Kyber(KNC) Network Reviews and Opinions 2022
Can Kyber Network be a exchange world class?
What sets it apart from others scholarships decentralized?
The exchanges have vu their liquidity and user base multiply month after month in recent years. For this reason, decentralized alternatives to classic exchange houses have emerged, but what novelties do they bring and how can they improve the crypto ecosystem?
In this article, I will tell you what the Kyber network is, how it works, what this protocol allows you to do, and what you can expect from your KNC token.
Introduction What is the Kyber Network?
Kyber Network is a liquidity protocol in chain which aggregates liquidity into a large number of pools to enable instant and secure exchanges of tokens and cryptocurrencies on any decentralized application (DApp).
Additionally, Kyber makes it very easy to use by allowing anyone portfolio, website or application to integrate cryptocurrency exchanges into its protocol.
But there are already many platforms and scholarships which provide access to liquidity pools and facilitate trading on the blockchain. So, what advantage does Kyber have? If you have taken a look at some liquidity pools, you will have noticed that in some there is practically no cash.
This is a big deal, as it can have a serious impact on a user's average purchase price. Kyber is trying to unify all of these markets, so that liquidity issues in some pools won't hurt any investor.
But Kyber Network not only wants to help investors achieve cryptocurrency exchanges, but also seeks to play a key role in the development of payments and decentralized finance.
Origin of the Kyber Network
Although Kyber Network is a very recognized platform in the crypto market today, its origins only date back to 2017. In that year, the platform developed in Singapore by Loi Luu, Yaron Velner and Victor Tran succeeded in raise a capital of 200 ETH in a single day (000 million dollars at the time).
The platform finally started operating in early 2018, and since then it has seen its user base grow by leaps and bounds.
More recently, they developed version 3.0, which completely reshapes the way of approaching the Kyber network. Previously, Kyber was a single protocol providing liquidity for many tasks, but now it has become a hub of protocols, each tailored to a specific project.
Additionally, they also developed the first exchange DMM( Dynamic Market Maker), with better performance than AMM( Auto Market Maker) like Uniswap or PancakeSwap.
How to register on Kyber? It's certain?
If you want to start using the Kyber exchanger, you should know that it is not necessary (but recommended) to open an account on this platform. Kyber is a exchange non-custodial, so they don't receive your crypto at any time.
To be able to trade within their KyberSwap platform, all you need to do is connect your cryptocurrency wallet. Currently, those allowed are:
- Coinbase Wallet
- Wallet Connect
Additionally, you can connect your cryptocurrency wallet with the private key or the key store.
But as I said, it is interesting that you create an account by providing your personal data, since you have advantages such as: being able to set price alerts and place limit orders on cryptocurrency pairs.
If you decide to do so, you can create your account using an email and password or by logging into one of the following social networks: Facebook, Google, Twitter or Telegram.
Regarding security, you must take into account a very important detail that I mentioned before, that Kyber is a exchange non-custodial, that is to say that he can never have your crypto-currencies in his possession.
All transactions within Kyber are conducted on the blockchain and, as such, must be validated and verified by minors. Therefore, the security of this platform depends on your portfolio and the Ethereum blockchain.
How does the Kyber network work?
Chances are right now you're wondering how the whole Kyber ecosystem works, right? Explaining it in detail would take a lot of time, but this summary will help you understand how the whole Kyber network works:
The Kyber protocol works thanks to 3 components:
- Kyber Swap: It is the platform where users can trade cryptocurrencies and tokens instantly and without the need to create an account, just by connecting their portfolio.
- Kyber Reserve: it is the system with which the exchange is fed with liquidity so that it can make the trades, but remember, these pools also provide liquidity to other platforms. The reservation system for these funds is very transparent, and all transactions made with them are recorded.
- Kyber Developer – is the branch of Kyber that allows developers to integrate the protocol into their decentralized applications, exchanges, portfolios or private projects. Here you will find all the documentation and tools necessary for these people to carry out the installation.
Of course, for all of these components to work properly and in coordination, there are different roles within the Kyber Network that play a specific role:
- Users – Users are the entities that use the Kyber network to send and receive cryptocurrencies. I talk about entities because these users can be people, companies or even smart contracts.
- Reserve entities: Standby entities are those that provide liquidity to the Kyber protocol, either from the Kyber platform itself or from a different DApp. Public entities can be distinguished(if cryptocurrency liquidity is provided from those that are HODLed), and private entities if the opposite occurs.
- Reserve Contributors: are entities that provide liquidity to public reserve entities.
