Part 3— KyberSwap Implements Advanced Reserve Routing to Further Reduce Gas Fees

Sunny Jain

Published in

KyberSwap

3 min readSep 18, 2020

Read Part 1: What are Gas fees ?

Read Part 2: KyberSwap uses Reserve Routing to reduce gas fees

A few weeks ago, KyberSwap implemented the first iteration of Reserve Routing to reduce gas fees for tokens supported by a single reserve (one reserve per token). This solution worked perfectly. Gas fees were reduced for 50+ tokens, which contribute 30–40% of total trades at KyberSwap.

We are happy to announce that KyberSwap has just implemented Advanced Reserve Routing, which now covers tokens supported by multiple reserves, as well as token-to-token trades.

All KyberSwap trades will be optimized with Advanced Reserve Routing to reduce gas fees*

Advanced Reserve Routing: Examples

Example 1: A test KNC →DAI swap transaction on the ropsten network consumed ~50% less gas with Advanced Reserve Routing (Transaction Without routing and With routing)

Example 2: Alice wants to swap 2,000 KNC to ETH.

Currently, for a normal swap, Alice receives approx ~6.55 ETH for 2,000 KNC and spends ~$10 for gas fees.

With Advanced Reserve Routing, Alice will receive approx ~6.55 ETH for 2,000 KNC and can spend as low as $4 for gas fees.

Understanding Advanced Reserve Routing

Continuing with the above example: A KNC to ETH swap is supported by 4 reserves in the Kyber Network ecosystem, so the advanced reserve routing algorithm will kick in and address the following 4 points before broadcasting the transaction.

Which reserve(s) can support the user requested trade size?
Out of the eligible reserve(s), which reserve(s) should KyberSwap choose for the best trade execution?
Should KyberSwap choose one reserve for the trade or split the trade to multiple reserves to maximise the output?
Execute the trade with the selected reserve(s) as fast as possible to avoid slippage and transaction failure.

For tokens supported by 1 reserve in Kyber Network, simple reserve routing passes 10–20% gas savings to users. For tokens supported by > 1 reserve, Advanced reserve routing will pass up to ~60% gas savings to users.

The higher the number of reserves supporting a token, the higher the gas savings.

These gas savings are obtained without using any Layer 2 scaling solution or any special gas token. KyberSwap uses a home-grown algorithm to achieve this feat.

What do KyberSwap users need to do to activate this solution?

Nothing. Enjoy gas savings without doing anything extra, not even a single extra click.

Advanced Reserve Routing is available immediately on the KyberSwap.com website. Both iOS and Android mobile apps are going through the approval process and will be available in a couple of days.

*= For trade amount 20 ETH or Less