[KyberSwap] [FINAL] [STIP - Round 1]


Applicant Name: Ken Tran & Sasha Mai

Project Name: KyberSwap (Kyber Network)

Project Description: KyberSwap is a multi chain DEX aggregator and DEX that empowers users with insights and tools to trade and generate yield without intermediaries.

Team Members and Qualifications:

  • Co-Founder/CEO: Victor Tran - Victor Tran - People in crypto | IQ.wiki
  • Co-Founder: Loi Luu - Loi Luu - People in crypto | IQ.wiki
  • CTO: Mike Le
  • Head of Research: Dr. Trong Nguyen
  • Head of Product: Prakhar Agarwal
  • Head of Engineering: Tu Nguyen
  • Head of Business Development: Sasha Mai
  • Head of Marketing: Imran Mohamad
  • Head of Strategy for DAO & Tokenomics: Shane Hong
  • Operations Lead: MR
  • Business Development Manager (Arbitrum): Ken Tran
  • Associate Business Development Manager (Arbitrum): Arsalan Sartaj

Project Links:

Contact Information:

  • TG: @kenkyber, @sashamai
  • Twitter: kentran154, mai_defi
  • Email: hung.tran@kyber.network, sasha@kyber.network
  • Do You Acknowledge That Your Team WIl Be Subject to a KYC Requirement?: Yes


Requested Grant Size: 1,500,000 ARB

We will be applying for the Lighthouse Grant category. This is the recommended tier according to the following metrics:

  • Live on Arbitrum for at least 6 months → KyberSwap has been live on Arbitrum for 9+ months
  • Meets one of the following criteria:
    • $15M Arbitrum Network TVL: KyberSwap Arbitrum TVL is > $17M
    • $100M 30D cumulative Volume: KyberSwap Arbitrum 30D volume is > $120M

Grant Matching: 150,000 KNC
Reasoning: KyberSwap initially received 1,158,932 ARB tokens in the first airdrop. To bootstrap liquidity, we have distributed approximately 1.2M KNC and 450K ARB for liquidity mining incentives to over 20 liquidity pools so far. Additionally, we’ve allocated more KNC to pools with other Arbitrum projects, such as Lido wstETH pools and Axelar axlUSDC, axlETH and axl.wstETH pools. This allocation follows a matching ratio of approximately 75% in KNC and 25% in ARB tokens. Taking into account how much more we allocated in our past and ongoing activities, we anticipate to be able to match a 1.5M ARB STIP grant allocation with up to 150,000 KNC.

Grant Breakdown:

Activity Percentage ARB Amount
Liquidity Mining Incentives 100% 1.5M

Funding Address:

DAO multisig wallet: 0x91c9d4373b077ef8082f468c7c97f2c499e36f5b

Funding Address Characteristics:
2/3 multisig: KyberDAO Contract Addresses - KyberSwap Docs

Contract Addresses:

Distribution Contract Addresses (i.e Farm contracts):

  • KS Elastic Dynamic: 0x7D5ba536ab244aAA1EA42aB88428847F25E3E676
  • KS Elastic Static (for general): 0xf2BcDf38baA52F6b0C1Db5B025DfFf01Ae1d6dBd
  • KS Elastic Static (for Frax): 0x3D6AfE2fB73fFEd2E3dD00c501A174554e147a43
  • KS Classic: KS Classic farm contracts depend on the pool incentivized. Currently, we do not have any farms planned for KyberSwap Classic, but in case it happens, we will update the contracts in the forum comments.

Incentivized Contract Addresses (i.e KS Elastic Pools):

  • There is a different contract address for each incentivized pool, which is subject to change based on optimization between farm phases; as updating a fee tier means a new pool, and more pools may be added. Please let us know if you need further clarification.



The primary objective of liquidity incentives is to bootstrap optimized and sustainable liquidity for the most popular pairs and projects on Arbitrum. Simultaneously, we aim to attract a greater number of liquidity provider users to join the Arbitrum ecosystem. This optimized liquidity also plays an important role in enhancing trading volume, given that trading volume scales with TVL. KyberSwap’s liquidity pools are meticulously designed to maximize such volume via capital efficiency, minimized slippage, and competitive rates. Moreover, KyberSwap’s DEX aggregator provides route customization options, enabling further enhancements to trading volume through not only KyberSwap liquidity, but also through all other major DEXs on Arbitrum. Finally, with these incentives, KyberSwap aims to partner with existing Arbitrum projects as well as onboard new projects to Arbitrum.

