Kyber Network (KNC) – All you need to know

What is Kyber Network?

Kyber Network is an exchange where you can buy and sell cryptocurrency. It’s decentralised, which means it doesn’t use a central body like a bank to run the trades. Instead, it combines its own software code with blockchain technology to find the best exchange rates and store transactions on a public ledger.

The KNC coin fuels the exchange, where it acts as an incentive for individuals to help Kyber’s performance. Anyone who holds KNC can vote on governance issues and put up tokens as liquidity, earning the right to a portion of the fee Kyber charges on each transaction as a reward.

Kyber Network was formed in 2017 and went live in 2018. As well as running its own exchange, it integrates with other applications, wallets, and vendors to offer seamless token swaps on other platforms too.

How does Kyber Network work?

Kyber Network works by combining resources to create liquidity, so that anyone can trade on any of its exchanges whenever they want to. This liquidity comes from KNC token holders and other decentralised exchanges and is then stored together in a big liquidity pool. Everyone who contributes this liquidity is paid a reward.

Each trade is carried out instantly thanks to a smart contract that searches for the best exchange rate whenever anyone puts in a trade request. When it’s found the best rate it executes the trade and stores the transaction on the blockchain.

Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >