The Kyber Protocol team announced on June 29 that the long awaited Katalyst upgrade will be launched on 7 AM GMT July 07. The Kyber Katalyst will bring major improvements and enhancements to the project’s primary aim of providing decentralized liquidity. It will also introduce the decentralized governance platform via Kyber DAO. The team has further announced that there will be a short migration phase on 7am UTC, 7th July 2020, during which Kyber trading services will not work for reserves and DApps. It is also worth noting that Kyber Protocol (KNC) tokens were recently approved by Maker DAO for collateral backing, ahead of Katalyst launch.
We are thrilled to announce that Katalyst and @KyberDAO will go live on the 7th of July, 7am GMT! This will usher in an exciting new era for Kyber, with technical improvements that will help enhance liquidity for #DeFi !https://t.co/P4kYTCe8Sx
Join us: https://t.co/GATUjxaPzt pic.twitter.com/CTUJ0fsWjz— Kyber Network (@KyberNetwork) June 29, 2020
For determining the initial parameters of the platform’s on-chain governance, the team ran a poll on Twitter to reach a consensus for network fee parameters.
Out of 422 participants, the option A got the most votes that 65% of collected rewards will be reserved for staking rewards, 30% for Reserve Rebates for Fed Price Reserves (FPRs) and 5% for token buybacks / burning. These are just the initial parameters and after the Katalyst upgrade deployment, new proposals can be submitted to modify this.
What Will Kyber Katalyst Bring?
Katalyst will introduce new staking mechanism, decisions making powered by KyberDAO, improvements to liquidity contributions and customizable fees. This will increase network’s liquidity, stakeholders participation and improve the value of the native KNC tokens.
Kyber envisions that this upgrade will “incentivize greater liquidity and trade volume throughout the network enabling Kyber to become the single on-chain endpoint required by the decentralized finance (DeFi) projects for their liquidity needs”.
About Kyber Protocol
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.
About Kyber Katalyst
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.