16 days ago 7 min read

Kyber Network Review; Boost DeFi Liquidity Using Useful Methods

kyber network-defi-kyberswap-dex-ethereum-binance-uniswap-polygon-bnb-avalanche-v3-dapp
Table of Contents

A multi-chain cryptocurrency trading and liquidity hub called Kyber Network pools liquidity from many sources to enable transactions at the most competitive rates. It enables entirely transparent and verifiable on-chain transactions without the need for KYC or a middleman.

The main offering of the network, KyberSwap, is an advanced DEX aggregator that enables users to trade, earn, and take part in DeFi on each of the 13 supported chains. Being a DEX aggregator, KyberSwap obtains liquidity from over 70 DEXs throughout its supported networks in addition to its own pools, and it is equipped with yield optimization techniques to offer the best rates and returns.

On the Ethereum, Polygon, Binance Smart Chain (BSC), Avalanche, and Fantom networks, KyberSwap is the finest place to trade and profit; you can get the best prices for your token swaps and increase your earnings with your token holdings.

With capital-efficient liquidity pools and a decentralized exchange (DEX) aggregator, KyberSwap serves as a source of liquidity and a revenue generator for liquidity providers. It is the primary protocol of Kyber's liquidity hub and the first multi-chain Dynamic Market Maker developed by DeFi.

By enabling liquidity aggregation for the best rates, very high capital efficiency, and adapting to market conditions to optimize profitability for liquidity providers, KyberSwap is designed to maximize capital use in contrast to traditional AMM/DEXs and other liquidity platforms.

The Kyber Network will be investigated in this Kyber Network study, along with the tokens' long-term adoption potential and application cases.

What are KyberSwap and KyberNetwork?

A blockchain-based decentralized protocol called Kyber Network provides liquidity for decentralized finance (DeFi) apps and enables token exchange without the need for a middleman.

Loi Luu and Victor Tran launched Kyber Network in 2017, and in an ICO for its native token, KNC, they raised 200,000 ETH.

The Kyber team opened up its infrastructure in an effort to draw in a larger decentralized economy following the Ethereum debut in 2018 with Vitalik Buterin serving as a key advisor.

The core product of Kyber Network, KyberSwap, is a multi-chain automated market maker (AMM) and decentralized exchange (DEX) aggregator that enables token swaps without using a centralized intermediary.

The largest decentralized cryptocurrency exchange, Uniswap, only supports five networks, but KyberSwap's objective is to improve cooperation in the DeFi space.

Being a decentralized exchange, KyberSwap connects traders to liquidity pools as opposed to an order book. The protocol's smart contracts provide liquidity and let users conduct transactions without using middlemen.

Kyber Network is administered by KNC holders through KyberDAO, the network's decentralized autonomous organization, and has legitimate projects supporting its staking scheme.

The goal of Kyber Network is to make Decentralized Finance easily accessible, inexpensive, rapid, and safe for all users.

In the previous five years, Kyber Network has been propelled by inventiveness and tenacity to rank among the top DEXs in the DeFi sector. The best pricing for traders are offered by KyberSwap, a next-generation DEX aggregator that also maximizes profits for DeFi liquidity providers.

In order to give clients the best swap prices possible, KyberSwap, which is now implemented on 13 chains including Ethereum, Polygon, BNB, Avalanche, Fantom, Cronos, Arbitrum, BitTorrent, Velas, Aurora, Oasis, and Optimist, pools liquidity from more than 70 DEXs.

A collection of capital-efficient techniques are offered by KyberSwap with the goal of maximizing incentives for liquidity suppliers.

While KyberSwap Elastic is a tick-based AMM with industry-leading liquidity protocols and concentrated liquidity, customizable fee tiers, a reinvestment curve, and other advanced features designed to give LPs the flexibility and tools to make earning strategies to the next level without compromising security, KyberSwap Classic's Dynamic Market Maker protocol (DMM) is DeFi's first market maker protocol that dynamically adjusts LP fees based on market conditions.

KyberSwap pools may request liquidity from liquidity providers in exchange for fees and incentive payments.

Since its launch, KyberSwap has provided the engine for more than 100 integrated projects and facilitated more than $11 billion in transactions for thousands of consumers.

How does it function?

A group of smart contracts known as the Kyber Network can be used on any blockchain that supports them, albeit as of December 2020, it is only implemented on Ethereum. The protocol creates a single liquidity pool in its network by combining liquidity from diverse sources, such as token holders, market makers, and decentralized exchanges. The liquidity of the network is open to anyone. The main users of the Kyber Network can swap tokens immediately without the aid of a reliable intermediary.

The platform provides a dynamic setting in which traders, liquidity providers (LPs), and decentralized applications (dApps) may conduct transactions and profit from a wide range of tokens.

By employing Kyber's on-chain architecture and smart contracts, developers may easily add new protocols to their apps without permission. This enables apps to accept payments in the cryptocurrency of their choice even if users do not hold the native token of the blockchain.


