KyberSwap Network is a liquidity protocol and decentralized exchange (DEX) aggregator that enables crypto merchants to obtain the most favorable rates by aggregating liquidity while offering liquidity providers capital-efficient returns and increased returns. KyberSwap is the primary protocol in Kyber Network’s liquidity gateway. Kyber Network Crystal (KNC) serves as a utility and governance token.

What is KyberSwap?

KyberSwap is an automated market maker (AMM) and decentralized exchange (DEX) aggregator that allows users to conduct transactions on 14 Ethereum Virtual Machine (EVM) compatible blockchains, including Polygon, Optimism, Ethereum, Avalanche, and BNB Chain, in a seamless manner. Using its native Dynamic Trade Routing technology, KyberSwap aggregates liquidity from more than 70 DEXs, enabling traders to access the most competitive prices with the most minor slippage without incurring additional fees.

>>>>> gd2md-html alert: inline image link here (to images/image1.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Background of KyberSwap

KyberSwap, founded by Dr. Luu The Loi and Victor Tran Huy Vu in 2017 in Singapore, is a prominent decentralized exchange (DEX) launched on the Ethereum mainnet in 2018. The company operates offices in Singapore, Hanoi, and Ho Chi Minh City. KyberSwap gained significant attention partly due to Ethereum’s founder, Vitalik Buterin, serving as an advisor. In its 2017 token sale, the company raised $52 million, making it one of the largest fundraising events in the cryptocurrency space.

Victor Tran, the CEO and co-founder of Kyber Network, has an extensive background in technology. He holds a Bachelor of Science (B.S.) degree in Computer Science, which he pursued from 2009 to 2013. Before his role at Kyber Network, Tran was the principal engineer of SmartPool and served as CTO for various organizations, including Kyber Network, Clixy, and 24/7 Digital Group.

Dr. Loi Luu, the former CEO and co-founder of Kyber Network, has a Ph.D. in computer science from the National University of Singapore, which he completed between 2014 and 2017. Currently, he is the chairman of the Kyber Group and the founder of Caliber, a venture builder focusing on Web3 startups.

>>>>> gd2md-html alert: inline image link here (to images/image2.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Source: LinkedIn

Features of KyberSwap

The following are a few of the most significant features of KyberSwap:

DMM and Liquidity Aggregation

KyberSwap’s distinctive feature is liquidity aggregation, which integrates liquidity from various decentralized exchanges, such as Uniswap, Sushi, Curve, and Balancer, and Kyber Network’s crypto liquidity pools. Dynamic market making (DMM) is a novel concept that modifies the parameters of liquidity pools based on market conditions. DMM is also a method of reducing gas fees, as the routing algorithm used to identify liquidity is consistently the most efficient. The algorithm can also distribute orders across multiple liquidity sources to guarantee that users receive the most favorable price with the least amount of slippage.

KyberSwap Interface

KyberSwap Interface is a comprehensive web application that gives users access to the most effective trading solution in the DeFi sector. It is a unified web interface that offers easy and unrestricted access to some of the most exceptional DeFi experiences. This includes leveraging KyberSwap’s aggregator to exchange at the most advantageous rates. To ensure that DeFi is accessible, the KyberSwap Interface was developed to be interoperable with the most popular Web3 wallets. The KyberSwap Interface contains the following categories and allows users to:

Connect Wallet

KyberSwap does not provide users with “accounts” in the conventional sense. Web3 accounts are utilized to facilitate all transactions on the platform. KyberSwap has incorporated wallet providers, providing users with a plethora of alternatives. They consist of:

• Metamask
• WalletConnect
• Trust Wallet
• Coinbase
• Blocto
• Brave Wallet
• Coin98
• Krystal
• Rabby
• Safe

Purchase Crypto with Fiat

Transak, a developer integration toolkit, is integrated into KyberSwap to facilitate users’ registration for buying and selling crypto in any blockchain app, website, or web plugin. This allows users to purchase crypto with fiat directly on the platform.

Create Profiles

KyberSwap Profiles allows users to have a consistent trading experience across all addresses by selecting a master profile. Users can utilize a guest profile on KyberSwap, allowing them to use the platform without needing to sign in. By default, a guest account is automatically generated for each KyberSwap user. However, users can establish a profile by selecting the “Add Account” feature in the Profile menu. Users will be asked to sign in using their Ethereum address when an account is added, necessitating signing the transaction in their associated wallet.

