GAINS Associates
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GAINS Associates

Kyber Network— Telegram QUIZ & AMA — June 29

On Sunday, June 29, we had the pleasure to welcome to our Telegram chat:

Sunny Jain, head of product and
Shane Hong, marketing manager of Kyber Network

We asked them questions about the development of Kyber Network, currently ranked 34 at CoinMarketCap.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Kyber’s on-chain liquidity protocol aggregates liquidity from a wide range of sources for the best prices, enabling decentralized token swaps to be integrated into any application.

Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.

Features include non-custodial limit orders, Fiat on-ramp, User portfolio, Alerts and more.

Discover the KNC use cases and what makes Kyber different from other DEX platforms. Understand why Kyber’s Fed Price Reserve is a better product than other Automated Market Maker initiatives from their competition.

Kyber Network has over 190,000 users and developers.

Anyone can embed a KyberWidget on their website to accept token payments by using their widget generator. Some developers reported they only took 15 minutes to set this up!

Kyber smart contracts are fully audited multiple times and battle-tested in terms of usage. They have processed over a Billion USD worth of swaps, and over 1 Million transactions, entirely on-chain on Ethereum!

Introduction

Q — Alexandre R from GAINS: Can you guys tell us what you did before crypto, how you got into crypto, and if you’ve had any other venture in crypto previous to being involved with Kyber Network?

A—Sunny from Kyber Network: I’ve been into fintech for the last 8–10 years. Prior to Kyber, I used to work with Lazada. Worked with Alipay to launch payments solution in South East Asia. Prior to Lazada, I used to work with Apple. What excited me to quit my job and move to crypto is: what’s next in Fintech. Normal world fintech innovation is far behind what’s happening in blockchain/crypto. In a nutshell, I wanted to be part of a revolution and I am so proud of my decision.

A — Shane from Kyber Network: Hi Gains community! I first went down the crypto rabbit hole back in early 2017. I have a background in marketing and previously managed marketing campaigns for Citibank and Villeroy & Boch.

Q — Alexandre R from GAINS: How much wilder is crypto marketing compared to traditional marketing? lol

A — Shane from Kyber Network: Very different! Feels like being in customer support 24/7 :) I started researching blockchain and crypto when I was looking to diversify my investment portfolio. I personally took part in over 100 token sales since 2017. When I started looking for a career in crypto, I naturally chose a project that I found was among the best in terms of their technology and vision, with a strong and hardworking team that shared my passion for blockchain. That’s why I’m at Kyber now!

Product

Q — Alexandre R from GAINS: Thanks for the intro guys. Can you tell us what your role is at Kyber Network, and what the project is about in a few simple sentences?

A — Shane from Kyber Network: Kyber’s on-chain liquidity protocol aggregates liquidity from a wide range of sources for the best prices, enabling decentralized token swaps to be integrated into any application. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.

Shane Hong, Marketing Manager at Kyber Network

As Kyber Network’s Marketing Manager, I support the branding and communication efforts of Kyber Network, one of the most popular projects in DeFi, and manage our community of over 190,000 users and developers. My mission is to help raise awareness and accelerate the adoption of Kyber Network.

A — Sunny from Kyber Network: I am head of product at Kyber Network. I mainly handle KyberSwap. It is our inhouse DEX platform that uses Kyber Network as backend technology. It’s the simplest way a user can swap ERC 20 tokens. Users don’t have to deposit funds. We also offer other services like limit order, Fiat on-ramp, User portfolio, Alerts, etc. We are available at Desktop, Android, and iOS apps.

Sunny Jain, Head of Product at Kyber Network

Q — Alexandre R from GAINS: Wow, nearly 200k users. Good to know. Do you also use other DEX’s sometimes?

A — Sunny from Kyber Network: I only use other DEX only to keep eye on competition. For my personal trading needs, I use KyberSwap.

A — Shane from Kyber Network: I love trying new technologies! KyberSwap is of course my favorite token swap platform. But for the rare tokens we don’t support there, I do use Uniswap as well as Loopring, which has an interesting new scaling solution.

Kyber Network offers bridge reserve to Uniswap. So, sometimes, KyberSwap route user’s trades to Uniswap if rates are better. In a way, if a person uses KyberSwap, he will get the best rates. For those who are interested to learn more about KyberSwap, you can find more here. Highlights include:

  • Fast and simple token swaps on Ethereum
  • 70+ ERC20 tokens
  • Non-custodial Limit Orders
  • Easy portfolio management
  • Mobile app
  • Fiat on-ramp
  • Price Alerts
  • Live Chat Support

Q — Twitter user @KathDM3: What are some of the main uses of KNC? Which according to your point of view do you consider the most important one?

