The moment we have been waiting for is here: We are excited to announce that we have successfully launched our Katalyst Protocol Upgrade and KyberDAO on mainnet! Epoch 0 has commenced!
The world of Decentralized Finance (DeFi) is on the precipice of change and Katalyst is an important technical upgrade meant to meet the liquidity needs of the fast-evolving space. In addition, the KyberDAO will empower the Kyber and DeFi community with an actual stake in Kyber’s future, and allow them to contribute directly to our development. We have revamped the Kyber Network website to better communicate the various protocol changes and our new Kyber Network Crystal (KNC) token model.
We believe that in the future we will look back at this moment as the beginning of another golden period of innovation and growth for Kyber Network.
To recap, Kyber Network is a fully on-chain liquidity protocol that aggregates liquidity from diverse sources and enables decentralized token swaps in any application. KNC holders can stake their tokens on the KyberDAO and govern the protocol by voting on important proposals and parameters, while earning rewards (in ETH) for their efforts. Any KNC holder can contribute to Kyber’s development by participating in the KyberDAO.
Please make sure you bookmark/favourite this url https://kyber.org/ !
Start staking KNC on the KyberDAO!
We are now in the genesis Epoch (Epoch 0)! You can start staking KNC anytime this week in Epoch 0. Epoch 0 ends on 14th July 7.07am GMT. You can start voting on the first KyberDAO proposal in Epoch 1 next week. First batch of rewards (in ETH) will be received at Epoch 2.
If you stake KNC in Epoch “n”, you will only be eligible to vote in Epoch “n+1” (next Epoch onwards). In other words, you can only vote on proposals if you had already staked KNC in the previous Epoch. You also won’t be able to get any rewards if you do not vote. Epoch 0 is a special Epoch and will only last for 1 week (7 days), but from Epoch 1 onwards, each Epoch will be 2 weeks. Network fees collected during Epoch 0 will all be used to burn KNC. This will be the last batch of network fees that abides by the pre-Katalyst upgrade token model.
How can I stake KNC?
Visit Kyber.org. Please Bookmark/Favourite this url!
To connect your Ethereum wallet to Kyber.org, you can use Metamask, Ledger, Trezor, WalletConnect, WalletLink, or Keystore.
Kyber.org is a mobile-optimised decentralized application that is built to work on any standard platform with Web3 connectivity. Examples include the DApp browsers in popular mobile crypto wallets such as Trust, Enjin, Status, Coinbase mobile, imToken, and Alpha Wallet etc.
We are working with various crypto wallets to ensure that kyber.org is supported in as many DApp browsers as possible. Let us know if you encounter issues!
If you have any questions, please check out the KyberDAO FAQs or read our KyberDAO Staking & Voting Overview here. For developers, you can read our staking documentation on Github.
What this tutorial video!
Requirements for staking and voting?
You only need to stake KNC to vote and some ETH to pay for gas costs. Votes are done on-chain on Ethereum hence gas is required.
You need to vote or delegate your vote to someone else in order to receive rewards. There is NO minimum or maximum KNC that needs to be staked, no hard lockup period, no ‘slashing’ (no loss of KNC due to any penalty), and no running of nodes required. Through Kyber.org, you always have full control and ownership over your KNC staked, and you can withdraw it anytime.
Where can I get KNC to stake?
You can get KNC from KyberSwap.com, or popular wallets such as Argent, Eidoo, Enjin, HB Wallet, Pillar, Trust, or other token swap platforms and exchanges.
Voting on the Network Fee Allocation in Epoch 1
Based on the Pre-DAO Poll conducted on discord earlier, the current community consensus for the network fee parameters is:
- 65% goes to Staking Rewards
- 30% to Reserve Rebates for Fed Price Reserves (FPRs)
- 5% to be used for purchasing KNC tokens and burning them. For the burning of KNC tokens, Kyber’s FeeHandler will be using the Chainlink Price Feeds.
We will have new proposals to marginally alter this allocation, and the Kyber community will vote on it for the first time on-chain at Epoch 1.
