The decentralized finance (DeFi) exchange Kyber Network has joined forces with Layer 2 aggregator Polygon to enhance liquidity with a new rewards program.
In a June 16 blog post, the Kyber Network announced that it will be deployed on the Polygon network on June 30.
The announcement added that the network would also be launching its very first liquidity mining program on Polygon and Ethereum with an estimated $30 million in rewards. The incentive called “Rainmaker” will commence on June 30, distributing rewards over the course of three months to eligible Kyber liquidity providers,
“The aim is to incentivize liquidity providers and developers to use Kyber DMM by providing high yield on eligible token pairs, and in the process enhance liquidity for both the Polygon and Ethereum DeFi ecosystems.”
Making rain for Kyber
The move will enable Polygon’s high-speed Layer 2 technology on Kyber’s dynamic market maker (DMM). The goal is to enhance liquidity for both platforms and increase overall exposure for the Polygon ecosystem. Sandeep Nailwal, co-founder and COO at Polygon stated:
“Liquidity is a crucial element in any DeFi ecosystem and we’re glad to work with Kyber Network to help enhance liquidity on Polygon through the Kyber DMM protocol!”
A massive $30 million will be set aside in KNC and MATIC tokens for liquidity providers who will receive LP tokens representing their share of the pool. These can then be staked to earn additional tokens as well as a cut of the trading fees.
Kyber and Polygon will be distributing 2.5 million KNC tokens (roughly $5 million) and $500,000 worth of MATIC tokens respectively across six eligible amplified pools on Polygon.
Additionally, 12.6 million Kyber Network Crystal (KNC) tokens, worth around $26 million at current prices, will be distributed over selected Ethereum-based pools. Kyber Network’s co-founder, Loi Luu, stated:
“Through this partnership, Polygon’s vibrant ecosystem will gain access to the highly capital efficient and flexible Kyber DMM protocol, and we believe this will empower more liquidity providers, traders, and developers to effectively engage in the world of decentralized finance.”
In late May, MATIC prices surged after Mark Cuban announced the addition of Polygon to his portfolio. Kyber now joins the ranks of Curve Finance, Aave, mStable, RenVM, and 0x in recent Polygon deployments.
KNC, MATIC token price updates
KNC has gained 11% on the day to top $2 at the time of press according to CoinGecko. KNC is now less than 30% away from its all-time high of $2.93 on April 22.
MATIC prices have actually retreated 5% in a fall to $1.52 over the past 24 hours. The Polygon token hit an all-time high of $2.62 on May 18 and remains 42% off that target.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
