Kyber-DEXTF Integration Announcement
We are pleased to announce that we are working on the integration with Kyber Network, the most used DeFi liquidity protocol today. This represents an important milestone that provides an extremely simple user experience to subscribe or redeem funds created on DEXTF. In simple terms, this integration with Kyber will enable anyone to easily and securely convert one digital asset into multiple assets and distribute it into the fund and vice versa.
Covid-19 and Asset Management
As most economies are planning to lift their airtight lockdown measures to a milder version of it, what is clear is that we won’t return to pre-pandemic celebrations anytime soon. Social distancing will become the norm for as long as it is needed. Within that context, digitization has become a hot topic of debate and it is our duty to actively contribute to the technological divide in the fund management industry.
In fact, according to a recent study by PwC which assesses the impact of Covid-19 to the wealth and asset management industry, at the top of the concerns is naturally the financial impact of the pandemic but more importantly how the results will be affected by the disruptions in the daily operations. The industry is widely renowned to rely itself on an intricate web of service providers such as administrators, custodians, reconciliation, accountants and other services, for which it might be challenging to successfully govern without jeopardizing vital functions of the company, especially when it comes down to third-party crisis management.
We’d like to think that it was a completely casual event that the outbreak struck humanity when humanity was already distancing themselves politically, economically and culturally, exacerbating what was already happening in macro down to the individuals. We hope that at least technologically, we can foster an environment of collaboration that acts as a buffer until better times.
At the risk of repeating ourselves many times over, we believe that the digital asset space has gone counter this protectionist-inspired agenda of nations, which frankly, has impacted the economy even before the pandemic came about, as private businesses have to comply to national guidelines which often conflict with what’s efficient and healthy for business.
Why integrate with Kyber?
DEXTF offers users the capability of creating, trading and managing non-custodial digital-native funds.
Our objective is to deliver a simple yet functional digital asset management protocol which abstracts away three problems:
- The technical challenges involved in software integrations
- The pricing issue which is delegated to traders and arbitrageurs
- The multiple complex financial transactions users have to perform
Previously, DEXTF users would have had to manually perform multiple transactions in order to purchase different digital assets for their fund. With the Kyber integration, users can now easily exchange different assets in one single step, and these assets will automatically be part of their diversified portfolio. As transactions are done fully on the Ethereum blockchain, they are secure, transparent, and verifiable. The beauty of DeFi is clearly this composability feature, which allows projects to cross-integrate and create innovative products and spur genuine financial innovation.
This integration with Kyber Network will bring about the seamlessness of single-transaction operations, enabling an accelerated subscription and redemption of the tokenized funds.
Request your demo here for the alpha if you haven’t yet.
We believe that Kyber is the best integration choice for us, at this moment, as they possess the most experienced team, an excellent track record, and strong technical support. Kyber is able to feed large deal flows with the best available liquidity and slippage by aggregating from a network of 40+ liquidity providers (reserves). Kyber is also the most used and integrated project in DeFi, with over 100 DApps using its protocol for their liquidity needs.
What is the progress?
The idea of integrating with Kyber was long in the wraps, as we were brainstorming on how to provide an easy conversion of digital assets that investors may hold in order to subscribe to a given fund. However, for enthusiasts and old timers, who will prefer moving digital assets in the old fashioned way, we will maintain the “analog gears”.
The integration started at the beginning of April 2020, and at the current rate we aim to complete it by Q2 2020, also thanks to the extremely supportive developer team (Anton and Desmond) at Kyber Network helping us promptly to answer all our queries along the way.
General Kyber functionalities
Kyber Network, as of end of 2019, had facilitated over $500 million in 600,000 fully on-chain trades (over $1Billion and 950,000 fully on-chain trades as of May 2020), becoming the most used DeFi liquidity protocol across various metrics (users, number of integrations completed and average monthly volume).
Another important feature that comes with the integration is to have incredible liquidity for the digital assets most in demand which are supplied by reserves that competitively bid against each other, benefitting the end user as a result. Kyber has a diverse network of reserves providing liquidity for DeFi. They can be categorised into 3 main types:
- Automated Pricing Reserves (APRs) which cater to large token holders and token teams. APR allows for low slippage, highly capital efficient automated market making, while still requiring low maintenance and setup costs.
- Fed Price Reserves (FPRs) are more sophisticated reserves suited for professional and manual market makers. They allow for advanced and customised pricing strategies tailored to highly specific needs.
- Bridge Reserves enable Kyber to easily pool liquidity from other on-chain providers such as Uniswap or Oasis. This function is extremely powerful as it quickly allows DApps that use Kyber to be assured of the best on-chain rates and access tokens that Kyber’s other reserve types don’t support at that time.
With that said, the upshot is that with all else being the same, at a specific price range and inventory, Kyber’s reserve system is able to supply more liquidity, better slippage, and have the ability to serve more volume than other platforms so far. Hence the decision to integrate with them.
General idea of what DEXTF wants to accomplish with integration
With DEXTF you can synthesise, subscribe and redeem to and from your favourite portfolio ideas through an ETF-like mechanism that will completely revolutionise the digital asset marketplace. As our development for the rebalancing operations is relentlessly proceeding according to plan and set to find its finish line by end of 2020, this integration will enable us to potentially onboard millions of users who have a winning investment strategy to create a fund in minutes for others to invest in.
If a fund was made of 10 digital assets, you would not need to subscribe to the fund by supplying those 10 assets with the required proportion. The integration will allow for this to be completed in a single transaction, as well as the reverse operation of redeeming (liquidating) your token fund.
About Kyber Network
Kyber’s on-chain liquidity protocol allows decentralized token swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.
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About DEXTF Protocol
DEXTF is an on-chain non-custodial asset management protocol that empowers professionals and financial institutions to effortlessly create and manage digital-native funds. Investors can finally claim full asset ownership even when their investments are delegated to portfolio managers. Amplify your perspectives and grow your investments by unlocking the power of efficient capital allocation with DEXTF.
