Kyber expands to Polygon, announces $30M ‘Rainmaker’ liquidity mining program
Decentralized finance (DeFi) liquidity hub Kyber Network (KNC) is set to become the next DeFi protocol to enter the expanding Polygon (MATIC) ecosystem.
In a statement issued on Wednesday, Kyber announced the launch of Rainmaker — a liquidity mining program on the platform’s Dynamic Market Maker protocol that will commence on June 30 to mark Kyber’s expansion to Polygon.
According to the announcement, the Rainmaker program will distribute $30 million in rewards to liquidity providers on the Kyber DMM across both Polygon and Ethereum.
Of the total reward pool, 12.6 million KNC tokens (about $25 million) will be distributed to liquidity providers on selected Ethereum-based amplified pools. The remaining 2.52 million KNC ($5 million) will be for LPs on Polygon-based amplified pools.
These rewards be will in the form of KNC and MATIC tokens which can also be staked to provide liquidity on KNC and MATIC pools to compound reward earnings. Rainmaker reward earners that receive KNC can also stake some on the KyberDAO to participate in governance activities thereby earning additional voting rewards.
According to the announcement, the Polygon phase of the Rainmaker liquidity mining program will run for two months while that for Ethereum will take place over three months beginning from June 30 for both.
Apart from the $5 million worth of KNC tokens, Kyber is also contributing $500,000 in MATIC “coins” for the Rainmaker liquidity mining program.
For Kyber, Rainmaker will help to further expand Polygon’s growing liquidity. Indeed, DeFi projects continue to establish a presence on Polygon amid a broader push for multichain strategies and greater overall scalability.
Polygon usage continues to skyrocket triggering significant integration efforts by DeFi primitives. Back in May, 0x — a liquidity bridge for decentralized exchanges — announced an API tool for Ethereum-based DEX like SushiSwap, mStable and Dfyn to interact with the Polygon ecosystem.
Ren — a cross-chain liquidity protocol — has also created a bridge to allow porting of Ren-based wrapped tokens to the Polygon network.