Kyber Network has come up with KyberDAO, an upgrade of the protocol in operation on Mainnet and works along with the decentralized autonomous organization, DAO. Kyber has developed a new Katalyst Protocol upgrade and a decentralized finance solution known as DeFi.
An upgrade is related to Defi move
By keeping the Defi move in mind, the Kyber network would take Katalyst into action using the Kyber DAO liquidity. The kyber DAO is empowering both the communities, i.e., the Kyber and Defi community, to buy the actual stake and decide the future of Kyber. It helps to contribute to the growth of the Kyber. The Kyber network website is overhauled to give a new look and make it the best platform to communicate when there is a change in the protocols and the Kyber Network Crystal token model.
Kyber DAO has entered into Defi
Kyber uses its respective Mainnet through which the Kyber DAO would be running. The Kyber Network is ultimately the on-chain liquidity protocol that gets liquidity from different sources and swaps the decentralized tokens and uses it in various applications.
Kyber DAO takes part in receiving the Ethereum payouts and helps the system run through buying stakes in KNC assets and voting. The Defi sector is widely used for a few months with the blockchain and crypto gaining huge attention.
The Defi movement is driving the cryptocurrency though the price of the asset is increasing to 75% less compared to 2017. The Defi is decentralized finance. There is a notion that the crypto entrepreneurs can come up with the conventional financial instruments in the decentralized architecture and government control.
The decentralized applications have become even more popular to avoid misuse of funds when those are centrally controlled. Bitcoin and Ethereum are Defi applications. A huge network of computers controls these two without banks and financial institutions’ involvement. The investors are using bitcoins equal to gold. It is protected from inflation, whereas Ethereum is instrumental and controversial, helping the new companies get funds.
The best part of using Defi is that traditional finance would depend on various financial institutions like banks to act as intermediaries. Defi applications do not need any kind of arbitrator and intermediate person. The code will be having the solution for every dispute, and users will be controlling the funds all the time. This reduces the amount you spend in using the products and helps you carry out the frictionless financial transactions. The financial services are used on blockchain, so there is no single point failure. The data you track on the blockchain would be shared with different nodes. The framework for the Defi applications is already developed, so it becomes easier to deploy. It becomes highly secure and less complicated.
The best thing about using Defi is that it makes people gain access to the financial system otherwise restricted for few people. The traditional financial system depends on intermediaries to make profits, but Defi would reduce cost, and people with low income can benefit from this service.