Kyber Network Crystal
What Is Kyber Network Crystal?
The KNC token is the utility token of the Kyber Network, used for fees and incentives, and the governance token of the protocol with the integration of KyberDAO. It allows swaps to be carried out on smart contract platforms, mainly on Ethereum. This is achieved through its own pools by using other DEXs (such as UniSwap, Oasis, or Bancor) and fulfilling a "liquidity aggregate" function: the pool used will be the one that offers a better exchange rate, regardless of the origin of the reservation.
Currently, the fees generated on the platform are destined to the incentive and compensation of the reserve funds and 70% to a "burning" system, promoting the shortage of the token and increasing the incentive to host it. As of the DAO integration, the KNC tokens can be used for staking in order to have voting power, and decide together with the community how the platform fees will be distributed, including a new compensation to the KNC holders, involved in DAO decisions.
Pros and Cons of Kyber Network Crystal
Advantages of Kyber Network
In an ecosystem where there is an abundance of tokens, having an interface that allows you to access liquidity from practically anywhere provides great value to the ecosystem. What Kyber proposes is to serve as a single point of access to all liquidity options, quickly, easily, and with the possibility of also looking for the cheapest exchange option. Integrating your liquidity into Kyber reserves guarantees the automatic availability of your token to thousands of users thanks to integrations.
Disadvantages of Kyber Network
Kyber's biggest competitor is the 0x project. Both are targeting the decentralized cryptocurrency exchange market. The main difference is that Kyber does everything within the same blockchain, while 0x uses the order book and matches orders outside the blockchain. The future of the token also heavily depends on the future development of the project. Since the value of KNC tokens depends on the number of earnings that KyberNetwork can generate, the more volume and profits the network generates, the more valuable the KNC tokens will be.