Kyber Network Review KNC | Coin Bureau
Defi is a fast moving rapidly evolving space in the blockchain industry. From flash loans, decentralized exchanges, derivative portfolio management, uniswaps, and so forth. Almost every week there is a new project that claims to be the best thing since sliced bread. Now, not all these projects that are being released will be here to stay, however defi itself is. The Kyber Network looks to be one of the strongest projects that has the potential to make big waves in the defi space.
Kyber Network Overview
The Kyber Network is a decentralized exchange protocol that provides on-chain liquidity. By on-chain liquidity, it means it is able to give users the ability to swap and exchange ERC-20 tokens with one another on the Ethereum blockchain. The Ethereum blockchain is the most widely used smart contracts platform and a growing world computing machine. Kyber Network allows such transfers to happen through single transactions using smart contracts. Transactions and token exchange rates are taken from an aggregated liquidity pool across multiple sources to give users the best rates available.
Kyber Network Flow
The Kyber Network consists of 'takers', 'makers' and 'maintainers'. Takers take liquidity from the protocol by calling Kyber Networks core smart contract. Takers are end users, exchanges, wallets, and dapps.
Makers aka 'reserves' which provide liquidity to the network for token inventory and pricing. The reserves interact with the Kyber Network's interface smart contracts. When Kyber matches a trade it will find the best trading conditions and execute it all within one single transaction with the best course of action through an automated decentralized instantaneous execution.
Maintainers are parties that have permissions to access the functions. The Kyber Network team for example has access to certain functions.
4 Benefits to using Kyber Network
- Instant trade settlement - You don't have to wait for any order fulfillment because settlement and matching is all done within one single transaction.
- There is no partially executed orders - it is all done or none of it is done (executed or reverted).
- Complete transparency - anyone can verify the rates that are being offered by the reserves to ensure they are getting the best rates available at the time of execution.
- Easy to integrate - Kyber Network is simple to use and is easily integrated with smart contracts using the Ethereum blockchain.
Kyber Network Use Cases
- Off chain token swaps
- Currency and token conversion
- NFT payments
- Auto balance token portfolio weightings
- Tokenized lending
- Margin trading
- Cross chain inter-operability (Ethereum to EOS for example)
Kyber Network Updates
- Waterloo Bridge - a cross chain protocol that allows users to interchange value, tokens, and execute smart contracts across different blockchains.
- Katalyst - a protocol upgrade that will increase liquidity and stake holder rewards/participation. The current protocol is designed to burn token fees or paid over to the dapp integrations. This will create a stronger governance model.
Kyber KNC Token
The Kyber Network KNC token facilitates smooth operation of the decentralized liquidity network. Prior to updates one of the only ways that KNC holders would benefit was from the burning of tokens when fees occurred. This creates a benefit for those who HODL long term.
The burning alone is not enough incentive and it does not reward those who participate in the network. The network will not grow exponentially without the participants being rewarded. This will change with the release of the Kyber Dow and reserve incentives. Burning will still take place on the protocol but holders will also have the opportunity to earn more KNC through the following.
- Staking on the Kyber Network - Stake and participate in the KyberDAO to get rewards from the network fees.
- Reserve incentiveskyber network katalyst upgrade
- - Rewards for providing liquidity and being a market maker. This creates more trading opportunities and helps to grow the Kyber Network ecosystem as a whole.
The Kyber Network Team has been doing a great job at building a strong global community. They have been active with meetups across many countries. They are one of the most active projects in the Ethereum community. They have been present and active at Blockchain Week in Germany, to ETH India, to ETH Denver. There have been a number of Kyber Network hackathons and events. Watch the crypto video above to get all the details on Kyber Network and where it is heading in the months and years to come.