Kyber Network Announces Polygon Integration and Liquidity Mining Program

The Rainmaker program aims to bring more liquidity to Ethereum and Polygon-based decentralized finance (DeFi) ecosystems.

Jun 16, 2021 at 1:00 p.m. UTC

Updated Sep 14, 2021 at 1:11 p.m. UTC

Ethereum-based decentralized exchange Kyber Network is partnering with the Ethereum layer 2 scaling solution Polygon network to enhance the decentralized finance (DeFi) liquidity.

In an announcement on Wednesday, Kyber Network said it will expand to the Polygon network on June 30 and launch "Rainmaker" – the two-month-old Kyber dynamic market maker (DMM) protocol's first liquidity mining program on Polygon and Ethereum.
"Through this partnership, Polygon's vibrant ecosystem will gain access to the highly capital efficient and flexible Kyber DMM protocol," Loi Luu, co-founder of Kyber Network, said in a press release shared with CoinDesk. "We believe this will empower more liquidity providers, traders, and developers to effectively engage in the world of decentralized finance."
The Rainmaker program aims to bring more liquidity to Ethereum and Polygon-based decentralized finance (DeFi) ecosystems by incentivizing Kyber DMM liquidity providers with $30 million in rewards over three months.
Polygon liquidity providers will receive $5 million with the rest to be paid to Ethereum liquidity providers, Kyber network's spokesperson told CoinDesk in a Telegram chat.
During the two-month Polygon phase of the liquidity mining program, six eligible liquidity pools will receive 2.52 million Kyber network tokens (KNC) and Polygon's MATIC tokens worth $500,000.
Recipients can employ KNC and MATIC tokens for more liquidity mining. Additionally, KNC tokens can be staked in KyberDAO to participate in Kyber's governance and earn voting rewards.
The Ethereum phase will run for three months and distribute 12.6 million KNC tokens to liquidity pools.
Kyber's dynamic market maker (DMM), aimed at bringing greater flexibility and high capital efficiency by offering liquidity providers amplified pools and dynamic fees, went live in early April.
Polygon's adoption has exploded in recent months with major DeFi protocols switching to the layer 2 scaling solution in a bid to bypass relatively higher fees and congestion on Ethereum.

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