The Japanese crypto exchange DMM Bitcoin announced on Friday that it had been hacked for more than $300 million worth of BTC. The exchange said it lost 4502.9 BTC ($305 million) in what the crypto investigative firm Chainalysis called “the seventh-largest crypto hack ever.” DMM Bitcoin announced the hack on Friday morning and promised it […]
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The cryptocurrency exchange lost 4,502.9 BTC due to a hack of its private key; withdrawals have been temporarily suspended.
Centralized cryptocurrency exchange DMM has lost more than $305 million worth of Bitcoin (BTC) due to a hack of its servers on May 30. The exchange confirmed the hack on its website and stated that all user deposits “will be fully guaranteed.”
The exchange has temporarily halted withdrawals, new account openings, new spot buy orders, and all new leveraged orders. However, limit orders that have already been placed will not be canceled.
Crypto users began to discuss the attack on social media platform X at 10:14 pm UTC on May 30, when analytics platform Whale Alert posted, “4,502 #BTC (308,948,771 USD) transferred from unknown wallet to unknown new wallet.” The post linked to blockchain data that showed an outflow of 4,502.9 BTC, worth $305 million at current prices, from a single wallet.
KNC shook off the current downtrend by posting a 50%+ monthly gain following the launch of Kyber 3.0 and integration across many decentralized exchanges.
In the crypto market volatility continues to reign supreme, and fear, uncertainty and doubt (FUD) run rampant. This makes it challenging for any project to rise above the noise and post positive price gains but there are a few projects that are showing strength during the current downturn.
Kyber Network (KNC) is a multi-chain decentralized exchange (DEX) and aggregation platform designed to provide decentralized finance (DeFi) applications and their users with access to liquidity pools that provide the best rates.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a bottom of $1.18 on Jan. 6, the price of KNC has rallied 57% to a daily high at $1.87 on Jan. 27 despite the wider weakness in the crypto market.
Three reasons for the strong showing from KNC include the release of Kyber 3.0, which included a rebrand to KyberSwap, the expanding list of DEXs integrated with the Kyber ecosystem and the widespread availability of KNC on centralized and decentralized exchanges.
The most significant development driving momentum for the Kyber Network was the release of Kyber 3.0. The launch included a rebrand of the platform's exchange interface to KyberSwap and an integration with six blockchain networks, including Ethereum, Polygon, Binance Smart Chain, Avalanche, Fantom and Cronos.
We're excited to announce Kyber 3.0 transitioning Kyber from a single protocol to a hub of purpose-driven liquidity protocols catered to various DeFi use cases. This is the biggest change to Kyber's architecture incl. the new DMM & a KNC Migration proposal https://t.co/pgffnUKjsx
— Kyber Network (@KyberNetwork) January 21, 2021
On top of the integration of multiple popular blockchain networks, the Kyber 3.0 upgrade was also designed to address some of the biggest limitations in DeFi, like high gas fees and the limited access some projects get by only being available on one exchange.
Kyber has achieved its new functionality through the implementation of dynamic market makers (DMM), which allows adjustments to be made to the key parameters of a liquidity pool based on recent fee data and trade volume.
This approach helps improve concerns that have been raised about automated market makers (AMM), including reducing capital requirement, preventing front-running and mitigating impermanent loss.
Another for the bullish momentum driving KNC higher has been the continued integration of new decentralized exchange protocols into the Kyber Network ecosystem.
Most recently, KyberSwap integrated pools from multiple DEX protocols including ShibaSwap, DefiSwap, MMF, EmpirDEX, PhotonSwap, Morpheus, BeethovenX, Gavity, Cometh, DinoSwap and PantherSwap.
The new additions mean that the KyberSwap protocol now supports more than 40 DEXs and 31,000 liquidity pools across six major blockchain networks.
The developers at KyberSwap have also indicated that the support and integration of additional blockchain networks and decentralized exchanges is currently underway.
Related: Kyber plans to become a hub for DeFi with massive DEX upgrade
KNC also has widespread availability on exchanges across the cryptocurrency ecosystem.
As shown in the graphic above which was posted on Twitter by pseudonymous user ‘Cryptolaxy’, KNC is the second-ranked DEX token by the presence on exchanges and it is currently available on 80 separate exchanges.
The only other projects with similar availability are ZRX with 105 exchange listings and Uniswap at 76.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KNC on Jan. 22, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for KNC climbed into the green and hit a high of 79 on Jan. 22, around 35 hours before the price increased 44% over the next three days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Dynamic fees will improve capital efficiency on the new DMM.
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 5, has been designed to optimize fees and enable extremely high capital efficiency for liquidity providers.
One of the major differences between Kyber’s new platform and regular Automated Market Makers, or AMMs, is the fee generation system. While platforms such as Uniswap charge a fixed trading fee of 0.3%, the new DEX will calculate fees dynamically, increasing during times of high volatility and demand, and decreasing when markets are quiet. This encourages traders to take advantage of cheaper trade opportunities which improve capital efficiency for LPs and the platform.
The system mimics the Uber-style surge pricing that increases prices when there is a lot of demand for rides, such as in bad weather or rush hour, 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 swap crypto assets without a central 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 $20.5 million with a daily volume of $490,000. Kyber’s native token, KNC, has retreated over the past 24 hours dropping 5.7% to $3.13 according to Coingecko.
The new DMM also operates a “programmable pricing curve” which allows liquidity pool creators to customize pricing through an “amplification factor” based on the nature of the relationship between the two tokens.
In essence, tokens that have a lower deviation from their prices such as stablecoins can have a higher amplification factor which allows the liquidity to increase without needing more tokens in the pool. These features have also been included in the Uniswap v3 upgrade which also aims to improve capital efficiency by optimizing the bonding curve.
Pool creators can set their own AMP factor which increases the liquidity depending on the type of tokens in the pool — stable tokens can have a higher factor, whereas more volatile ones will be set lower.
“This means that given the same liquidity pool and trade size, Kyber DMM can provide much better liquidity and slippage compared to AMMs. Slippage can potentially be 100X better than AMMs for more stable pairs!”
The announcement added that the code has been fully reviewed and audited multiple times by both the internal team and external auditors with no critical issues found. It stated that the full audit will be released soon but added that the protocol is still in beta.
