WTF is Kyber Network?
Blockchain platforms, decentralized apps, smart contracts, crypto – these are the building blocks of decentralized autonomous exchanges, and so much more in the blockchain space. Experts prefer recommending platforms that are safe and secure for investors, and one of the platforms that offer the best security is Kyber Network. It supports token swaps for hundreds of decentralized apps, DeFi platforms, and crypto wallets without requiring an intermediary.
What is Kyber Network?
Kyber Network is a blockchain-based protocol on a decentralized platform that aggregates liquidity. Additionally, it allows tokens to be exchanged without the need for an intermediary. You can integrate Kyber Network into decentralized apps, decentralized finance platforms, and crypto wallets. The Kyber Network Crystals token holders govern the protocol through KyberDAO. DAO is a decentralized autonomous organization that works closely with the native token, Kyber Network Crystals.
One of the reasons why Kyber Network is already so popular among investors is it offers the best liquidity to its DeFi system. In the crypto community, liquidity can mean various things, such as the amount of your trading activity in the market, the ability to exchange assets without shifting their prices substantially, and the level of ease at which you can convert your asset into cash. Liquidity is a crucial factor when it comes to functional and user-friendly markets. However, it's often difficult for the latest DeFi protocols to retain and attain liquidity simultaneously.
According to the traditional financial market setup, those who provide liquidity work as centralized entities, such as financial institutions and banks. But if you want to utilize these centralized entities to provide DeFi market liquidity, it would mean running contrary to its ecosystem's ethos that doest support decentralization. This means it won't support decentralization because of its complicated structure. That's why a number of permissionless protocols like Kyber Network are coming up to fill the void created by the centralized entities. Kyber Network aims to create a network system where you can exchange any token of value, swap it for anything in your wallet, pay for payment services, and even purchase newly-developed financial products.
What makes Kyber Network exciting?
Kyber Network sets itself apart with its smart contracts. It allows you to implement smart contracts on any type of smart contract-capable blockchain. As of now, you can implement it on Ethereum, but you can expect to see changes soon. Its decentralized protocol aggregates liquidity from various reserves, such as market makers, decentralized exchanges, and token holders in one single liquidity pool. Another advantage of this network is anyone can provide liquidity.
This network enables three primary users: crypto wallets, vendors, and decentralized apps, to execute quick token swaps without requiring the help of a third party. Kyber Network provides two types of trades.
In one of the trades, the token represents the core assets. For example, Ether is now the token that you can implement in the Ethereum protocol. That means any trade you make should involve an exchange of Ethereum for another token. But what if you want to trade BAT for ETH or vice versa? Here's what you need to do:
• You will first have to send your ETH to Kyber Network via a smart contract.
• The contract will scan the market immediately and come up with the best exchange rate for ETH to BAT or vice versa.
• The contract will then send your ETH to its reserve and determine the quantity of BAT according to the best exchange rate.
• Finally, the reserve will send you the amount of BAT that comes within the amount of ETH you had sent earlier.
Now that you know how to exchange ETH with another token, let's take a look at how you can exchange BAT with another token that's not ETH. Let's consider DAI for this example.
• You will first have to send your BAT to Kyber Network via a smart contract.
• The contract will then go through the entire market to find the best exchange rate available for BAT to ETH exchange. It won't directly provide a BAT to DAI exchange because of its exchange protocol.
• The contract will then send your BAT to its reserve with the best exchange rate for BAT to ETH.
• The reserve will then send the amount of ETH to your contract.
• Next, the contract will again scan the market for the best exchange rate for ETH to DAI.
• It sends the ETH to its reserve with the best possible exchange rate.
• Finally, the reserve sends you the DAI that comes within the amount you had allotted earlier.
Although the first trading method involves fewer steps, both trades are quite complicated to perform on a single blockchain transaction. With Kyber Network, all your trades get instantly settled on the blockchain, and it will either get executed immediately or get reverted. In layman terms, your trades won't ever get partially executed like in some of the other platforms. In addition to that, you can publicly verify whether the exchange rates provided by the reserves are the best or not. You can send a query via your smart contract.