A — Shane from Kyber Network: Here are KNC’s 3 Main Use Cases:

  1. Staking rewards for participating in the KyberDAO: KNC holders can stake KNC in the KyberDAO and vote on key parameters. Voters will earn staking rewards (in ETH).
  2. Burning KNC: Some of the network fees will be burned to reduce KNC supply permanently, providing long-term value accrual from decreasing supply.
  3. Reserve incentives: KNC holders determine the portion of network fees that are used as rebates for selected liquidity providers (reserves) based on their volume performance.

The most important use case for KNC in my opinion is being a governance token. It allows token holders to play a critical role in determining the incentive system, building a wide base of stakeholders, and facilitating economic flow in the network. A small fee is charged each time a token exchange happens on the network, and KNC holders get to vote on this fee model and distribution, as well as other important decisions that aid in the development of Kyber Network.

Some other use cases:

  • For payments through the Crypto.com and Monolith apps and Visa cards, usable at millions of global vendors
  • For payments on the Kyber Swag Store powered by Origin Dshop
  • For payments at vendors with PundiX terminals installed
  • For loans, collateral, and margin trading on DeFi platforms such as Aave, Maker, and Nuo
  • For gas-free, no-fee Limit Orders on KyberSwap.com

Q — Twitter user @gasken_cuk: How do you come with the idea of “Get ETH for staking KNC” why not “Get KNC for staking KNC”?

A — Shane from Kyber Network: First of all, I would like to remind the community about an important feature that sets Kyber apart from some other DEX platforms. Kyber is a fully on-chain liquidity protocol, and it is currently used heavily on the Ethereum blockchain. This is unlike hybrid systems that may have off-chain matching components.

Kyber’s fully on-chain design provides certain advantages:

  • Fully On-chain Settlement: Atomic and immediate on-chain settlement
  • Trustless Transactions: Fully transparent and verifiable transactions
  • Liquidity Aggregation: Trade is spread across multiple reserves to get the best token rates on-chain
  • Ease of Use: The bundling of multiple value exchanges into a single step for users
  • Seamless Integration: Straightforward integration with DApps, as interaction with off-chain components is not needed and there is minimal security and development overhead.

Since we are operating on Ethereum, we understand the importance of ETH in the ecosystem. Getting rewards in ETH means those who help support Kyber’s growth (which in turn supports DeFi’s growth) can immediately participate in the Ethereum and DeFi ecosystem again. All on-chain actions in DeFi need ETH for gas, ETH is used as collateral in other platforms e.g. in MakerDAO for DAI, and used as payment for goods and services.

Users can always use their ETH rewards to buy more KNC from the market (e.g. from KyberSwap.com) to vote in the KyberDAO to make the protocol better. KNC helps the community get ETH to participate in Ethereum activities. ETH helps the community get more KNC to help improve liquidity and make Ethereum and DeFi better.

Q — Twitter user @Nickkiii — Why should professional market makers choose the Kyber FPR platform over Automated market makers (AMMs) and on-chain orderbook systems?

A — Shane from Kyber Network: Kyber’s Fed Price Reserve (FPR) is a unique product that allows professional market makers to effectively market-make and generate profits on-chain. In FPRs, prices are fed on-chain by market makers using highly capital and gas efficient mechanisms to make rapid market making for a wide range of tokens feasible.

Automated market makers (AMMs) and on-chain orderbook systems sufficient for retail investors, but have major shortfalls for professional market makers, due to a lack of capital efficiency and control over pricing strategies.

AMMs use an algorithm that automatically provides a tradable price, but offer no control over trading strategies, limited protection against impermanent losses, and only provide sufficient liquidity for token pairs that are already sufficiently liquid. In addition, AMMs require a relatively high amount of token inventory ‘locked up’ to provide liquidity.

On-chain order books, on the other hand, are too gas and capital inefficient to be used for market-making, particularly if the goal is to market make for a large number of tokens.

Here’s a simple image that summarizes the benefits of the FPR:

Q — Alexandre R from GAINS: Nice recap. Is there a barrier to entry in the FPR?

A — Shane from Kyber Network: Yes. It is meant for professional market makers and advanced developers, not for the average retail investor. You will likely need a small team of 2–3 people and at least one developer :) For token teams we recommend the Automated Price Reserve (APR) which shares similarities with the AMM model but with certain advantages.

Q — Telegram user Jade: How do you see DeFi potential that Katalyst and KyberDAO working at right now? What role do you think Kyber will take to make DeFi better in global usage? What is the major problem that Katalyst and KyberDAO solved with these DeFi updates?

