Oddz x Kyber Network Collaboration
Oddz collaborates with Kyber Network to find different ways to create a liquidity pool for ODDZ tokens that will reduce the impermanent loss and the slippage of the liquidity providers and takers.
ODDZ token holders can now provide liquidity on AMMs which give a static LP fee or on dynamic pools like that of Kyber DMM protocol that provides LP fee based on the market condition.
While static pools do not adjust for market conditions, dynamic pools like those on Kyber DMM will generate high LP fees in case of highly volatile markets and increase the trading volume and lower the spreads when the market is stable.
With its decentralized on-chain option trading protocol, Oddz Finance will be simplifying multi-chain option trades for many DeFi users around the world. Kyber looks forward to working with Oddz Finance to facilitate liquidity for ODDZ and other tokens via our very flexible and capital-efficient Kyber DMM (Dynamic Market Maker). – Shane Hong, Head of Marketing, Kyber Network.
Why collaborate with Kyber DMM?
Dynamic Fees: Unlike the static nature of other liquidity models, as mentioned above, Kyber DMM reacts to the market conditions to optimise fees for LPs. Not only does it provide more returns to LPs when the market is highly volatile, but the model also increases the trading volume when the market is less volatile.
Amplified Liquidity Pools: The DMM’s Programmable Pricing Curve allows liquidity pool creators to customize their pricing curve to create amplified pools based on the nature of the token pair to improve the capital efficiency and liquidity of the token pair. The amplification values in these pools allow pool creators to also set up the slippage rate for the pool. Higher amplification would mean more liquidity. Thus, Kyber DMM could also provide better liquidity than other systems.
Token holders and LPs need access to different pools to explore different models. On one hand, LPs can choose AMMs like PancakeSwap to provide liquidity and get their fees which are independent of the market conditions or choose to provide liquidity on Kyber DMM where they can get dynamic fees. This will help users will also be able to decide what model works best for them during the different market conditions.
Lastly, Kyber DMM has a user-friendly interface that allows fully open and permissionless liquidity contributions.
We aspire to be the leading derivatives trading platform on multiple blockchain networks but more than that we want to make DeFi easy and accessible to everyone. This collaboration with Kyber DMM will provide more opportunities and choices to liquidity providers and takers. I hope traders enjoy swapping their tokens on a protocol that has low slippage and a lesser risk of impermanent loss. – Aishwarya Shivakumar Haroshivanahalli, Co-Founder and CEO, Oddz Finance
What is Kyber Network?
Kyber Network aims to deliver a sustainable liquidity infrastructure for DeFi. As a liquidity hub, Kyber connects liquidity from various protocols and sources to provide the best rates to takers such as Dapps, aggregators, DeFi platforms, and retail users.
What is Oddz?
Oddz is a trustless on-chain option trading platform that expedites the execution of call and put options contracts, conditional trades, and futures. It allows the creation, maintenance, execution, and settlement of trustless option contracts, conditional tokens agreements, and futures contracts in a fast, secure, and flexible manner.
It employs the synergies of Ethereum, Binance Smart Chain, and Polkadot to unleash the potential decentralized derivatives market. It focuses on building solutions that can propel the DeFi ecosystem by simplifying derivatives trading and enhancing the user experience.
📰 INFO:
https://medium.com/oddz-finance/oddz-collaborates-with-kyber-network-b5b1a0a4773b
