Decentralized Finance (DeFi) exchange project, Kyber Network is on track to finalize the conclusive phase of its overall system upgrade. In a statement, the network announced that it would commence the general overhaul of Kyber 3.0, a move to transition the program into a platform of unique liquidity pools.
Kyber Ready for Total Overhaul
The statement revealed that Kyber’s team has in stock several plans for the platform’s complete upgrade. The most notable point is the firm’s aim at enabling pairs within rappers to enjoy great amplification elements on the same sheet. At the same time, Bitcoin, Ether, and more volatile pairs have the opportunity to gain from about ten times improvement capital performance.
The developers also clarified that they are working towards achieving optimization by implementing dynamic marker makers (DMMSs). The iteration of the original idea will enable them to modify different crucial aspects of the liquidity pool. It will ease the customization of the individual weights for the assets and make it easy to amplify custom factors to lessen the likelihood of slippage.
The overhaul will give rise to revisions of trading fees. A period of huge volume will attract high fees that will be relatively low in a period of low volumes. The developers further clarified that the techniques will be useful for mitigating problems that are of temporary loss. Because most temporary losses happen during heavy volumes, raising the fees will enable the protocol to sustain its upward direction.
Taking Advantage of the Rally in the DeFi Market
Last year, Kyber made several attempts at DeFi. It first declared an update to the protocol and posted this on its mainnet. According to the blog, the upgrade will enhance the liquidity of kyberDAO. The developers also clarified that the kyberDAO was introduced to boost the kyber and the DeFi community’s capacity and enable them to participate in our development. Therefore, they have transformed the Kyber Network website for better communication of the different protocol changes and the new KNC token model.
Furthermore, the upgrade will reduce gas wastage and enhance gas optimization. Earlier Kyber iterations are known to have absorbed a significant portion of block space, increasing the cost. According to Kyber developers, the wastage resulted from the protocol’s use of just one access point to engage with the routing paths and the reserves. The upgrade will allow for added flexibility, enabling users to get liquidity directly from their preferred sources. The company will also include support for cross-chain solutions, a feature needed to boost decentralized financing.