Widening Kyber Adoption Across Blockchains, Kyber Network Releases Its First Version Protocol Paper
Today, in conjunction with the new website, Kyber Network is releasing the first version of their protocol paper, which formalizes Kyber as a liquidity protocol that can be implemented on any smartcontract-enabled blockchain to power instant on-chain token swaps.
Kyber Network has a robust user base and DApp ecosystem on Ethereum, starting with the mainnetlaunch of KyberSwap.com, Kyber’s in-house token swap service, about a year ago. Kyber has sincefacilitated over 460,000 ETH worth of trades, powers token swaps for over 50 applications, supports over70 ERC20 tokens, and has more than 24 different reserves contributing liquidity to the network.
The protocol paper outlines the specifications required for Kyber to be implemented on differentblockchains, using a standardized liquidity model and APIs. Kyber will play a key role in facilitatingliquidity between the different stakeholders in the respective ecosystems on these chains.
There are 4 key aspects that drive the standardized liquidity model and transaction APIs in allKyber-based networks.● Interface for any type of reserve to add liquidity to the aggregated liquidity pool
● On-chain liquidity and conversion rates
● Single endpoint for takers to easily execute instant on-chain transactions
● Network maintainers for each blockchain deployment
By standardizing the design of the reserve-based liquidity model and the APIs across all implementations,and by building on past work on facilitating cross-chain communications (see PeaceRelay, Waterloo),Kyber envisions a connected liquidity network across Kyber deployments on different chains.
A connected liquidity network for decentralized cross chain swaps across Kyber implementations
After Kyber is deployed on these different blockchains, multiple relays can be built to create a relay bridgenetwork for communicating and facilitating cross-chain token swaps between the different Kybernetworks.
Kyber’s cross-chain efforts aim to build the most seamless mechanisms to exchange valuebetween deployments. Ethereum will be a key focal point for Kyber’s interoperability efforts, such as thecross-chain relays and management of liquidity provision.These endeavors are ongoing processes, and the development of the crypto ecosystem will play asignificant role in the progress and adoption of these plans.
Kyber will be working on driving the spacefurther by (1) Continuing to grow Kyber on Ethereum, (2) Establishing Kyber on other blockchains and (3)Setting up protocol level systems such as an effective DAO and treasury system.
Executive editor： Red