and clear incentive for Kyber users and team to take this proposal.
It’s a real inovation that KyberDMM offers a cross-blockchain liquidity mining! Ethereum, Polygon, Binance Smart Chain and now Avalance! I’m so excited for what’s next.
Avalanche’s liquidity incentive programs had a great impact, and it will be very important for KyberDMM to attract new users and spread it to a wider audience. KNC and AVAX investors are already interested in DeFi, it’s great to have a common ground!
It is also important that KNC and AVAX have teams that closely follow Ethereum developments and are in constant communication with the community. I’m also excited for what the two teams will do together. Tutorials, online AMAs, new projects… Two great teams and two great communities!
I love Kyber and Avalanche. It’s great to think of the two together! Moreover, the $5 million incentive program is very valuable. I don’t know of any other liquidity mining app that works on so many networks.
I’ve been following Kyber since his launch; I am proud of their great progress. An awesome project! I wish there was more cooperation; I am constantly following. I’m happy.
Getting some AVAX for sure.