For a very rough ETH reward estimate, you can try out these unofficial reward calculators made by the Kyber community:
Delegating your KNC voting power to Staking Pools or someone else
You can delegate your KNC voting power to a third-party staking pool (instead of voting on your own on kyber.org). Please do your research on the different staking pools available. Here are some non-custodial, trustless options that will be live soon:
- Unagii.com by StakeWithUs
- StakeDAO by Stake Capital
- Kyber Community Pool by DeFi Dude, Sasha, and Wayne
- xToken by Michael Cohen
We hope to increase the range of both custodial and non-custodial staking options for KNC holders to suit different needs. Stay tuned!
You can also just delegate your voting power to another Ethereum address om the default Kyber.org interface. Please note that on kyber.org, you can only delegate to ONE Ethereum address at a time.
Katalyst Protocol Upgrade
Katalyst brings major technical improvements aimed at enhancing decentralized liquidity for DeFi!
What can DApps look forward to?
The ability to set your own custom spread/fee on each trade: After Katalyst, DApp builders can decide their own business model. The previous fee-sharing program (30% of the 0.25% fee) has been removed and developers are now able to set their own custom platform fee for each trade. DApp developers that build with Kyber have the ability to innovate on their business model options or target users with different needs.
Reduced network fee: Default network fee, which is charged from the value of each trade, has been reduced from 0.25% to 0.20% to improve competitiveness. Note that bridge reserves that connect liquidity from external on-chain sources like Uniswap, Oasis, or Bancor, are not charged any network fee.
Reserve routing for better rates: Reserve routing will be introduced with Katalyst, giving DApp developers the ability to route any single trade across any number of preferred reserves. This will likely provide better overall liquidity for takers in the process.
What can Reserves/Liquidity providers look forward to?
A simplified fee system: Reserves no longer need to go through the hassle of holding KNC for the payment of network fees. Network fees are automatically collected in every trade, removing a major friction and pain point for reserves that want to integrate with Kyber. This does not affect the competitive rates that our takers (DApps and end users) are enjoying now.
Reserve Rebates (Incentives): Based on the initial parameters, 30% of the network fees will go towards incentivizing Fed Price Reserves (FPR) with rebates based on how much trade volume they facilitate for the network. We expect this to incentivize more reserves creation and professional market making activity on Kyber, leading to much better liquidity.
More robust market making tools: Apart from optimising the FPR reserve type, we are committed to providing the necessary knowledge, advice, and tools required for professional market makers and advanced developers to leverage Kyber to effectively and profitably market make on-chain. Our membership in the Chicago DeFi Alliance will also aid our efforts.
Growing Kyber, Together
With the launch of Katalyst, we would like to warmly invite all our integrated DApps, Reserves, partners, and other KNC stakeholders to join us in building the next exciting version of Kyber and powering liquidity in the DeFi space together.
We are in the midst of preparing a Kyber Improvement Proposal (KIP)framework, allowing community members and partners to submit and discuss proposals. Through this framework, proposals selected by the Kyber team will be uploaded to the KyberDAO platform for KNC holders to participate in on-chain voting. We will be releasing a blog post next week with more details!
Together with all our partners, Kyber is excited to see Katalyst and KyberDAO go live. Here are some ways to get involved right away:
- Help spread the word on Katalyst by sharing to all social media channels, such as Twitter, reddit, Telegram, Discord.
- Visit Kyber.org and stake KNC on the KyberDAO to prepare to vote on the first proposal! Bookmark/Favourite the kyber.org url!
- Join our Kyber Discord server to ask questions about Katalyst or find out how you can build with Kyber.
- Follow KyberDAO on Twitter.
We look forward to working with the DeFi ecosystem to govern and increase adoption of our on-chain liquidity protocol and enhance liquidity for DeFi!
If there are any suggestions, please raise them on the #KyberDAO channel on Discord or submit a post on Reddit. You are highly encouraged to join our official Discord server, as well as our KyberDAO twitter account and KyberDAO Telegramfor governance-related discussions and updates!
Important reminder for any DApp or Reserve using Kyber: There will be a short migration phase to upgrade the protocol on 7am UTC, 7th July 2020, during which trading might be halted. Please reach out to our developer team for details.
About Kyber Network
Kyber Network is building a world where any token is usable anywhere. KyberSwap.com, our flagship Decentralized Exchange (DEX), provides the best rates for traders in DeFi and maximizes returns for liquidity providers.
KyberSwap powers 100+ integrated projects and has facilitated over US$7 billion worth of transactions for thousands of users since its inception. Currently deployed across 11 chains including Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Velas, Aurora, Oasis and BitTorrent.
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