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Kyber long-awaited Katalyst goes live as KNC soars

Messari

Jul 7, 2020 ⋅  2 min read

Kyber, one of the most active decentralized exchanges by volume, went live with a major protocol upgrade dubbed “Katalyst,” which introduces a number of major changes to the token economics of KNC. The native token will now be staked in the KyberDAO to make various changes to network parameters. Token holders who participate in this governance process will be paid in ETH generated from exchange fees which will also be redirected towards reserve rebates for Fed Price Reserve and a KNC burn (65%, 30%, 5%, respectively).

Leading up to this upgrade, KNC has appreciated dramatically, especially compared to other major upgrades over the past year as its up 120% against ETH in the past 30-days.

This comes at a time when DEXs are seeing all-time highs in volume having eclipsed $500 million in a single week spurred by the recent yield farming frenzy. While Kyber’s volumes have risen over the course of the year, the percentage of total DEX volume has fallen primarily as a result of the rapid rise of Curve and Balancer.

However, with the new incentive system, Kyber could begin to draw in additional liquidity helping to reduce slippage. As DEX aggregators become increasingly prominent, they would then route trades through Kyber more often which would boost volumes. Kyber is also not the only DEX with a major upgrade planned in Q3, Bancor and IDEX both plan on releasing their v2 over the next few months which will only intensify the competition among DEXs.

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