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Why KNC token is needed in Kyber Network

What the KNC token is used for. Kyber Network is a bridge between tokens and applications via a share liquidity pool on Ethereum.

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.

  1. User sends 50 BAT to the protocol contract, for DAI in return.
  2. Protocol contract sends 50 BAT to the reserve offering the best BAT to ETH rate.
  3. Protocol contract receives 1 ETH in return.
  4. Protocol contract sends 1 ETH to the reserve offering the best ETH to DAI rate.
  5. Protocol contract receives 30 DAI in return.
  6. Protocol contract sends 30 DAI to the user

Inter-blockchain Communication

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.

Token issuance


Supply: 210,440,861 KNC

Kyber ICO

  • 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
Raised: $52,000,000

Docs


Whitepaper

KyberDAO

FAQ

What’s the story?


  • Tokenization of everything

Competition


KNC price


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