Kyber Network is an on-chain liquidity protocol that empowers users to swap tokens in various applications. Developers using the network have more monetization options as they can accept payments from several networks seamlessly.
The users, in turn, can pay for digital solutions, products, and services in any asset they own without leaving an app or overspending on exchange commissions.
Even the tokens themselves “win” from being contributed to the network as it facilitates liquidity via an open reserve-based architecture. What this means is that you can contribute your idle tokens into the general pool. They then become available and useful across a plethora of networks and applications. Or, in simpler words, you tokens become more useful (and more valuable).
Kyber states that their team is committed to continuously adding more diversity and scalability into their network. This means that any user willing to contribute an asset of any kind to the liquidity pool is 100% free to do so.
In theory, this should increase assets in value as they rise in demand. In practice, however, many people may use this to artificially boost their assets. This, in turn, may lead to people only submitting the tokens they don’t originally find enough value in.
Surely this is an unlikely scenario because you can make more by adding to an already valuable token but we believe that a smart investor should never underestimate the potential risks or “human factor” ruining an otherwise amazing system.
Thus we suggest you taking Kyber’s liquidity pool with a pinch of salt. At least on the research stage.
Kyber is proud with an impressive pool composed of talented people like their CEO Loi Luu, CTO Yaron Velner, and their CFO Victor Tran.
Add key industry players like Wong Lee Hong. Prateek Saxena, and Leng Hoe Lon into the mix and you’ll know that Kyber simply can’t be headed in the wrong direction.
Kyber is open source. It can be easily integrated into a wide variety of digital solutions from decentralized applications to e-commerce CMS plugins like Woo Commerce. This, combined with the fact that the developers are offered with an efficient tool that accepts all kinds of tokens their users may be holding skyrockets the number of potential use cases for the network.
In simpler words, Kyber is simple and convenient enough to be massively adopted by the ever-growing crypto developer community.
Kyber Network Crystal (KNC) is an integral part of the Kyber Protocol, and will serve crucial economic, governance and treasury functionalities across all implementations of the protocol. Networks that do not have KNC as a key part of the usage in utility and governance will not be considered and will not be supported by either the project or the community. The exact usage of KNC in different chains is dependent on the specific implementation. Key details include specific features of the different chains, and the maturity of both the ecosystem and the protocol implementation. The network maintainers are expected to make these decisions initially, and after the implementation reaches a certain stage of maturity, we expect the decisions to be made by a community of KNC holders.
When a trade is executed, Kyber’s main contract invokes functions to iterate through all listed reserves to find and select the one offering the best exchange rate. The source tokens are transferred from the takers to that reserve, and the reserve’s destination tokens are transferred to the specified destination address.
-Basic token trade
A basic token trade is one that has the quote token as either the source or destination token of the trade request. The execution flow of a basic token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for ETH as an example. The trade happens in a single blockchain transaction.
-Token to token Trade
A token to token trade is one where the quote token is neither the source nor the destination token of the trade request. The exchange flow of a token to token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for DAI as an example. The trade happens in a single blockchain transaction.
1.Takers refer to anyone who can directly call the smart contract functions to trade tokens, such as end-users, DApps, and wallets.
2. Reserves refer to anyone who wishes to provide liquidity. They have to implement the smart contract functions defined in the reserve interface in order to be registered and have their token pairs listed.
3. Registered reserves refer to those that will be cycled through for matching taker requests.
4. Maintainers refer to anyone who has permission to access the functions for the adding/removing of reserves and token pairs, such as a DAO or the team behind the protocol implementation.
5. In all, they comprise of the network, which refers to all the actors involved in any given implementation of the protocol.
At the heart of the design, the protocol smart contracts offer a single interface for the best available token exchange rates to be taken from an aggregated liquidity pool across diverse sources.
● Aggregated liquidity pool. The protocol aggregates various liquidity sources into one liquidity pool, making it easy for takers to find the best rates offered with one function call.
● Diverse sources of liquidity. The protocol allows different types of liquidity sources to be plugged into. Liquidity providers may employ different strategies and different implementations to contribute liquidity to the protocol.
● Permissionless. The protocol is designed to be permissionless where any developer can set up various types of reserves, and any end user can contribute liquidity. Implementations need to take into consideration various security vectors, such as reserve spamming, but can be mitigated through a staking mechanism. We can expect implementations to be permissioned initially until the maintainers are confident about these considerations.
The protocol is implemented as a set of smart contracts on any blockchain that fits the requirements. The following diagram shows an overview of the various actors involved in an implementation of the protocol.
Since KNC is an ERC-20 based token, it can be stored both on the Ledger and Trezor.
Ledger
As for using the Nano Ledger S, the first step towards setting up your device is unboxing it and checking if you have received all the accessories with the device. Once you have unboxed your device, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device. This video does a pretty good job at explaining how the setup works.
Trezor
As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the bridge which allows the Trezor to join with the computer. The first step is to connect the Trezor to device’s USB slot with the cable given in the box. After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer. Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden. After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”. In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet. This video explains how to set up your trezor quite well.
Exodus
First, we have Exodus, which supports a ton of other cryptocurrencies along with KNC and is pretty straightforward and easy to use. Just download the app from the official site(exodus.io) and get straight into creating your wallet. Exodus stores your Private Keys on the machine you choose and not on any server, providing you with a relative peace of mind when it comes to the security of your coins.
Atomic Wallet
Another option is Atomic Wallet.
Atomic Wallet is a desktop wallet built with security, anonymity and decentralization in mind. Atomic Wallet was designed to leverage the potential of atomic swaps and become part of a fully-fledged decentralized cryptocurrency ecosystem. The “physical” wallet itself is a PC application that can be downloaded onto your computer. Your private keys and other data will then be stored on your PC in an encrypted form.
This means you hold your own keys, which are encrypted and kept only on your own device, control your own funds and can efficiently swap tokens without needing to go through a centralized exchange. This application then interacts with the blockchains of supported coins. For example, if you check your transaction history in the program, it looks it up on the blockchain and then shows it to you, rather than storing this potentially sensitive information somewhere.
KNC is based on the Ethereum ERC-20 standard which means that all ERC-20 supporting wallets can house your KNC. For an online-based wallet, we recommend MyEtherWallet. The wallet offers a brilliant combination of speed, trustworthiness and simplicity, making it the most popular online wallet for ether and any ERC20-based tokens.
MyEtherWallet
Simply visit myetherwallet.com and set up your wallet with a method of your choosing, just make sure to store your private key somewhere safe. It's wise to have it written down on paper in case your PC/notebook malfunctions.
The only downside to using an online wallet like MEW is that there are literally hundreds of phishing scams out there to get your eth, so you better double check the address everytime and make sure to watch out for any malicious activity on your browser or PC.
