Kyber Network Review

Kyber Network is a place that records rapid inflow of cash especially when DeFi tokens are exchanged. Care was taken in the design of Kyber Network to give anyone the chance to give what they have to the liquidity pool. Some are regular contributors and people interested in doing it once in a while.

Kyber would like to help ecosystems grow and that is why it opens more opportunities for finding the capital they need. Kyber believes all is not yet done with its strategies to make this happen so it is still working on improving its site for better experiences.

One of the most recent steps from Kyber towards embracing more ecosystems that needs help from it is the release of its Katalyst upgrade. The upgrade brought lower protocol fees, short order processing time, refunds, and low spreads.

Katalyst also saw the need to start up KyberDAO, which was a needful product for owners of KNC (the native token of Kyber) to partake in making decisions  while they get some Ether.

History

Kyber’s Initial Coin Offering in September 2017 fetched it $50M which was about 200,000 ETH at that time.

The ICO was divided into a private sale and a public sale. During the private sale, one KNC was priced at $0.357 and that led to the realization of $27M after its sales. The private sale lasted for just one day from 14th August to 15th August 2017. The following month, the public sale took place from the 14th September and it lasted for one day. The price of KNC rose to $0.440 and $25M was gotten.

Kyber has a seasoned team of experts. It consists of CEO Loi Luu who was one of its founders. The Lead Engineer is Victor Tran while the Chief Technology Officer is Yaron Velmer, who has a doctorate degree in computer science.

Kyber Network has a host of people it can run to for advice. These ones hold strategic positions in giant tech companies.

Well known investors are part of what is happening in Kyber Network. They include zk Capital and Amino Capital.

How Kyber functions

Kyber has several smart contracts which anybody can benefit from. With Kyber Core, one can have access to assets that are tradable.

·  A taker is someone who uses a contract to buy/sell tokens. Examples are traders, wallets and those that use Kyber’s applications.

·  When someone decides to give some liquidity to Kyber, he or she is known as a Reserve. You can only be recognized as one after registering on the allocated platform.

·   Registered Reserves are those who are always on call to fulfill the demands of takers.

·    A maintainer is someone who has the right to delist reserves and list new ones. His work includes making sure that Kyber is always in top gear.

Simple Token Swaps

Let’s use an illustration here. Assuming John has ETH but wants MKR, this can happen on Kyber without stress. The steps taken to do this are given below:

1.  John (who is now called the taker) will transfer his ETH to the smart contract that should send him the MKR.

2.  Kyber searches through all the available reserves that contain the two assets and presents them to John to compare their exchange rates. For example, John would see something like 1ETH=0.279 MKR. At last, one with the lowest exchange rate will be chosen for John. If John chooses more than one reserve, his ETH will be distributed among them at their respective exchange rates. Once this is done, John will receive his preferred token.

Token to token exchange

In this type, the token sent is not specified by the taker. Here is another illustration. If Mr. John has DAI but prefers to own some SNX, Just like in the first case, the exchange will be done in one attempt on the blockchain as follows:

1.    He will send his DAI in a bid to get SNX

2. The contract supplies DAI to one or more reserves with the lowest price for DAI/ETH
3. Protocol contract now gets some Ethereum
4. With the ETH, Kyber finds one with the lowest price for ETH/SNX pair
5. SNX is sent to the protocol contract from the reserve and the SNX finally reaches the taker.
About KNC

Contributors to Kyber protocol benefit with the KNC (Kyber Network Crystals) token. When it was first released, the protocol used the law of demand and supply to increase the value of KNC by burning some.  The method changed few weeks before New Year 2020 with the introduction of Katalyst. Now KNC gets its value from being a governance token. Most of what is debated about with the token is how to share fees. These include:

Staking Rewards: This is what owners of KNC get in return for offering it up to the KyberDAO
Reserve Rebates: This goes to those that supply liquidity to the network. What they get depends on the profits made from exchanges.
Token Burns: It takes this amount of money to remove KNC from the competitive market.

When Katalyst started, Staking Rewards got 65% of the tokens while Rebates and token burns shared the rest with Rebates getting six times as much as token rewards.

Apart from introducing governance, there were other important changes made:

·   Developers now have the right to determine their fees.

·   Being a reserve manager no longer depends on one’s ownership of the native token

·   Takers can now get liquidity from many reserves at the same time.

KNC Stake
To take part in making decisions, you would have to give up your KNC when you go to the platform for voting. A single stake can qualify you to vote for several days depending on the value of your KNC.

Summary
Kyber has crept into the hearts of so many individuals and protocols that have for long, wished to have a fast and convenient way of exchanging tokens. The website is good and easy for anyone to use.

Surely, liquidity will always be the strength of DeFi companies. With so many users on Kyber’s network always trying to do some exchange, Kyber is sure of outperforming its competitors in terms of having the highest cash-inflows.

More on Kyber can be seen on Twitter and Discord.

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