The Kyber Network has a plethora of uses when you integrate it into decentralized apps, crypto wallets, and DeFi platforms. Suppose a decentralized app wants to accept users who don't hold any native token. Kyber Network can provide the platform to integrate the decentralized app to allow in-app token swaps and various other token conversion functionalities. This would enable the decentralized app's users to utilize the Kyber Network and use tokens supported by the platform and simultaneously enable the app to receive payment in tokens that the user has.
The Kyber Network token and governance model
First of all, you need KyberDAO as it's the platform via which you can participate in the Kyber Network governance. Only KNC holders can participate in this governance and that too if they have KyberDAO. You can stake your coins before voting on various subjects, such as the network's fee model and rebates for reserves. This will also enable you to earn staking rewards that you may use to dominate later.
A big advantage of the governance model of Kyber Network is its native token. KNC is a deflationary staking token. This means its supply will slowly decrease over time. According to the latest reports, KNC is an ERC20 token from December 2020. But that doesn't mean the network can't anticipate changes in the future. Kyber Network can anticipate some of the tokens that are most likely to find their way into its blockchain system. But that won't affect its supply. The network will consider its supply as if you are working with a single token.
The developers are also coming up with newer technologies that would enable KNC transfer across various blockchain platforms. That would help the investors further as they wouldn't need to go through the extra step of converting their tokens to ETH before receiving another token. In addition to token exchanges, Kyber Network is also improving its broadly integrated protocol.
According to this protocol, you will receive on-chain, decentralized solutions for all your DeFi's liquidity challenges. It will offer ERC20 tokens that work on the ecosystem-wide utility.
Who is on the Kyber Network team?
Kyber Network has one of the biggest development teams in the blockchain platform network. Here's a list of all the crucial members responsible for taking this platform forward:
• Loi Luu – Co-Founder and CEO
• Yaron Velner – CTO and Co-Founder
• Victor Tran – Co-Founder and Lead Engineer
• Myra Loh – CEO
• TN Lee – Head of Business
• Spyros Vrettos – Trading Analyst and Developer
• Joseph Lee – Lead Trading Platform
• Bo-yeon Beon – Marketing Manager
• Sandra Vu – Designer
• Thi Mang Cut – Project Manager
• Tal Baneth – Team Leader
• Andrew Nguyen – Technical Manager
• Nam Nguyen – Developer
• Huy Tran – Developer
• Tuan Nguyen – Developer
• Duc Tran – Developer
• Ilan Doron – Developer
• Ha Hoang – Developer
• Wong Lee Hong – Executive Advisor
• Liem Nguyen – Developer
• Vitalik Buterin – Advisor
• Leng Hoe Lon – Executive Advisor
• Chionh Chye Kit – Advisor
• Kenneth Oh – Advisor
• Prateek Saxena – Advisor
• Pandia Jiang – Advisor
• John Ng Pangilian – Advisor
• Simon Kim – Advisor
• Hwisang Kim – Advisor
What funds Kyber Network?
The company managed to raise more than $60 million from 13 investors. Some of the most notable names among the investors are Rockaway Blockchain Funds, Iconium, IOSG Ventures, 8 Decimal Capital, Fenbushi Capital, Chain Capital, Hashed, Fundamental Labs, and Amino Capital. Kyber Network even invested $5 million in Delta Exchange at the time of its ICO.
How to participate in the Kyber Network network?
You can follow two ways to participate in the Kyber Network network.
- Buy the token!
- Use the platform!
- Stake KNC with the KyberDAO
- Join the community!
Experts claim that Kyber Network has the potential to become one of the best blockchain platforms in the world. Investors are hopeful that it will soon change its token policy and make it more flexible for everyone.
After months of research, we're excited to unveil the mainnet beta of Kyber Dynamic Market Maker (DMM) protocol! 🚀https://t.co/RjjAK3qe5V is a next-gen AMM designed to optimise fees and enable extremely high capital efficiency for liquidity providers. https://t.co/aSMArRzw7t pic.twitter.com/QyvPEIOeQb— Kyber Network (@KyberNetwork) April 5, 2021