Lido Finance and KyberSwap Elastic together to increase liquidity on Polygon
Lido Finance, a major player in the Ethereum staking market, will use KyberSwap Elastic to increase liquidity on Polygon.
The biggest Ethereum platform for liquid staking services is Lido Finance. With its platform, Lido Finance enables both centralized and decentralized financial apps, enabling stakers to spend their staked assets on any of its supported networks, including Ethereum, Solana, Polygon, and Polkadot.
With further incentives to follow soon, the initial phase of this collaborative project is expected to reward liquidity providers with over $120,000 in liquidity mining prizes.
KyberSwap Elastic is what?
Elastic, the newest protocol from KyberSwap, is an automated tick-based market maker that offers liquidity providers (LPs) the benefits of focused liquidity as well as the adaptability to maximize capital efficiency and control risks.
With concentrated liquidity, LPs may choose whether to set the liquidity to a larger price range or a tighter price range when supplying liquidity to an elastic pool. While a wider range would ensure liquidity for uncorrelated token pairs like USD Coin (USDC) and Ether (ETH) remaining active even with large price swings during high market volatility, concentrated liquidity would use the pool’s liquidity more efficiently, mimicking much higher levels of liquidity and achieving better slippage, volume, and earnings for LPs.
Additionally, KyberSwap Elastic incorporates a reinvestment curve that automatically invests LPs’ fee revenues back into the liquidity pool to compound fees and save LPs time while allowing them to earn larger APYs.
On KyberSwap Elastic, LPs may also pick from a variety of fee levels to determine the rates that are most appropriate for their customers, taking into account things like token volatility, personal risk tolerance, and more. The Just-In-Time (JIT) Attack Protection function of KyberSwap Elastic also protects LP profits against snipe assaults that would lower the earnings of other honest LPs. LPs may so earn safely while feeling at ease.
Liquidity providers will have the option of five stMATIC qualifying pools on KyberSwap Elastic starting on August 16, 2022, allowing them to deepen liquidity and receive LDO and KNC awards.
LPs may benefit from features like focused liquidity and compounding fees using KyberSwap’s Elastic protocol, resulting in improved capital efficiency and optimized returns. LPs’ profits will be better safeguarded and their minds will be at ease because to KyberSwap Elastic’s JIT protection.