The Kyber Network acts as the hub for liquidity protocols and aggregates liquidity from multiple sources.

The Kyber Network acts as the hub for liquidity protocols and aggregates liquidity from multiple sources.

The current strata of DeFi platforms and dApps are facing liquidity issues. This is because DeFi infrastructure, while revolutionary, is still in its infancy and lacks a mechanism to prevent liquidity in a platform’s ecosystem from flowing elsewhere. The majority of these dApps also do not have access to liquidity pools outside of the ecosystem. This drawback makes systems vulnerable to slow transaction speeds and security issues. Today we are looking at a solution: Kyber Network, which is designed to solve this liquidity problem in DeFi.


Kyber Network: Overview

The Kyber network acts as the hub for liquidity protocols and aggregates liquidity from multiple sources to provide secure and instant transactions on any dApp. Its main goal is to provide dApps, DEXs and other users with easy access to liquidity pools that offer the best rates. Kyber Network has built three tools to achieve its goal: 1) A decentralized exchange protocol 2) An API (Application Programming Interface) for asset conversion and 3) The KNC cryptocurrency. The Kyber network is built on the Ethereum blockchain.


KNC token: basics and purpose

KNC or Kyber Network Crystal connects different players in the Kyber ecosystem. It is the native governance token of the KyberDAO. KNC holders participate and vote to receive trading fees from the network. As new exchanges occur and protocols are added to the platform, more rewards are generated. KNC can be upgraded, minted or burned by KyberDAO to add liquidity and growth. Over 177 million KNC tokens are in circulation today.


Short term technical analysis

The KNC token is priced at $1.78 today, down 4% in the last 24 hours, and is currently ranked among the top 200 cryptocurrencies by market capitalization. KNC had a bullish start to February, but now finds itself in a descending parallel channel, providing several opportunities for scalp traders. It hit a high of $2.17 this month before rejecting hard and losing the golden pocket of its upside.

Kyber Chart

Source: TradingView, Binance

KNC is now trading at the 0.786 retracement support level, back inside the parallel channel. If this support is lost, it may visit its monthly pivot at $1.69. Should the uptrend resume, it will need to recover the golden pocket that has now turned into resistance, at $1.81 and $1.84.


Future potential

DeFi has immense utilities and use cases. As such, no single standalone protocol has the potential to meet the needs of all types of liquidity providers. Kyber Network’s architecture is designed to support DeFi and its possibilities in the future. The network launched Kyber DMM, the world’s first dynamic market maker protocol, in April 2021. As the possibilities of DeFi expand, Kyber’s DMM is designed to react to market conditions and will help optimize fees and enable high capital efficiency for liquidity providers. The use cases are promising. Can KNC be in the top 100 crypto soon?

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Warning:This article was written by Giottos Cryptocurrency Exchange in a paid partnership with The News Minute. Investments in crypto-assets or cryptocurrency are subject to market risks such as volatility and have no guaranteed return. Please do your own research before investing and seek independent legal/financial advice if you are unsure about investments.


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