Kyber Network announced the official launch of a new flexible reserve framework that enables market makers to integrate with decentralized finance (DeFi) protocols.
The protocol DeFi that facilitates instant automation and low-cost exchange of digital assets on the blockchain de Ethereum, Kyber Network, published a release to inform the crypto community about the official launch of a new product. It is a flexible reserve framework that allows the integration of several major players in the crypto ecosystem to decentralized finance (DeFi) protocols. According to the publication, the reserve framework called KyberPRO, which has been in testing for around 2 years, allows the creation of bridges for the connection and development of liquidity systems, capable of meeting the needs currently present within the crypto space.
KyberPRO allows easy access to market makers, developer teams, token usage and decentralized applications (dApps) and DeFi users to their liquidity, facilitating on-chain market making. And while the development of this product went through difficult times, the official launch revives the enormous potential and opportunities that KyberPRO holds for on-chain market making in the decentralized finance space.
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On-chain market in DeFi, higher profits for users
The creation of chain market (on-chain) Within DeFi ecosystems it offers great benefits for users, such as the opportunity to earn higher profits, compared to systems that operate off-chain, known as off-chain, and that do not use blockchain technology to carry out their financial operations. In this regard, Kyber Network states that there is a growing need to integrate market makers (MM – Market Maker) within DeFi spaces to bring greater substantial value and liquidity to these ecosystems.
“Many DeFi use cases and transactions (pricing, matching, settlement) are done entirely on the blockchain and provide much greater profit opportunities compared to off-chain systems.”
Kyber Network’s vision is to harness the full potential of decentralized finance, which has gained massive popularity over the past year. The total value locked within these applications and protocols is growing substantially, increasing on-chain trading volume and the popularity of DeFi tokens within the marketplace. To harness this potential, Kyber Network aims to integrate market makers into the growing world of decentralized finance.
Over $1.000 Billion USD in On-Chain Trading Volume
Según un study carried out in conjunction with the international trade association The DeFi Alliance, professional market makers account for 70-80% of all trading volume taking place on Kyber, and have generated over $1.000 billion in on-chain trading volume to date. Based on these statistics, Kyber Network claims to be achieving close to 30 basis points (BPS) of profit on average for its internal market making operation, which “far exceeds industry norms for market making on centralized exchanges.”
The protocol developers also point out that on-chain market making is currently less competitive than off-chain, so users will be able to earn a much higher profit margin and yield than in regular trading flows. But despite all the advantages and benefits that on-chain flows offer, Kyber Network highlights that there is no adequate infrastructure to take full advantage of all this potential.
KyberPRO, a solution to the problems
Kyber Network therefore claims that its new comprehensive KyberPRO framework will solve several of the current problems in harnessing the potential of decentralized finance ecosystems, enabling professional market makers to take advantage of the profitability of on-chain operations. This new comprehensive framework provides a robust liquidity system, with the tools and instruments necessary to enable professional market makers to easily integrate into DeFi ecosystems.
“Designed for market makers, by market makers, KyberPRO focuses on removing all technical and operational barriers to running a successful MM operation.”
About, Max Meng, founder of the company OneBit Quant, assures that KyberPRO has become the gateway that allows him to immerse himself in the wonderful world of DeFi, exploring the exciting opportunities that are at the forefront and that this development offers.
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