Kyber Network (KNC) has recently made an announcement that is going to be a new milestone for the platform in DeFi universe. Kyber Network is known as a prominent aggregator and an exchange platform that is based on the decentralized infrastructure.
The firm has announced that it is planning to overhaul its platform with an entirely new upgrade naming it the “Kyber 3.0”. With the launch of the Kyber 3.0 upgrade, the firm will go onto becoming a specialized liquidity pools network.
It has stated that it is going to go through the transition just like cryptocurrency exchanges go through optimization phases in order to adopt different assets.
Kyber Network will go onto following the same method and mechanism as Curve. The process would allow the pairs between wrappers of the same asset to go through very high amplification factors.
With the implementation of the Kyber Network 3.0 upgrade the slippage will be improved 100-folds. The upgrade will not only prove essential for stablecoins but for highly unstable coins as well such as Ethereum (ETH) and Bitcoin (BTC).
The network has managed to achieve the Kyber Network 3.0 upgrade by implementing the dynamic market makers (DMMs). With the implementation of the new upgrade, the already running features for the liquidation process will be fine-tuned and adjusted.
The upgrade will also allow the developers to customize the relative weights of the pool for each asset. This feature will act in accordance with the benefits and tools that are offered by the Balancer. The developers will also be able to set up a customized amplification factor that will help to reduce slippage.
The upgrade will also make a huge impact on the trading fees as the adjustments will be made dynamically. During high trading periods and high volumes of transactions, the system will automatically set the fees at a higher rate. Once the market trades and volumes become low, the fees will be adjusted automatically.
Another very unique and important upgrade that comes with Kyber 3.0 is the gas optimization. There were several complaints shared by the users that the previous upgrades introduced by Kyber were not so much reliable. The majority of the former upgrades introduced by Kyber Network ended up consuming a lot more block space, making them very expensive.
The Kyber 3.0 upgrade will provide the entire platform with high flexibility and users will be able to take liquidity directly from the sources they want. This will be in addition to what the users will be getting with respect to the gas price optimization.
In addition to the above, the Kyber 3.0 upgrade will also support layer-two scaling and support future cross-chain solutions.
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