Liquidity difficulties exist in the existing layers of DeFi platforms and dApps. This is due to the fact that, despite its revolutionary nature, DeFi infrastructure is still in its infancy and lacks a mechanism to restrict liquidity within a platform’s ecosystem from migrating outside. A large number of these dApps also lack access to outside liquidity pools. As a result of this flaw, systems are prone to sluggish transaction speeds and security risks. Today, we’ll look at a solution: Kyber Network, which was created to address the DeFi liquidity problem.
The Kyber network serves as a hub for liquidity protocols, gathering liquidity from a variety of sources to provide secure and instant transactions on any dApp. Its major goal is to make it simple for dApps, DEXs, and other users to access liquidity pools with the best rates. To achieve that purpose, Kyber Network has developed three tools: 1) A decentralized exchange protocol 2) An asset conversion API (Application Programming Interface), and 3) the KNC coin. The Ethereum blockchain is used to power the Kyber network.
The Platform
The Kyber Network Crystal, or KNC, is a platform that connects many players in the Kyber ecosystem. It is KyberDAO’s native cum governance token. To get trading fees from the network, KNC holders must stake and vote. More rewards are created as more trades take place more protocols are added to the platform. KyberDAO can upgrade, mint, or burn KNC to increase liquidity and growth. Currently, there are around 177 million KNC tokens in circulation.
DeFi has a wide range of applications and uses. As a result, no single protocol has the capability of meeting the needs of all types of liquidity providers. The architecture of Kyber Network is designed to support DeFi and its future possibilities. In April 2021, the network debuted Kyber DMM, the world’s first dynamic market maker protocol. As DeFi’s capabilities grow, Kyber’s DMM is designed to react to market conditions, allowing liquidity providers to optimize fees and maximize capital efficiency. The application scenarios appear to be promising. Is KNC on the verge of becoming a top 100 cryptocurrency?
