Project description (please explain how your project works):
KyberSwap 18 is a DEX aggregator and liquidity platform on Optimism that aims to provide the best rates for traders, while enabling liquidity providers to maximize earnings through capital efficiency. Kyber is an Ethereum and DeFi pioneer, was the most used DeFi protocol in 2019, and now a top 3 DEX in terms of volume on Optimism 4.
KyberSwap has been deployed on Optimism since July 2022 and shares its motivation for a collaborative cyberspace. OP and KNC incentives would be used by KyberSwap to drive user, liquidity, and ecosystem growth. In particular, KyberSwap plans to work together with top DeFi projects such as Lido, QiDAO, and Synthetix on joint growth activities, as well as leverage our strong presence in Southeast Asia (SEA) to grow the Optimism community (both users and builders) in the region.
KyberSwap brings substantial benefits to Optimism users:
For Traders: KyberSwap aggregates liquidity from different DEX pools (including KyberSwap’s), getting the optimal trade route and best price. This may even route volume to external DEXes such as Velodrome or Uniswap depending on the quality of liquidity, thus further contributing to the Optimism ecosystem. Traders can identify tokens that are ‘Trending’ or ‘Trending Soon’ using a detection algorithm that tracks on-chain metrics as volume and market cap.
For Liquidity Providers: LPs deposit tokens into liquidity pools and earn compounding fees. Pools are flexible and have features such as anti-sniping and concentrated liquidity, mimicking higher levels of liquidity and achieving better capital efficiency, volume, and returns. By extension, this means OP grants used as liquidity incentives would result in a much bigger impact on liquidity and swap rates compared to typical DEXes.
For developers: Optimism Dapps and wallets can integrate with KyberSwap pools and aggregation API to provide the best rates for their own users, saving time and resources. Chainlink is already supporting price feeds for the KNC token on Optimism so KNC can also be used as collateral on lending platforms.