Priyeshu Garg · 11 hours ago · 2 min read
Kyber Network staking pools now lock over $15 million in user funds, signaling application health and strong long-term fundamentals for the company.
Up to $15 million in 24 hours
One day after the launch of Katalyst, Kyber Network pools are harboring over $15 million in user funds. The former is a network upgrade that incentivizes users for participating in the decentralized governance protocol KyberDAO (also launched on July 7.)
Kyber founder Loi Luu noted in a tweet:
Less than 24hrs after launch and 10M+ KNC has been staked 🤟🤟🤟 pic.twitter.com/AX22Sq9WjG
— Loi Luu (@loi_luu) July 8, 2020
Given the growth, this is likely to increase over the weekend. DeFi tokens are now worth over 1.25 percent of the overall cryptocurrency market, as CryptoSlate’s sector-specific trackers show.
As CryptoSlate reported yesterday; 65 percent of all fees on Katalyst will go to Staking Rewards, 30 percent to Reserve Rebates for Fed Price Reserves (FPRs). The remaining 5 percent is set aside for purchasing KNC tokens and burning them, using Chainlink price feeds.
These parameters can be changed via user polls on KyberDAO. One needs KNC—the native token of Kyber Network—to launch polls and participant in governances.
Over 80 different tokens, and 100 integrated projects such as the popular HTC Exodus smartphone and DeFi tools like Set Protocol and Melon, use both protocol and KNC to govern the network or provide incentives to users.
KNC and DeFi activity surges
For the uninitiated, Kyber is an on-chain liquidity protocol that allows decentralized token swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem.
Kyber was one of the biggest ICOs in 2017—raising $60 million in less than a day.
Price action on KNC tokens have reacted positively. Research firm IntoTheBlock tweeted in the regard:
Kyber Network surges ahead of ETH staking rewards launch
Kyber’s KNC token is having an amazing year-to-date return of over 820%, with the price going as high as $1.78, a level not seen since July of 2018.#cryptocurrency #blockchain #kybernetwork pic.twitter.com/QOe14QMy8R
— intotheblock (@intotheblock) July 6, 2020
Decentralized Finance (DeFi) applications are surging in both token price and user activity as the crypto sub-sector gains more prominence each day.
Industry observers believe the ongoing DeFi frenzy will bring forth the next boom (so to speak) in cryptocurrencies. Some note retail traders and investors are already thronging Telegram groups for the next DeFi-based moonshot:
Goddamn my WeChat crypto groups that have been dead for 2 years are becoming active again. Guess what people are talking about?
1) Filecoin mining
2) De fucking Fi
— Qiao Wang (@QWQiao) July 2, 2020