Kyber Network

Introduction to Kyber Network

Kyber Network is an on-chain liquidity protocol running on the Ethereum network. It supports real-time transaction and exchange of various digital assets [reserve pool model, on-chain matching, on-chain clearing model], and provides a wealth of commercial payment APIs and Contract wallet for a wide range of cross-chain transactions and seamless payments.

Kyber Network is an on-chain protocol for instant transaction and exchange of digital assets and encrypted digital currencies with high liquidity. In addition to exercising the function of an exchange, KyberNetwork provides its own wallet and rich API to allow users to send/receive any Ethereum-based token quickly and seamlessly. Kyber Network will provide buyers and sellers with financial derivatives (Derivative) to hedge transaction risks.

In addition, Kyber Network supports CrossChain Trading, and its roadmap includes the use of relay technology and future protocols like Polkadot and Cosmos to support cross-chain transactions between different cryptocurrencies.

In order to solve the problems of slow transaction speed and high transaction cost of decentralized exchanges, Kyber Network introduced the concept of "Reserves". In order to maintain the liquidity of transactions, there will be an appropriate amount of tokens in the reserve. In the Kyber Network network design, participants are divided into 5 roles:

Kyber Network Users: Includes individual users, smart contract accounts, and merchants who send and receive tokens on the network.

Repository entity: It can be the platform's own repository or a market-making third-party repository registered by others.

Platform Profit Contributor: Provides funds to reserve entities and shares in platform profits. Such participants exist only in public repositories and receive contributions from the public to create the repository.

Reserve Manager: maintains the reserve, determines the exchange rate and feeds the rate back to Kyber Network.

Kyber Network Operator: Responsible for adding, removing reserve entities from the network and adding/removing token pairs to/from transaction lists.

Kyber connects this fragmented, tokenized world by enabling instant and seamless transactions between platforms, ecosystems and other scenarios.

The liquidity of the KyberNetwork is in turn facilitated by an open reserve architecture that allows anyone to contribute idle token assets to our decentralized central liquidity pool and get the difference in the price of each transaction profit. These tokens can be used on any platform connected to the network, making them instantly more liquid and useful.