Kyber Network is a decentralized finance (DeFi) initiative that enables users to swap one cryptocurrency for another without using a centralized exchange. Moreover, merchants can use the Kyber Network to accept multiple cryptocurrencies and get payment in the cryptocurrency of their choosing.
Users who do not possess the native token of a network are typically required to visit an exchange and purchase some in order to participate. The purpose of Kyber is to eliminate this step by making it simpler for individuals to swap between tokens.
The Kyber Network's history begins in 2017, when the creation of Kyber, a system designed to ease the trading of ERC-20 tokens, began. Facing the development was the CEO of Kyber, Loi Luu, as well as the company's co-founders and CTO, Victor Tran, and Yaron Velner. On September 15 of the same year, the Kyber team launched an ICO through which they raised a total of $52 million (200,000 ETH) for the project's development. After the ICO was successful, the team accelerated development, and in February 2018, the Kyber Network main net was finally released.
It is well known that the majority of black swan incidents, including hacking, involve centralized exchanges and entities.
Second, DeFi applications and centralized exchanges are not compatible with each other because they are different. But DeFi protocols have no choice but to sell their tokens on centralized exchanges, which account for almost 90% of all cryptocurrency trading volume.
Kyber Network solves this problem by bringing liquidity from multiple sources to a single point.
Price Feed Reserves (PFR) - PFRs are the protocol's alternative to market makers, using price feeds to determine conversion rates and storing this information in smart contracts. Reserves then direct takers to the smart contract in order to determine token conversion rates. Automatic Price Reserves (APR) - APRs provide liquidity to the network and rely on smart contracts to determine token prices. All APR transactions are executed on the Kyber Network blockchain, and smart contracts are utilized to store and exchange tokens between users. Bridge Reserves - Bridge Reserves are responsible for increasing liquidity by connecting to other decentralized exchanges.
Decentralized token swaps: Users can execute decentralized token swaps on websites such as CoinGecko, KyberSwap, and Easwap, as well as within their own wallets such as imToken, MyEtherWallet, Trust Wallet, and Coinbase Wallet. Payments: Users can pay for goods and services with any ERC-20 token supported by Kyber, while vendors can accept payment in their preferred token. Decentralized finance (DeFi): Index funds and financial dApps like Melonport and Betoken can use Kyber's protocol to liquidate or rebalance their portfolios in a way that is seamless, clear, and verifiable. Moreover, exchanges (including centralized and decentralized), traders, and arbitrage bots can use the Trading API to leverage the liquidity provided by Kyber to match orders, or to arbitrage for profit.
| DATE | NEWS/EVENTS | IMPACT |
| 18/09/2022 | The majority of the community believed that Kyber Network had been attacked, because of a whale wallet which transferred 5.5mn KNC tokens to FTX exchange | -35% Decrease |
| 07/04/2022 | KyberSwap has announced the integration of Uniswap v3 on the Ethereum and Polygon Networks, bringing the most active decentralized exchange within its ecosystem | +33% Increase |
| 07/03/2022 | Poolz Finance partners with Kyber Network to invest in emerging projects | +38% Increase |
| 20/08/2018 | Kyber Network announced the integration of the order book for OasisDex, enhancing the liquidity of the network | +36% Increase |
Liquidity is a key part of DeFi's growth, and Kyber Network is innovatively leading the way to become a trust-minimized liquidity hub. Its unique Kyber reserve concepts and protocol architecture places it as a critical liquidity infrastructure provider for a decentralized economy.
As the DeFi ecosystem continues to evolve, Kyber is continuously building to integrate new dApps and add more assets for a seamless token-swapping experience.
Kyber Network Crystal