Why swapping tokenized assets is seamless with Kyber Network
At Shiftly, we are working on building an instant, peer-to-peer token exchange platform where users can seamlessly buy and sell crypto-assets in a decentralized fashion. In this new blog post, we would like to tell you why we have chosen to integrate Kyber Network.
Introduction to Shiftly
We strive to make our user’s life easier while preserving the benefits of decentralized trading.
Shiftly is an instant crypto-assets exchange with a hybrid technology as fast as centralized exchanges. Simply enter the amount of desired tokens and let the magic happen. We also plan to support NFT’s (ERC-721) and mutli-assets swaps later down the road.
Leveraging the power of Kyber Network
Currently, there are still high entry-barriers to decentralized trading due to a lack of liquidity, over complicated user-interfaces, risk of front-running, large price spreads relative to centralized exchanges, high-fees, etc.
Lack of liquidity is the biggest pain-point faced by decentralized exchanges. It results in long transaction times (matching orders can take a while depending on the trade size), price discrepancies (spreads) and a poor user-experience overall.
Hopefully, Kyber Network provides us with a great set of tools to overcome these challenge. Here is why:
1. Guaranteed Liquidity
Kyber network’s guaranteed liquidity is a perfect tool for us at Shiftly, as it allows us to match orders instantly. It also enables us to fill orders for less-liquid tokens on the 0x liquidity pool, hence solving a big pain-point that a lot of DEX presently experience.
Kyber Network uses a reserve model for their liquidity network. It means that, for any token that they support, there is always be a dedicated reserve that we can tap into. You can learn more about their reserve manager model in this explainer video. All reserve transactions are managed by the smart contracts hence no trust of the reserve managers is necessary.
2. Easily integrable
We love the fact that we can easily plug into this network and integrate it to our DEX without hassle. Kyber is the only platform that allows smart contracts to make orders directly. In addition, it allows anyone to tap into its liquidity pool, wether it is an exchange, a dApp, an investment/advisory firm, a wallet, or an individual. KyberDeveloper powers liquidity for the ecosystem with a set of convenient developer tools that are highly compatible and developer-friendly by design.
3. Immediate trading & settlement
Since we’re building a one-click token exchange platform, being able to make trades instantly and with no settlement risk is essential. Kyber Network offers instant trading of a wide range of tokens along with a settlement feature as simple as a function call.
4. Pricing Efficiency
We want to offer the best-possible price and execution to our users. A lot of people currently refrain from using decentralized exchanges as prices and spreads can vary a lot from a DEX to another (and among 0x relayers).
With Kyber Network, token prices are updated every few minutes, limiting price discrepancies relative to the time of execution. Also, if a large swing in price for a given token is detected, the exchange of that particular token will be stopped until its price is determined.
5. Permissionless Fee Sharing
As a DEX, we’re also interested to participate in the Kyber’s fee sharing program. A great source of alternative revenues for us.
Conclusion
Kyber Network represents a state-of-the-art solution thanks to its ease-of-integration, guaranteed liquidity, immediate trading/settlement as well as efficiency in terms of pricing. We think that integrating Kyber Network will help us deliver a user-experience that stands out among decentralized exchanges.
Thank you Kyber Network!
If you wish to follow our updates or join the discussion, we invite you to follow our social channels:
- Telegram: https://t.me/shiftlyfinance
- Twitter: https://twitter.com/shiftlyfinance
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