Meet Kyber Network: DeFi’s Sleeping Giant

Kyber Network is a decentralized exchange and liquidity provider that has seen a lot in its 5 years of operations. As they say in their anniversary post, they hit some big firsts for the industry too like:

  • Aggregating liquidity pools
  • Introducing the IEO/IDO fundraising mechanism
  • And was the first major DeFi project to encourage DAO governance by rewarding voters with tokens.

So as you might guess, they’ve seen a lot.

And they do lots of work behind the scenes, too. In fact, some integrations they already have that you might not be aware of include:

  • Exodus wallet and Trust Wallet
  • NFT and e-commerce payments for Axie and Battle Racers
  • Automatic, decentralized token rebalancing and liquidation services for platforms like AAVE and Set

After all, that $7 billion has to come from somewhere if you are going to do it quietly, right? They enable all these services as ‘powered by Kyber Network’. And they do it by providing liquidity across 11 different chains and over 80 DEXes.

In the wake of what’s happened to UST, Celsius, and now 3AC, we see that liquidity is important in all crypto markets, but especially in DeFi. After all, a 20% drop, which we’ve seen can happen in a day or two can convert a properly collateralized loan position into one that requires a margin call. Liquidity providers like Kyber Network play an important role in the system.

What is Kyber Swap?

Kyber’s most popular service is Kyber Swap. With it, you can swap, farm, or earn by adding liquidity to one of the pools. Two of the more interesting pools we found are:

  1. their version of the 2pool with USDC-USDT that’s very liquid and one of their amplified pools that pay 0.53%. Yes, that’s not a ton of money but at least we know it’s a sustainable rate compared to what some of these imploding projects were paying.
  2. And if you think the crypto market leaders will move together higher or lower, then this Wrapped Bitcoin-ETH pool is an interesting choice. It pays 12.33% and if you think the leaders will rise together, then your risk of impermanent loss goes down while holding the 2 leading projects in the industry.

The highest yielding pool we found is a nice one for ETH fans as it’s ETH-USDT paying 22.86%.

Meet Kyber Network: DeFi’s Sleeping Giant 3

You can swap thousands of different tokens including some ones we’ve never heard of like the Jarvis Synthetic Euro. They use 5 base tokens. Those are ETH, wETH, DAI, USDC, and USDT. Using one of those base tokens, you can swap fast and for low fees. They even show you different options of where your receiving coin might come from like Curve or Uniswap since it’s aggregating prices to give you the best deal. It’s a great service.

KNC Price Activity

And lastly, for today, Kyber has its own token $KNC, used for DAO governance and you earn a share of the trading fees. Unlike most in the industry, they haven’t gone down 90% in the last 6 months. Its recent high after a nice run-up was $5.70 in late April but now it trades at $1.43 well off its low from a year ago. KNC is bucking the trend of all-time lows in the market. 

A little more than half of their tokens are circulating in the market with 102 million out of 198.9 million in circulation. This reduces the odds of dumping newly issued tokens into the market. Today, the 24-hour volume is just under $20 million and its current market value is $146 million, making it the 194th largest project in the cryptoeconomy.

As we said at the top, underrated and under-recognized for its successes in the market. 


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