KyberSwap DEX Aggregator Integrates with Arbitrum

KyberSwap, a decentralized exchange (DEX) aggregator, is launching its services on the Arbitrum network. The latter is a layer-two solution based on the Ethereum network. IT allows projects on Ethereum to achieve scalability by achieving high speeds and charging low fees.

The KyberSwap DEX aggregator and liquidity pool has already been deployed across six networks. These networks include Avalanche, Binance Smart Chain, Cronos, Ethereum, Fantom and Polygon.

KyberSwap switches to Arbitrum for scalability

Arbitrum has already seen adoption from some of the largest players in the decentralized finance sector. Some of the projects already available on Arbitrum include Balancer Labs, Curve Finance, SwaprEth and SushiSwap.

“With decentralization comes challenges of scaling, and solving for congestion, gas fees, and slippage bring us closer to a truly seamless decentralized economy. This partnership between KyberSwap and Arbitrum is a big step forward towards creating the most user-friendly experience for users, as well as robust and highly extensible trading API for partners,” said Victor Tran, the CEO and co-founder of the Kyber Network.

The Ethereum network is currently dealing with an issue of high gas fees and congestions on the network, causing delays in transaction processing times. Currently, the average cost of a transaction on the Ethereum network sits at 28 gwei, according to Etherscan, equivalent to around $1.48. This is considerably low, but this fee is not constant. When the network faces an influx of transactions, the gas fees can skyrocket and reach $100.

The Arbitrum network is preferred by developers looking for scalability because the gas fees are relatively low. According to L2 Fees, a layer-two data aggregator, the gas fees on the Arbitrum network range from $0.50 and $0.69.

Arbitrum is among the scaling solutions available on the Ethereum network. It offers high speeds and low-cost smart contracts while remaining trustless. Protocols that deploy on the Arbitrum network enjoy fees that are only a fraction of what could have been charged on the Ethereum network.

The Arbitrum network has been deployed on various decentralized applications (DApps). Besides the scalability, DApps are also drawn towards Arbitrum because of the high compatibility with the Ethereum Virtual Machine (EVM).

Growth on the KyberSwap DEX

DappRadar, a DApp aggregator, has ranked KyberSwap as the 76 largest DEX in the market in comparison to the others. KyberSwap has recorded a rise in transaction activities this month. The total number of users on the network has increased by 350% since March 5 to reach 19.870 users. The daily transaction volumes have also jumped by 31% to reach $610,000 worth.

Besides the growth in users and the trading volumes, the integration has also boosted the total value locked (TVL) on the Arbitrum network. The TVL on Arbitrum has been on a downtrend over the past five days, but it has spiked a little since this integration. Data from L2Beat, a layer two ecosystem tracker, shows that the current TVL on Arbitrum stands at $3 billion.

Currently, Arbitrum is ranking as the largest layer-two network by a clear margin. It is followed by dydx, with $965 million in TVL. Arbitrum was also the only layer two networks that recorded a growth in the number of users by new addresses over the past week. Its growth has surpassed BNB, Ronin, and other popular layer-two solutions.

During the past week, there were 46,200 unique addresses on Arbitrum. This is a 12.7% growth from the last week. The TVL on KyberSwap has recorded a spike in volatility, coinciding with the activity in the DeFi sector. The total TVL has dropped from $180.7 billion on November 10 to reach $105.3 billion at the time of writing.