Kyber Network Crystal: A DeFi Liquidity Hub in the DeFi Pulse Index

Leeron Hoory

Mar 10 | 5 min read

Kyber Network Crystal: A DeFi Liquidity Hub in the DeFi Pulse Index

Kyber Network Crystal (KNC) is an ERC-20 token released in in 2018 as the governance token for Kyber Network Crystal, a multi-chain DeFi liquidity hub. It is one of several tokens currently held within the Index Coop’s DeFi Pulse Index (DPI).

What is Kyber Network Crystal?

Who created Kyber Network Crystal?

Kyber Network Crystal Governance & Tokenomics

Why is KNC included in DPI?

How can I buy KNC?

What is Kyber Network Crystal?

Kyber Network Crystal (KNC) is a hub for multi-chain trading and liquidity that allows investors to make trades at the best rates by drawing from different sources of liquidity pools. Kyber Network was founded in 2017 and launched on February 11, 2018. KNC is an ERC-20 token released by Kyber Network.

KNC allows investors to easily trade their currencies without the use of a centralized exchange. In traditional finance, this could be similar to making a trade without the need to go through a bank. The network has a total trading volume of over $7 billion and has facilitated over 2 million transactions.

Kyber Network was the first project to make it possible to exchange tokens without the need for an external source such as a centralized exchange. By sourcing liquidity from multiple liquidity protocols, Kyber offers competitive rates for traders, Dapps and aggregators. Its various protocols are meant to easily integrate with blockchain apps.

Investors must stake KNC tokens in order to participate on the Kyber Network. Holders of the KNC token are incentivized to stake their tokens through rewards and a percentage of the network trading fees. Investors can buy KNC on KyberSwap, Krystal, Binance, and other exchanges listed here.

Who created Kyber Network?

Loi Luu, Victor Tran and Yaron Velner founded Kyber Network in 2017. Luu and Tran are currently the CEOs. Luu has served as a blockchain advisor and has earned a PhD in Computer Science from the National University of Singapore in 2017. Kyber Network currently has around 60 employees on its team, according to the protocol’s LinkedIn page.

Tran has served as a technical advisor for various DeFi projects. Luu, Velner and Tran previously worked together on the decentralized pooled mining protocol called SmartPool, where Luu and Velner were co-founders and Tran worked as the senior backend engineer and Linux system administrator.

Kyber Network Crystal Governance and Tokenomics

KNC is a utility and governance token that grants the community agency through the ability to debate, propose, and vote on changes made to Kyber Network. KNC can also be burned, upgraded or minted by KyberDAO to better support liquidity and growth.

KNCs are burned by the Kyber protocol once users pay for transactions with KNCs through the Kyber Network.

The KyberDAO is able to vote to either increase or decrease the supply of the KNC token, according to considerations such as rewarding early adopters of the project’s new protocol KyberSwap.

Why was KNC included in DPI?

As the first network to facilitate trades without the need of a third-party, Kyber Network plays an essential role in the DeFi ecosystem. There are over $73.89 million worth of assets locked on the platform, and a total trading volume of over $7 billion.

How can I buy KNC?

You can gain exposure to Kyber Network Crystal and other leading blue chip DeFi assets by buying DPI which includes KNC tokens. You can buy DPI directly from the Index Coop by connecting your wallet to the Index Coop app. If you’re looking to exchange a fiat currency, like the U.S. dollar, directly for DPI, then you’ll want an Ethereum wallet like Argent, Gemini, Metamask, or Rainbow. With each of these wallets, you can connect to your bank account or debit card, which allows you to exchange fiat currencies directly for Index Coop products like DPI.

What is DPI?

The DeFi Pulse Index ($DPI) is a digital asset index that tracks the performance of “blue chip” decentralized financial (DeFi) assets across Ethereum. It combines the features of an ERC-20 token and an on-chain structured product to create a 21st-century digital upgrade to traditional structured products. DPI is capitalization-weighted based on the value of each token’s circulating supply and aims to track projects that have significant usage and show a commitment to ongoing maintenance and development.

As a bundled crypto asset, you effectively own all of the underlying tokens and can redeem your units of $TOKEN for the underlying tokens, a feature of traditional ETFs that is typically reserved for large, institutional investors.

As an Ethereum-based crypto-asset, $DPI can be used productively throughout DeFi with opportunities for liquidity provision (LP), borrowing and lending, yield farming, and collateral debt position (CDP).

DPI was launched jointly by Set Protocol and Scalara (formerly known as DeFi Pulse Inc.), and was the first product to be managed by the Index Coop.

About Index Coop

Index Coop is a decentralized autonomous organization (DAO) that powers structured decentralized finance (DeFi) products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector structured products, leverage and inverse products, and yield-generating products. We aim to create products that are simple to use, accessible to everyone and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for the creation and management of Ethereum-based (or ERC-20) tokens. Among users, partner protocols, and our composable products, Index Coop maintains one of the largest partnership networks in the DeFi ecosystem.

How to buy Index Coop products with fiat currencies:

First, you’ll need to create an Ethereum wallet like Argent, Metamask, Gemini, or Rainbow.

Next, you’ll set up your new wallet and connect your bank account.

Once you’ve deposited fiat currency in your wallet you can exchange it for Index Coop products like DeFi Pulse Index (DPI) or the Metaverse Index.

You can also earn or buy DPI tokens directly via your favorite decentralized exchange.

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You shall not purchase or otherwise acquire any of our token products if you are: a citizen, resident (tax or otherwise), green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (a “U.S. Person”), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. Person, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized). You shall not resell or otherwise transfer any of our token products to any Restricted Person. The transfer or resale of any of our token products to any Restricted Person is not permitted. Click here to view the list of Tokens Restricted for Restricted Persons. You shall read the Terms of Service and use our Website in compliance with the Terms of Service.

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Kyber Network Crystal: A DeFi Liquidity Hub in the DeFi Pulse Index

Leeron Hoory