Kyber.network – Enabling Decentralized Token Swaps Everywhere
Kyber Network is a Singapore based company building the next generation of decentralized exchange for Ethereum tokens. The team comprises of Loi Luu (CEO) and other researchers and developers.
Currently there are 1218 types of tokens being tracked in the crypto market. And the only way to swap between tokens us using tools like Shapeshift etc, where they match a buyer and a seller. This can be time consuming, not available for most cryptos and limited availability. Also, there is no simple integration and developer apis available for realtime conversion of tokens. For example, you should be able to use a token from DApp (A) for DApp (B) on the fly by realtime conversion. This can help build the ecosystem with value.
Kyber network is planning to solve this above problem. The way Kyber is planning to create instant swaps is by providing a Kyber Liquidity Reserve. Kyber also incentivizes DApps and eco-system to allow Token swaps by providing Fee Sharing Program. An end-user can easily and quickly use Kyber.network for swapping between tokens , especially for ETH and DAI.
Any 3rd party token can register themself to Kyber network by following these useful steps here.
Kyber wants to bridge different types of tokens into interoperable tokens for applications. This way Kyber wants to segregate tokens from specific DApps.
- Simple. No orderbooks, deposits, or wrapping
- Instant. No waiting for orders matching to happen
- Secure. No middleman and transaction risk
Kyber is critical for ethereum based tokenized world for interchangeable tokens.
- Provides developer friendly api’s for people to integrate KyberSwap in their Dapps or products.
- Instant swaps between tokens.
- Can provide great consolidation and validation of Ethereum as a currency or token as well.
- Helps the Ethereum based Tokens a unique way to increase token usecases for users. Which means, users would comfortable holding a particular token and using them interchangeably between different DApps.
- Users funds are stored in their own local wallets, that reduces the risk of hack of Kyber network.
- Provides avenues and incentives for DApps to earn extra commission for providing swaps using Fee Sharing Program.
- Kyber network can become the Paypal of crypto tokens.
- Only for Ethereum based ERC20 tokens token swaps.
- Registration of a new Token and setting up reserves and base rate etc is pretty cumbersome process.
- Some DApps might not want interchanging or swapping of their tokens.
- Scalability of Kyber network needs to be tested. As swaps are limited based on available reserves.
- Listing a token needs more clear documentation and support.