Kyber Network is the latest DeFi star as KNC staking skyrockets
Not a week has passed without another decentralized financial platform making headlines with new earnings incentives and the possibility to fly to the moon. This week, the focus is onKyber Network, as its long-awaited network update with staking options has finally been released.
The markets DeFi have been on fire this month in terms of overall growth in the locked value. Following yesterday 's peak DEFI TVL has done it again today with another record high of 2.12 trillion dollars by DeFi Press .
In less than a month, DeFi's markets have doubled in terms of the dollar value of collateral locked in smart contracts . Cryptocurrency markets , on the other hand, have only managed to squeeze out a 3% gain in terms of total capitalization during the same period.
Kyber Network and Ren are two of those DeFi platforms that seem to be driving the momentum right now.
KyberDAO staking up
On July 7, the long-awaited update to the Katalyst protocol was launched on its main network. The platform has joined the liquidity race with a governance update that has announced staking opportunities on the new KyberDAO for Kyber Network Crystal (KNC) token holders.
The Kyber Network is an on-chain liquidity protocol that allows token holders to contribute liquidity that they call "reserves." Since the update, token holders can now participate in the DAO for voting rights in exchange for rewards paid in Ethereum.
Monday's launch started with what the platform calls "epoch 0" or the first week of staking. The voting will begin during the "epoch 1", the second week, while the rewards will start to be distributed during the third week, the "epoch 2". Government decisions will only be available to those who have gambled during the previous era.
The platform's blog post also added that network quotas collected during epoch 0 will be used to burn KNC, and it will be the last batch of network quotas to be governed by the pre-Katalyst upgrade token model. .
Just a day after launch, around $ 18 million KNC has been invested in the KyberDAO , and at the time of writing, that figure was closer to $ 20 million according to the voting platform . The current amount of the reward was 47.7 ETH for the first epoch, a figure that will undoubtedly increase as more tokens are staked.
65% goes to staking rewards , 30% goes to booking refunds for Federal Price Reservations (FPR), and the remaining 5% goes to buying and burning KNC tokens.
For those who are not comfortable staking directly, delegation to a group of third parties is also an option. In addition to staking rewards, Katalyst also allows dApp developers to set their own custom platform rates, giving them more flexibility than ever. There has also been some rationalization of the collection of network fees and the exchange of tokens on the platform.
To further improve governance, Kyber is working on a Kyber Improvement Proposals (KIP) framework, similar to that of Ethereum, that would allow community members and partners to present and debate proposals.
KNC Price Reaction
Unsurprisingly, speculators have been accumulating KNC tokens in the run-up to Katalyst's release. Priced at around $ 0.65 in mid-May, KNC rose to a two-year high of just under $ 2 over the weekend.
Since then, prices have been corrected to around $ 1.70 today, which is still a gain of more than 800% so far this year. In terms of total value blocked on the platform, Kyber is close to its record high of around $ 7 million according to DeFi Pulse. Since the beginning of 2020, the number of collateral locked on Kyber has doubled.
Kyber has teamed up with companies like Compound and Balancer with its decentralized governance system, but instead of liquidity, it has taken the token route for staking which has also proven to be very popular with investors.
renBTC at Bancor
In a development related to DeFi, the Ren platform of BitcoinWrapping is now available on Red Bancor. Bancor, which has a total value of more than 20 million dollars blocked , is an Ethereum-based protocol for exchanging unguarded tokens using common liquidity. He suffered a breach of a smart contract that resulted in the loss of funds last month after a previous protocol update.
Bancor's V2 solution gives liquidity providers the ability to maintain 100% exposure to the base token, mitigate unforeseen losses and benefit from a 20X liquidity amplification, the blog post added.
The Ren and renBTC pools will use a recently launched Chainlink price oracle to maintain these pools. renBTC is a wrapped version of Bitcoin that was launched in May, it can be used in various blockchain such as ERC-20 and DeFi protocols maintaining a ratio to BTC.
Ren is another DeFi token that has been on the spit recently , rising 120% in the past 30 days to hit a record high of just under $ 0.20 yesterday. Bancor BNT is also enjoying the madness of DeFi with a similar 130% rise in the past month to hit its highest price in nearly two years at $ 1.65 a few hours ago.
Ethereum , on which most of the DeFi is based, has seen quite a bit of action in recent days. ETH prices have woken up from their slumber and have shifted since Monday, rising from $ 225 to a two-week high of $ 248 a few hours ago. The $ 250 zone has been a solid resistance for Ethereum since the COVID crisis crash in mid-March, and all eyes are on it now for a breakout.