Key Performance Indicators (KPIs):

TVL: At least ~2x increase in TVL from $17.7M to $35M in 3 months

Reasoning: Currently, the TVL on KyberSwap Arbitrum is at around $17.7M with around $200K in monthly incentives. The STIP grant would be around $1.23m (1.5M ARB @ ARB = 0.82), which will help to significantly boost liquidity bootstrapping activities. Spread over 3 months, that’s about ~$410K in monthly incentives. Based on this amount, we expect the TVL to grow about 2.3x to ~$41M. With a buffer to account for changing market conditions, we expect to reach at least $35M in TVL. The extra KNC matching would add another $108k (150K KNC @ KNC = 0.72) for the 4th month, or spread evenly on top of the ARB over 3 months.

Volume: At least ~1.5x increase in 7D volume from $28M to $42M in 3 months

Reasoning: Currently, KyberSwap Arbitrum gets about $28M in 7D volume. With the added incentives and creation of new pools, KyberSwap aims to increase this to at least $42M in 7D volume.

Liquidity partnerships: At least 5 liquidity partnerships with other projects over the 3 months from mid October 2023 to mid January 2024.

Reasoning: We aim to allocate a portion of the grant to liquidity mining incentives to establish and optimize liquidity for new and existing Arbitrum projects.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Aligned with the goals of the STIP program to incentivize the use of existing dApps on Arbitrum through increased volume, transactions, users, and liquidity, the STIP grant would enable us to build more optimized liquidity in terms of rates and slippage as well as diverse pairs and fee tiers. This would give more incentive for liquidity provider users to come to KyberSwap on Arbitrum, as well as more options for both new and existing liquidity providers. KyberSwap also has a strong record for optimizing liquidity for partner projects, such as Lido wstETH pools and Axelar axlUSDC, axlETH and axl.wstETH pools. Part of this grant will be allocated to even more partner pools. This will not only enable us to further support existing Arbitrum projects to optimize their liquidity, but also to onboard new partners to the Arbitrum ecosystem via KyberSwap.

Justification for the size of the grant:

KyberSwap has been supporting innovation and growth in the blockchain space since the beginning; and has built a liquidity and trading product portfolio dedicated to the best user experience, igniting a supportive community of DeFi projects and users, many of which are on Arbitrum. Since our expansion to Arbitrum, KyberSwap has become an important player in the ecosystem, highlighting our commitment to the growth of the ecosystem and to enhancing trading and liquidity experiences for the Arbitrum community. For example, KyberSwap has integrated about 20 major Arbitrum DEXs into our DEX aggregator, including GMX, Camelot and Uniswap.

So far, our KyberSwap Elastic AMM has facilitated over $3.07B in volume with over 7,488 unique addresses that provided liquidity and 334,809 unique addresses that traded. To date, we’ve spent 1,197,800 KNC (~$862,416 @ KNC = 0.72) to bootstrap initial liquidity on Arbitrum via liquidity mining, achieving positive results. This would be scaled up with the help of the STIP grant.

Furthermore, we are continuing to establish new partnerships and growth streams for the Arbitrum ecosystem. Not only do our liquidity pools support intra-chain volume, but also inter-chain volume. For example, we’ve incentivized liquidity to support Ethereum to Arbitrum ETH and wstETH bridging/cross-chain swaps together with Axelar, Squid and Lido. KyberSwap’s custom fee tiers and minimized slippage played a key role in this enablement. The STIP grant would further enable us to establish even more strong partnerships that can contribute to the ecosystem.

Execution Strategy:

We plan to allocate and distribute the incentives similar to the following example distribution.

Note: Incentivized pool pairs, fee tiers and allocations subject to change based on optimization between phases. However, the total amount of ARB per month will remain the same at 500K per month over the 3 month period.

