Posted 9 months ago | by Ben Armstrong
Kyber Network’s Coin is on the Rise and Seem Unstoppable
Kyber Network was launched in February of 2018 as a decentralized exchange (DEX) liquidity protocol using the Kyber Network Crystal (KNC) token.
KNC jumped from roughly $0.18 in December of 2019 to $1.86 by July of2020, a whopping growth of 1033% in price according to Missaro.
At this time, traders don’t need to use the KNC token but will be able to use it for staking rewards and to vote on development decisions in the near future with the launch of Katalyst.
Kyber provides a decentralized means of exchange to compete with centralized crypto exchanges, connecting various token ecosystems to enable the free flow of assets through the decentralized web.
To learn more about the future of the Kyber Network and BitBoy Crypto’s predictiosn, watch his youtube video:
A Peek into Kyber
Kyber works differently than other exchanges behind the scenes, performing certain processes to improve the liquidity and grow the value of its token.
The platform has token reserves which contain various assets that “takers” (users, decentralized applications or Dapps, exchanges, and wallets) can exchange with token holders, token projects, market makers, or liquidity pools providing the assets for these reserves.
So instead of only being able to use KNC in the Kyber ecosystem, you can use it with any Ethereum-based ecosystem that’s connected to Kyber Network.
Kyber is Composed of 4 Main Elements
Kyber consists of 4 basic components that power the ecosystem and enable users to take advantage of all the features the exchange provides.
These components are:
- Kyber Swap – Allows users to buy and sell different tokens with instant transactions without the need for deposits or order books.
- Kyber Developer - Allows developers to integrate any project into the Kyber network’s liquidity pool as well as developing any type of financial dApp by using the development tools provided by the Kyber Network.
- Kyber Reserve – Is the reserve that provides liquidity to the entire Kyber network, allowing traders to avoid partial fulfillment of their orders.
- Kyber GO - A retail platform for token sales that helps development teams to avoid wasting time and resources by creating their platform.
Benefits of Using Kyber
The exchange provides transparency as all Kyber Network transactions are recorded on the public Ethereum blockchain, allowing users to verify things like exchange rates offered by reserves to confirm they are getting the best exchange rates
Unlike most centralized and some decentralized exchanges, buy or sell orders are not partially fulfilled due to the existence of the Kyber reserve’s assets to prevent dependency on a single buyer/seller.
Kyber makes it easy for Dapps, wallets, and other crypto entities to plug into Kyber’s liquidity and enhance their offerings by facilitating integration for Dapps, wallets, and other crypto services.
The network also sports numerous partnerships a partial list of partnerships split into sections that include names like MyEtherWallet, Enjin Wallet, Coinbase, Axie Infinity, and CoTrader.
Kyber’s Reserve Benefits Users and Contributors Alike
Reserve contributors pay a fee for every transaction, which prevents them from wash trading or creating fake buying and selling activity in the network.
These contributors have an incentive to participate in the network as they can make money off the spread or the difference between buying and selling prices but need to make sure that this spread is competitive as Kyber automatically matches takers or token exchanges with the best rates.
30% of the transaction fees that reserve contributors pay for Kyber Network transactions go to Kyber Network integrations like Dapps, wallets, exchanges, and businesses.
These integrations earn KNC from any transaction they facilitate, incentivizing them to onboard more users to their products, growing Kyber Network, and its exchange activity even further.
Burn KNC Burn!
While 30% of the transaction fees that reserve contributors pay to operate in the Kyber Network go to Dapps and other Kyber integrators, a whopping 70% is burned or sent to a random, unusable wallet address.
In other words, by making part of the Kyber transaction fees forever useless with every transaction, the total supply of KNC tokens goes down with every Kyber Network transaction which according to basic economics, should theoretically make the price go up if demand is stable.
Combining the constant burning as well as the coming staking launch of the Katalyst protocol expected to take place on July 7 of 2020, will incentivize its reserve contributors to participate further via staking by paying them for participating in Kyber Network governance.
What Does the Future Hold for Kyber?
The team is also planning on integrating what they call Waterloo, Kyber’s plan to bridge Ethereum with EOS, the 2nd biggest smart contract platform.
Notably, the Kyber team also has Vitalik Buterin, Ethereum’s founder, as one of their advisers in partnership with other talented members with years of experience in the industry
Kyber Network also recently announced it would be integrating Chainlink into is a network by adding Chainlink price feeds to improve token swap pricing through Chainlink’s revolutionary oracles, resulting in improved pricing will allow for faster and more importantly more accurate transactions.
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