>>>>> gd2md-html alert: inline image link here (to images/image3.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Upon successfully signing in using Ethereum, a new profile will be instantly generated. The users can then view the new profile and the associated wallet address.

>>>>> gd2md-html alert: inline image link here (to images/image4.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap allows users to create several profiles by modifying their wallet addresses.

>>>>> gd2md-html alert: inline image link here (to images/image5.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Users can also manually switch between profiles through the Profile menu or select a master profile that will be applied to all associated addresses.

>>>>> gd2md-html alert: inline image link here (to images/image6.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap Aggregator

The KyberSwap Aggregator has integrated Dynamic Trade Routing, a feature of KyberSwap Aggregator that allows users to source more capital-efficient liquidity to support their transactions by aggregating fractured liquidity across DEXs.

>>>>> gd2md-html alert: inline image link here (to images/image7.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap Dynamic Trade Routing enables users to exchange at superior rates instantly. The KyberSwap Aggregator is connected to over 100 liquidity sources across 16 chains, which it uses to divide and reroute trades through capital-efficient sources. This ensures favorable swap rates and promotes excellent market stability.

Integrating with many DEX smart contracts, the KyberSwap Aggregator can serve as an optimization layer between the DEX smart contract and incoming trade requests. This guarantees that users receive the most advantageous rates for any token exchange on any KyberSwap Aggregator-supported network. The same address (MetaAggregationRouterV2: 0x6131B5fae19EA4f9D964eAc0408E4408b66337b5) has been used to deploy all KyberSwap Aggregator contracts across all supported chains.

>>>>> gd2md-html alert: inline image link here (to images/image8.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Limit Order

The KyberSwap Limit Order was developed to allow users to trade according to their preferences. Users can predetermine their preferred swap rates, which are subsequently automatically settled on-chain by KyberSwap’s network of takers. The KyberSwap Limit Order system allows users to place limit orders using a hybrid solution that stores signed limit orders off-chain and settles trades on-chain. This makes it possible to manage limit orders for gas effectively while still protecting them with the possibility of settling the limit order on-chain.

Off-Chain and On-Chain Settlement

KyberSwap Limit Orders implements a hybrid off-chain matching and on-chain settlement model. This concept lets creators generate and pre-commit to limited orders without incurring gas fees. Takers can examine active and pending orders on an off-chain orderbook. Takers can fill ideal limit orders on-chain and trade them. While this design guarantees that these limit orders will remain open and permissionless, one of the primary drawbacks is that the limit order protocol needs more control over the transaction ordering.

For this purpose, KyberSwap Limit Order now has gasless cancellation to match CEX limit orders’ fee-free experience:

• Gasless Cancel: This functionality allows users to cancel their limit order without incurring gas expenses. Gasless cancellations may take up to 5 minutes to confirm.
• Hard Cancel: This functionality requires users to pay the premium gas price to cancel their limit order immediately. For hard cancellation, users must confirm the gas fee, and the transaction must be mined to confirm cancellation.

KyberSwap Liquidity Widget

>>>>> gd2md-html alert: inline image link here (to images/image9.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap has simplified the integration process with KyberSwap ZaaS. Users can effortlessly provide liquidity more efficiently by simply plugging the Zap Widget directly into their Dapps with a few lines of code. The widget is initiated by providing a pool address as the sole input. The Zap API will be invoked to obtain the Zap route details and to provide the user with a preview of the zapping stages and final amounts after the user has selected their preferred price range and token amount to zap in.

KyberSwap Zap as a Service (ZaaS)

The Zap as a Service (ZaaS) API aims to simplify the provision of decentralized liquidity and enhance DeFi engagement by seamlessly adding liquidity through a single token, which the KyberSwap DEX Aggregator enables to reduce the price impact. In contrast to other platforms, participating in concentrated liquidity protocols, such as Uniswap v3, is arduous. It involves the manual calculation of specific token ratios based on position ranges, followed by the execution of distinct transactions for swapping and depositing into the pool. KyberSwap’s objective is to simplify this procedure to the same extent as a token swap.

Farming on KyberSwap

KyberSwap also concentrates liquidity from the industry’s leading liquidity protocols, enabling LPs to earn from their crypto assets. The KyberSwap Classic Protocol and the KyberSwap Elastic Protocol are its two primary protocols. By contributing liquidity to the Classic or Elastic pool, users can earn yield-harvesting rewards on KyberSwap.