A — Shane from Kyber Network: Katalyst protocol upgrade will usher in an exciting new era for Kyber Network, with a host of major technical improvements that will enhance liquidity for DeFi! Katalyst will also introduce KyberDAO, a community platform to facilitate the decentralized governance of Kyber’s protocol.

  • For KNC holders: Stake KNC on the KyberDAO, vote on important proposals, and earn rewards in ETH
  • For DApps: Set your own custom spread, enjoy reduced network fees and reserve routing for better rates
  • For Reserves: Experience a simplified fee system and new market-making tools, with FPRs receiving reserve rebates

Read all about the benefits Katalyst will bring to the ecosystem here.

Q — Telegram user Isam Mery: Can you give us examples of things that can be built on Kyber? As a novice developer, what options do I have for within the Kyber space?

A — Shane from Kyber Network: All the required documentation can be found here.

By the way, anyone can embed a KyberWidget on their website to accept token payments by using our widget generator. Some developers have even told us they only took 15 minutes to set this up!

Security

Q — Telegram user Tamil is king: How do you think the recent hacks on other DeFi products affect trust in the space? What is Kyber Network doing to ensure it’s safe and free from hacking? In other words how secure is Kyber?

A — Sunny from Kyber Network: For security: Kyber smart contracts are fully audited multiple times and battle-tested in terms of usage. We have processed over a Billion USD worth of swaps.

A — Shane from Kyber Network: Yes, since we went live on mainnet around early 2018, we have successfully processed over US$1 Billion worth of trades, and over 1 Million transactions, entirely on-chain on Ethereum!🚀

A — Sunny from Kyber Network: At Kyber, we work with leading security solutions to make sure we are up to date with the latest developments in the field. We keep our eyes open on what’s happening in the market as well. Just to give an example: if any wallet associated with any hack tries to use KyberSwap, it automatically gets blocked and is not allowed to use the services.

Business Development

Q — Twitter user @Crypto_Isaac: Kyber Network has reached a milestone as being the MOST used #Defi protocol and is well-positioned to be the future of decentralized liquidity. With your partnership with ParaFi Capital, what is your plan to build a strong liquidity infrastructure for DeFi?

A — Shane from Kyber Network: This is a great question. Glad to see the community keeping up with our partnerships!

Kyber Network aims to be the transaction layer for the decentralized economy. That means it is critical that we are able to enhance decentralized liquidity for DeFi.

ParaFi invested in Kyber

Kyber will work with ParaFi to:

  • Participate in governance: the ParaFi team has expressed commitment to participate in Kyber’s governance. Apart from KNC staking and voting in the KyberDAO, they will work with us to engage in critical discussions with the community.
  • Grow our Taker ecosystem: ParaFi will support Kyber’s long-term mission to be the transaction layer of the decentralized economy, by connecting us to their vast network and helping to grow our ecosystem of DApps, which will help attract more market makers.
  • Accelerate professional market making: ParaFi will help connect professional market makers to DeFi through Kyber’s Fed Price Reserve (FPR) system.

On top of our partnership with ParaFi Capital and our membership in the Chicago DeFi Alliance, Kyber’s Katalyst protocol upgrade introduces important technical upgrades that help improve liquidity for DeFi:

  • A simplified fee system to reduce friction in liquidity contribution
  • Reserve rebates
  • More robust market-making tools
  • Reduced network fee
  • Reserve routing for better rates

Shane and Sunny, thanks a lot for coming in today in our community, it was a pleasure to learn more about Kyber Network: your great achievement of having processed more than $1B in on-chain txns, your various partnerships and plans to bring in even more liquidity, your improved version of Automated Market Making and all your other services like fiat on ramp, user portfolio, alerts and more! Is there anything else you’d like to say? Where can we follow Kyber Network? Alexandre R from GAINS

Thank you so much @Firunner and the GAINS team for inviting Kyber Network here today! We enjoyed talking to the awesome GAINS community. Look forward to more activities like this together in the future! Onwards and upwards! 🎉🎉

Join our community!

Discord: https://discord.com/invite/NfFMVz6
Website: https://kyber.network/
Blog: https://blog.kyber.network/
Twitter: https://twitter.com/kybernetwork/
Tracker: https://tracker.kyber.network/#/
Developer Portal: https://developer.kyber.network/docs/Start/

Learn about Kyber

Intro to Kyber: https://t.co/aT1ZfFWryM
Ep1-KyberDAO staking and voting https://t.co/gBJ0BVapPt
Ep2-Be a Kyber reserve! https://t.co/34F4CROsqr
Ep3-Build with Kyber! https://t.co/N1js8uJDsE

— Shane from Kyber Network

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