- Reservation Manager: the role of these entities is to calculate the exchange rates, transmit them to the network and maintain the reservation. These users make their profit by adding a little extra to the exchange spreads.
- Operator: they are in charge of adding or removing reserve entities and adding new tokens to the platform. This role is currently limited to the internal Kyber team, although they are working to have this task handled in a decentralized manner by governance.
KyberDAO is Kyber's governance platform, where users holding KNC tokens will be able to make decisions and vote on the platform. Moreover, KyberDAO also aims to make KNC investors keep their tokens as long as possible by offering them very high rewards for the staking.
In this way, the holders of KNC can currently make decisions on these 3 areas:
- Rewards for voting
- KNC token burn
- Rewards for providing liquidity
KyberSwap is the Kyber Protocol cryptocurrency and token exchange platform. It is accessible from the Internet, but you can also download its mobile application, which you can find in the App Store or Google Play.
From the KyberSwap you can exchange cryptocurrencies( tab swap), buy cryptocurrency pairs with limit orders( tab limit order) and transfer cryptocurrencies to other wallets( tab a transfer).
To make transactions, KyberSwap does not charge any fees, although you have to pay Ethereum blockchain fees. These commissions will largely depend on when you make the transaction, so you have to be very careful.
However, KyberSwap charges a small commission for limit orders, although as a plus point, it's worth noting that you won't have to pay network commissions, as they are included in the price. These commissions are:
- 0,5% for purchases equal to or less than 5 ETH
- 0,2% for purchases over 5 ETH
The KNC token
The Kyber Network also has its own token, the Kyber Network Crystal (KNC), which is intended to be a governance token and provide liquidity to the system. So, when a transaction takes place and users pay commissions, part of it is transferred to liquidity providers, and a small part is burned, thus maintaining currency deflation.
It should also be noted that the token is the connection point between Kyber and the rest of the exchanges and DApps which provide liquidity to the system.
The KNC token was launched in 2017 at an initial price of $1 per coin, unlocking the maximum supply of the coin (226 million) at the time. As I said, these tokens are slowly burning, and the current supply has already dropped to 205 million tokens.
The KNC price experienced a real tree in recent months, it was only in the first half of 2021 that its price rose from $0,8 to more than $4,3 per coin. However, this figure is still far from the high of $5,99 reached in 2018.
However, a clear upward trend can be seen on the chart since the end of 2019, and it is currently ranked #117 on CoinMarketCap with a capitalization of $394 million.
How to buy KNC
The Kyber network has grown in popularity in recent months, so today you can buy KNC tokens on many exchanges. I personally recommend Coinbase, one of the best options in terms of simplicity, security and commissions.
If you want to buy KNC tokens on Coinbase, all you have to do is create an account and deposit funds via wire transfer or buy cryptocurrencies with a debit or credit card.
Either way, all you have to do is search for the cryptocurrency, click “Buy”, select the money you want to spend and confirm the operation. On the computer, you can do this from the "Operate" section, previously called "Price", and on the phone, this is done from the blue button that appears at the bottom of the screen.
Pros and cons
Like any platform or project DeFi, the Kyber Network has its positives and negatives.
Transactions are instantaneous, so there is no need to wait for the blockchain processes the transaction and commits it.
Liquidity can be added from many platforms, which decentralizes the system and allows both large, well-known projects and newer projects to have liquidity.
Voting in KyberDAO is fairly quick, allowing the Kyber team to draw conclusions and implement changes as soon as possible.
The Kyber protocol is constantly burning KNC tokens, so the price of the coin tends to increase over time.
When sending tokens or making payments to other wallets, the tokens sent do not have to match the tokens received. So you can make payments in any currency without having it, since the conversion is done chain(along the way).
Decisions such as which tokens to list or which reserve entities to create are not yet controlled by governance, and even worse, these decisions are entirely the responsibility of the development team.
Final opinions and conclusion
Kyber Network is one of the DeFi projects that is really worth watching. Her goal is to become a big stock Exchange decentralized (DEX) characterized by its speed, trust and almost non-existent fees.
The use of this platform and the number of holders from KNC have increased over the past few years, and the project's development team is working hard to make the Kyber network popular.
It should also be noted that in the coming months we may see how other scholarships Decentralized companies such as PancakeSwap or Uniswap take on a similar address to Kyber, absorbing part of its market and relegating it to the background.
At the moment it's unclear what will happen next, but what we can say for sure is that Kyber has an interesting project. Therefore, if the team works smart and more investors use the platform, we could consider Kyber as one of the best decentralized exchanges in the future.
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