Current farms ARB distribution % of total STIP - Month 1 STIP - Month 2 STIP - Month 3
USDT-USDC.e 6,000 5.51% 5.29% 5.07% 4.96%
DAI-USDC.e 5,000 4.59% 4.41% 4.22% 4.13%
WBTC-ETH 8,800 8.08% 7.76% 7.43% 7.27%
ETH-ARB 0.25% 12,800 11.75% 11.28% 10.81% 10.58%
ETH-ARB 1% 5,400 4.96% 4.76% 4.56% 4.46%
ETH-ARB 2% 5,400 4.96% 4.76% 4.56% 4.46%
ETH-ARB 5% 3,000 2.75% 2.64% 2.53% 2.48%
ETH-USDC.e .04% 18,720 17.19% 16.50% 15.81% 15.47%
ETH-USDC.e 2% 2,000 1.84% 1.76% 1.69% 1.65%
ETH-USDT 0.25% 3,200 2.94% 2.82% 2.70% 2.64%
ETH-USDT 1% 2,400 2.20% 2.12% 2.03% 1.98%
ARB-USDC.e 7,000 6.43% 6.17% 5.91% 5.78%
ARB-USDT 2% 7,700 7.07% 6.79% 6.50% 6.36%
ARB-USDT 5% 4,800 4.41% 4.23% 4.05% 3.97%
ARB-KNC 5,400 4.96% 4.76% 4.56% 4.46%
ETH-GMX 2,600 2.39% 2.29% 2.20% 2.15%
LDO-KNC 2,100 1.93% 1.85% 1.77% 1.74%
wstETH-KNC 2,800 2.57% 2.47% 2.37% 2.31%
LINK-KNC 1,800 1.65% 1.59% 1.52% 1.49%
GRAIL-USDC.e 2,000 1.84% 1.76% 1.69% 1.65%
New Partner Pool n/a n/a 2% 2% 2%
New Partner Pool n/a n/a 2% 2% 2%
New Partner Pool n/a n/a n/a 2% 2%
New Partner Pool n/a n/a n/a 2% 2%
New Partner Pool n/a n/a n/a n/a 2%

Approach to sustainable liquidity growth

KyberSwap focuses on sustainable liquidity, and as such, optimizes liquidity pools constantly in a way that can maximize both volume and LP fees so that, over time, LP fees can make up an increasing part of total APR. For example, one of the ways to measure the sustainability of a protocol is such LP fees since LP fees are organic APR, vs farm APR from incentives. Currently, KyberSwap generates some of the most LP fees per TVL for liquidity providers. In the past 24h, KyberSwap on Arbitrum has generated $10.32K in fees for LPs with $17.8M in liquidity. Comparatively, Camelot has generated about $10.5K in fees for LPs with $56M in liquidity. And in KyberSwap’s case, a significant portion (over 50%) of the LP fees generated were on ARB-paired pools, incentivizing more LPs to hold and supply ARB.

Additionally, another aspect of KyberSwap’s focus on sustainable liquidity via organic volume and LP fees is through custom fee tiers. KyberSwap has particularly high fee tier options such as 2% and 5% for some liquidity pools. While lower fee tier pools support general trading volume, these kinds of fee tiers serve another type of volume which is scalable with price volatility. These high fee tier pools further provide organic APR for liquidity providers while not affecting traders. Together, the lower fee and higher fee tier pools work together to support all types of volume demand, balancing out the interests of liquidity providers for APR and the interests of traders for lower rates.

Grant Timeline:

We plan to allocate and distribute the ARB from the STIP grant over a period of 3 months (estimated from mid October 2023 to mid January 2024, as per the program requirements). The start and end date are dependent on when the grant is finally received. The KNC matching can be allocated in the 4th month for smooth transition, or spread evenly across the same 3 months.

Funding Tranches:

500K ARB per month over a period of 3 months (estimated from mid-October 2023 to mid-January 2024, as per the program requirements).

Month 1: 500K ARB - 33.33%
Month 2: 500K ARB - 33.33%
Month 3: 500K ARB - 33.33%

Milestone Descriptions:

Period KPIs Tranche
Start n/a 500K ARB - 33.33%
End of Month 1 At least 60% of the 3-month TVL KPI + at least 70% of the 3-month Volume KPI + 2 additional liquidity partnerships 500K ARB - 33.33%
End of Month 2 At least 80% of the 3-month TVL KPI + at least 85% of the 3-month volume KPI + 2 additional liquidity partnerships 500K ARB - 33.33%
End of Month 3 At least 100% of the 3-month TVL KPI + at least 100% of the 3-month volume KPI + 1 additional liquidity partnership n/a

3-month KPIs as mentioned in the Key Performance Indicators (KPIs) section:

  • TVL: $35M
  • 7D Volume: $42M
  • New liquidity partnerships: 5


Is the Protocol Native to Arbitrum?

No, we deployed to Arbitrum in January 2023. However, we have been one of the earliest DEX and DEX Aggregators on Arbitrum, consistently ranking as one of the top DEXs.

On what other networks is the protocol deployed? Yes

  • Ethereum
  • Optimism
  • Linea
  • Polygon POS
  • Polygon zkEVM
  • zkSync Era
  • Base
  • BNB
  • Avalanche
  • Fantom
  • BitTorrent
  • Cronos
  • Aurora

What date did you deploy on Arbitrum?

