'Bring More Liquidity to Ethereum' — AMA Highlights | Kyber Network

2019-09-27 08:00:00 · 4632 views · 5 min read

Dapp.com Dev Community AMA Episode 1 welcomed our honored guests from Kyber Network — Shane Hong, marketing manager, Anton Buenavista and Simon, senior developers. They spared some time with us to answer all the questions from our developer community. We covered just about everything from Kyber’s future plan to the killer feature of DeFi dapp, from deep dive into reserves in Kyber Protocol to how to win the $42K dollar prizes from Kyber Virtual DeFi hackathon.


Here are the highlights of the AMA just in case you missed it. 


Who Are the Buidlers Behind the Kyber Network?

Anton: I’m a developer at Kyber Network, working on a couple of exciting projects. I mainly work on growing our developer ecosystem by working with other projects integrating the Kyber protocol, as well as growing our ecosystem of liquidity providers. 


Shane: I work on Marketing and Community initiatives at Kyber Network, helping to manage our global and diverse community of over 165,000 followers across social media platforms including Telegram, Twitter, Medium, Reddit, WeChat, and Facebook. I work closely with Anton and Simon to help both developers and end-users understand how Kyber’s liquidity protocol works and why it’s important for decentralized finance aka DeFi!


Kyber Network — an On-Chain Oracle, and What’re the Reserves About

How do you define Kyber Network? How would you suggest developers develop DeFi dapps on Kyber Network and gain more users?

Anton: Kyber Network is a protocol that can be integrated into any application. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, token payments, and financial dapps. KyberSwap is our in-house built swapping service built on top of the Kyber protocol, where users can seamlessly swap from one token to another. Developers who are looking to integrate token swaps into your application or may require tap into access to liquidity can check out Kyber Network!


Shane: Those applications Anton mentioned include wallets, vendors, dapps. For example, wallets such as Trust, Enjin, HTC Exodus, MEW can allow token swaps without leaving the wallet. Vendors are able to accept payments in multiple tokens on their e-commerce platforms yet receiving in their preferred token. Moreover, dapps can allow users who are not their token holders to utilize their platform and services with other tokens, and DeFi projects have the means to rebalance their portfolios instantly. I think devs should all check out our KyberWidget generator.


Does Kyber Protocol only support ERC20 tokens? Can you explain more about “Reserves”?

Anton: The Kyber protocol implementation deployed in Ethereum only supports ERC20 tokens. We have deployed the Kyber protocol in EOS (e.g. Yoloswap) and TomoChain (e.g. Tomoswap) as well. And in those respective chains, you are only able to trade EOS and TOMO respectively. But we envision and are working on making the protocol interoperable, such that users can do cross-chain swaps from an EOS token to an ETH token, and vice versa. 


Reserves is the terminology we use for liquidity providers that provide liquidity to network. Reserves are just smart contracts that hold inventory and facilitate liquidity. Reserve Managers, those who own these reserves, provide liquidity to the network by contributing a diverse range of tokens. Reserve Managers are comprised of a wide range of parties, from project teams looking to list their tokens, to professional market makers with customized trading strategies, and even developers looking to build new reserve types. We currently offer 3 types of reserves, each with its own unique set of features on how you want to provide liquidity to the network.


The reserves are required to trust the Kyber’s administrators. Can you explain more about anything we could pre-protect about the reserves?

Anton: It depends on the reserve type used. We currently have 3 different reserves types. For the Fed Price Reserve (FPR), which is our classic reserve, you can use the maxPerBlockImbalance and maxTotalImbalance parameters, as well as sanity rates, to stop further buys or sells of the token. It's a bit technical to describe it all here, so you can just check out our developer portal


For our Automated Price Reserve (APR), you can set the maximum buy and sell the amount of the token of a single transaction, as well as the price range for which the reserve should operate in. And finally, you can always customize the standard Kyber reserve contract to add in your own protections and safeguards!


Any SDK examples can share with us? Do you have any React or Vue.js dapp example on Kyber for developers to learn? 

Anton: Now for the SDK examples of a project, we have some code snippet examples on our developer portal. We specifically don’t have code samples in React or Vue in our developer portal, but you could always reference other open-source projects that have integrated the Kyber protocol, such as MyEtherWallet. You can check out our GitHub repo as well. We have some open-source React projects that you might be able to use as a guide.


Will Kyber Network will support blockchains other than Ethereum, and for non-fungible tokens?

Anton: As seen in our long term objectives blog post, we are positioning Kyber to be a protocol that can be implemented on any smart contract enabled blockchain. Right now, the protocol is deployed in Ethereum, EOS, and TomoChain. We are hoping to deploy the protocol in other major blockchains. However, we are also focusing efforts on completing the Waterloo project, which is the relay bridge between EOS and ETH, to allow for cross-chain swaps in the future. As well as improving liquidity within Ethereum itself, as the DeFi ecosystem is exponentially growing there.


As for NFT support, we are not looking into this at the moment but may do so in the future. Maybe someone can build something to use the Kyber protocol for NFT support. The space moves really fast, but we keep on BUIDLing.


Shane: Apart from EOS and Tomo, where Kyber’s protocol is already deployed, we’ve also been researching on chains like Cosmos, Polkadot, Tezos, Binance Chain, but these are only in the research stage. We regularly attend conferences and monitor the market to make sure we keep abreast of the latest technologies that developers are looking to build on.