KyberSwap Classic

KyberSwap Classic is the original form of liquidity. It adheres to the traditional AMM model, which provides liquidity across the entire price range. This can be contrasted with Uniswap v2 and the majority of other AMMs. The KyberSwap Classic Protocol employs AMM with programmable pricing curves tailored to each trading pair. It uses a dynamic fee model that self-adjusts to guarantee the highest possible returns for limited partners. It is generally suitable for novice merchants and features a straightforward fee structure.

>>>>> gd2md-html alert: inline image link here (to images/image10.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap Elastic

KyberSwap Elastic is KyberSwap’s implementation of concentrated liquidity, which enables liquidity providers to concentrate their liquidity by selecting a specific trading range to which they offer their liquidity. KyberSwap Elastic Protocol concentrates liquidity by enabling LPs to customize a price range to provide liquidity. It surpasses Uniswap v3, automatically reinvesting LP fees as compound interest. This can potentially increase capital efficiency, reduce slippage, and enable liquidity providers to optimize their returns. KyberSwap Elastic is an ideal choice for more experienced traders who require greater capital efficiency and flexibility, as it provides impermanent loss protection and dynamic fees.

>>>>> gd2md-html alert: inline image link here (to images/image11.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

Audits on KyberSwap

KyberSwap understands the importance of security in a hostile on-chain environment where smart contract code controls digital asset transfer due to its open and permissionless nature. KyberSwap has taken many security measures to strengthen governance contracts. This includes third-party audits, audit contests with community-based security experts, and a growing bug reward program. Hacken, a third-party auditor specializing in blockchain security, performed an audit of the KNC token contract. No problems were found during the audit conducted on May 18, 2021. The contract was graded as “well-secured.”

Chainsecurity performed an audit on the KyberSwap Elastic and determined that the codebase, as of the latest version committed in Scope, exhibits a high level of security. The security auditor also assessed KyberSwap Classic and identified security issues of varying severity, including high, medium, and low levels.

KyberSwap Hack

KyberSwap is a decentralized trading platform that operates directly on the blockchain. It has a unique liquidity optimization technique known as KyberSwap Elastic. This approach employs a concentrated liquidity market maker (CLMM) mechanism, which enables liquidity providers (LPs) to assign liquidity to specific price ranges according to their preferences.

On November 23, 2023, the decentralized trading platform KyberSwap experienced a security breach, leading to the attacker’s theft of about $54.7 million. The hack occurred due to intricate and manipulative transactions that allowed the attackers to withdraw victims’ cash into their wallets. As a result of this attack, the platform had to cut its personnel in half.

KyberSwap Ecosystem

>>>>> gd2md-html alert: inline image link here (to images/image12.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KyberSwap has 100 linked projects and $17 billion in transactions. KyberSwap aggregates liquidity from over 80 DEXs to offer the best rates on 13 chains, including Ethereum, Polygon, BNB Chain, Avalanche, Fantom, Cronos, Arbitrum, BitTorrent, Velas, Aurora, Oasis, Optimism, and Solana. KyberSwap aims to improve the user experience and grow its ecosystem.

Kyber Network Crystal’s (KNC) Vote Delegation

Kyber Network Crystal (KNC) vote delegation is a crucial step toward decentralization and active governance engagement by key KyberDAO and DeFi ecosystem participants. Kyber.org allows all KNC token holders to delegate voting power to Ethereum addresses. Based on the solid foundation, the Kyber Network team has expanded KyberDAO governance by delegating KNC tokens and voting power to top projects that have helped create Kyber’s ecosystem. This guarantees that critical stakeholders crucial to Kyber’s development and long-term goals will always have some KNC voting power, giving them ownership of their protocol contributions.

Main Responsibilities of KNC Delegates

• On-chain governance: Utilize a delegated or staked KNC to vote on each campaign on Kyber.org.
• Off-chain governance: Delegates will actively discuss Kyber’s development, particularly propositions directly impacting their operations (as a DApp, Reserve, or Staking Pool).
• Regular Communication: The Kyber team will receive significant feedback from delegates who communicate consistently.

What is the Kyber Network Crystal (KNC) token?

