Hello fellow Kyberians,
2020 is almost behind us and what a year it’s been. On the one hand a global pandemic impacted all our lives and continues to affect large parts of the world to this day. On the other hand, our crypto corner of the world made significant gains on its march towards mass adoption. Our tooling got better, our products got better, and our understanding of blockchain technologies has been further advanced through exciting new experiments. ETH2.0 Phase 0 is now live and DeFi continues to innovate at a blinding pace.
2020 was an important year for Kyber Network. On-chain, the number of users, new users, and trades all more than doubled while volumes increased six fold over the previous year with December still to go. In the mission towards ever-growing decentralization, important decisions were placed in the collective hands of Kyber Network stakeholders through the KyberDAO. The KyberDAO’s first six months is a great demonstration of the viability of decentralized consensus building through on-chain mechanisms. In 2020 we also introduced KyberPRO, a powerful framework that opens on-chain market-making to professional market makers from all walks of finance. With this strong foundation we look forward to the network’s continuing growth.
KyberDAO
The Kyber Network ecosystem is made up of different stakeholders including traders, professional reserve managers, dapps, wallets, and staking pools. As the Kyber Network team we highly value the inclusivity of these stakeholders in the KyberDAO as we believe more stakeholder voting leads to healthier consensus building and decision making. To this end, part of the team’s KNC has been delegated to 9 different stakeholders to use in the participation of the KyberDAO.
Over the last few years these teams have all contributed to Kyber’s growth either by building products on and around Kyber Network or by providing liquidity to it. With their expertise in the Ethereum and DeFi space we believe they will make a positive contribution and ultimately grow the Kyber and DeFi ecosystem together. More details can be found here
KIP5 — Kyber Listing Proposal
KIP5 is another incremental but important step forward in the network’s decentralization. It is a proposed framework that streamlines the token and reserve listing process and allows anyone to submit a request to list an ERC20 token/reserve with the KyberDAO making the final approval or rejection through a vote. You can read more here.
BRR Snapshot
The latest distribution of network fees as decided by the KyberDAO are:
- 6.22% burn (% of ETH rewards converted to KNC and burnt)
- 67.32% reward to KNC stakers who vote in the KybeDAO (rewarded in ETH)
- 26.48% rebate to FPR liquidity providers (rebate in ETH)
Reserve Innovation Program
Kyber’s on-chain reserve system is incredibly flexible and allows for almost any type of reserve to be deployed. Professional market makers can deploy advanced profit-seeking reserves while token teams can deploy hands-off AMMs to provide liquidity to their tokens, there is a limitless amount of fine-tuning and design space for each reserve and each use case.
To foster innovation in this space, we are making $100,000 available in grants to teams that wish to explore and create new reserve types. In addition, we will provide practical support from ideation to production and offer mentorship as well as help promote new reserves to a wider audience. If you are interested you can read more here or reach out to us on our discord.
Kyber Network had its third $300M+ month as it reached $316.4M in November and unsurprisingly most dapps saw significant increases in both their USD and ETH volumes. 1inch.exchange and Fulcrum had breakout months with $103M and $56M volume respectively while the KyberSwap web, iOS, and Android apps all doubled their volumes over October.
Overall, while ETH and USD volumes were high, unique addresses and total number of trades stayed flat over September and October, indicating the same number of users are making much higher value transactions: