What is Kyber Network?Kyber Network is a popular cryptocurrency exchange that allows for the instantaneous exchange and conversion of digital assets, like cryptocurrency tokens and popular cryptocurrencies such as Bitcoin and Ethereum. Users do not need to register to the site as there is no such requirement. It is decentralized in nature and this allows users to control their own funds and private keys through smart contracts. No fees are charged by the network except for gas fees (detailed below). Kyber uses an on-chain system of reserves that bring liquidity to the exchange.
- No funds are stored on the exchange as Kyber uses cold storage.
- Proxy payments allow users to make payments to any individual using any ERC-20 token or cryptocurrency.
- The API of Kyber Network facilitates the conversion of one token to another. This brings ease to the entire process of trading and buying, as the network automatically converts coin. It seems as if the payment has come directly from the sender, whereas it has been modified.
- Kyber Network has high liquidity. This is maintained through its dynamic reserve pool. There are multiple reserve entities on the system which prevent monopolization and keep the competitiveness of exchange rates.
- All trades are operated via the smart contract, through the reserve entity pool manager.
- KNC is also used by reserve managers to pay corresponding fees. Each transaction is charged a fee of around 0.01% and is paid in KNC. The collected fee is then burned by Kyber Network
Kyber Network RolesKyber Network has a much wider application than the general needs for token trade and cryptocurrency purchase. There are several different roles played by different entities on the Kyber Network. They are as follows:
- Users - Users send and receive cryptocurrency on Kyber Network.
- Reserve Entities - Reserve Entities bring high liquidity to the network. This is maintained through its dynamic reserve pool. These entities can either be private or public with respect to the network.
- Reserve Contributors – Reserve Contributors are responsible for funding reserve entities. They share profits from the reserve and are public with respect to the network.
- Reserve Manager – The Reserve Manager pays corresponding fees by calculating exchange rates and entering them into the network. They are responsible for maintaining the reserve.
- Kyber Network Operator – The Kyber Network Operator can add or remove reserve entities. The operator is also responsible for controlling which tokens are listed on the site.