Oddz Collaborates With Kyber Network
Bringing Liquidity on Kyber’s DMM
Oddz Finance is thrilled to collaborate with Kyber Network — a blockchain-based liquidity hub that aggregates liquidity from a wide range of liquidity sources, powering instant and secure token exchange in any decentralized application.
Snapshots:
- Oddz and Kyber have mutually agreed to collaborate and we are discussing different ways to create a liquidity pool for ODDZ tokens that will reduce the impermanent loss and the slippage of the liquidity providers and takers.
- ODDZ token holders can now provide liquidity on AMMs which give a static LP fee or on dynamic pools like that of Kyber DMM protocol that provides LP fee based on the market condition.
- While static pools do not adjust for market conditions, dynamic pools like those on Kyber DMM will generate high LP fees in case of highly volatile markets and increase the trading volume and lower the spreads when the market is stable.
The Kyber Dynamic Market Making (DMM) protocol, one of the protocols within Kyber’s liquidity hub, is highly capital efficient and has a dynamic fee structure, bringing benefits to liquidity providers (LPs) as well as liquidity takers. Anyone on Kyber DMM can permissionlessly create a pool and contribute liquidity as well.
Talking about capital efficiency in the DMM, the protocol uses an amplification model, where you have the flexibility to configure a pool’s pricing curve on pool setup using different AMP values that amplify liquidity in the pool. Multiple pools with different AMP configurations can then be created depending on the strategy of LPs. So you will have different pools with different configured pricing curves, and thus different strategies. The high capital efficiency is also accompanied by low slippage due to the diverse strategies used by each LP.
The fee in Kyber’s DMM is dynamic in nature and adjusts the Automated Market Maker (AMM) LP fee based on the market conditions. In the dynamic fee model, the LP fee is increased when the market is moving ‘fast’ (i.e. highly volatile) and is reduced when the market is ‘stable’ (less volatile). In a ‘stable’ market, the dynamic fee model encourages the user to trade more by offering tighter spreads through the reduction of LP fees. This encourages more trading and higher volume on the exchange. The dynamic fees also reduce the impact of impermanent loss faced by many LPs in AMMs.
The summary of Kyber’s DMM can be found in this video.
With its decentralized on-chain option trading protocol, Oddz Finance will be simplifying multi-chain option trades for many DeFi users around the world. Kyber looks forward to working with Oddz Finance to facilitate liquidity for ODDZ and other tokens via our very flexible and capital-efficient Kyber DMM (Dynamic Market Maker).
Shane Hong, Head of Marketing, Kyber Network
Why collaborate with Kyber DMM?
Dynamic Fees: Unlike the static nature of other liquidity models, as mentioned above, Kyber DMM reacts to the market conditions to optimise fees for LPs. Not only does it provide more returns to LPs when the market is highly volatile, but the model also increases the trading volume when the market is less volatile.
Amplified Liquidity Pools: The DMM’s Programmable Pricing Curve allows liquidity pool creators to customize their pricing curve to create amplified pools based on the nature of the token pair to improve the capital efficiency and liquidity of the token pair. The amplification values in these pools allow pool creators to also set up the slippage rate for the pool. Higher amplification would mean more liquidity. Thus, Kyber DMM could also provide better liquidity than other systems.
Token holders and LPs need access to different pools to explore different models. On one hand, LPs can choose AMMs like PancakeSwap to provide liquidity and get their fees which are independent of the market conditions or choose to provide liquidity on Kyber DMM where they can get dynamic fees. This will help users will also be able to decide what model works best for them during the different market conditions.
Lastly, Kyber DMM has a user-friendly interface that allows fully open and permissionless liquidity contributions.
We aspire to be the leading derivatives trading platform on multiple blockchain networks but more than that we want to make DeFi easy and accessible to everyone. This collaboration with Kyber DMM will provide more opportunities and choices to liquidity providers and takers. I hope traders enjoy swapping their tokens on a protocol that has low slippage and a lesser risk of impermanent loss.
Aishwarya Shivakumar Haroshivanahalli, Co-Founder and CEO, Oddz Finance
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 to provide the best rates to takers such as Dapps, aggregators, DeFi platforms, and retail users.
Anyone can contribute liquidity to Kyber Network and Dapps can integrate different protocols depending on their liquidity needs. Using Kyber, developers can build innovative applications, including instant token swap services, ERC20 payment flows, and financial DApps — helping to build a world where any token is usable anywhere.
Kyber has facilitated over US$5 billion worth of transactions since its inception and powers more than 100 integrated projects including popular wallets Trust, Enjin, Argent, and the HTC Exodus smartphone, as well as DeFi platforms Fulcrum, DeFi Saver, InstaDApp, Set Protocol, Enzyme, DEXTF, Gelato, and many others.
Discord | Website | Blog | Twitter | Reddit | Facebook | Developer Portal | KyberPRO | Kyber Tracker | KyberWidget Generator | Github
About Oddz
Oddz is a trustless on-chain option trading platform that expedites the execution of call and put options contracts, conditional trades, and futures. It allows the creation, maintenance, execution, and settlement of trustless option contracts, conditional tokens agreements, and futures contracts in a fast, secure, and flexible manner.
It employs the synergies of Ethereum, Binance Smart Chain, and Polkadot to unleash the potential decentralized derivatives market. It focuses on building solutions that can propel the DeFi ecosystem by simplifying derivatives trading and enhancing the user experience.
Instagram | Telegram Chat | Telegram Announcements |Twitter | Website
