Kyber is a blockchain-based liquidity protocol that allows decentralized token swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.
How Kyber’s On-chain Protocol Works?
The Kyber blockchain-based protocol, which is the liquidity infrastructure for decentralized finance. Kyber aggregates liquidity from diverse sources into a pool, which provides the best rates for takers such as DApps, Wallets, DEXs, and End users.
Providing Liquidity as a Reserve
Anyone can operate a Kyber Reserve to market make for profit and make their tokens available for DApps in the ecosystem. Through an open reserve architecture, individuals, token teams and professional market makers can contribute token assets to Kyber’s liquidity pool and earn from the spread in every trade. These tokens become available at the best rates across DApps that tap into the network, making them instantly more liquid and useful.3 Main Reserve Types
Kyber currently has over 45 reserves in its network providing liquidity. There are 3 main types of reserves that allow different liquidity contribution options to suit the unique needs of different providers.
Automated Price Reserves (APR) - Allows token teams and users with large token holdings to have an automated yet customized pricing system with low maintenance costs. Synthetix and Melon are examples of teams that run APRs.
Fed Price Reserves (FPR) - Operated by professional market makers that require custom and advanced pricing strategies tailored to their specific needs. Kyber alongside reserves such as OneBit, runs FPRs.
Bridge Reserves (BR) - These are specialized reserves meant to bring liquidity from other on-chain liquidity providers like Uniswap, Oasis, DutchX, and Bancor into the network.
Takers Access Liquidity for Multiple Use Cases
Kyber supports a wide variety of decentralized use cases. Vendors are able to accept payment in multiple tokens on their e-commerce platforms yet receive in their preferred token. DApps can also allow users who are not their token holders to utilize their services with other tokens, and DeFi projects can rebalance their token portfolio instantly.A good example of a DApp powered by Kyber Network is our in-house token swap service KyberSwap.com , which allows end users to seamlessly convert ETH and over 70 ERC20 tokens (including DAI, BAT, LINK, SNX, MKR) in a fast, simple, and secure way.
Kyber’s liquidity system is built based on 3 core design features
1. Fully on the Blockchain
Unlike off-chain or semi-off-chain systems, Kyber allows blockchain apps to easily integrate with its protocol.2. Liquidity Aggregation for the Best Token Rates
Kyber ensures the best rates by collecting liquidity from more than 40 different liquidity sources called reserves.3. Transparent and verifiable
All operations are fully transparent and verifiable on the blockchain. Kyber does not control user’s funds.Why Kyber Network?
Decentralized finance needs decentralized liquidity, and Kyber is the key infrastructure that provides the necessary liquidity for the whole ecosystem of DApps to operate. Kyber enables a wide range of decentralized use cases by allowing any wallet, website, and application to integrate instant token exchange directly into their application logic.Benefits of building with Kyber
Most used and integrated protocol in DeFi
As the leading liquidity infrastructure for DeFi, Kyber is being used by many projects around the world for their liquidity needs. Kyber is the most used and integrated decentralized finance (DeFi) protocol in the world, with over US$1 Billion worth of transactions and 1 Million transactions facilitated since its inception. Kyber supports over 80 different tokens, and powers over 100 integrated projects including popular wallets MEW, Trust, Enjin, Argent, and the HTC Exodus smartphone, as well as DeFi platforms Nuo, DeFiSaver, InstaDApp, Set Protocol, Melon, and many others.What can be powered by Kyber?
Kyber’s Mission
Kyber Network aims to be the transaction layer for the decentralized economy. Kyber has been instrumental in the development of smart contract security, sharding research, and decentralized applications. Kyber will enable a future where anyone who owns tokens can easily use them in any context they want. One can use gold-backed tokens to buy a T-shirt in a matter of seconds, invest in alternative funds in different parts of the world or use tokenized real estate to buy jewellery for a loved one. This is a future where seamless cross-border and cross-platform value flow becomes a reality.Kyber is a Member of:
* WrappedBTC DAO * Zcash Developer Alliance * Ren Alliance * Chicago DeFi AllianceKyberDAO
Kyber’s protocol is open source and governed by the Kyber Decentralized Autonomous Organization (KyberDAO), a decentralized community of KNC token holders who stake their tokens and collectively vote and decide on key protocol parameters. KyberDAO allows KNC token holders to participate in governance. KNC (Kyber Network Crystal) holders can stake KNC to vote on important proposals. In return, they receive rewards in ETH from network fees collected from trading activities in Kyber Network.
