Kyber Network has launched a protocol upgrade dubbed ‘Katalyst' alongside Kyber DAO on the Ethereum mainnet as per a blog post yesterday by the On-Chain liquidity provider. This initiative will see its debut in the fast-growing DeFi market, which currently has a total locked value of $2.15 billion, according to DeFi Pulse.
With this development, the Kyber network's users will be able to leverage its native token – ‘KNC' – to stake in the KyberDAO for proposal voting and participation rewards. The blog post reads:
“KNC holders can stake their tokens on the KyberDAO and govern the protocol by voting on important proposals and parameters while earning rewards (in ETH) for their efforts.”
The DeFi market growth has been exponential in the past few months, as crypto stakeholders' shift focus to the latest market trend. It is not surprising that this field has hit the $2 billion mark despite a significant dip at the onset of the March bloodbath, which gave rise to ‘Black Thursday.' Kyber Network is optimistic about making an impact in this space, especially following the launch of KyberDAO.
“The KyberDAO will empower the Kyber and DeFi community with an actual stake in Kyber's future, and allow them to contribute directly to our development.”
Kyber's Katalyst Protocol Upgrade
As for the improvement protocol, Kyber Network has made some technical changes to enhance the functionality of the ecosystem. The blog notes that its DApp innovators and users should expect reduced network fees, reserve routing for better rates, and customized spreads. Liquidity providers and reserves, on the other hand, should also look out for reserve rebates, more robust market-making tools, and a simplified fee system.
At some point, the protocol plans to improve the KyberDAO ecosystem through Kyber Improvement Proposals (KIP) in efforts to make the governance all-inclusive, hence efficient. Kyber has since remarked that they are glad to join the DeFi space as they eye expansion of their on-chain liquidity service.
“We look forward to working with the DeFi ecosystem to govern and increase adoption of our on-chain liquidity protocol and enhance liquidity for DeFi!”