Kyber DMM's first liquidity mining program, Rainmaker, is officially launched! This is also the first time that Kyber DMM has been deployed on the Polygon network.

Kyber Dynamic Market Maker (DMM) is a next-generation AMM protocol that maximizes the use of liquidity providers' capital, providing advantages such as high capital efficiency and dynamic fees to optimize returns. At present, Kyber DMM is in the testing stage, its transaction volume has exceeded 120 million US dollars, TVL has exceeded 88 million US dollars, and the total enlarged liquidity has exceeded 13 billion US dollars (compared with typical amm, this data is equivalent to TVL).

Through the Rainmaker liquidity mining plan, Kyber DMM will further improve liquidity, demonstrate various important advantages to liquidity providers, and bring more DeFi participants and value to Kyber and Polygon ecology.

The Rainmaker program went live on June 30th at 3.30pm, distributing approximately $25 million in rewards to eligible Liquidity Providers (LPs) on the Kyber DMM within 3 months.

Rainmaker: important details

Starting time

• Ethereum block 12734250 and Polygon block 16318000 (June 30 at 3.30pm)

• Liquidity mining plan duration

• Duration on Ethereum: 600,000 blocks (3 months)

• Duration on Polygon: 2.4 million blocks (2 months)

• Smart contract address of KNC token

• On Ethereum: 0xdeFA4e8a7bcBA345F687a2f1456F5Edd9CE97202

• On Polygon: 0x1C954E8fe737F99f68Fa1CCda3e51ebDB291948C

How to bridge assets between Ethereum and Polygon network?

To transfer Ether or ERC20 token assets from Ethereum to Polygon, simply usePolygon Bridge。

If you are on the Polygon (Matic) network on Kyber DMM, just click the "Bridge Assets" button at the top of the page. Note that this button will not be displayed if you are on the Ethereum network.

guideguide, to learn how to use the bridge!

Switch from Ethereum to Polygon network: On Kyber DMM, click the Ethereum button at the top to switch your network to Polygon (Matic) or change your network to "Matic" directly on your Metamask.

How to participate in Rainmaker?

Step 1: Add Liquidity

First, go to the "Pools" page. You need to connect your wallet (Metamask, Ledger, WalletConnect, Coinbase Wallet) and add liquidity by depositing required tokens into eligible pools. In return, you will receive DMM LP tokens (which will represent your share of the liquidity pool) and start earning protocol fees for the pool.

You can view the liquidity pools you provide on the "My Dashboard" option.

Note: If you want to view liquidity pools on the Polygon (Matic) network, first go to your Metamask and change your network to "Matic".

Eligible Liquidity Pools

Eligible Rainmaker pools have a 💧raindrop icon on the left. These pools are eligible for liquidity mining.

A) Rainmaker on Ethereum

Duration: 600,000 blocks (3 months)

Rewards: 12.6 million KNC (approximately $20 million) distributed equally among five eligible liquidity pools.

Eligible Pools on Ethereum

• USDT-USDC (AMP=200)

• USDT-ETH (AMP=1.5)

• USDT-WBTC (AMP=1.5)

• WBTC-ETH (AMP=2)

• KNC-ETH (AMP=1.9)

B) Rainmaker on Polygon

Duration: 2.4 million blocks (2 months)

Rewards: 2.52 million KNC tokens (~$4 million) and 454,545 MATIC token rewards (~$520,000) are distributed according to the following.

Eligible pools on Polygon

• USDT-USDC (AMP=200)

• USDC-ETH (AMP=1.6)

• USDC-DAI (AMP=200)

• MATIC-DAI (AMP=1.5)

• KNC-ETH (AMP=1.9)

• KNC-MATIC (AMP=1.7)

*AMP = magnification factor. Larger pools are more capital efficient. Higher AMP, more capital efficient in the price range.

Step 2: Stake DMM LP tokens and start receiving liquidity incentives

Next, go to the "Yield" page and pledge your DMM LP tokens in the contract of the corresponding farming pool. If this is your first time, tokens must be approved first. You can check the amount you have staked under "My Deposit".

APY here refers to the annualized percentage rate of return based on pool fees + rewards.

After successfully staking DMM LP tokens, you will receive KNC (and MATIC, depending on the pool) liquidity rewards in addition to protocol fees.

Each liquidity provider who adds liquidity to an eligible pool and stakes their DMM LP tokens will receive KNC or MATIC rewards over time, depending on their total DMM LP tokens staked in the pool share. Rewards are distributed linearly, with a fixed amount released every block. The longer you provide liquidity, the more rewards you get. You can unstake DMM LP tokens at any time.