3 Jan 2023 (Link)

Protocol Performance:

KyberSwap Arbitrum performance stats:

  • Current Arbitrum TVL: $17.7M
  • All-time Arbitrum volume: $3.08B
  • Total spent on Arbitrum farms so far:
    • 1.2M KNC (~$860K @ KNC = 0.72)
    • 450K ARB (~$369K @ ARB = 0.82))
  • Total unique addresses providing liquidity Arbitrum: 7,488
  • Total unique addresses trading on Arbitrum: 334,809
  • Total aggregator volume on Arbitrum: $717M

General performance stats:

  • 60+ DeFi/GameFi Dapp integrations
  • Over $20 Billion+ worth of lifetime trading volume
  • 400K web visits (average last 3 months - similarweb)
  • 616K cumulative lifetime unique addresses on Ethereum (New + Legacy KyberSwap)
  • Current total TVL on all KyberSwap pools: $71M+
  • Total TVL from aggregated DEXs: $35B+

Protocol Roadmap:

Kyber launched on Ethereum in February 2018 and is a pioneer in the DeFi space, having developed one of the earliest decentralized exchange protocols (DEX) with Vitalik Buterin as an advisor. Kyber was the most used DeFi protocol in 2019 and also helped launch WBTC (Wrapped Bitcoin) - the most popular ERC20 version of Bitcoin.

Today, our flagship product, KyberSwap, is a leading multi-chain DEX aggregator and liquidity platform that aims to provide the best rates for traders, while enabling liquidity providers to get the best returns through capital efficiency and concentrated liquidity. KyberSwap has been deployed on 14 chains including Ethereum, Arbitrum, Polygon, Polygon zkEVM, Optimism, zkSync and Linea; and has facilitated over $20B in trading volume.

Audit History:

KyberSwap Elastic and Classic pools have been audited by ChainSecurity, while KyberDAO & KNC have been audited by Hacken.

KyberSwap Elastic Audit: KyberSwap Elastic - Chainsecurity Smart Contract Audit

KyberSwap Classic Audit: KyberSwap Classic - Chainsecurity Smart Contract Audit

KyberDAO & KNC Audit: Kyber Network audits by Hacken

SECTION 6: Data and Reporting

Is your team prepared to create Dune Dashboards according to program requirements for your incentive program?

Yes, we intend to. The STIP application requirements include the creation of a dashboard showing daily TVL, transactions, volume, addresses, and network fees covering 30 days before/during/after incentivization. We already have this data in our own program and will convert it: KyberSwap Elastic Analytics

If not, how does your team plan to report grant data?

Note that in unforeseen circumstances, we may have to use another data medium as we currently don’t use Dune Dashboard though we intend to.

Thank you for reading. Please let us know if you have any questions or other feedback.


A max grant request that will primarily go to core major pairs and not support builder liquidity. This includes strategic allocation of low fee tiers to undercut market rates for the sake of volume generation.

Struggling to see the benefit here.

You will also need to check the timeline as it is unlikely you will see 4 full months of incentivization. Most protocols are looking to disperse over a maximum of 3 months to meet the end of January goal.


So 10.67% of the total grant would go to pairs with your native token KNC?

What benefit would the ARB ecosystem get by subsidizing increasing liquidity for your own token instead of making these pairings with ARB?

It also seems bold to apply for a 2M ARB grant as a non-native protocol for the wrong number of months.


Hi @flindy, thanks for reading our proposal.

According to the instructions here (https://forum.arbitrum.foundation/t/how-to-apply-arbitrum-short-term-incentives-program/16545), it is designed to fund incentive programs running from October 2023 through January 2024 (4 months). There also seems to be no hard deadline. We are willing to adjust the timeline should it be different.

“What is the Application Timeline?

This program is designed to fund incentive programs running from October 2023 through the end of January 31, 2024. While there is no hard deadline on the end of incentive programs, funds are expected to be distributed as they are received, and programs should aim to end before the end of the incentivization period on Jan. 31, 2024.”


Re: Timeline

Just discussed with my team. We can adjust it from a 4 month program to a 3-3.5 month program to end by January 31.

Re: Pools with KNC

Around 50% of the incentivized pools are paired with ARB, while around 10% are with KNC. I think more diverse pairs are important to bring in more users to the ecosystem. KNC is a popular token with many holders who are looking for LP options beyond Ethereum. Having KNC-pair options would bring more users from the wider Kyber ecosystem to the Arbitrum ecosystem.

Let us know if you have any suggestions.


