Kyber built one of the world’s most used decentralised finance (DeFi) protocols. We recommend you to read: ”What is DeFi?”
DeFi has been incredibly popular the past months and we’ve seen the tokens of all kinds of DeFi projects skyrocket. KNC is no exception with an increase of 40% in the past month and 600% the past year. So, let’s dive into Kyber Network.
Kyber provides a liquidity protocol that can be integrated into any (decentralized) application to exchange tokens directly without an intermediary. Liquidity is provided by token holders, teams, decentralized funds and market makers while anyone looking for liquidity (e.g. traders) has direct on-chain access.
All transactions are transparent and verifiable on the blockchain. Kyber counts a total of $1B in total volume, over a million transactions and over 100 integrations.
The video below explains Kyber perfectly in just under two minutes:
With partners in this case I’m talking projects and platforms that use Kyber to offer liquidity and direct token swaps. The most well-known examples would probably be: MyEtherWallet, Trust Wallet, Enjin, Coinbase, Opera, Uniswap and Bancor.
KNC is an ERC-20 token that’s used within Kyber’s ecosystem. Summarized KNC is used for staking to participate in the KyberDAO and vote on certain decisions (for doing so, token holders receive rewards in ETH), it’s used for reserve incentives used as rebates for liquidity providers and last it’s used to use the network and some of the network fees (KNC) gets burned. Meaning the KNC supply will decrease overtime.
So far 5,073,053.96 KNC (July 11, 2020) in fees have been burnt. KNC has a circulating supply of 182,513,806 KNC and a total supply of 210,552,294 KNC meaning these fee burns will definitely add up overtime.
DAO stands for decentralized autonomous organization. In this case KyberDAO is a community platform in which a governance system is used to enable token holders to participate in the network. The rewards for this are variable and if you’re interested in participating in their DAO, I recommend you to read through the following page: https://kyber.org/faq.
According to an interest calculator I found the reward would be approx. 10% annually (Kyber Network (KNC) Interest Calculator and Current Rates | Staking Rewards).
KNC is also used by various vendors, think about visa cards, crypto.com, PundiX terminals and used for loans/collateral on various DeFi platforms.
I believe DeFi is here to stay and I believe Kyber Network is here to stay.
As said, DeFi has seen tremendous interest the past couple of months. I am currently not interested in adding any DeFi projects to my long-term portfolio. However, I am interested in trading these tokens for profit. Regardless of the recent price increase, I still believe it could be a good moment to get in KNC and DCA if KNC goes down. Just make sure to take profits in time, possibly 20-30% from the current price.
Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.