Kyber Network is a decentralized exchange and a proxy payment service which is fast becoming one of the most popular ways to exchange crypto token assets on Ethereum. One of the main reasons is because it is extremely simple to use, as they have removed order books completely and replaced them with highly liquid reserves. From a user perspective it resembles more like a decentralized version of Changelly or Change Now, instead of an actual DEX - and you will see Kyber embraces this by referring to their platform as KyberSwap.
More recently they have also implemented Limit Orders on their platform as a beta feature, allowing you to create buy or sell swaps that will only happen if the asset reaches the chosen price you set. The platform's ease of use and new limit orders feature, along with the perfect storm of centralized exchanges being hacked and increased regulatory fears, has set up Kyber to become one of the most used Dapps as we move into 2020. A sentiment that the market agrees with, just look at KNC being up by +93% over the past 18 days.
Their platform provides a rich amount of documentation, tools and APIs to interact with their liquidity pools. This allows developers to easily integrate Kyber Network into their Dapps and access instant liquidity, for example, our upcoming Atomic Arbitrage exchange feature will use Kyber. So that puts Saturn in the Dapps category of Kyber's use cases!
Given the high amount of asset liquidity present on Kyber's platform, we believe we could see the most Atomic Arbitrage trades happening between Saturn and Kyber - simply because if the price is right then Kyber will probably be able to fill the order.
How Kyber works?
Other than being a decentralized exchange, Kyber is also used as a way to transfer tokens from person to person. The cool part is that the tokens you send do not have to be the token that the receiver is asking for, the platform is able to perform the exchange during the transfer for you. For example, let's say you are selling cryptocurrency merchandise online and to keep things simple you only want to accept Ethereum as payment. If you implemented Kyber into your e-commerce platform you can now let people buy items with any token, because on your receiving end you will only ever receive Ethereum.
There are also a few different roles on Kyber Network which are good to be aware of to learn how the platform works:
- Users: These are not just individuals or traders, users can also be smart contracts or merchants. Kyber considers their three main use cases to be Dapps, Vendors and Wallets.
- Reserve Entities: responsible for bringing liquidity to the platform. They can be internal or a registered third party, they are classified as private or public depending on if anyone can contribute to the reserve or not.
- Reserve Contributors: if the reserve is public then contributors can provide funds to the Reserve Entities, sharing profits from the reserve.
- The Reserve Manager: responsible for maintaining the reserve, calculating exchange rates and entering rates into the network.
- The Kyber Network Operator: controls which tokens are listed and responsible for adding or removing Reserve Entities. Currently, the Kyber team plays this role but the plan is to move to decentralized governance in the future.
Kyber maintains liquidity by using a dynamic reserve pool, which contains all the Reserve Entities in the network. By having multiple entities in the pool, they safe guard their network from being monopolized and ensure exchange rates stay competitive. If you would like to learn more, we have covered DEX architecture extensively in our Decentralized Exchange Architecture Review. Where we take a more technical look at how trading on Kyber works comparing it to other DEXs such as IDEX, Bancor or 0xProject.
What is KNC used for?
Kyber Network Crystal is an ERC20 token that is primarily used by Reserve Managers, as they need to purchase KNC to operate a reserve on the network. Each time an exchange occurs, the reserve has to pay a small KNC fee to the network. The collected fees are then used to cover operational costs and to reward third parties (affiliates) who bring in trade volume. After these two things are covered, any remaining KNC is burned (taken out of circulation forever), meaning that KNC is a deflationary token.
More recently, with the addition of Limit Orders users/traders can also hold an amount of KNC in their wallet to receive a discount on trading fees. The more your wallet holds, the higher discount you can receive, with the minimum required being 2000 KNC.
KNC Token Details
- Project name: Kyber Network
- Symbol: KNC
- Standard: ERC20
- Market Cap: $34,177,660 USD
- Current Price: 0.00165499 ETH
- Total Supply: 212,499,593 KNC
- Circulating Supply: 168,568,044 KNC
- ROI since launch: -86.76%
- Website: https://kyber.network/
Price Prediction KNC 2020
With cryptocurrency users becoming more aware that not your keys not your crypto does mean you will lose your funds when a centralized exchange is hacked, goes bankrupt or runs off into the horizon. And with DEX & Dapp usage becoming increasingly easier with many one click solutions, it is clear that 2020 will be the year where decentralized trading's volume increases tenfold.
We can already start to see the future picture being painted, just take a look at Kyber's statistics, their volume has increased throughout the year and the amount of KNC being burnt is steadily increasing.
These are very positive signs for KNC's price to increase during 2020, because as trading volume increases so does the demand for KNC tokens. As the project gains more success we can only assume the demand for their services will increase. It is simple economics of supply and demand, combining in that KNC is a deflationary token, the price can increase at an even faster pace.
That being said I do not think we will see Kyber's all-time-high of $6.00 any time soon, we would need to see a substantial volume increase on the platform along with some exciting announcements and general crypto FOMO for this to happen. We also should note that until very recently, KNC's price was either following a downward's trend or not showing much movement at all which can make it a less interesting asset for day traders. For example, LINK sees a daily trading volume of ~$120M whereas KNC sees a trading volume of under $10M.
Don't get me wrong though, here at Saturn Network, we are bullish on decentralized exchanges taking great leaps during 2020 though let's not get all starry-eyed and price predict KNC reaching $30. I am confident KNC will see price gains during 2020, and my KNC price target 2020 would be in the range of $0.60 - $0.80. I could also definitely see a trading frenzy scenario that pushes KNC to a much higher price range if Kyber's team is able to implement more blockchains on their platform such as their planned bridge between EOS and ETH - but the tech behind multi chain decentralized trading is very tricky so this will take time.
Future is bright!
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Please note Token Profile Articles are not endorsements by Team Saturn, the goal is to make it easier for you to learn more about the asset. Always do your own research before entering a trade or investing in any crypto project.