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- Kyber Network has collaborated with Polygon to offer Rainmaker liquidity mining program
- The DEX believes that the latest partnership will empower more liquidity providers, traders, and developers to effectively engage in the world of decentralized finance
- The Rainmaker program desires to bring more liquidity to the Ether and Polygon-based DeFi ecosystem
- The Polygon LPs will receive $5 million worth KNC and MATIC tokens as rewards
Kyber Network is a decentralized crypto assets exchange based on the Ethereum blockchain. The exchange aggregates liquidity and enables the exchange of tokens without an intermediary. Moreover, the platform can also be integrated to decentralized applications (dApps).
Recently the exchange has announced to have partnered with Polygon, a Ethereum Layer-2 scaling solution. Polygon protocol allows to enhance decentralized finance (DeFi) liquidity.
Launch of Liquidity mining pool “Rainmaker”
On Wednesday, Kyber Network announced a partnership with Polygon network. According to the announcement, the decentralized exchange (DEX) will be expanding to the Polygon protocol. Both the networks are together planning to introduce Rainmaker, which is the two month old dynamic market maker’s (DMM’s) first liquidity mining program. The program is on the Polygon and Ethereum network.
How will the partnership help the DEX?
According to Loi Luu, the co-founder of the Kyber Network, the latest partnership will help gain access to the highly capital efficient and flexible Kyber DMM protocol. Moreover, the DEX believes that the partnership will empower more liquidity providers, traders, and developers to effectively engage in the world of decentralized finance. Notably, the factors are only possible due to the vibrant ecosystem of Polygon.
What does the Rainmaker program aim for?
The Rainmaker will help bring more liquidity to the Ethereum and Polygon based DeFi ecosystem. Ultimately, the program will incentivize Kyber Network DMM liquidity provider with $30 million in rewards over three months.
According to a spokesperson, Polygon Liquidity Providers (LPs) will receive $5 million with the rest to be paid to Ether LPs.
Moreover, during the Polygon phase liquidity mining program that will last for two months, six eligible liquidity pools will receive 2.52 million KNC. Indeed, KNC is also known as Kyber Network Token, which is the native cryptocurrency of the DEX. Simultaneously, such six chosen pools will also receive $500k worth Polygon’s MATIC tokens. The rewarded tokens could be employed by the users for more liquidity mining.
On the other side, the KNC tokens holders will be able to participate in KyberDAO by staking the coins. Indeed, KNC holders can help govern the network and earn voting rewards.
Polygon’s adoption has skyrocketed
Over the past few months Polygon is witnessing tremendous adoption in the cryptosphere. Specifically, several DeFi protocols have embraced the network to grow. The blockchain allows the protocols to switch to the layer-2 scaling solution. Ultimately, the network helps the protocols to bypass relatively higher fees and congestion on the Ethereum network. Notably, the founders of the network have become India’s first crypto billionaire with help of the network.
