The importance of exchanges to the growth of the crypto space remains unmatched. In addition to providing users with a way to trade digital assets, most exchanges also offer advisory services. These services have been important for the adoption of crypto globally, as exchanges remain important parts of crypto market growth. Fortunately, the rapid growth of the decentralized finance (DeFi) ecosystem has also seen the rise of decentralized exchanges (DEX). Unlike centralized exchanges (CEX) like Binance, DEXs are peer-to-peer marketplaces where cryptocurrency traders transact directly without third-party interference. Transactions facilitated in these DEXs are possible via smart contracts. One such prominent DEX protocol in the DeFi space today is the Ethereum-powered Kyber network.
What is the Kyber Network?
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Kyber Network is a blockchain-based decentralized protocol that aggregates liquidity and enables crypto trading without intermediaries. Co-founded by Loi Luu, Victor Tran and Yaron Velner in 2017, Kyber remains one of the fastest growing DeFi entities. Its mission is to create an ecosystem where crypto tokens are usable in any wallet, market and payment service. That’s why it currently integrates with over 100 apps. That’s why it can aggregate liquidity from many sources to provide secure and instant transactions on any DApp.
Kyber Network also aims to enable DApps, DEXs and other users to efficiently access liquidity pools with the best rates. The network uses three tools to operate effectively, which ultimately help make its DEX-KyberSwap work. The three tools consist of a DEX protocol, an API for asset conversion, and its native token – Kyber Network Crystal (KNC). KyberSwap runs on Ethereum and is powered by a distributed network of users and smart contracts. Like every DEX, it allows users to trade assets without a central order book or operator. Alternatively, KNC powers the protocol as both a utility and governance token.
How does the Kyber network work?
However, to understand how the network works, it is essential to review the components that keep it functional. First, its smart contracts ensure that they are adequate provisions for tokens traded and traded on it. Second, its reserves also provide liquidity to the network and its users. Finally, takers (DApps, sellers, and wallets) execute trades while removing liquidity from the network. Kyber uses a reserve model to provide liquidity that ensures users get the best rate when initiating a transaction. This model searches for available reserves, giving users the best rate from takers. Today, the three pools that help takers instantly convert tokens at the best price on the network today are:
Price Food Reserves (PFR)
Price Feed Reserves is the protocol’s market maker that uses price feeds to determine conversion. The reserve also designates the takers of the smart contract storing all its information. From this smart contract, takers can also calculate token conversion rates.
Automated Price Reserves (APR)
While relying on smart contracts for tariffs, this reserve provides liquidity to the network. It executes all transactions made within it on the Kyber network. Like PFR, it uses a smart contract that stores tokens and trades them with other users.
Finally, these reserves ensure high access to liquidity by connecting with other DEXs. Previously, before a network upgrade, reserves were required for KNC to pay for the networks. However, today they have to pay these fees in ETH, which is easier and smoother for everyone. A portion of these fees also goes to the reserves, who earn them in proportion to the cash provided.
Why the Kyber Network?
Kyber Network remains the pioneering company in solving the liquidity problem in the decentralized finance (DeFi) space. Its architecture is user- and developer-friendly and scalable with multiple blockchain-based DApps, DEXs, and protocols. Its solutions allow developers to create products and services without worrying about liquidity. Due to the security measures applied at the protocol and smart contract level, Kyber uses an extensive trust and security model. This ensures that users do not interact with faulty or manipulated admins and exchanges.
To work optimally, all transactions made there are on-chain and verifiable via Ethereum block explorers. Last year, the network launched Kyber DMM, a dynamic market maker protocol. Kyber DMM is a next-generation AMM designed to react instantly to market conditions. This way, it can optimize fees, maximize revenue, and enable high capital efficiency for liquidity providers. In addition to providing liquidity, Kyber also helps projects built on it, with multiple bespoke services and benefits. Examples of these value-added services include instant token settlement, liquidity aggregation, and a customizable business model. This is why the protocol prides itself on being the world leader in providing liquidity.
