Kyber Network (KNC) 101: Buterin-Backed DeFi Ecosystem
Zatrun Published at March 18, 2023

In the world of crypto, most communities and projects have their own native token, and often these tokens need to use their own protocols. If you don’t have the crypto you need, you must go to an exchange and exchange your assets for the necessary token. Unfortunately, this is a cumbersome process in today’s market, but this is where Kyber Network comes in. The project aims to enable any token holder to easily convert one token to another with minimal hassle.

It seeks to solve interoperability and liquidity issues in the DeFi space by providing infrastructure, services, and products to various projects. The project has the support of many prominent tech entrepreneurs, including Ethereum founder Vitalik Buterin. In this article of, we’ll take a look at what Kyber Network is, one of the shining stars in DeFi, and its native token, KNC.

What is Kyber Network and How Does It Work?

Kyber Network Crystal is a decentralised exchange (DEX) and liquidity platform based on the Ethereum blockchain. It supports quick and simple conversions between various digital assets, allowing users to trade cryptocurrencies effortlessly using decentralised applications (DApps) and wallets. Previously, users who did not own KNC had to earn tokens to access the platform. However, Kyber removed this barrier to make cryptocurrency trading as easy as possible for users.

Currently, the platform, like most DEXs, is trying to provide its users with the best liquidity pools. However, it continues to work to maximize interoperability. KyberSwap, the project’s DEX, currently supports tokens from many different ecosystems, including the most popular blockchains. This allows users to trade assets extremely quickly and use different platforms.

Kyber Network is managed through a smart contract that allows new users to join and use the network. Additionally, users can define new rules for this smart contract through blockchain voting. If a proposal is approved, the network changes accordingly. The platform also supports liquidity pools, which are collections of various digital assets that other projects can access and use. This facilitates fast and decentralised exchange of ETH and other ERC-20 tokens.

As a DEX, KyberSwap does not require any registration and allows users to trade in the simplest way possible. The platform hosts two different types of users: market buyers and market makers. Market makers add reserve assets while market buyers reduce assets in reserve. In addition to DEX services, Kyber also supports peer-to-peer (P2P) and cross-chain asset transfers.

What is KNC Token?

Kyber Network has an active utility token in the cryptocurrency market since its introduction. Known as Kyber Network Crystal v2 (KNC), this ERC-20 token’s primary function in the Kyber ecosystem is to manage network changes.

As such, KNC holders can create and vote on governance proposals. Additionally, token holders receive a percentage of gas fees generated from Kyber’s liquidity pool. Therefore, KNC coin both ensures the decentralisation of the ecosystem and rewards holders with passive income.

Some tokens earned by the network are burned to reduce the supply that determines the market flow of digital assets. In 2022, 5 million KNC coins were burned and taken out of circulation, reducing the cryptocurrency’s total supply from about 215 million to 210 million.

Currently, users are staking their KNCs because of their high adoption rate, which could appreciate over time. According to DeFi Pulse data, Kyber’s TVL was over $60 million in 2022.

Is Kyber Network (KNC) a Good Investment?

KyberSwap DEX on Kyber Network offers trading on ten different blockchains, including Ethereum, Avalanche, Polygon, BNB Chain, Aurora, Arbitrum, Fantom, Oasis, Velas, and Cronos. On April 7, 2022, the platform announced integration with Uniswap v3.

Additionally, Kyber announced partnerships with Bondex Professional Network and the popular NFT racing game “Pegaxy.” These developments accelerated the growth of the Kyber ecosystem. In a recent announcement, Kyber revealed that the project generated over $3 billion in trading volume in the last four months.

All these developments occurred when the Bitcoin price was at $17.000, so we can say that the project continues to grow under all circumstances. Currently, KNC coin is the 238th largest digital asset in the cryptocurrency market, with a market capitalization of over $118.1 million. The cryptocurrency has dropped significantly from its all-time high of $5.56 in April 2022 and is currently trading at around $0.72.

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