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Kyber Network was founded by Loy Luu and Victor Tran in 2017. It is a cryptocurrency multi-chain liquidity hub that improves the efficiency and profitability of DeFi trading and provides access to DeFi in a simple, fast, cheap and secure way.
Its flagship product, KyberSwap, is a decentralized exchange (DEX) and aggregator that aims to be the best liquidity platform for swapping and earning across all networks. It provides tools and automation to make informed decisions and improve profits. KyberSwap is deployed on more than 11 networks, including Ethereum, Polygon, BNB Chain and Avalanche.
The Kyber project is community-driven, and the Kyber Network Crystal (KNC) token is an ERC-20 token that is used to motivate all participants in the ecosystem. KNC holders can stake tokens on KyberDAO to vote on proposals and receive KNC rewards.
Kyber's strong reputation stems from 5 years of experience in the DeFi sector, developing ecosystem value and ensuring user safety through smart contract auditing and blockchain insurance. The project's mission is to provide liquidity and transaction execution infrastructure for the decentralized economy.
What is KyberSwap
KyberSwap.com is the flagship DEX aggregator and liquidity platform of the Kyber Network, which aims to provide traders with the best exchange rates while enabling liquidity providers to maximize profits through efficient use of capital.
As of June 2022, KyberSwap is deployed on over 11 networks, including Ethereum, Polygon, BNB Chain, Avalanche, Cronos, Fantom, Aurora, Velas, Oasis, Arbitrum and BitTorrent with over 60 integrated DEXs and support for over 20,000 tokens.
KyberSwap allows users to exchange, earn, and participate in the DeFi ecosystem on each of the supported networks. KyberSwap is a public decentralized trading platform where users have full control over their orders and funds.
KyberSwap aims to solve the liquidity problems faced by many traders in the DeFi sector, while also providing high rewards to liquidity providers through pools with high capital efficiency.
How does KyberSwap work?
Traders
KyberSwap provides access to over 20,000 tokens and $34 billion in TVL across over 60 decentralized exchanges across 11 networks. In doing so, it provides the best exchange rates through the use of an advanced router and smart contracts, as well as on-chain arbitrage capabilities. As a result, users receive the best rates, a user-friendly interface with real-time price charts, free professional-grade tools, and live visualization of trading routes.
By dynamically routing from over 60 decentralized exchanges to liquidity pools on each network, KyberSwap gives users access to over 20,000 tokens without having to check rates on different platforms or use different platforms on separate networks. However, KyberSwap does not charge additional fees for aggregation.
To search for DeFi tokens, you can use the Discover page in KyberSwap. This tool helps users find tokens that are likely to trend soon. Potential popularity is determined based on network data, trading volume and trend lines.
Liquidity Providers
The KyberSwap protocol provides liquidity providers with pools with high capital efficiency, as well as protection against various attacks such as sniping, protecting providers from bots that inject and withdraw liquidity ahead of large trading volumes. Capital efficiency also means that small pool sizes can service very large volumes of trades and deals, providing superior returns for providers.
Automation provides additional benefits for users, such as single token entry (so providers don't have to deposit two sets of tokens) and automatic compounding (pool fee compounding is done automatically). All of these features function across all 11 KyberSwap networks, giving DeFi users access to various existing pools and allowing them to create their own.
KyberSwap uses the Dynamic Market Maker (DMM) protocol, which is a modified version of the traditional Automatic Market Maker (AMM) model used by Uniswap and other DEXs. When market volatility is high, fees can dynamically increase to better reflect the risk on each trade. In a stable market, volatility is reduced and fees are reduced. The dynamic market maker automatically recalculates fees by analyzing network volume data for each liquidity pool.
The system is very similar to ride sharing apps like Uber. During times of high demand, the price of Uber rides increases, and at other times, on the contrary, it decreases.
The second feature of KyberSwap is a “programmable price curve” called Amplification (AMP). It allows the liquidity pool to simulate a higher level of liquidity with a small number of tokens. Liquidity providers can set their own AMPs depending on the token pair in the pool. Pairs with smaller deviations, such as stablecoins, will have a higher AMP.
On the other hand, more volatile pairs will have a lower AMP. If the liquidity pool has an AMP of one, then it operates in accordance with the dynamic commission model, but without amplification. This allows projects to turn $200K into over $1M in effective liquidity to improve efficiency. Liquidity providers can also earn rewards through liquidity mining farms on KyberSwap.
What makes KyberSwap unique?
The KyberSwap project is unique for several reasons:
1. High integration of the aggregator and liquidity protocol.
2. Strong advantages for users: aggregator of the best courses, automation, security and free advanced tools.
3. The KyberSwap liquidity protocol uses a dynamic market maker and Amplification to improve efficiency and reduce the risks of slippage and volatile losses. Slippage occurs when a trade is executed at a lower or higher price than expected due to low liquidity (thin order book). A non-permanent loss can be defined as a decline in the price of a crypto asset after you have placed it in a liquidity pool.
What is Kyber Network Crystal (KNC) token?
Kyber Network Crystal (KNC) is the native token of KyberSwap that powers the Kyber Network ecosystem. Thanks to the Proof of Stake (PoS) consensus mechanism, KNC holders can participate in the DAO and vote on all network development proposals by staking their KNC or delegating their vote to a third-party platform.
KNC holders can deposit KNC into their respective farming pools to receive liquidity mining rewards. Users are also rewarded with KNC tokens for participating in trading contests, Gleam giveaways, and AMA sessions. KNC is traded on DeFi exchanges such as KyberSwap and several centralized exchanges such as Binance.
How to use KyberSwap
If you want to exchange cryptocurrency on KyberSwap, follow the instructions below.
1. Go to KyberSwap.
2. Connect your DeFi wallet. KyberSwap supports MetaMask, Coin98, WalletConnect, Coinbase Wallet and Ledger.
3. Select the desired token pair. You can check the details of your transaction in the “Details” section.
4. Exchange tokens and confirm the transaction in the crypto wallet.
In addition to swap, users can also provide liquidity in one of the KyberSwap pools or new pools. They can also add their LP tokens to their respective farms.
In conclusion
Kyber Network is the liquidity hub that powers KyberSwap, a decentralized exchange based on Ethereum. It is a hub for decentralized services where DeFi participants can create, exchange tokens, and improve the crypto space. Kyber Network's decentralized exchange, KyberSwap, is focused on improving liquidity providers and traders' experience in the DeFi space.
