KyberSwap Goes Live on Ethereum Layer-2 Solution Arbitrum, TVL Soars
KyberSwap, a decentralized exchange (DEX) aggregator, has gone live on Ethereum’s layer-2 scaling solution, the Arbitrum network. Users of the decentralized exchange were able to avoid Ethereum network congestion and high gas prices by making the switch. This follows the recent excitement surrounding layer 2 scaling solutions as the remedy to blockchain’s scaling dilemma.
A Planned Move
Its low gas costs and high level of security have made the Arbitrum Network a popular L2 scaling option since its inception in 2021. The alliance between Kyber Network and Arbitrum has been in the works since ETH Denver 2022, according to the official statement. Through L2 scaling, the Ethereum network’s exorbitant fees can be bypassed.
The KyberSwap team cites Ethereum network congestion and the cost of on-chain transactions as issues that can be overcome “through Layer-2 scaling and other efforts.” After KyberSwap’s recent shift, “a retail user with a transaction worth USD$1,000 would pay a maximum of USD$10,” as static fees, ranging between 0.01% to 1%.
Victor Tran, CEO of Kyber Network, commented about the partnership with Arbitrum, asserting:
“With decentralization comes challenges of scaling, and solving for congestion, gas fees and slippage bring us closer to a truly seamless decentralized economy. This partnership between KyberSwap and Arbitrum is a big step forward towards creating the most user-friendly experience for users, as well as robust and highly extensible trading API for partners.”
According to DappRadar, KyberSwap is ranked #76 among DEXs. Since Saturday, there has been a 350% rise in total users to 19,870 and a 31% spike in daily transaction volume to around $610,000.
Avalanche (AVAX) and Cronos (CRON) are Kyberswap’s sixth and seventh scaling solutions, respectively (CRONOS). KyberSwap joins SwaprEth, Balancer Labs, Curve Finance, and SushiSwap as available DEXs on Arbitrum.
Kyberswap is now on its seventh network or scaling solution, along with Ether (ETH), Polygon (MATIC), Fantom (FTM), BSC (BNB), Avalanche (AVAX), and Cronos (CRONOS). At press time, there are currently five DEXs available on Arbitrum: SwaprEth, Balancer Labs, Curve Finance, and SushiSwap.
Arbitrum Witnesses TVL Jump
The Kyberswap market maker is now the fifth DEX to support Arbitrum. Last week, only Arbitrum saw net new address growth, outpacing BNB Smart Chain, Ronin, and other established layer-2 solutions. Arbitrum had 46,200 total unique addresses in the final week of February, a 12.7% growth over the previous week.
A five-day dip in Arbitrum’s total value locked (TVL) may have also been reversed as a result of the new integration, in addition to an increase in daily users and trading volume. According to L2Beat, Arbitrum has a current TVL of $3 billion. DYdX is in second place with $965 million in TVL, with Arbitrum in first place with $1.25 billion.
Crypto Community Eyes Layer 2 as Key to Ethereum’s Woes
Transaction fees have risen due to Ethereum’s aging infrastructure and legacy Proof-of-Work algorithm. These fees make DeFi on Ethereum incredibly expensive for all but the largest transactions.
However, layer 2 platforms are currently the fastest-growing segment of DeFi, if not the entire blockchain industry. Layer 2 platforms perform transactions off the Ethereum main chain using Plasma and rollups. They update data regarding smart contracts and accounts more often than Ethereum. Layer 2 platforms reduce the load on the Ethereum network while also lowering fees. This has resulted in the creation of several projects like Polygon, working on layer 2 solutions.
