$177.02 2.12%
ETH · 6w

Kyber Ecosystem Report #9: read about how Kyber crossed USD 400 million in volume and their new DeFi integrations!

Most integrations saw substantial increases in volumes with some showing triple digit growth since October, and it seems like the market volatility of the second half of November has helped with on-chain activity.

The fastest growing dapps are split between DeFi dapps and Kyber’s own offerings:

A note on Total Value Locked

As the DeFi space has exploded in activity over the last year, there’s been different attempts to quantify this growth. Within Kyber, we look at metrics like volume, unique addresses, new addresses and a wide range of other metrics which we share with you here on a monthly basis.

One metric the DeFi space especially likes to look at when comparing DeFi dapps is Total Value Locked (TVL). TVL measures the total value of the tokens locked within these dapps with the argument going that the higher the value locked up in a DeFi dapp, the better.

We’d like to counter that this can be a skewed metric to compare liquidity providers because it does not take into account how much each unit of locked up token is utilized. For example; each token pair on Uniswap requires its own individual ETH pool. Kyber reserve managers on the other hand, can provide liquidity to multiple tokens from the same ETH pool, ie. 1 ETH might serve 10 different ERC20 tokens’ liquidity needs on Kyber, while Uniswap would require 10 ETH to serve those same 10 tokens. As a result, Kyber Network requires far less assets locked up to provide the same level of liquidity (as validated by the tight spreads and low slippage on Kyber) and therefore $1M locked up in Kyber is not the same as $1M locked up on Uniswap or $1M locked up on Bancor.

tl/dr: TVL not a good measure to compare liquidity providers

Over the coming ecosystem blogs, we’ll be diving into the different nuances of measuring such metrics (ie. understanding ‘dead volume’ that comes from arbitrage and what this means for on-chain price oracles) and we hope it gives our community a b...

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