KNC token is used for
- Stake and vote
- Stake and earn trading fees
- Exchanges pay a fee in KNC for every trade.
More on staking and voting here.
What is Kyber Network?
Kyber is a bridge between tokens and applications.
It gathers liquidity from different sources into a single pool that DApps, Wallets, DEXs and users can integrate with.
How Kyber works
The protocol is implemented as a set of smart contracts on any blockchain that fits the requirements.
Kyber Core smart contracts
- Provide functions for the listing and delisting of reserves and trading pairs.
- Provide a function for users to query the best rate among all the registered reserves.
- Perform the trades with the corresponding rate and reserve.
Token to Token Trade
Happens in a single blockchain transaction. Let’s take BAT to DAI as an example.
- User sends 50 BAT to the protocol contract, for DAI in return.
- Protocol contract sends 50 BAT to the reserve offering the best BAT to ETH rate.
- Protocol contract receives 1 ETH in return.
- Protocol contract sends 1 ETH to the reserve offering the best ETH to DAI rate.
- Protocol contract receives 30 DAI in return.
- Protocol contract sends 30 DAI to the user
Liquidity can be connected between various smart contract enabled blockchains.
- A light client as a smart contract which can be implemented on both blockchains and an efficient algorithm to verify the hash functions from both blockchains.
- Kyber has presented a proof of concept for relay approach between Ethereum and EOS.
More in whitepaper.
Supply: 210,440,861 KNC
- 61.06% for the public
- 19.47% for company
- 19.47% for founders, advisors and early investors
- Amount to raise: 200,000 ETH
- Use of funds: 50% for the first reserve; 30% for development; 10% for the legal/ marketing; 10% for operation
ICO price: $0.380
What’s the story?
- Tokenization of everything