Kyber expands to Polygon, announces $30M ‘Rainmaker’ liquidity mining program
The Kyber Network is set to float a $30 million liquidity mining program on both Ethereum and Polygon pools.
Decentralized finance liquidity hub Kyber Network is set to become the next DeFi protocol to enter the expanding Polygon ecosystem.
In a statement issued on Wednesday, Kyber announced the launch of Rainmaker, a liquidity mining program on the platform’s Dynamic Market Maker protocol that will commence on June 30 to mark Kyber’s expansion to Polygon.
According to the announcement, the Rainmaker program will distribute $30 million in rewards to liquidity providers on the Kyber DMM across both Polygon and Ethereum.
Of the total reward pool, 12.6 million Kyber Network Crystal (KNC) — about $25 million — will be distributed to liquidity providers (LPs) on selected Ethereum-based amplified pools. The remaining 2.52 million KNC — about $5 million — will be for LPs on Polygon-based amplified pools.
These rewards be will in the form of KNC and of Polygon’s MATIC tokens, which can also be staked to provide liquidity on KNC and MATIC pools to compound reward earnings. Rainmaker reward earners who receive KNC can also stake some on the KyberDAO to participate in governance activities thereby earning additional voting rewards.
According to the announcement, the Polygon phase of the Rainmaker liquidity mining program will run for two months, while that for Ethereum will take place over three months — starting June 30 for both.
Apart from the $5 million worth of KNC, Kyber is also contributing $500,000 in MATIC “coins” for the Rainmaker liquidity mining program.
For Kyber, Rainmaker will help to further expand Polygon’s growing liquidity. Indeed, DeFi projects continue to establish a presence on Polygon amid a broader push for multichain strategies and greater overall scalability.
Detailing the importance of the Kyber DMM and Polygon partnership, Kyber Network CEO Loi Luu told Cointelegraph: “Kyber’s vision is to deliver a sustainable liquidity infrastructure for DeFi, and this also extends to fast-growing ecosystems such as Polygon,” adding:
“This Polygon partnership and the $30M Rainmaker liquidity mining program will help showcase the powerful benefits of the Kyber DMM protocol and is an important step towards greatly boosting liquidity for DeFi, as well as growing the number of users, developers, and Dapps in the Kyber and Polygon ecosystems.”
Polygon usage continues to skyrocket triggering significant integration efforts by DeFi primitives. Back in May, 0x — a liquidity bridge for decentralized exchanges (DEXs) — announced an API tool for Ethereum-based DEXs like SushiSwap, mStable and Dfyn to interact with the Polygon ecosystem.
Ren — a cross-chain liquidity protocol — has also created a bridge to allow porting of Ren-based wrapped tokens to the Polygon network.
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Author: Osato Avan-Nomayo