After ZRX, ZebPay is proud to expand our DeFi offerings with KNC (Kyber Network Crystal). Kyber is one of the most widely used DeFi protocols on the Ethereum blockchain. While 0x uses a combination of on-chain and off-chain transactions, transactions on Kyber network are fully on-chain and thus fully transparent and verifiable.
The Kyber network
Kyber is a blockchain-based liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application.
Let’s break down this definition of Kyber to understand all the different elements:
- Kyber is a blockchain-based liquidity protocol: Kyber network is a liquidity protocol based on the Ethereum blockchain. Liquidity is the ability to convert from one token to the other quickly and efficiently. Kyber network enables this process.
- Aggregates liquidity from a wide range of reserves: Kyber network aggregates liquidity from over 40 sources, which it calls ‘reserves’. As a result, it can provide the best rates for token exchange.
- Powers instant and secure token exchange: Token exchange via Kyber network is instant. This is because unlike centralised exchanges, there are no intermediaries to slow down the process. So there are no sign ups necessary, no order books, and you don’t have to worry about finding an exchange that lists the token pair you need. All transactions on Kyber are also completely on the blockchain, which ensures full transparency and security.
- In any decentralized application: A decentralised application, or dApp, as they’re commonly referred to in the blockchain community, has a few defining features:
1) As the name suggests, it is open source and not controlled by a centralised authority.
2) It is based on a blockchain.
3) It is incentivized (think of videogames with in-game token rewards).
The KNC token
The KNC (Kyber Network Crystal) token is used to govern the Kyber protocol. When you stake KNC tokens, you can vote on key decisions shaping the Kyber Network, and in return receive rewards in ETH. Staking is the process of purchasing and holding a cryptocurrency in a wallet to support the operations of a blockchain network.
Login to your ZebPay account and start trading KNC now!