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DeFi – Liquidity Protocol Kyber Network Crosses $1 Billion Trading Volume Mark

May 16, 2020

Kyber Network has plenty of room to grow from here, to be sure, just as the wider DEX and DeFi scenes do, too. With that said, the protocol’s first $1 …

In recent days, the Kyber Network liquidity protocol has accounted for almost 15% of all decentralized exchange (DEX) transactions atop Ethereum.

That’s certainly an impressive statistic, but this week the Kyber community is happily celebrating a different milestone.

That’s because on Thursday, May 14th, the Kyber Network team confirmed their protocol had finally eclipsed its first $1 billion USD worth of trades. The new record comes after Kyber Network reached its first 1 million ether (ETH) in total transaction volume last summer.


As Kyber Network continues to gain traction with users, stakeholders are all eyes on Katalyst, a coming upgrade that’s set to seriously reconfigure the economics around the liquidity protocol.

First announced last December, Katalyst was introduced to optimize Kyber’s ecosystem and to “encourage participation for key stakeholders,” namely liquidity providers and KNC token holders.

For liquidity providers, Katalyst will enact “reserve incentives,” which will pay out transaction fees proportional to how much volume providers facilitate. Moreover, Katalyst will enact a staking system for KNC, Kyber’s native asset, that will allow stakers to also reap a share of Kyber Network’s transaction fees.

Another major wrinkle that’s coming along with Katalyst is the launch of KyberDAO, which will allow Kyber Network’s users to decide among themselves how to steer the protocol’s fees going forward. As for participation, KNC tokens will serve as the DAO’s governance token, much like how MKR tokens are used to govern the MakerDAO DeFi lending project.

“We believe that this progressive decentralization achieves the main goals of broad representation, transparency, resilience, and network stability — and we would love to work with the community to continuously improve both the on-chain and off-chain processes as we continue to evolve.”


Defi Beeders

DeFi – Decentralized Finance

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