Melonport Enables Blockchain Asset Capitals to Trade on Kyber Network
Kyber Network, an ecosystem for the decentralized token swaps, and Melonport announced the successful incorporation of Kyber’s liquidity protocol with Melons asset management protocol. Melon, founded in July 2016 is a decentralized, public infrastructure responsible for on-chain asset management on the Ethereum blockchain.
By tapping into the Kyber Network, Melonport users will be in a position to access a wider pool of crypto assets. It is beneficial too because they can also trade on Kyber, Oasis Dex, and Ox. Melonport users can choose to transact on either one or all of the mentioned exchanges at the same time. The freedom to trade on several exchanges at a go indicates a meaningful step regarding improving liquidity for crypto fund managers.
According to the CEO of Melonport, Mona El-Isa, trading on Kyber Network complements the various technologies of the ecosystem. The integration of technologies will make the ecosystem, stronger, more robust and of great value to the end user. A combination of these skills will also enable Melon (MLN) users to have a look at an amassed order book of ERCDex, Radar Relay, OasisDex, and Kyber.
By having access to these order books, MLN users can have more choices about where to buy crypto assets. Also, the users will have better information about the prices, thereby broadening their purchase options.
While enabling Kyber onto the MNC protocol as a liquidity provider, Melonport discovered the possibility of using Kyber as a source of pricing.
Since Kyber is a network of liquidity reserves, they already possess an inbuilt mechanism for working out the best prices amongst the existing reserves. The mechanism will algorithmically guarantee the best possible price. Additional features will also help to prevent price manipulation.
The CEO of Kyber Network, Loi Luu believes that the integration between Melonport and Kyber is a strong example that shows how on chain protocols can work seamlessly with each other to enhance a decentralized and connected financial ecosystem.
Since both protocols exist on-chain, it allows for a natural integration without requiring much technical and security overhead. The Kyber Network also intends to welcome other applications to leverage on their liquidity protocol. Doing this enables various combinations of decentralized value exchanges to exist within the applications.
How Melon Integrates New Exchanges on Its Platform
Melonport’s modular architecture has made it relatively simple to incorporate a new exchange within its protocol. The integration has been made simple through the use of an exchange adapter.
An exchange adapter is fundamentally a smart contract that acts as a link between the exchange and the Melon fund.
The exchange adapter follows the smart contract interface by handling the logic for the taking and making of orders; while at the same time maintain the integrity of the fund.
To integrate a new exchange type, an adapter contract that follows the interface should be written. The smart contract should contain the code for the logic of handling orders.
Since Kyber Network doesn’t have an order book, Melon decided to aggregate prices from the KNC network to create an artificial order book.