Summary
Founded by Lua Lu and Victor Trans in 2017, the Kyber Network is a multi-chain cryptocurrency liquidity hub that makes centralized finance trading more efficient and cost-effective, and makes centralized finance available to everyone in an easy, fast, secure, and low-cost way.
Its core product, KyberSwap, is a decentralized trading aggregator and platform that aims to become the best liquidity platform for swapping and earning on all blockchains, equipped with automated tools and software that help users make well-informed decisions and maximize their potential profits. KyberSwap is spread across more than 11 blockchains, including Ethereum, Polygon, BNB Chain, and Avalanche.
Kyber is a community-governed project, and the Kyber Network Crystal (KNC) token is an ERC-20 token used to distribute rewards to a number of interested parties. KNC token holders can store tokens on KyberDAO to vote on proposals and earn KNC rewards.
Kyber's reputation stems from its five years of experience in decentralized finance, bringing value to the ecosystem and prioritizing user security through smart contract audits and active blockchain security. The project's vision is to become the liquidity infrastructure and transaction layer for the decentralized economy as a whole.
What is KyberSwap?
KyberSwap.com is the decentralized exchange aggregator and main liquidity platform for the Kyber Network, aiming to offer traders the best swap rates and enable increased returns by enhancing capital efficiency.
As of June 2022, KyberSwap is spread across more than 11 chains, including Ethereum, Polygon, BNB Chain, Avalanche, Cronos, Fantom, Aurora, Velas, Oasis, Arbitrum, and BitTorrent, and integrates with more than 60 decentralized exchanges and supports more than 20,000 tokens.
KyberSwap allows users to seamlessly swap, earn, and participate in centralized finance across each of the supported chains. KyberSwap is a decentralized trading platform that is open to the public, meaning that users have complete control over their orders and funds.
KyberSwap aims to solve the daily liquidity problems faced by many traders in the centralized financial system and also increase the rewards for liquidity providers through more efficient pools of capital.
How does KyberSwap work?
For traders
KyberSwap provides access to over 20,000 tokens and $34 billion in total value locked across more than 60 decentralized platforms on 11 blockchains, while ensuring the best swap rates by using an advanced converter and highly efficient smart contracts as well as exploring arbitrage opportunities on the blockchain. Users can get the best prices and enjoy an advanced, easy-to-use interface that offers real-time price charts, free tools for professional traders, and real-time visual representations of trading paths.
By dynamically transferring across liquidity pools on each chain of over 60 decentralized trading platforms, KyberSwap gives users access to over 20,000 tokens, without having to check prices across multiple platforms or use different platforms on each chain. KyberSwap does not charge additional fees during collection.
For those seeking to identify new or notable tokens in central finance, they can enjoy the Discover page, a tool that helps users identify tokens that are likely to start spreading soon, determined based on on-chain data, trading volume, and price trend lines.
For liquidity providers
The KyberSwap protocol offers liquidity providers capital-efficient pools and security measures, such as anti-sniper measures, that protect liquidity providers from automated software that deposits and retrieves liquidity before high-volume trades are made. Capital efficiency also means that smaller pools can service very large volumes of transactions and trades, increasing returns for liquidity providers.
Additional automation provides further benefits to users, including depositing one type of token (so that liquidity providers do not have to deposit two sets of tokens) and automated accumulation (pool fees are accumulated automatically). These features apply to all 11 chains on the KyberSwap platform, and provide central finance users with access to numerous existing pools or even create new pools themselves.
KyberSwap adopts the Dynamic Market Maker (DMM) protocol, which is a modified version of the traditional Automated Market Maker (AMM) model used by Uniswap and other decentralized trading platforms. When the market is volatile, fees can increase dynamically to match the risks involved for each trade. When the market is stable and volatility is low, fees are lower. The protocol automatically recalculates the fees by analyzing the on-chain trading volume data for each liquidity pool.
This system is similar to ride-sharing applications such as Uber. During hours of heavy demand, such as rush hour, Uber ride prices rise. Likewise, prices decrease when demand for flights decreases.
KyberSwap's second feature is a "programmable price curve", called amplification (AMP). This allows liquidity pools to simulate high levels of liquidity without requiring more tokens. Liquidity providers can adjust the level of amplification according to the type of trading pair present in the liquidity pool. Trading pairs with lower deviation, such as stablecoins, will have a higher level of amplification.
On the other hand, more volatile trading pairs will have less amplification. Liquidity pools whose inflation level is equal to one are pools that operate according to a dynamic fee model, but without inflation. This allows projects to convert $200,000 in cash into actual $1 million in cash, increasing efficiency. Liquidity providers can also earn rewards via KyberSwap's liquidity mining farms.
What are the unique features of KyberSwap?
KyberSwap has a few features:
1. A more integrated liquidity aggregator and protocol.
2. Powerful user features: bundled with best prices, automation, security, and advanced tools available for free.
3. KyberSwap Liquidity Protocol The dynamic market maker protocol and amplification level are used to increase efficiency and reduce the risk of slippage and non-permanent losses. Slippage is the execution of trades at a lower or higher than desired price due to low liquidity (low orders). Non-permanent losses can be defined as a decline in the price of a digital asset after it is placed in a liquidity pool.
What is the Kyber Network Crystal (KNC) token?
Kyber Network Crystal (KNC) is the native token of KyberSwap that powers the Kyber Network ecosystem. The token operates on a Proof of Stake consensus mechanism, and its holders can participate in the decentralized organization and vote on all governance proposals related to the future of the network by storing KNC assets or delegating their votes to an external platform.
KNC holders can contribute their tokens to matching pools in order to receive liquidity mining rewards, and participants in other activities such as trading contests, Gleam giveaways, and question sessions receive rewards in the form of KNC tokens. KNC is traded on decentralized finance exchanges such as KyberSwap and on a number of centralized exchanges such as Binance.
How to use KyberSwap
If you're looking to swap your tokens on KyberSwap, follow the steps below to get started.
1.KyberSwap button.
2. Connect your decentralized wallet. KyberSwap supports MetaMask, Coin98, WalletConnect, Coinbase Wallet, and Ledger.
Choose the trading pair you want. You can check the details of your transaction on the “More Information” page.
4. Make the exchange and confirm the transaction on your digital wallet.
Other than swapping, users can also provide liquidity using one of the KyberSwap pools or create new ones. They can also store liquidity tokens in one of the condition-matching farms.
Concluding thoughts
The Kyber Network is the liquidity hub operating KyberSwap, the Ethereum-based decentralized trading platform. It is a hub for decentralized services and a place where centralized finance enthusiasts can build and trade to improve the cryptocurrency space. The decentralized trading platform on the Kyber Network, KyberSwap, is focused on improving the experience of liquidity providers and traders in the DeFi space.