Kyber’s reserve system is flexible enough to cater to different use cases, and you can create a model that best suits your needs. Moreover, our fully on-chain system supports transparent and verifiable transactions. In contrast to off-chain or hybrid/semi-off-chain models such as 0x, Kyber’s fully on-chain design allows for seamless composability with DeFi DApps, which require intricate smart contract interactions. In hybrid models, it is either not possible or very challenging to use within smart contracts, making it wholly unsuitable for more complex DeFi use cases.
Kyber is one of the most used DeFi protocol in the world, with the highest number of users and integrations, including all the major aggregators. By creating and deploying a new reserve and providing liquidity on Kyber, price discovery for your token is possible and your token will get seamless exposure to over 100 DApps in the Kyber ecosystem. Moreover, Kyber’s protocol has been battle-tested, successfully facilitating over US$2 Billion and 1M+ trades entirely on-chain (Ethereum).
Another reason for creating and deploying new reserve models on Kyber is the opportunity to market make for profit from each trade. Reserves are able to buy tokens at a lower price elsewhere, then set a markup fee to earn a profit on Kyber. In addition, reserves deployed using the new reserve models created in our new reserve innovation programme may receive grants and potentially be eligible for volume-based rebates that come from a portion of network trading fees, which can be another lucrative revenue stream for developers.
The key benefit reserves provide is instant liquidity. Takers such as DApps, vendors and wallets that integrate the protocol are able to immediately convert one token to another because of the liquidity made readily available by reserves.