What is Kyber Network Crystal v2 (KNC)?
Kyber Network is a decentralized finance (DeFi) service provider. KNC is the native utility and governance token for the platform. The asset is an ERC-20 token, as the Kyber Network was built on the Ethereum blockchain.
Kyber Network is a blockchain ecosystem that connects crypto traders, decentralized applications (dApps), and other DeFi platforms by aggregating liquidity. It aims to provide traders with the most suitable exchange rates as it provides access to a number of liquidity pools. Information on the KNC price and market capitalization can be accessed above.
What is the Story Behind Kyber Network Crystal v2?
The Kyber Network project was founded in 2017 by Victor Tran, Loi Luu, and Yaron Velner.
Victor Tran is the current CEO of Kyber Network. Until January 2022, he was the company's CTO. Tran is a computer scientist who previously worked as a technical advisor for a number of blockchain-based projects.
Luu is the Chairman of Kyber Network. He has a Ph.D. in Computer Science and focuses his research on blockchain technology and security. He’s developed several blockchain and smart contract tools, including the Elastico sharding protocol.
Velner was previously the CTO of Kyber Network. He stepped away from the project in 2019 when he founded and became the CEO of B.Protocol, a blockchain liquidity protocol for lending platforms.
The idea behind KNC was to counter issues related to liquidity that many DeFi projects encounter. Since DeFi is a relatively new field in the crypto space with many innovations and technological experiments occurring nearly daily, projects seek the best ways to aggregate liquidity and offer reasonable trade rates.
In 2017, the KNC team held an Initial Coin Offering (ICO) during which it raised $60 million. During this event, the KNC price was estimated to be around $2, and nearly 75 million Kyber Network Crystal tokens were sold.
The official launch of the Kyber Network platform took place in early 2018. The asset was met with good early performance, as the legacy KNC price recorded on January 9 at exactly $6 was its then-all-time high. The asset continued to have frequent value fluctuations and even dropped below $1 in the summer of 2018.
This trend continued onwards for nearly a year. However, by the second half of 2020, the asset was starting to see some growth. The highest-recorded KNC price that year was just short of $2.
In April 2021, the network began the process of token migration. The old coin, now known as KNC Legacy (KNCL) was upgraded to a mode dynamic and flexible Kyber Network Crystal V2 crypto asset.
The migration had a positive impact on the asset’s market performance. During the entire first year of its relaunch, the KNC price did not drop below the $1 threshold. Its peak between April 2021 and April 2022 occurred in November. Then, the asset was worth around $2.26.
The first half of 2022 saw steady growth. In April 2022, the Kyber Network Crystal V2 price jumped up to $5.72, nearly meeting the ATH set by the legacy token. However, it was strongly impacted by the crypto market crash in the summer. Although the volatility remained high, the asset remained above $1 throughout the first half of 2022.
What Are the Features of Kyber Network Crystal v2?
There is no maximum supply limit to the Kyber Network Crystal V2 coin. The total supply of the asset is determined by a governance vote and can be increased or decreased as required. The asset is not deflationary by design, although the supply reduction can be used as an anti-inflationary measure to regulate the KNC price if needed.
The Kyber Network Crystal Legacy (KNCL) is still listed in some markets. The migration was done using a 1:1 ratio, meaning that the Kyber Network Crystal V2 price matches that of the Legacy token.
The new KNC token is used as the core asset of the entire Kyber Network ecosystem. It can be used for staking, injecting liquidity, paying for service fees, and participating in protocol governance.
Developers can use the KNC ecosystem to implement DeFi services in their projects. These include liquidity aggregation, instantaneous token settlement, and blockchain customization. Users can access liquidity aggregated by the network. KNC was built on Ethereum and supports ETH-based smart contracts.
One of the key products offered by Kyber Network is the Kyber Dynamic Market Maker (Kyber DMM). It’s an upgraded version of an automatic market maker (AMM) protocol. Based on its design, the DMM can quickly respond to market updates and optimize trading fees and earnings accordingly.
Another popular service provided by Kyber is the KyberSwap protocol. It’s the platform’s peer-to-peer token swap that offers users optimal trade rates. According to the team, KyberSwap aims to maximize returns for liquidity providers.
Kyber Network Crystal V2 uses the Proof-of-Stake (PoS) consensus algorithm which allows users to stake their assets on the Polygon blockchain. KNC stakeholders are eligible to participate in the network’s decentralized autonomous organization known as the KyberDAO.
The KyberDAO is responsible for ensuring that the blockchain maintains its decentralization. Any decisions regarding the protocol changes are proposed and voted on by the DAO members. Asset holders can also delegate their votes to other parties within the Kyber Network community.
Stakeholders receive a portion of the trading fees as an incentive to continue their contributions to the platform. Staking rewards are paid in Ether (ETH). The rewards can then be used on the broader Ethereum ecosystem, converted using the Kyber Network Crystal V2 price value, or exchanged for other tokens as desired.
