Kyber is an on-chain liquidity aggregation protocol that provides a secure and convenient flash exchange service.

It aims to provide DeFi with a sustainable liquidity infrastructure

When we compare centralized and decentralized cryptocurrency exchanges, we can be sure that some big names like Binance and Coinbase have had great success. These exchanges made about $1 billion in profits in 2017 and 2018, according to CryptoBriefing.com. But centralized systems also have many drawbacks. For example, there are shortcomings in security levels, cryptocurrency transaction costs and cash delays. Investors have gradually lost trust in some cases where money was lost -- such as the infamous Mentougou incident in 2014, when the Mt. Gox exchange was hacked and 850,000 Bitcoins disappeared. So there is a natural tendency for people to move towards decentralised exchanges. Decentralized exchanges are represented by zero-X (0X), IDEX, OAX, and OasisDex. Market experts predict that decentralized exchanges will be the future of crypto exchanges as it gives power back to customers, investors and traders.

Kyber is an on-chain liquidity protocol that aggregates liquidity reserves to allow instant and secure token exchange across multiple decentralized applications (dApps). In 2019, Kyber became the most widely used DeFi application on Ethereum. At its core, the Kyber network interacts with pools of liquidity and acts as an automated market maker on the blockchain. There are three types of reserves: price reserves (using off-chain components), automatic price reserves (built based on automated algorithms in smart contracts) and bridge reserves (licensed third parties such as Uniswap, Bancor). The Kyber network is an implementation of the Kyber protocol on Ethereum. It is by far the most commonly used protocol. However, the Kyber protocol itself is already deployed in other blockchains, such as EOS (YOLOswap) and TomoChain (TomoSwap). In addition, the project team has been looking into cross-chain protocols like Waterloo to allow EOS/Ethereum token exchange.

Applications: 1. Instant secure Trading: KyberNetwork is an exchange, but unlike most exchanges, KyberNetwork can execute business requests in real time. In addition, KyberNetwork does not hold users' tokens, so it is designed to prevent tokens from being stolen or lost. This is in stark contrast to most exchanges, which often require a few minutes of confirmation. Any glitches during this time could cause inconvenience to users or, worse, loss of money. 2. Universal payment API for any token: Transactions are executed through smart contracts, allowing anyone to pay for any service or product with any token, seamless conversion and sending of payments. Users will be able to pay in whatever currency they hold when they make future purchases at merchants that accept crypto tokens. 3. Derivatives reduce the risk of price volatility: Due to illiquidity and irregular supply and demand of some crypto assets, the exchange rate between tokens is usually quite volatile. The problem will be exacerbated by a shortage of people willing to put tokens in the reserve. Today's users of crypto assets have little chance of hedging based on future demand, and Kyber will introduce derivatives in the form of futures and options to provide more alternatives for users. 4. Credible exchange rate quotation: Other smart contracts can see the exchange rate of Kyber Network, so the Network can introduce financial instruments such as swap contracts (also known as "swap contracts", which is a contract signed by the two parties of intra-transaction to exchange certain assets with each other at a certain time in the future). Kyber's quotes are safe because they reflect the actual conversion rates used to trade between the two tokens.

Kyber Network Crystal (KNC) tokens are ERC-20 tokens that run on Ethereum and are used to connect multiple participants in the Kyber Network ecosystem, including liquidity contributors and different individuals built on top of the protocol. For example, in order to operate and provide token liquidity, third-party token reserves must use KNC to pay their operating fees in the Network for the Kyber Network to collect KNC transaction fees from these reserves.

· On-chain settlement -- both atomic and instant on-chain settlement · De-trust transactions -- de-trust and transparent transactions · Ease of use -- bundling multiple exchange of value into one step for users · Seamless integration -- Direct integration with DApps without interaction with off-chain components, minimizing security and development costs

KNC tokens allow token holders to enjoy the profits earned by Kyber in the form of token buybacks. The incentive mechanism is Proof of Stake (PoS).

What clearly distinguishes it from other cryptocurrency exchanges is that it is a decentralized exchange. Another factor that makes it unique is that it records cryptocurrency transactions on the chain. It can also process order books under the chain. Other decentralised exchanges, such as 0X, have their trading records and order books run off-chain. In addition, Kyber Network provides four services, namely: reserve entities - they provide liquid assets. This function can ensure the smooth exchange of tokens on the network. It allows two types of entity registration, public and private. Reserve Contributor - Reserve contributors share their reserve profits with other contributors only when the reserve entity is disclosed. Reserve managers -- they are accountants at The Kyber Network. They estimate and calculate exchange rates and maintain reserves. 4.Kyber Network operator -- It operates the Kyber Network. It checks, validates and passes reserve entities, lists tradable tokens, and ensures that all Kyber Network operations operate in a secure environment.

The final phase of Kyber's cross-link deal will take several years to material.Polkadot and Cosmos remain unavailable until then. And in terms of development, Kyber is slower than 0X. Users may not want to switch to Kyber if the 0x-based repeater succeeds.