DeFi Kyber Network: Get Ready for KNC Staking

DeFi Kyber Network: Get Ready for KNC Staking

By tomoyan | tomoyan | 5 Jul 2020


I thought COMP and yield farming were very interesting few weeks ago, but the farming and harvest season is pretty much done for now since Compound governance is over adjusting COMP distributions and everything so that interest on BAT supply went from 23% to 0.1% in few weeks.

I am sure there were risks involved or some good reasons to make that adjustments but I feel like they created whales and the 1% can do whatever they want to take control the governance and the yield farmers were kind of forced to move out and on to something else.

I think they needed to keep the high interest rate to keep the ball rolling to attract more people to the DeFi space because exciting stuff in DeFi can't keeps the momentum normally and I thought COMP was different... maybe it is just me.

COMP token itself is doing okay around $150 to $200 steady so maybe I am speaking too soon or something idk.

But another interesting is happening soon, Kyber Network Katalyst and KyberDAO.

Kyber Network has been around for a while and it is known for KyberSwap which is one of my favorite ETH token swap. They have announced that their major update will go live next week.

Katalyst and KyberDAO: a major protocol update will allow KNC token hodlers to stake the token and vote on the key protocols. In return, stake hodlers will earn rewards in ETH which comes from Kyber Network trading fees.

COMP vs KNC 

Big difference between COMP and KNC is that KNC token will be a staking token so if you hodl KNC token (and vote), you will be rewarded in ETH.

COMP itself is not a staking token so in order to earn rewards, you have to supply/borrow other tokens like BAT, DAI, USDC... etc and receive interest on those tokens and COMP token. But supply and withdraw each token comes with a high gas fee so it is hard to move around the assets. Collecting earned COMP needs a gas fee also so if interest rate is low like 0.1% it's not worth it.

I am curios to see how KNC staking is going to work out.

KNC token and staking

KNC token is a part of ERC-20 token family and supported pretty much everywhere so you can use your favorite token swap to get KNC token now. Coinbase and many other exchanges have KNC listed so you can get KNC through exchanges.

But KyberDAO will be hosted on Kyber.org so hodling KNC doesn't mean you are staking KNC automatically. You will need ETH wallet like Metamask to connect to Kyber.org so just holding some KNC on exchanges won't work.

There is no minimum or maximum KNC requirement to stake.

They will NOT lock up your staking funds or NO slashing so you WILL NOT lose KNC due to penalty.

However, rewards require voting. Simple YES/NO vote on proposals will get you a reward. (regardless of voting result)

Obviously, this is no live yet so I don't know exactly how everything works, but voting costs a gas fee too... hopefully rewards will be higher than the vogin gas fee... we will see.

Kyber Network had a little spike and went up close to $2 after the announcement. 

This could be a next COMP moment once KyberDAO goes live next week.

Are you ready to Stake + Vote = Reward?

go live

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tomoyan
tomoyan

Crypto DIYer - tomoyan.github.io


tomoyan
tomoyan

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