Summary

Kyber Network is a decentralized protocol built on Ethereum. It is deployed on multiple Ethereum Virtual Machine (EVM)-compatible chains such as Polygon, Binance Coin, and Avalanche.

Kyber Network is a liquidity center co-founded by Loi Luu and Victor Tran, aiming to make DeFi transactions more efficient and cost-effective. Kyber Network’s main product is the decentralized exchange platform (DEX) KyberSwap, which allows users to trade tokens and earn rewards by providing liquidity.

The protocol is governed by KyberDAO, and proposals are voted on by holders of Kyber Network’s native token KNC.

What is KyberSwap?

KyberSwap is the flagship product supported by Kyber Network. KyberSwap is built on Ethereum and is a multi-chain decentralized exchange platform (DEX) that supports 12 networks (including Ethereum, Polygon, BNB Chain, Avalanche and Optimism), and users can conduct transactions on any of these networks.

KyberSwap is also an aggregator, that is, it will not only draw liquidity from its own fund pool, but also from its supported Get liquidity from more than 67 DEXs across each network. Similar to other DEXs, KyberSwap is a trustless trading platform, meaning users have full control over their orders and funds. KyberSwap is committed to solving the liquidity challenges that many DeFi traders encounter every day, while providing liquidity providers (LPs) with adequate returns.

KyberSwap users can Mining, earning coins, and seamlessly participating in DeFi in all supported chains. KyberSwap is a permissionless decentralized trading platform. This means that users’ orders and funds are completely under their own control.

KyberSwap is committed to allowing liquidity providers with efficient capital pools to obtain maximum benefits, while at the same time solving the daily problems of many DeFi traders liquidity challenges faced.

How does KyberSwap work?

KyberSwap can be divided into two main protocols: classic protocol and elastic protocol.

KyberSwap Classic’s Dynamic Market Maker (DMM) protocol is an improved version of the traditional Automated Market Maker (AMM) model used by UniSwap and other DEXs. It is DeFi’s first market maker protocol that dynamically adjusts liquidity provider returns based on market conditions. When markets become too volatile, returns are increased to better reflect the risk on each trade. When markets stabilize and volatility decreases, so do returns. DMM automatically recalculates returns by analyzing the on-chain transaction volume data of each liquidity pool.

KyberSwap Classic The second feature is a "programmable price curve" called the Amplification Factor (AMP). It allows liquidity pools to emulate higher-level liquidity without providing more tokens. Liquidity providers can set their own amplification factors based on the type of token pairs in the pool. Pairs with lower bias, like stablecoins, have higher amplification factors. On the other hand, more volatile currency pairs have lower amplification factors. A liquidity pool with an amplification factor equal to 1 will still operate according to the dynamic fee model, but will not be amplified.

KyberSwap’s latest protocol, KyberSwap Elastic, is an automated market maker based on minimal price changes with centralized liquidity. Users can add liquidity to a specific price range of their choice and receive NFTs representing their liquidity position and pool share.

Because there is concentrated liquidity, liquidity providers can specify the price range in which they wish to increase liquidity. The selected price range represents how volatile liquidity providers believe current prices will be in the future. The increased liquidity is then distributed evenly across the selected price range. For any mining transaction processed at a specific price (in other words, at a specific price tick) within the selected range, the liquidity provider will be rewarded the same as what was offered at that price (or that price tick). Directly proportional to liquidity.

Full price range allows the token to be traded at any price, but is inconsistent with concentration since inactive price points also allocate liquidity The price range is lower compared to the returns.

KyberSwap Elastic also uses the reinvestment curve to automatically calculate and pay returns to liquidity providers at compound interest. Not only does this bring convenience to liquidity providers, as they do not have to manually add liquidity back to the pool, but returns are calculated and paid separately at compound interest, it also allows liquidity providers to earn more, as returns are compounded on a return basis accumulated on.

In addition, KyberSwap Elastic features multiple return levels and JIT (just in time) protection, so liquidity providers have the flexibility and tools to customize profit strategies without compromising security.