The total rewards you've collected by adding liquidity and staking are also shown, and you can get them all at once, or choose to receive rewards from a single pool.

You can liquidate your DMM LP tokens and withdraw liquidity at any time without penalty to your rewards.

IMPORTANT NOTE: Please use the official Kyber DMM UI to stake LP tokens. If you transfer directly to the liquidity mining pool address, your deposited tokens will be lost.

Step 3: Harvest and claim rewards

After receiving KNC or MATIC rewards, you must first collect your rewards. When you harvest a reward, it activates a new 30-day release period.

Harvest rewards are initially locked and released linearly over 30 days (12 - 15 seconds per block on Ethereum, about 200,000 blocks). This linear release mechanism is an essential governance guarantee, which also ensures that Kyber Network has a stronger incentive system.

• Ethereum lock duration (linear release): 200,000 blocks (30 days)

• Polyogn lock duration (linear release): 1.2 million blocks (30 days)

Navigating to the Vesting tab, you can see how many KNC or MATIC rewards you have claimed, locked and unlocked since the beginning. You can also view your current and past release periods.

Depending on how many times you harvest rewards, there may be multiple release periods running concurrently. Note that each harvest reward requires gas, so you may want to accumulate a certain amount of rewards before clicking the harvest reward. Past transactions can be viewed by clicking the "History" button.

After unlocking, you can claim rewards at any time. You can choose to claim all unlocked rewards at once, or only for a specific release period.

Frequently asked questions about Rainmaker can be viewed here.

To recap, here is an infographic we put together that summarizes Rainmaker’s liquidity mining plans:

How can KNC or MATIC rewards be used?

KNC is an ERC20 utility token that plays an important core role in the Kyber and DeFi ecology. You can use your KNC token rewards to add liquidity to eligible KNC pools to get more liquidity mining rewards, or pledge KNC to KyberDAO to participate in governance and get voting rewards.

MATIC is an ERC20 token that powers Polygon, which effectively turns Ethereum into a multi-chain system. MATIC tokens serve two purposes: to secure the network by staking MATIC and to pay transaction fees. You can use your MATIC rewards to add liquidity to eligible MATIC pools for more rewards.

Why add liquidity on Kyber DMM?

In addition to obtaining KNC and MATIC benefits, Kyber DMM liquidity providers also enjoy a series of important advantages that ordinary AMMs do not have:

• Amplified pool: Liquidity providers can flexibly customize the price curve in advance to create an enlarged liquidity pool, which greatly improves capital efficiency and helps reduce transaction slippage. In the case of the same capital pool and transaction size, stable token pairs (such as USDC/USDT, ETH/sETH) with a smaller price range on Kyber DMM can reach up to 100-200 times the amplification factor compared with other platforms. Liquidity providers can offer better prices and earn more fees with less capital.

• Dynamic fees: The protocol fees will be dynamically adjusted according to market conditions to maximize returns and reduce the impact of impermanent losses for liquidity providers, and fees will be automatically accumulated in the pool.

• Completely permissionless access: anyone can add liquidity to the Kyber DMM pool, and any Dapp, aggregator or end user can access this liquidity. Kyber DMM has integrated 1inch and Matcha.

• No third-party oracles: Not susceptible to external oracle risks. Kyber's vision is to provide a sustainable liquidity infrastructure for DeFi, which will expand to networks beyond Ethereum, such as Polygon.

• KyberDMM introduction video:

• https://www.youtube.com/watch?v=2xgboyu7rss

Security Commitment

The code base of Kyber DMM has been audited by the team and external auditors such as Chain Security for several rounds, and no critical issues have been found, and it remains open source on Github for community developers to review. KyberDMM is also underwritten by decentralized insurance provider Unslashed Finance for amounts up to $20 million. However, all DeFi platforms and smart contracts have risks. Be aware of scams and phishing.

Provides enhanced liquidity for Kyber and DeFi

Kyber DMM is the first major protocol of Kyber 3.0's new liquidity hub architecture. The Rainmaker liquidity mining plan is an important step to greatly increase the liquidity and adoption rate of Kyber DMM, and it will bring more KNC and MATIC holders to help develop the Kyber and Polygon ecology.

We welcome all DeFi participants to add liquidity on Kyber DMM to enjoy dynamic fees, higher capital efficiency, and additional KNC and MATIC benefits.

For developers looking to build with the Kyber DMM, please check out our developer documentation. We are also offering prize money for the ongoing ETHGlobal HackMoney online hackathon.

Rainmaker is the first step in our many incentive programs. Follow us on Twitter and Discord to stay updated!

Forge ahead with Kyber Network!

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• Official website: http://kyber.network/

This article is from KNC, reproduced with permission.