Kyber Ecosystem Report #4 – Deniz Omer
Hello fellow Kyberians! We hope you’re all reading this update from your sunbeds on some exotic beach and sipping your piña coladas during this hot summer season. We’re back again with another ecosystem update and as you’ve come to expect from us, it’s packed with new ecosystem integrations and interesting data and commentary from different parts of Kyber world.
As usual, we kick off with a look at the overall ecosystem growth picture. Where and how has Kyber Network grown in terms of volumes and number of trades over the last few months and quarters?
Starting with one of the basic indicators of network activity, volume, we see a healthy overall growth with a monthly new high of $55,892,556 in June. 26th of June especially stands out with trading volume reaching a daily high of $4,335,461:
Most of the largest Kyber Network participants showed positive month-on-month growth with an average 46% increase in volume. The exceptions proved CDP Saver which showed a 3% dip in volume due to its co-integration with eth2dai alongside Kyber, and Trust wallet which dropped off the top 10 table as it continues its pivot towards Binance DEX
Having just passed the halfway mark for the year, we also look back at 6 quarters since Kyber Networks mainnet launch and draw some conclusions from this data:
There are a few key reasons driving Kyber’s volume growth. ETH’s price rise is certainly one factor but accounts for only 265% of Kyber’s 670% growth since Q4 2018 (ETH has increased 265% from a low of $85 over the winter to its recent highs of $311).
Another driver of growth has been an increase in demand for liquidity from DeFi products. These products require token swapping services to build margin short/long positions and lend and borrow and have seen an explosion in growth and usage since the beginning of the year. With an upcoming move to multi-collateral DAI for the Maker system, we also anticipate further expansion of this space and ever increasing demand for ERC20 liquidity.
Growing demand for trading on KyberSwap itself has also pushed overall trading growth up and KyberSwap consistently makes up 40% of all Kyber Network volume and 26% of total number of trades carried out. The team constantly release new features and with the introduction of a key feature like Order Limit, we expect KyberSwap to be used by an even wider range of users.
As touched upon above, the DeFi space continues its strong growth narrative and not only are we seeing increasing volumes from existing DeFi dapps, we’re also seeing many new entrants enter this space and immediately carve out market share for themselves.
Fulcrum is a good example, having only been integrated with Kyber since May 27th, it’s already seen strong enough use to carry out $840,680 worth of token swapping within its first month.
Existing integrations like Nuo have also seen their own ecosystems doubling and tripling in size. Last time we reported Nuo’s outstanding loan size (loans actually lent out) two months ago, this figure stood at $1.35mm while this figure currently sits at $13.01mm
New DeFi integrations
June saw an interesting mix of dapps connect to Kyber Network and range from portfolio and fund management tools to decentralized exchanges to arbitrage bots. Three new integrations that stand out to us are:
Betoken — Betoken is an interesting fund management platform where fund managers collectively and actively maintain a single portfolio. A meritocratic incentivization system automatically allocates most of the funds to the best performers while Kyber is used to build these positions.
Tokenfolio — Tokenfolio is a dapp that lets you easily create a basket of different tokens inside your wallet. This portfolio creation tool is as simple as adding tokens to your basket, setting the sliders to the desired ratios and hitting the ‘Rebalance’ button.
weiDex —weiDex is an ambitious attempt to connect multiple blockchains through atomic swaps and provide multi-dex token and NFT swap support. They’ve currently built their DEX on Ethereum and pull in liquidity from Kyber, and will release the Atomic Swap MVP in the following months.
With Kyber’s swap services available in one form or another on all major Ethereum wallets, we are always excited to see what kind of new innovation they can introduce to the crypto space.
Here are three recent developments that excite us:
Hopper by Argent — Hopper is an incredibly useful open-source Ethereum mixer that allows users to send private transactions between addresses. Using zkSNARKs, Relayers, and MiMC hash functions, Hopper obfuscates the source of the funds making it statistically incredibly hard to trace. The explainer at hoppereth.org is a great introduction into how this promising technology works and is well worth a visit.
Enjin — Enjin announced its open-source Java SDK, Minecraft Plugin, and Minecraft Server. This suite of software will allow developers to bring crypto functionality to more than 100 million Minecraft players. It is incredible to see our technology gradually integrating itself into conventional infrastructure and providing completely new types of services.
MyEtherWallet —MyEtherWallet has officially joined the DeFi space by adding CDP management functionality directly into the MEW wallet interface. Users can deposit or withdraw ETH collateral, generate or payback DAI, and move or close their CDPs.
When it comes to Kyber token swap usage within these wallets, we are pleased that even though Kyber faces strong competition from wallets’ own integrated swap services (ie. imToken’s Tokenlon and Trust’s Binance DEX), wallet users are still showing a strong appetite for swapping tokens using Kyber:
This month we also welcome a diverse group of dapps including a decentralized social network, a physical Ethereum hardware node store, a self-annihilating deflationary store of value, and a multisig management platform for companies.
Sapien — Sapien is a Web3 social network built with incentive mechanisms to reward content creators, fight fake news, and give users more control over their own data. We welcome such dapps as the last few years have shown the world needs better alternatives to Facebook and other centralized social networks.
Block and Mortar — Block and Mortar is an online store where tech enthusiasts can buy pre-configured Ethereum nodes using 70 different ERC20 tokens. The nodes use NanoPC-T4s boards with Ubuntu, Ethereum, IPFS, Status and Swarm.
Multis — Multis is an interface that helps teams access, manage and use their company’s crypto. It allows for multisig accounts, monitoring balances, scheduling payments, and, using Kyber integration, teams can easily perform treasury functions like re-balancing and hedging.
Independent Devs and Kyber around the World
In this month’s independent dev section we’d like to give a special mention to all the participants of the Kyber DAO #2 Experiment. The participation, the engagement, and the heated debates have been an incredible learning experience for us and we thank you all for that. As this experiment carries on, we will continue to build on our knowledge of how these new decentralized governance structures can work.
If you haven’t already done so, it’s not too late to participate. Read this blog post for more info.
This month we also got the opportunity to meet many of you in person at conferences and meetups around the world from Innovest Unbound in Singapore, to the Beijin Ethereum Technology and Application Conference
Published at Tue, 09 Jul 2019 09:40:24 +0000
