Decentralized exchange Kyber has launched a Dynamic Market Maker, or DMM, in what it claims is a world first.

The new platform, which was announced on April five, has been designed to optimize fees and enable extremely loftier majuscule efficiency for liquidity providers.

One of the major differences between Kyber'due south new platform and regular Automated Market Makers, or AMMs, is the fee generation system. While platforms such every bit Uniswap charge a fixed trading fee of 0.three%, the new DEX will summate fees dynamically, increasing during times of high volatility and demand, and decreasing when markets are repose. This encourages traders to take advantage of cheaper merchandise opportunities which better capital efficiency for LPs and the platform.

The organization mimics the Uber-style surge pricing that increases prices when there is a lot of demand for rides, such equally in bad weather or rush 60 minutes, and drops them when there is less demand and traffic levels have returned to normal.

Kyber Network is an on-chain liquidity protocol that has a DEX called KyberSwap, which allows users to bandy crypto avails without a primal order book or operator. Much of the inspiration for the new DMM has been taken from the current Uniswap interface.

According to the DMM dashboard, liquidity on the platform is currently $20.v 1000000 with a daily volume of $490,000. Kyber's native token, KNC, has retreated over the by 24 hours dropping five.7% to $3.13 co-ordinate to Coingecko.

The new DMM besides operates a "programmable pricing curve" which allows liquidity pool creators to customize pricing through an "amplification gene" based on the nature of the relationship between the two tokens.

In essence, tokens that take a lower deviation from their prices such as stablecoins can have a college amplification gene which allows the liquidity to increase without needing more tokens in the pool. These features take also been included in the Uniswap v3 upgrade which also aims to improve capital efficiency past optimizing the bonding curve.

Puddle creators tin can set up their ain AMP cistron which increases the liquidity depending on the blazon of tokens in the pool — stable tokens tin have a college gene, whereas more volatile ones will be set up lower.

"This ways that given the same liquidity pool and merchandise size, Kyber DMM can provide much ameliorate liquidity and slippage compared to AMMs. Slippage can potentially be 100X ameliorate than AMMs for more stable pairs!"

The declaration added that the lawmaking has been fully reviewed and audited multiple times by both the internal team and external auditors with no critical bug constitute. It stated that the full audit volition be released soon but added that the protocol is however in beta.