Kyber Network

What is Kyber Network Crystal (KNC)?

Kyber Network is a multi-chain crypto trading and liquidity hub that connects liquidity from different sources to enable trades at the best possible rates.

The technology provided by Kyber maximizes returns by connecting the deepest liquidity from diverse sources to provide the best rates and power applications like swap services, wallets, decentralized payments, and DeFi (decentralized finance).

Kyber Network is governed by its community via KyberDAO, a decentralized autonomous organization made up of Kyber Network Crystal token holders who vote on proposals that shape Kyber’s future.

The vision of the project is to become the liquidity hub for the decentralized economy, where any user or application can easily access the required tokens for their liquidity needs.

Who are the Founders of Kyber Network Crystal?

Kyber Network was founded by Loi Luu, Victor Tran, and Yaron Velner. Ethereum founder Vitalik Buterin was an advisor to the project when it began development in 2017.

Luu, the Chairperson of Kyber Group, is a blockchain researcher and developed Oyente, the first open-source security analyzer for Ethereum smart contracts. He also co-founded SmartPool and is credited for his work on Elastico, a scaling research project which inspired the design of Zilliqa.

Tran is the current CEO of Kyber Network and was previously the CTO at Clixy and 24/7 Digital Group. Velner, formerly the CTO of Kyber, stepped down from his role in 2019 to take up an advisory capacity. His focus is a project called B.Protocol, which he is the CEO of.

How Does Kyber Network Crystal Work?

Kyber Network Crystal’s flagship product is the Kyberswap protocol, which features several different implementations.

Kyberswap Classic is a protocol that introduces an AMM (automated market maker) with programmable pricing curves tailored specifically to each pair of assets in a liquidity pool. Classic amplifies liquidity pools to provide higher capital efficiency and better slippage. It also features a dynamic fee model that self-adjusts based on market conditions.

Then there’s Kyberswap Elastic Protocol, a version of noncustodial dynamic market maker protocol similar to Classic but differs in two major ways. Elastic allows liquidity providers (LP) to provide liquidity into a customizable price range with a concentrated liquidity feature similar to Uniswap V3. It also has a reinvestment curve that allows LP fees to be automatically reinvested and compounded.

The Kyberswap Aggregator is a multi-chain DEX (decentralized exchange) aggregator that provides the best rate for traders by interacting with Kyberswap liquidity protocols as well as others such as Uniswap, Dodo, and Curve across multiple chains. This is done by splitting trades and routing them through multiple liquidity sources.

Finally, the Kyberswap Interface is a web interface that brings it all together by allowing users to interact with the aggregator and the Classic and Elastic liquidity protocols.

What makes Kyber Network Crystal Unique?

One of the main advantages Kyber offers, superior to off-chain systems, is that Kyber allows blockchain applications to integrate easily with its various protocols, saving time and resources.

Kyberswap has already been integrated by a wide range of dApps, including Coin98 Wallet, Krystal, DEXTools, Kattana Trade, and many more. It also has links with aggregators such as 1inch, Paraswap, and 0x API.

All operations are fully transparent and verifiable on the blockchain, with permissionless access for any trader, liquidity provider, or dApp. Anyone can contribute tokens and utilize their capital efficiently, and Kyber can even cater to the needs of different liquidity providers and market makers.

How is the Kyber Network Secured?

Kyber Network’s products are decentralized applications deployed on the Ethereum blockchain. This means that they’re secured by Ethereum from a consensus and transaction standpoint, while the underlying smart contracts have been audited by several independent blockchain security firms.

What is the Use of KNC?

KNC, or the Kyber Network Crystal, is the utility and governance token of the Kyber Network, often referred to as “the glue that connects different stakeholders” across the ecosystem.

Token holders stake KNC and then vote to receive trading fees from protocols in the network. As more trades are executed and new protocols get added, stakers can generate even greater rewards.

Governance of the Kyber Network is carried out by KyberDAO, which is made up of KNC holders. The token is dynamic and can be upgraded but minted and burned by KyberDAO to better support liquidity and growth.

How Much KNC is in Circulation?

The KNC token has a circulating supply of over 164 million out of a maximum supply of 226 million. According to details released at the time of the project’s 2017 ICO (Initial Coin Offering), just under 40% of the supply went to the founders and the company behind the project, split equally, and 61% were sold in the ICO.

The ICO raised $52 million, and Kyber Network Crystals were sold for 0.00166 ETH.

How Do You Buy KNC?

You can buy KNC on Ethereum-based decentralized exchanges like Kyberswap itself. It’s also available on Uniswap and PancakeSwap, but Kyberswap provides a vast array of options regarding KNC trading pairs.

How Do You Store KNC?

You can store KNC in any Ethereum-compatible wallet, and easily configurable wallets like Metamask are very popular for projects like Kyber. In fact, Kyber documentation features an in-depth tutorial on how to get started with swapping, providing liquidity, and even yield farming using Metamask.

Is KNC a Good Investment?

Interoperability is a bit of a buzzword in blockchain, and for a good reason. Over the years, various projects have often worked on cross-purposes, and the very term “Ethereum Killer” highlights a major pitfall that a fledgling industry can face.

However, projects like Kyber Network Crystal that attempt to bring blockchains closer do exist. By operating across not just Ethereum but also Polygon, BNB Chain, Avalanche, and Fantom, Kyber just ends up serving end users better. This crucial part of the project’s vision could certainly stand it in good stead as cryptocurrencies mature and an interoperable ecosystem begins to emerge.