KyberSwap, the company's flagship project, deliberately makes use of its distinctive qualities to energize and empower a variety of DeFi ecosystem users, including traders, LPs, and developers.

Using the KyberSwap technique, transferring cryptocurrencies may be done instantly without placing a book order, making a deposit, or wrapping anything. The exchange continuously feeds requests across numerous centralized exchanges and liquidity pools to obtain the best price. Consumers can tailor their swaps to achieve the highest returns or the lowest gas prices. Also, different levels of slippage tolerance are offered, as well as crucial pre-trade details like the predicted USD value and minimum returns.

As a DEX aggregator, KyberSwap tracks prices from hundreds of exchanges to give its customers the best deals. KyberSwap receives reliable, accurate price feeds thanks to Chainlink, a well-known oracle network.

In addition, KyberSwap focuses liquidity from the best liquidity protocols in the market, enabling LPs to profit from their cryptocurrency holdings. Its two main protocols are KyberSwap Conventional Protocol and KyberSwap Elastic Protocol.

  • The KyberSwap Classic Protocol makes use of AMM and customizable price curves for each trading pair. To maximize LP returns, it uses a dynamic fee structure that self-adjusts.
  • By allowing LPs to select a price range for offering liquidity, the KyberSwap Elastic Protocol concentrates on liquidity. By automatically reinvesting LP fees in the form of compound interest, it goes beyond Uniswap v3.

Elastic KyberSwap

KyberSwap Elastic is possibly your best choice if you want to deposit liquidity without having to come back every day to reinvest. From a single platform, it offers access to 11 chains, the ability to trade tokens, and one of the best exchange rates on these networks.

By automatically reinvesting user fee profits back into the liquidity pool, the KyberSwap Elastic protocol enables users to accrue extra fees through compounding. The procedure additionally guards against sniper attacks. An anti-sniping feature in KyberSwap Elastic ensures that attackers won't take advantage of liquidity providers during a swap.

There have been many similarities between the KyberSwap Elastic Protocol and the Uniswap V3 since the publication of the latter. Others even think the Uniswap V3 and the Elastic Protocol are forks of each other. Such claims are untrue even if both platforms are fierce competitors.

The Business Source License 1.1 governs the source code for Uniswap V3. This suggests that it is not fully open source. The earliest Uniswap V3 fork may happen in 2023 since copyright laws forbid illicit commercialization of the source code for two years. The Uniswap V3 protocol is not a fork of the KyberSwap Elastic Protocol as a result. Instead, the original source code was used to generate it.


Due to the lack of withdrawal fees, Kyber Network is a very competitive offering. Nonetheless, it should be noted that certain exchanges pay network charges so that dealers can withdraw money without paying a fee. Charging only network fees, however, is also a trader-friendly pricing structure because network expenses are so minimal.

In contrast to many DEXs, KyberSwap does not impose aggregator, administration, or platform fees. 90% of the fees paid by liquidity providers are kept, and the remaining 10% are given to the KyberDAO as governance rewards. KNC holders who stake and vote on governance issues proportionally to their stake are given these privileges.

Token KNC

KNC, the native token of the Kyber Network, was introduced in 2017. The cost of a KNC token during the Initial Coin Offering (ICO) was one dollar. The firm, the founders/advisers, and the remaining 61% of the 226 million KNC raised for the ICO were split equally. The lockout time and vesting period for this control are each one year long.

The token successfully supports the network by connecting liquidity suppliers and liquidity seekers.

KNC serves as the ecosystem's governance token for the Kyber Network. Holders of KNC tokens may stake them on KyberDAO in order to vote on platform upgrades, raise the value of their tokens, and accelerate adoption. This increases the project's utility and worth. Epochs, which are two-week periods that are measured in Ethereum block timings, are used to stake the tokens. Holders receive a portion of the fees that the protocol's liquidity pools collect.

KNC is a deflationary token as well, which means that a percentage of the coin's fee-generated supply is burned in order to lower the total supply. Deflation is advantageous to the asset's economic flow. KNC can be used to make crypto payments on websites like Pundi X and Monolith wallet.


Leading audit firms Chainanalysis and Hacken have looked through the Kyber Network codebase, which is available to the public.

Users must connect their wallets in order to start trading while retaining their anonymity and complete control over their cryptocurrency assets on Kyber Network, a non-custodial, decentralized exchange.


By virtue of its functionality and business practices, Kyber Network intends to be a DeFi community leader in providing reserve liquidity. It is totally controlled by computer code, a distributed network of software users, and the Ethereum blockchain, and it offers liquidity by pooling liquidity from many sources.

The development of DeFi depends on liquidity, and Kyber Network is paving the way to become a trust-free liquidity center. It is positioned as a crucial supplier of the liquidity infrastructure for a decentralized economy because to its distinctive Kyber reserve models and protocol design.

As the DeFi ecosystem develops, Kyber continues to grow to connect more dApps and offer more resources for a seamless token-swapping experience.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.