KyberDAO Partners
Reputable projects are supporting the KyberDAO, either by providing an easy way to stake KNC tokens or participating in Kyber governance. Reputable platforms such as Stake Capital, StakeWithUs, Trust Wallet, imToken, RockX Miner, and Hyperblocks have already expressed their support for KNC staking, and existing investors in Kyber Network, such as #Hashed and Signum Capital will also be participating in governance.Kyber Network Crystal (KNC) Token
Kyber Network Crystal (KNC) is an ERC-20 utility token and an integral part of Kyber Network. KNC is the first deflationary staking token where staking rewards and token burns are generated from actual network usage and growth in DeFi. KNC allows token holders to play a critical role in determining the incentive system, building a wide base of stakeholders, and facilitating economic flow in the network. A small fee is charged each time a token exchange happens on the network, and KNC holders get to vote on this fee model and distribution, as well as other important decisions. Over time, as more trades are executed, additional fees will be generated for staking rewards and reserve rebates, while more KNC will be burned.
Participation rewards - KNC holders can stake KNC in the KyberDAO and vote on key parameters. Voters will earn staking rewards (in ETH)
Burning - Some of the network fees will be burned to reduce KNC supply permanently, providing long-term value accrual from decreasing supply.
Reserve incentives - KNC holders determine the portion of network fees that are used as rebates for selected liquidity providers (reserves) based on their volume performance.
Other KNC use cases
Token statistics (17th June, 2020)
* KNC Total Supply (Deflationary): 210,626,963 * KNC Circulating Supply: 179,663,475 * Token Holders: 70,420Learn more about Kyber Network with these videos:
• Ep1-KyberDAO staking and voting
Kyber Milestones
• June 2020: Digifox, an all-in-one finance application by popular crypto trader and Youtuber Nicholas Merten a.k.a DataDash (340K subs), integrated Kyber to enable users to easily swap between cryptocurrencies without having to leave the application.
• June 2020: Stake Capital partnered with Kyber to provide convenient KNC staking and delegation services, and also took a KNC position to participate in governance.
• June 2020: Outlined the benefits of the Fed Price Reserve (FPR) for professional market makers and advanced developers.
• May 2020: Kyber crossed US$1 Billion in total trading volume and 1 Million transactions, performed entirely on-chain on Ethereum.
• May 2020: StakeWith.Us partnered Kyber Network as a KyberDAO Pool Master.
• May 2020: 2Key, a popular blockchain referral solution using smart links, integrated Kyber’s on-chain liquidity protocol for seamless token swaps.
• May 2020: Blockchain game League of Kingdoms integrated Kyber to accept Token Payments for Land NFTs.
• May 2020: Joined the Zcash Developer Alliance , an invite-only working group to advance Zcash development and interoperability.
• May 2020: Joined the Chicago DeFi Alliance to help accelerate on-chain market making for professionals and developers.
• March 2020: Set a new record of USD $33.7M in 24H fully on-chain trading volume, and $190M in 30 day on-chain trading volume.
• March 2020: Integrated by Rarible, Bullionix, and Unstoppable Domains, with the KyberWidget deployed on IPFS, which allows anyone to swap tokens through Kyber without being blocked.
• February 2020: Popular Ethereum blockchain game Axie Infinity integrated Kyber to accept ERC20 payments for NFT game items.
• February 2020: Kyber’s protocol was integrated by Gelato Finance, Idle Finance, rTrees, Sablier, and 0x API for their liquidity needs.
• January 2020: Kyber Network was found to be the most used protocol in the whole decentralized finance (DeFi) space in 2019, according to a DeFi research report by Binance.
• December 2019: Switcheo integrated Kyber’s protocol for enhanced liquidity on their own DEX.
• December 2019: DeFi Wallet Eidoo integrated Kyber for seamless in-wallet token swaps.
• December 2019: Announced the development of the Katalyst Protocol Upgrade and new KNC token model.
• July 2019: Developed the Waterloo Bridge , a Decentralized Practical Cross-chain Bridge between EOS and Ethereum, successfully demonstrating a token swap between Ethereum to EOS.
• July 2019: Trust Wallet, the official Binance wallet, integrated Kyber as part of its decentralized token exchange service, allowing even more seamless in-wallet token swaps for thousands of users around the world.
• May 2019: HTC, the large consumer electronics company with more than 20 years of innovation, integrated Kyber into its Zion Vault Wallet on EXODUS 1 , the first native web 3.0 blockchain phone, allowing users to easily swap between cryptocurrencies in a decentralized manner without leaving the wallet.
• January 2019: Introduced the Automated Price Reserve (APR) , a capital efficient way for token teams and individuals to market make with low slippage.
• January 2019: The popular Enjin Wallet, a default blockchain DApp on the Samsung S10 and S20 mobile phones, integrated Kyber to enable in-wallet token swaps.
• October 2018: Kyber was a founding member of the WBTC (Wrapped Bitcoin) Initiative and DAO.
• October 2018: Developed the KyberWidget for ERC20 token swaps on any website, with CoinGecko being the first major project to use it on their popular site.