In this Pull Request, someone is proposing the DAO to use their AMM as the liquidator engine to help convert all of the collected fee to KNC. It looks interesting to me, especially how an AMM can collaborate with KyberDAO.
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Hey, this is Yaron Velner, founder of B.Protocol and previously CTO of kyber 
Our community recently come up with a novel liquidation system design, and now few active members are submitting DAO improvement proposals to the relevant leading platforms.
To date MakerDAO and instadapp DAO already approved our integration proposals, and it is great to see it being discussed also at Kyber DAO.
Just to give some context for the other readers, as described in the proposal draft, using B.Protocol will offer the following benefits:
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Better (expected) execution price: Kyber’s current liquidation system offer a fixed discount in order to incentives keepers to perform the liquidation. With B.Protocol the discount varies according to the inventory imbalance, and will be on average much lower.
In addition Kyber’s current liquidation system executes the trade as a taker, while in B.Protocol the inventory is being sold as maker orders. -
Better contribution to the Kyber Network DEX: The current system encourage short term arbitrage bots to participate in the trade, while B.Protocol v2, as a reserve in Kyber, will offer, during the liquidation process, non arbitrage prices, which would benefit real users who will enjoy better trade price.
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Fully distributed and incentive compatible: The current system relies on bot operators, and the incentive for the bot operators comes on the expense of the DAO profits.
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should submit this proposal in the other forum section Collaborations, Partnerships, Integrations - Kyber Network for more views
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