Budding DeFi protocol Kyber Network has revealed its intention to bring network liquidity and a new token. This development is part of the Kyber 3.0 upgrade and is part of the DeFi exchange plans to compete with Uniswap and other exchanges.
Kyber 3.0 upgrade set to improve DeFi
Kyber Network made the announcement today as it revealed plans for the upgrade to Kyber 3.0. according to the exchange, the upgrade would enlist features that will protect liquidity providers from losing much during price volatility.
The exchange is also planning a governance vote on changes that would add more utility to its native KNC token. Other changes to the DeFi network will be the addition of networking custom liquidity pools for permissionless token trading which is expected to add increased features to the defi protocol.
According to the report, the networked pools will ensure that it is easier for DeFi applications to access liquidity across the Kyber network with reduced gas fees and slippage. Speaking on the development, Kyber Network co-founder Loi Luu believes that it would create new potentials for the defi platform. He further stated new milestones that the defi protocol is expected to achieve in the coming future.
“Kyber will become a hub for liquidity innovation and growth, with the new Dynamic Market Maker (DMM) as the first major development for the space. KyberDAO’s ability to drive and capture value from all the innovation in the network will be greatly amplified as well.”
DeFi sector dominated by Uniswap
The decentralized finance sector is regarded as one of the budding sectors of the blockchain industry. DeFi protocols are able to provide financial products and services like loans, yield farming and staking by using smart contracts based on blockchain technology.
Uniswap is widely regarded as the major industry leader in this sector with the exchange established as the de facto launchpad for defi products. The defi exchange has over $2.8 billion locked in its protocol.
Kyber is among the exchanges that have sought to take up the market share currently dominated by Uniswap. Compared to Uniswap, Kyber is permissionless but not completely decentralized and enables features like limit orders. At the moment Kyber has about 5% of the DeFi exchange market, so the upgrade Kyber 3.0 should help the protocol attract more users and liquidity to its network.