Kyber Network: A huge player in the DeFi market
The DeFi market keeps on growing with so many innovations and good projects trying to solve the problems that the traditional market has failed to address over the years.
One of the growing number of Defi cryptocurrencies seeking to build an alternative to traditional exchanges that allows buying and selling of tokens is “Kyber Network”.
Kyber Network seeks to provide the same service of buying and selling tokens. Just that in the case of Kyber Network it is being operated by codes powered by Ethereum Network.
Let us dive a little deep into what the Kyber network is and how it contributes to the DeFi ecosystem.
What is the Kyber Network
Kyber Network is a decentralized blockchain-based protocol that collects liquidity and enables the exchange of tokens without a third party.
Kyber Network can be integrated into decentralized applications (dApps), crypto wallets, and decentralized finance (DeFi).
Kyber Network is connected to more than 100 applications and powers KyberSwap, a decentralized exchange (DEX) where buying and selling of tokens take place.
Kyber Network is a huge contribution of liquidity to the DeFi ecosystem.
Liquidity could mean different things in the crypto space. But in this case, we mean the ease at which tokens can be swapped for other tokens and the trading activities in the market. Liquidity is important to a healthy, functional, and user-friendly market.
Liquidity can be very challenging to the existence of DeFi protocols
In the traditional market, liquidity providers are banks and other financial institutions. Making use of banks and financial institutions will defeat the purpose of the decentralization of the DeFi market.
This is where Kyber Network plays a huge role in the DeFi ecosystem with the ease of buying and selling tokens using KyberSwap.
How does Kyber Network work?
Kyber Network consists of a set of smart contracts that can be implemented on the blockchain. The protocol collects liquidity from different reserves such as token holders, market markers, and decentralized exchanges using an API into a single liquidity pool. With the help of the API, it queries the best prices during token swaps on the KyberSwap.
How do I swap tokens on the Kyber Network?
- Go to Kyber Network and click launch app, It will take your KyberSwap
- Pick a network at the top right corner to connect your wallet ( preferably a Metamask wallet)
- If you don't have a Metamask wallet follow the Link to set up one
- Click swap now to launch the Kyberswap and swap your tokens based on your preferred network with the least gas fees.
I personally think Kyber Network native token $KNC will keep doing well because of the use case of Kyber Network in the DeFi space. And Kyber Network could be explored for some sort of arbitrage trading.
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