Under most static AMM models, liquidity providers (LPs) often have low incentives to provide liquidity owing to illiquid markets with high volatility that reward profit-seeking arbitrageurs.
The Kyber Network liquidity hub is empowering both DEX aggregators and LPs by connecting liquidity from many protocols and sources and optimizing capital utilization and fees through a dynamic market making model. EPNS is pleased to announce the launch of a pilot program to provide decentralized push notifications to support users of Kyber’s deeper and more capital efficient liquidity pools.
The Kyber Network has grown into the largest liquidity pool hub with over 6 billion USD in total volume by aggregating liquidity across hundreds of dApps, crypto wallets and DeFi platforms. In addition to Kyber’s decentralized exchange (DEX) protocol KyberDMM, over 100 applications including wallets and token swaps integrate with the Kyber Network to access liquidity. By providing LPs with the flexibility of market makers, they can more efficiently manage capital utilization and rebalance their token portfolios. With this increased flexibility, LPs have the potential to earn higher yields.
Adopting Uber-style surge pricing, KyberDMM’s dynamic market maker model is up to 500x more capital efficient than traditional AMMs. The DMM uses amplified pools with dynamic fees that increase or decrease in periods of high or low volatility, respectively, according to an amplification factor. In this way, the DMM optimizes returns while reducing volatility, and thus slippage and the risk of impermanent loss.
dApps can easily integrate with Kyber to access frictionless liquidity to support diverse functions including token swaps, on-chain liquidation, portfolio rebalancing, and flash loans. Managing these services, however, involves messages from multiple platforms yet no central messaging service exists. One essential element is missing, decentralized push notifications. The growing Kyber liquidity hub and its users require notification services to:
- introduce and integrate new protocols and chains (e.g., Polygon, BSC)) into the network
- launch of new liquidity mining programs, pools, and integrations
- announce special offers and special educational events
- stream price feeds
- send real time transaction status to users
- provide new KIP (Kyber Improvement Proposal) alerts
- broadcast notifications for any KNC token upgrades
- make milestone announcements on TVL and volume
As ‘Kyber-style’ pools are adopted on Ethereum, Polygon, Binance Smart Chain, and other blockchains; the need for push notifs is growing. The lack of a decentralized push notification service, until now, means important notifications may be distributed to multiple places, such as email or a Telegram account. A push notification service would allow all platform users to receive and take timely action on important notifications while still protecting data privacy as Kyber users interact with internal and external data sources.
[“EPNS brings a much needed solution to Ethereum and other networks — a convenient way to access timely information on-chain. The Kyber Network ecosystem is moving and developing fast, so users would definitely appreciate this kind of notification service.”, commented Loi Luu, CEO and Co-Founder, Kyber Network]
The EPNS Solution
The EPNS decentralized push notification service sends timely notifications through a single source of communication, the investor’s wallet. All notifications go directly to the user’s wallet where they can take immediate action on important information. EPNS is the first native, on-chain notification solution to stream all crucial time-sensitive information to a user’s wallet. The partnership benefits to Kyber Network users include:
- EPNS will send all data notifications directly to Kyber user wallets.
- The EPNS and Kyber teams will adapt the highly customizable EPNS protocol to meet the various push notification needs of users of decentralized swap markets and liquidity pools.
- EPNS channels and users can customize their notification settings for different requirements.
How EPNS Will Support the Kyber Network
Under this pilot program, EPNS is building a dedicated channel for the Kyber Network (see our litepaper for definitions of channels, services, and more). Kyber users can subscribe to the Kyber channel to receive customized notifications to their wallets. Through collaboration with the Kyber team, we will gain insight into the push notification needs of users of swap markets with advanced features (e.g., liquidity aggregation, dynamic market making) and what they want from the EPNS protocol.
Decentralized notifications will provide real-time data to one wallet so all users can act in a timely manner. Market makers can identify the most attractive fees to rebalance portfolios. Takers can source liquidity from KyberDMM protocol with lower slippage. Meanwhile, all users and Dapps can continue to operate within the secure ecosystem of Kyber Network, without having to deal with frictions from different protocols.
[”The Kyber dynamic market maker model has brought high capital efficiency and lower trading losses to liquidity platforms. EPNS is excited about the opportunity to automate the missing link in the DMM model, messaging. Push notifications will help liquidity providers gain more control over their positions and further maximize returns”, commented Harsh Rajat, Founder and Project Lead of Ethereum Push Notification Service.]
Looking forward, we foresee many new EPNS notification channels being introduced for the Kyber Network in particular, and DeFi swap markets in general. Push Notifs on pricing, KBIs and other key data will be essential to enable future Kyber users to take advantage of dynamic market making and optimize returns. Thus, as more DeFi platforms adopt Kyber-style pools, we view decentralized push notifications as an important service that will support higher capital utilization in decentralized finance. Since KyberDMM is at the forefront of creating more efficient liquidity pools, we expect our partnership to yield many new useful notification services and features for the DeFi markets.
The long-term goal of the pilot program is to develop a notification system for future versions of the Kyber Network. DeFi users — who can easily integrate the EPNS protocol into a wallet — will expect push notifications to be an integral service. Going forward, we also expect to work closely with Kyber users to create new messaging solutions to meet their evolving push notification needs.
We are pleased to be partnering with the Kyber Network and anticipate EPNS push notifications becoming an indispensable tool in decentralized swap markets.
About Kyber Network
Kyber Network aims to deliver a sustainable liquidity infrastructure for DeFi. As a liquidity hub, Kyber connects liquidity from various protocols and sources (e.g. KyberDMM) to provide the best token rates to takers such as Dapps, DEX aggregators, DeFi platforms, and traders.
Through Kyber, anyone can contribute or access liquidity, and developers can build innovative applications, including token swap services, decentralized payments, and financial Dapps — helping to build a world where any token is usable anywhere.
Kyber is powering more than 100 integrated projects and has facilitated over US$6 billion worth of transactions for thousands of users since its inception.