The xToken team announced on Jul 03 that it is partnering with Kyber Protocol, to introduce xKNC – a single set-and-forget ERC-20 token for effortless staking and liquidity strategies, just in time for the arrival of Katalyst upgrade (incl Kyber DAO) on Jul 07. It can be sent from wallet to wallet, work with liquidity pools and taken as collateral. They are also introducing xSNX – a ERC-20 wrapper for the Synthetix staking process. Both of the staking processes will go online in the coming days.
Introducing @xtokenmarket by @mjayceee – a simple and efficient way for KNC holders to stake, vote, and participate in Kyber’s governance! KNC holders can stake KNC in the Pool to mint xKNC Tokens that represent their stake and voting preference Details: https://t.co/1EF0KEWJPO pic.twitter.com/2UyEk6zMxL— Kyber Network (@KyberNetwork) July 3, 2020
xKNCa And xKNCb Token
The xKNC token will coincide with the arrival of the long awaited Kyber Katalyst upgrade on Jul 07. It will provide an efficient and painless staking solution that will allow investors exposure to the benefits of holding Kyber Protocol KNC token, to have a governance position, without worrying about the gas costs and the need for active management. It will automatically claim ETH trading fees on behalf of stakers and reinvest them into KNC. There will be two instance of the token, depending on the way you want to vote on governance proposals to allot collected fees.
xKNCa – vote for increasing stakers fees, for people seeking to maximize profits and accumulate more KNC. xKNCb – vote to increase reserve rebates incentives for liquidity providers, for people seeking the long term growth of the network.
xToken will also be introducing the set-and-forget xSNX token to simplify the process of minting sUSD, debt hedging and maintaining collaterization. It will wrap Synthetix’s system of contracts, automate trading on Kyber Network to source SNX and invest in Set Protocol strategies to hedge sUSD debt. Besides allowing convenient exposure to Synthetix, it will allow users to save on the rising gas fees costs on Ethereum, by delegating process to a communal pool and batch process transactions.
The Kyber Katalyst is the next major upgrade for Kyber Protocol, which will likely go live by the end of this quarter (Q2 2020). It has already been deployed on the testnet. It will enable decentralized governance through KyberDAO – short for Decentralized Autonomous Organization and allow KNC holders to earn rewards by staking and participating in the protocol governance.
Kyber Network is an on-chain liquidity provider for crypto-assets that lets token holders provide liquidity by maintaining and running reserves. The reserves can be of different kind and exist as a smart-contract. Kyber protocol can instantly exchange/swap tokens by checking the best price across all reserves and executing the conversion transaction, unlike traditional order-book matching.
It is a major component of the Decentralized Finance (DeFi) eco-system. It can be used by businesses, DApps, wallets and protocols to swap tokens or for payment. Kyber native token is KNC, which is a pre-requisite for activity on the network. For instance, its used to pay network fees and as a stake for running reserves on the protocol.