Ethereum's developer ecosystem is still the most vibrant, and initiatives such as WBTC (Wrapped Bitcoin) are part of our ongoing efforts to bring more liquidity to Ethereum from other chains, and we look forward to working on more of such initiatives.


The future plan of Kyber Network

Anton: Given that the upcoming Istanbul fork will break our network contract (read more about EIP 1884), our top priority is to fix that, and at the same time, include some features that both users, dapps and reserves have been asking for. Assuming we can develop and test these features in time! The other focus area is to work on improving liquidity and see how we allow reserves to offer tighter spreads to users. We are constantly on the lookout for viable liquidity pools (like Uniswap, Oasis & DutchX) to tap into. If you know of any other sources, help us to reach out to them.


Shane: I would say we have 3 main long term objectives:


  1. Expanding the scope of Kyber, by moving towards a permissionless liquidity protocol that can be implemented on any smart contract-enabled blockchain, includes EOS and TomoChain

  2. Supporting the growth of the decentralized economy in 5 key areas: End-user swaps, NFT and commerce payments, exchanges and trading, DeFi, and liquidity provision

  3. Establishing the technical, communication and governance framework to grow a community with the passion, expertise, and incentive to build Kyber together. We are expecting protocol direction, implementation, and treasury decisions to eventually be made by the community (by voting on proposals on the KyberDAO).


Everything You Need to Know About the $42K Dollar DeFi Hackathon and How to Win the Prize (Among Other 130+ Teams)

Would you encourage / discourage integrating multiple liquidity providers in our hackathon project like what dYdX does? 

Anton: So we’re very neutral in that regard. In fact, we encourage a collaborative attitude in this space. In Kyber, we have integrated other liquidity providers such as Uniswap to have their liquidity available in Kyber.


Shane: IMO liquidity is definitely critical in the decentralized space, but it’s currently scattered across many areas / platforms We’re always researching and exploring various ways to improve liquidity on Kyber, and definitely encourage the integration of more liquidity providers to help connect decentralized liquidity also, as Anton said.


How do you measure projects? DAU? Volumes? Design point?

Shane: All our rules and details can be found on Kyber DeFi Hackathon page. We will share the basic judging criteria here: 


  1. Novelty 'X' Factor (30%) Includes how original and innovative the idea is, and a special quality or feature that elicits excitement to use the dapp/project. 

  2. Potential Value to Users (25%) Includes the extent to which the dapp is practical, intuitive, easy to use, and impactful for its intended use. 

  3. Quality of the Idea (15%) Includes creativity of the idea and importance of Kyber’s protocol or partner’s tech within the idea. 

  4. Implementation of the Idea (15%) Includes how well the idea was executed by the developer. 

  5. Technical Difficulty and Design (15%) Includes a well-designed architecture of the dapp, quality code, and thorough documentation.


Is there any requirement on the minimum number of projects that we should integrate?

Simon: No, there isn't a minimum number of projects. The more projects you integrate, the more bounties you are eligible for.


DeFi Dapps, the Good and the Bad, and the Killer Features

What're the best DeFi projects you've seen so far and why? 

Anton: So some of the cool DeFi projects I've personally seen are Compound, Set Protocol, Fulcrum, Nuo, to name a few. The great thing about these projects is that they've also integrated Kyber in some way. As for why projects like Compound serves a financial primitive in the blockchain space, which brings the space further financial capabilities as seen in traditional finance, which is great. 


Shane: Personally, I like dapps with intuitive UI, and easy for beginners. TokenSets by Set Protocol is one. it's a user-friendly asset management application, integrated with Kyber to provide the best price/rate when users convert their assets.


What would be a better DeFi product to stand out from the crowd?

Anton: I personally think that the most popular DeFi projects allow for 2 main things:


  1. Frictionless and permissionless participation 

  2. Composability Frictionless/permissionless participation 


It means that I don’t have to register or sign up, need to go through KYC, etc. in order to use the DeFi product. Composability means that any developer can easily integrate that DeFi project into their own and create a new one. A good example is MakeDAO’s DAI, or even Kyber.


Anyone can use DAI permissionless, and you can integrate this into your own project to create a new product. That’s how we position the Kyber protocol as well, in how we let anyone use the protocol permissionless, and be able to integrate it freely as well in your own projects. Definitely transparency as well. The great thing about the blockchain is that everything is transparent and verifiable by anyone. 


Will Kyber also expand to function as a lending pool like others, so that DeFi dapps can tap into this without running their own lending pools? I'm thinking Kyber could set its own rules for collateralized lending, which could actually bring stability to lending platforms.

Anton: In theory, it is definitely possible to build a lending pool on Kyber. It will basically act as a custom reserve, where the loaned funds will provide liquidity to the network, and the lending reserve contract calculates interest based on usage. We haven’t looked into developing something like this, so we might not be aware of the risks it may have. This could actually be a great hackathon project!


You may reach out to all the folks from Kyber Network by tagging them in our Discord channel — @Shane | Kyber Network, @Simon | Kyber Network, and @Denizined | Kyber Network. Also, here’re the Telegram channel @KyberNetwork and @KyberDeveloper for developers.


If you’d like to participate in our future AMAs, you’re more than welcome to join Dapp.com Dev Community Discord

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