Welcome to DeFi's first Dynamic Automated Market Making Protocol. KyberDMM is one of the major protocols in Kyber's liquidity hub. The DMM provides frictionless crypto liquidity with high capital efficiency and dynamic fees.
KyberDMM is a next-generation AMM designed to maximize the use of capital by enabling extremely high capital efficiency and reacting to market conditions to optimise returns for liquidity providers. Unlike the static nature of typical AMMs and other liquidity platforms in the space, the KyberDMM protocol is designed to react to token pairs and market conditions to optimise fees for liquidity providers and rates for takers. This is achieved via two simple yet novel mechanisms: Amplified Liquidity Pools (via Programmable Price Curves) based on the nature of the token pairs and Dynamic Fees based on market conditions.
Amplified Liquidity Pools
Less tokens required for high liquidity. KyberDMM’s Programmable Price Curve enables liquidity pool creators to set a suitable price curve and create amplified pools in advance, achieving much higher capital efficiency for providers and better slippage for users compared to AMMs.
Higher earnings potential, reducing the impact of impermanent loss. Trading fees are adjusted dynamically according to on-chain market conditions. In a volatile market (higher than usual volume), fees automatically increase to an optimal level, reducing the impact of impermanent loss. In periods of low volatility, fees decrease to encourage more trading and total fees collected.
KyberDMM allows fully permissionless liquidity contribution from anyone, and access to this liquidity by any taker (e.g. Dapp, aggregators, end users).
The pages that follow contain documentation of the DMM. If you are new to the DMM, you might want to first understand how the system works.