Kyber Network Crystal Token (KNC)
KNC is an ERC-20 token that also serves as the utility and governance token of the Kyber Network. As an ERC-20 token, it is built and secured by Ethereum. Its holders can participate in the governance of Kyber through KyberDAO. It remains an important entity in the maintenance and operation of the Kyber network. By staking it, holders can vote on network upgrades and policies, including fee models and tariffs. Like many protocols, power holders own a proportion proportional to the number of staked tokens. Alternatively, by owning and staking it, holders earn rewards. Users will receive these rewards in the form of ETH for their contributions.
KNC is also a deflationary staking token, and its supply will continue to decrease over time. This is because the network fees paid to KNC will be burned over time to reduce its supply. According to Kyber Network, it promises to improve its technology to enable KNC to become a cross-chain asset in the future. KNC has a circulating supply of 177,809,350 KNC coins and a maximum supply of 210 million tokens. 61.06% of its total tokens were sold in an ICO in 2017 to raise around $52 million. Another 19.47% is for founders, advisors and start-up investors. The last 19.47% is what the company intends to use to expand its development in the future.
How to buy KNC
KNC is available for purchase on over thirty exchanges, including Binance, CoinbaseHuobi Global and kraken. Users can buy it through trading pairs including USDT and BUSD. However, this step by step guide will help you to buy KNC on Binance;
To buy, you will need to log in or register on Binance. Using your email address or phone number, you can do this on the Binance App or website. The Binance app is available for download on the Android and iOs stores, compatible with their respective devices. The registration process is usually transparent and complete after providing a few KYC details. To complete it, you will need to verify the information you provided. However, existing users will only need to log into their accounts.
After logging in, it is essential to fund your Binance account. This will allow you to complete the purchase of KNC smoothly. Funding your account is stress-free and can be done by bank transfer, debit or credit card. Binance also allows users to fund their accounts via peer-to-peer trading in certain jurisdictions. Alternatively, users can also take advantage of the many third-party payment options available on Binance.
You will then use the funded account to buy BUSD or USDT on Binance. To buy, you will search for either asset through the homepage and buy an amount corresponding to your balance. Finally, now that you have your BUSD/USDT, you will use it to buy KNC in the Trade tab. Go to the market tab and search for KNC. Fill in the amount you want. You will then confirm your order at the current price. After confirmation, you can click Refresh to see the new order amount.
KNC Price Prediction
According to the analysis, KNC is a highly rated token in the crypto market, currently in the top 100. Last month, it hit a new all-time high (ATH) to cap off a remarkable run in the first quarter of 2022. Unfortunately , it’s about 60% down from those heights and looks like it’s on the way to the top. Its 24-hour average trading volume is $200,522,695.95, with a market capitalization of around $384 million. Despite the fall in the crypto market, its 30% gain this week is remarkable. Despite its recent falls, its daily performance is also encouraging, attracting investors. Therefore, its long-term performance forecast is excellent, given its recent performance.
WalletInvestor is bullish, predicting it will hit $5,059 this year. Their forecast for the asset five years from now is also optimistic, as they expect it to reach $15.375 in 2027. DigitalCoin is also bullish on KNC, seeing the token reach $7.2 this year. Like WalletInvestor, analysts think KNC’s future performance will be exceptional enough. They see the token reaching $12.05 in 2025 and $26.22 by 2030. PricePrediction is also bullish on KNC, predicting the token will reach $4.62 this year and $84.93 by 2030. the future. The advice to investors is to commit funds that they can lose in crypto assets.
Launched by Loi Luu, Victor Tran, and Yaron Velner in 2017, Kyber Networks is one of the fastest growing protocols thriving in the DeFi space. It is a blockchain-based decentralized protocol that aggregates liquidity and enables crypto trading without intermediaries. Kyber uses a reserve model to provide liquidity that ensures users get the best rate when initiating a transaction. KNC is an ERC-20 token that also serves as the utility and governance token of the Kyber Network. The token’s performance in the first quarter of 2022 was above average, reaching a new ATH. That’s why the predictions for his future are great, because the expectations are high.
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