Kyber Network’s DEX aggregator, KyberSwap, has surpassed $7 billion in total transaction volume, adding $3 billion in just 4 months in 2022, and has launched Arbitrum, a layer-2 solution for Ethereum. This card, its TVL reached 138.26 million US dollars, APY81%.
Polygon’s high-speed Layer 2 solution, Dynamic Market Maker, has been enabled on Kyber with the goal of enhancing liquidity on both platforms and increasing the overall exposure of the Polygon ecosystem. Through this partnership, Polygon’s vibrant ecosystem will gain access to the highly capital efficient and flexible Kyber DMM protocol, enabling more liquidity providers, traders and developers to effectively participate in the world of decentralized finance.
Introducing Kyber network
Kyber Network is a decentralized liquidity protocol that aggregates Dapp liquidity and allows cryptocurrencies to be exchanged without any intermediaries.
The Kyber network is based on the Ethereum blockchain. The network also integrates seamlessly with other blockchains that run using smart contracts. It allows immediate exchange of ETH and other ERC-20 tokens without any registration anywhere. Kyber provides liquidity pools (reserves) from different cryptocurrencies.
Therefore, users can conveniently utilize the reserves for exchange through any item. This means that any exchange that integrates with Kyber Network Crystal Legacy can allow users or traders to send any cryptocurrency, but receive their preferred crypto asset, which may not be the same as what they sent.
As a decentralized exchange, Kyber Network connects traders through liquidity pools rather than order books. The protocol’s smart contracts contain liquidity and transactions that can be completed without an intermediary.
Although Kyber Network has some differences in design, its operation is similar to some Defi projects such as Uniswap, Curve, SushiSwap, etc.
Despite its similarities to some exchanges, Kyber Network still retains its core characteristics that differentiate it from all exchanges.
The protocol creates mutual benefits among its multiple users. It creates a relationship that helps leverage large liquidity pools by aggregating various cryptocurrencies. Kyber Network enables users to conveniently exchange one token on its platform.
History of the Kyber Network
Victor Tran and Loi Luu founded Kyber Network in 2017.
Kyber Network was founded by Yaron Velner, Victor Tran and Loi Luu. Its headquarter is in Singapore.
Ethereum blockchain founder Vitalik Buterin is one of Kyber Network’s advisors.
Before Kyber, Luu was a blockchain consultant and researcher for various blockchains. He is also the founder of Oyente, the first open source security evaluator for Ethereum smart contracts.
What’s special about Kyber Network
The emergence of decentralized exchanges has made up for the shortcomings in the operation of the centralized system of cryptocurrencies. Increased costs and fees, slow transaction speeds, indiscriminate lock-up of wallets, and high levels of insecurity have all decreased.
Also, decentralized exchanges have their flaws. These include the high cost of trade modifications in the order book and a lack of liquidity.
To understand what Kyber Network Crystal Legacy does, let’s learn more about cryptocurrency liquidity. Liquidity can represent several things used in cryptocurrencies.
Liquidity refers to – the trading volume of the cryptocurrency market.
- The process of exchanging cryptocurrencies without losing their value or price.
- Ability to easily convert cryptocurrencies into cash.
Generally speaking, liquidity is an essential tool in the Defi ecosystem. Obtaining and maintaining liquidity is not easy for most exchanges. This is where KNC steps in. Kyber Network Crystal Legacy collects liquidity and creates reserves from different digital tokens.
The network always provides investors with reserves. Therefore, investors and traders without pre-orders can trade from their wallets. But in the process, traders will still retain custody of their tokens.
Therefore, KNC realizes the exchange of cryptocurrencies. It provides users with the lowest cost per transaction through the protocol.
Kyber Network Crystal Legacy also integrates seamlessly with other protocols. The crypto community calls it a developer-friendly project. A protocol that wants to integrate with KNC must be on a blockchain powered by smart contracts.
There are already multiple vendors, Dapps and wallets integrating the Kyber platform into their projects or products. Some of them include SetProtocol, InstaDApp, bZx, AAVE, MetaMask, Coinbase, etc.
According to the Networks website, the project already has over 100 integrations.
How Kyber Network works
Kyber Network hopes to guarantee liquidity and provide instant on-chain conversions by leveraging independently managed reserve pools.
This means that, unlike centralized exchanges, Kyber Network neither holds user funds nor global orders in third parties.
Simplified process description:
1.The user initiates a transaction request (using a market order or specifying a minimum conversion rate);
2.Kyber Network achieves the best conversion rate among the conversion rates provided in all its externally managed reserve pools;
3.The smart contract then executes the atomic transaction, and the user receives the transaction token directly in their wallet.
Kyber Network (KNC)
The Kyber Network Crystal Legacy native/main utility token is KNC (Kyber Network). The team launched the KNC token in 2017. The launch is an ICO for about $1 per token. The ICO’s KNC was 22.6 billion, but only 61% of that value was sold.
The founders/advisors and the company control the remainder 50/50. The lock-up period for this control is one year and the exercise period is two years.
Tokens effectively support the network. It creates a connection between liquidity seekers and liquidity providers.
The KNC token is the governance token of the Kyber Network ecosystem. By staking tokens, holders can vote for changes on the platform. Hence the token is classified as a governance token. Staking of tokens is made periodically in cycles called “epochs”.
Epochs are measured in Ethereum block time, which has a time frame of two weeks. Holders receive a portion of the fee from the protocol’s liquidity pool. Holders can also stake tokens to add value and increase adoption. This will cause the item value of its function to go up.
KNC also acts as a deflationary token. A portion of the tokens from fees are burned. This reduces the overall supply of cryptocurrencies. Deflation always has a positive effect on the economic flow of assets.
How to use Kyber Swap
1) Open the BitKeep wallet and switch the network to Polygon;
2) Click [Browser], enter [Kyber] in the search box, and then click [Kyber Swap];
3) Browse the Dapp information and click [Confirm] to enter the platform homepage;
4) After entering the Dapp homepage, click [Swap Now], select the currency and quantity you want to trade, and you can exchange it;
5) Click [Pools] to perform activities such as Defi mining, and users can explore other functions in the Dapp.