Kyber DAO: a full guide

Kyber DAO: a full guide


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Kyber DAO will be live on07.07.2020 !!! 

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But what is that ?

KNC is the governence token of Kyber protocol.  And i have to say that I really love the principal. Compare to COMP or BAL for instance, you don't have to be LP (liquidity provider) to earn rewards. Here you hold KNC token, and you stake it. Then you can vote to take decision regarding the protocol and in return you receive ETH coming from Fees generated by the protocol. 

During a Pre-DAO Poll , people voted for the following repartition:

  • 65% will go to Staking Rewards
  • 30% to Reserve Rebates for Fed Price Reserves (FPRs)
  • 5% to be used for purchasing KNC tokens and burning them

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So at the beginning of the Kyber DAO, KNC holders will share 65% of the network fees.

In order to receive this reward, KNC holder will need to vote. If you don't vote you won't receive your reward. 
 In return, the user will receive a share of the collected network fees (paid in ETH) as a reward for governing the protocol.


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This is relatively easy. 
You stake KNC , you vote during each epoch (2weeks, after Epoch 1), and you receive ETH.

Kyber will launch a website to easily manage the KNC staking and withdrawing process in a very fast and simple way. A teaser of the website below

 

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So everything should be very straightforward. But if you are already an LP on DeFi, or if you are using the Ethereum network, you know that gas is really expensive at the moment. And if you are not a big whale, voting every 2 weeks to be able to claim you reward can be very expensive and you may lose a big part of your reward (people staking SNX will understant !)

But you will have several solution to avoid those fees !! You will be able to delegate your staking. So no fees to pay ! and not need to have acces to your computer or remember to do it.

I'll present quickly 4 solutions. At the moment some project are still not completely clear and we don't have all informations ( i guess you will have to pay some fees, but we don't know what % )



Stake With Us and Stake Capital

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For those 2, not much is know... you can find infos here and here

 

Defi Dude 

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Defi Dude will also launch a community pool? This pool looks very interesting


For starters, Kyber Community Pool will not have any fees associated with it. What that means is, you’ll be earning the same reward as you normally would have if you voted yourself!


Moreover they want to build a real community where your vote really means something. In fact if you delegate you vote, sometime the master can vote for something you disegree with, but you don't really have the choice. With Defi Dude it seems that they want to build a real community 


We recognize the need for the community to be heard, and that’s exactly why we’re here! Kyber Community Pool will actively be communicating and gaining sentiment around an active proposal across various social media platforms such as Telegram, Reddit, Twitter, and Discord. On top of that, we will eventually hold bi-weekly calls to give users a chance to openly discuss their thoughts.

The interface of the website also looks amazing and very easy to understand !

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xToken

The last one, xToken looks very exiting. Not much is known yet, but it looks very interesting. 

 xTokens are free-floating ERC20s that can be sent from wallet to wallet, added to liquidity pools and pledged as collateral for loans. They save users time and money, and they distill intricate token mechanics into simple buy-and-hold strategies.

 

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They will start with the xKNC token.

They will launch two instances of xKNC, each with a clearly stated governance mandate. 

xKNCa will always vote to increase stakers’ fees. xKNCa is likely the best option for most investors seeking to maximize their staking returns and accrue KNC.

xKNCb will always vote to increase reserve rebates. This is likely the best option for reserve managers and investors who believe that incentives to liquidity providers are the best way to grow the network.

 

So by choosing your token, you can decide which decision you want to make during the vote. I think  it's a very clever way to do. Because even in a community pool where decision are made together you are not sure that your opinion will be the last one. Here you really do what you want and you don't have to care about voting !

The other aspect to keep in mind is that xToken won't give you ETH like other delegators (or Kyber), but you will received KNC token. Moreover You won't have to restake. It's done automatically. You invest once and then you don't have to do anything again until you decide to sell. ( I got this info after contacting them on twitter )

Website will be accessible here

Again we don't have information about fees, if this protocol was audided .. so keep that in mind.

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