Hi Sasha Mai.
Thanks for the proposal.
I have two questions:
What is the meaning of Kyber’s volume as an aggregator that routes trades to all liquidity sources? What are the advantages of Kyber Elastic with Uniswap V3 in a Concentrated Liquidity landscape?


Hi Peter.

  1. KyberSwap is a suite of different liquidity and trading products. KyberSwap DEX aggregator routes and splits trades through all major DEXs to achieve the best rate. You can find a list of integrated DEXs on Arbitrum here: Supported Exchanges And Networks - KyberSwap Docs

  2. KyberSwap Elastic, though adopting the tick based concentrated liquidity model, was built from original code. You can find some key differences here: KyberSwap Elastic Vs Uniswap V3: A Comparison | by Kyber Network | Kyber Network | Medium. One major difference is that LP fees compound in a full range in KyberSwap Elastic. Another is that it has JIT attack protection. KyberSwap Elastic also has more fee tier options; and farming contracts which optimize liquidity at a very narrow range, resulting in lower slippage.


Hello @sasha_mai thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.


This is a huge amount for a multichain protocol.

Kyber is a good product, but I struggle to see how it has focused on specifically contributing to Arbitrum.

The pools listed are almost entirely very liquid ones too… why do we need more of the same?

In my opinion, this proposal does not justify how it will bring new users to Arbitrum or how it will encourage innovation. The amount is also really too big, unfortunately.


Agree. The total asking amount is out of the original budget more than 2 times. I see it’s really hard for non-native Arbitrum protocols to have enough votes, even with major ones like Aave, Lido or Curve.


Kyber may not be native to Arbitrum, but I do think they have shown significant commitment to Arbitrum. Integrating numerous Arb dexes, and productively working with early Arb protocols, I can say from experience. Additonally, their aggregator is one of the most reliable, and Elastic is an underrated liquidity solution imho.


Kyber’s intention and undertakings has always been a net good for the ecosystem. We’ve been a core user of their aggregator and it has served us well.


Disagree with some of these points.

They are an aggregator so integrating DEXs is crucial to them, it’s not a commendable task.

The grant allocation needs significant reduction, they are prioritising a significant amount towards low fee tier core pools.

This is not beneficial or helpful to Arbitrum.


Happy to support the Kyber guys. I think one of the key things they can bring to Arbitrum is their huge Southeast Asia community. Just FYI, Vietnam is the 3rd largest community and crypto adoption in web3… Plus they have tons of builders there.


Kyberswap has one of the sickest UI I’ve seen to date in DeFi. KPIs set are nice and the statistics/metrics you guys provided clearly illustrate your commitment to achieving tangible results. I support where I can fellow buildors <3


When 2 Million was burned KNC burn 4 year ago by Loi lui , it open the gate to
Sasha_Mai, the luminary of liquidity and architect of arbitrum allure! Your proposal doesn’t just smooth Jazz for delegate and the community ,
it is beyond.

Your team, a pantheon of prodigious talent and best networks.


No response from the applicant.

Kyber are essentially asking for 2m ARB to be spent almost exclusively into core trading pairs and focusing on markets that undercut existing rates.

If no delegates see this as an issue, this is simply funding a predatory market participant and it is a net negative to the health of the ecosystem.

Kyber are also not allocating incentives to native USDC pairs, they are only supporting bridged pairs.

My suggestion is to remove incentives from such markets (ETH-USDC.e - 0.04%), add USDC to trading pairs and diversify the amount of incentives being utilised to support native builders.


As a user of both arbitrum and kyber, I think it’s a good idea to give 2m ARB to kyber, they have proved that they can consistently deliver in a bear market.

Furthermore while other projects have spent the past airdrop on dumping for their treasuries Kyber has focused on incentivizing lps not only with the ARB they were given but also with their native token KNC at a rate more than 2x that of ARB, this has deepen liquidity when it was needed the most and also benefited users and incentivized people to bridge to arbitrum.

I don’t understand the multichain critics, i think arbitrum is the best chain and as long as that true I don’t see any reason why they would change their main focus out, the fact that they are multichain will make their users on other chains aware of arbitrum and incentivize them to bridge.

My opinion is that this proposal will help kyber in arbitrum and subsequently the chain itself in growing, not only that but also users will benefit from deeper liquidity and bigger farm rewards thus bridging to arbitrum.

I agree with which pools are being incentivized, but im sure that if the community want to change which lps are incentivized it can be revised with proper feedback.


The shear lack of interest / responses on this post I think says a lot about how out of proportion a 2M ARB grant would be.

I think a 5-10x reduction in amount is necessary for this proposal to be taken seriously.


A great project and the team is very collaborative on the Arb chain.