Liquidity providers can also earn rewards through KyberSwap’s liquidity mining farm. The liquidity mining farm is exactly where KyberSwap cooperates with blockchain funds and projects to provide quotes for liquidity providers.

In addition to liquidity services, KyberSwap also has other functions and professional trading tools to help DeFi traders, such as Discover and Dynamic Trade Routing and Pro Live Chart. Discover is an intuitive DeFi tool that comprehensively uses on-chain data, trading volume and technical indicators to help users find potential trend tokens. Dynamic transaction routing scans different DEXs and splits transactions to find the most suitable transaction path for mining any coin on the supported network.

Pro Chart Live, on the other hand, integrates with TradingView to help traders outline and conduct complete technical analysis.

What makes KyberSwap unique?

As mentioned above, KyberSwap Classic uses two different functions: "DMM" and "Amplification" to ensure robust liquidity. KyberSwap Elastic provides centralized liquidity, automatic compound interest calculation, multi-layer returns and JIT protection to help liquidity providers maximize returns safely and reliably.

Liquidity ensures that traders can easily buy and sell assets without large price differences. Low liquidity can lead to slippage and impermanent losses. The more volatile an asset is, the more its spread will negatively impact traders.

• Sliding spread refers to the spread due to low liquidity (thin order book) Because of this, a slippage occurs when trading at a price lower or higher than expected.

• Impermanent loss can be defined as the price drop experienced by a cryptocurrency asset after being placed in a liquidity pool.

Liquidity can be understood as the convenience for traders to buy or sell assets: Easily Trading contributes to price stability, and the more participants there are, the harder it is for a single entity to influence the market.

What is the Kyber Network Crystal (KNC) token?

Kyber Network Crystal (KNC) is the native token of KyberSwap and provides support for the Kyber Network ecosystem. Because KNC holders work on a Proof-of-Stake (PoS) consensus mechanism, they can participate in the DAO and vote on all governance proposals related to the future of the network by staking KNC assets or delegating their votes to a third-party platform. Take a vote.

KNC holders can also pledge tokens in qualified Rainmaker mining capital pools to obtain liquidity mining returns. For other events, such as trading competitions, Gleam giveaways and Q&A sessions, participants can also be rewarded with KNC tokens.

How to buy KNC on Binance

You can buy KNC on cryptocurrency exchanges such as Binance.

1. Log in to your Binance account and visit [Trading] -> [Spot].

2. Enter "KNC" in the search bar to view the available trading pairs. We will use KNC/BUSD as an example to illustrate.

3. Enter the [Spot] box and enter the quantity of KNC you want to purchase. In this example, we choose a market order. Click [Buy KNC] to confirm your order, and the purchased KNC will be deposited into your spot wallet.

How to use KyberSwap

If you want to mine tokens on KyberSwap, please follow the steps below to start the mining operation.

1. Visit KyberSwap.

2. Connect to DeFi wallet. KyberSwap supports MetaMask, Coin98, WalletConnect, Coinbase Wallet and ledgers.

3. Select what you want Token pair required. You can view transaction details under "More Information."

4 .Mining and confirming transactions in your cryptocurrency wallet.

Mining is just one of the types of transactions available on the platform. Users can choose to use one of KyberSwap’s pools or create a new pool to provide liquidity. They can also stake liquidity provider tokens at one of the qualified mines.

Conclusion

Kyber Network is a liquidity center that provides support for KyberSwap, a decentralized exchange (DEX) built on Ethereum. It is a decentralized service center and a place for DeFi enthusiasts to build, mine and improve the cryptocurrency field. KyberSwap is committed to improving the experience of liquidity providers and traders in the DeFi field.

Disclaimer:Cryptocurrency investments are subject to a high degree of market risk. Binance is not responsible for any trading losses you may suffer. Statements in the article are for educational purposes only and should not be considered financial advice nor an investment recommendation.