The Kyber Network Crystal token, or KNC for short, is an ERC-20 utility and governance token that is the foundation of the KyberSwap ecosystem. KNC, introduced on Ethereum in 2017, complies with the ERC-20 standard, ensuring it is seamlessly compatible with EVM-based smart contracts. In 2021, KNC was upgraded to provide additional functionality and flexibility, and the old token version was renamed KNCL (Kyber Network Crystal Legacy) to adapt to the DeFi landscape. The current KNC version is available for migration to old KNCL holders at a 1:1 ratio. Holders can vote on KyberDAO’s governance platform to receive trading fees, and KNC is staked as a governance token. KNC is also employed to provide LPs with additional value beyond the trading fees they receive and to incentivize them. Furthermore, KNC may be collateral for margin trading and loans on DeFi platforms, including Aave.

>>>>> gd2md-html alert: inline image link here (to images/image13.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

KNC Token and Utility

Kyber completed its KNC ICO token sale on the Ethereum Mainnet on September 16, 2017, generating 200,000ETH. A substantial portion of Ethereum users then participated in the token sale, with 21,309 unique addresses. The issuance and distribution of 226,000,000 KNC were as follows:

• Community investors and participants: 61.06% (137,995,600 KNC)
• Company operational reserves: 19.47% (44,002,200 KNC)
• Founders, advisors, and early investors (2-year vesting, 1-year lock-up): 19.47% (44,002,200 KNC).

A total of 10,374,651.16 KNC was burned after the claim period for the community and investors. The KNC optimum supply was reduced to 215,625,348.84 KNC due to the ICO’s conclusion. All-vested KNC tokens for founders, advisors, and early investors were unlocked and disseminated by the end of September 2019. KNC holders who stake their tokens acquire voting power within KyberDAO, which allows them to vote on KIPs (Kyber Improvement Proposals) and impact critical decisions that guide KyberSwap’s development and enhancements. KNC holders receive a portion of the protocol trading fees generated on KyberSwap in exchange for staking and partaking in governance through voting.

What is KyberDAO?

A decentralized autonomous organization (DAO) is a feature of numerous blockchain protocols and DEXs. KyberDAO is the decentralized autonomous organization (DAO) of the Kyber Network. KyberDAO is an acronym for Kyber Decentralized Autonomous Organization. KyberDAO is a community platform that enables KNC (Kyber Network Crystal) token holders to engage in the governance of Kyber Network and the KyberSwap trading platform.

The KyberDAO, which enables KNC (Kyber Network Crystal) token holders to vote on or submit proposals, governs KyberSwap’s development. This decentralized governance model guarantees that the Kyber Network develops according to the community’s interests and that the wealth remains decentralized and transparent. KNC holders can stake their tokens to vote on significant proposals. In exchange, they receive KNC rewards for the trading fees collected through KyberSwap trading activities. Voting is conducted in an entirely transparent and open manner.

The KyberDAO funds the voting reward by collecting 10% of the KyberSwap fee from transactions through liquidity pools as voting rewards, while the remaining 90% is distributed to liquidity providers. KyberDAO converts the fees collected into KNC tokens, distributed as rewards to KNC holders who stake and vote.

>>>>> gd2md-html alert: inline image link here (to images/image14.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

How do I Buy KNC Tokens?

>>>>> gd2md-html alert: inline image link here (to images/image15.png). Store image on your image server and adjust path/filename/extension if necessary.
(Back to top)(Next alert)
>>>>>

• Go to Gate.io Exchange and create an account by entering your email ID and password.
• Set up your fund password by entering settings; this password will be asked during fund withdrawal.
• To buy KNC tokens, you must complete KYC with the proper documents.
• After KYC, go to Spot Trade, search for KNC, and select.
• After opening the new page, fill in the amount in KNCor USDT you want to buy, and click the buy button.
• After a successful buy, go to the Wallet > Withdraw page.
• Here, select KNC, and then enter the wallet address.
• It will ask you for your fund password, 2FA, and email code; enter them correctly and submit.
• Your NUTS will arrive in your wallet after a few confirmations.

Conclusion

Kyber Network is pioneering the innovative process of becoming a trust-minimized liquidity center, which is essential for the expansion of DeFi. Due to its distinctive Kyber reserve models and protocol design, it serves as a strategic liquidity infrastructure provider for a decentralized economy. KyberSwap is a prominent member of the DEX community and is currently making significant progress in innovation. This includes the development of the KyberSwap Protocols (Elastic and Classic) and a distinctive DMM model.