Tokenomics and Functional Design
KyberSwap Elastic (Polygon) introduced concentrated liquidity mechanics where LPs set price ranges, balancing yield against slippage. It featured auto-compounding via a Reinvestment Curve and flexible fee tiers from 0.008% to 1%. Tools like “Zap-in” simplified single-token liquidity provisioning across Polygon and other chains.
Real Activity and Market Presence
Technically live, but nearly dormant. Trackers show daily volume around 20–650 USD, with only a handful of tokens and pairs active. TVL hovers near 15K USD. Following a security incident in November 2023, the protocol was discontinued, leaving no active markets today.
Strengths and Limitations
Strengths
- Capital-efficient concentrated liquidity mechanics
- Flexible fee tiers and auto-compounding rewards
- “Zap-in” tool for easier liquidity provision
- Cross-chain capacity aligned with modern DeFi needs
Risks
- Daily trading volume near zero
- Discontinued after 2023 security breach
- Minimal community or user activity
- Complex mechanics unsuitable for casual users
Summary Table
| Component | Details |
|---|---|
| Platform Type | Decentralized AMM with concentrated liquidity |
| Functional Model | Custom fee tiers, Reinvestment Curve, Zap-in |
| 24h Trading Volume | Extremely low – under 1,000 USD |
| Market Activity | 3–6 tokens, 2–6 pairs |
| TVL | ~15K USD |
| Strengths | Capital efficiency, automation, cross-chain design |
| Risks | Inactive, discontinued, post-incident shutdown |
Final Thoughts
KyberSwap Elastic (Polygon) showcased advanced DeFi engineering with customizable liquidity, auto-compound yields, and flexible fees. Yet after its 2023 security breach and shutdown, the platform is inactive. It now stands as a blueprint of what could have been rather than an active trading venue.