KyberSwap recently announced integrating Chainlink Price Feeds on BNB Chain, Arbitrum, Avalanche, Optimism, Polygon, and Ethereum. The integration will allow the network to convert collected fees to KNC tokens at fair market rates.
This way, KyberSwap can distribute rewards to DAO participants more reliably and transparently. In addition, the oracle also provides support for KNC tokens as collateral on different DeFi lending platforms.
Chainlink will deliver precise on-chain price data regarding KNC tokens throughout the multi-chain circuit. Currently, two trading pairs for KNC, KNC-USD, and KNC-ETH are live on BNB Chain, Arbitrum, Avalanche, Optimism, Polygon, and Ethereum.
With the integration, lending protocols such as Aave, Benqi, and QiDAO can calculate KNC’s accurate price whenever users lend KNC tokens or borrow funds using the token as collateral. It can be highly beneficial during KNC collateral liquidation, adding more reliability and security to KNC on lending platforms.
Acting as the governance token on KyberDAO, KNC tokens allow users to vote on different proposals. Voting unlocks new rewards for voters via fees collected on KyberSwap through trading. The fee is converted to KNC before being distributed among users.
KyberSwap is DeFi’s first Dynamic Market Maker, a decentralized exchange protocol that provides frictionless crypto liquidity. Thousands of users and multiple decentralized applications are already providing and using our liquidity. Recently, Lido Finance partnered With the KyberSwap protocol to bring more liquidity to Polygon.
KyberSwap also uses price feeds to get precise market data on WBTC and ETH while converting the fees to KNC tokens. It ensures that every voter is receiving a fair portion of rewards.
Besides this, Kyber is also running a Chainlink node to offer pricing data for KNC and more tokens. It secures the Chainlink oracle network while informing more users about the platform.
Victor Tran, Kyber Network’s Co-Founder and CEO, talked about the recent development. According to Tran, Chainlink underpins the DeFi ecosystem with highly reliable, decentralized, and secure market data. It also works on KyberDAO, where Kyber users get rewards for voting.
The entire Kyber team is delighted to work with Chainlink, helping traders, liquidity providers, and developers across the multi-chain DeFi industry added Tran. Chainlink has been tried and tested countless times, proving its reliability under extreme circumstances. Hence, its addition to the Kyber ecosystem adds massive value to the network and its users.