Kyber’s team stated that expensive gas fees and the network congestion on Ethereum left users, creating a need to solve it through Layer-2 scaling solutions such as Arbitrum.
The main objective behind the multi-chain decentralized exchange (DEX) and aggregation platform – KyberSwap announcing its launch on the scaling solution – Arbitrum network – is to enable users to conduct faster and cheaper trades.
According to the official blog, Arbitrum is seventh to have deployed KyberSwap. Previously, the DEX aggregator had gone live across – Ethereum (ETH), Polygon (MATIC), Binance Smart Chain (BSC), Avalanche (AVAX), Fantom (FTM), and Cronos (CRONOS) networks.
Although Ethereum is still the DeFi leader and a strong contender, it has seen its adoption skyrocket to the limit. The transaction fees have risen to the sky in recent years, causing uncontrolled congestion.
Victor Tran, CEO and Co-Founder of Kyber Network, spoke out about the difficulties in scaling and solving congestion, gas fees and slippage in decentralized infrastructures. He then went on to say,
“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.”
Increased Activity on KyberSwap & Arbitrum
DappRadar’s latest statistics showed that KyberSwap users have reached an average transaction volume of 20k as of March 6. Over the weekend, transaction levels spiked and reached a new high at 21k. However, the volume has remained steady at $800k.
Despite the on-chain activity of prominent Layer-2s being on a sluggish trend over the past few months, Arbitrum’s TVL has been consistent and even noted an uptick to almost $3 billion following the integration. According to L2beat data, Arbitrum continues to lead Layer 2 networks, with 54% market share.
Arbitrum has enjoyed significant adoption since its inception in August 2021. It was designed to correct some of the weaknesses of Ethereum-based smart agreements. KyberSwap was not the only feature of this new platform. It also integrated four other decentralized exchange protocols.
This integration comes less that a month after Yearn Finance, a DeFi protocol, announced the launch of Ethereum Layer-2. 1inch Network, a well-known DEX aggregator, has recently disclosed its expansion plans to Abritrum and cut transaction fees.