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Unitimes Interviewed Kyber Network’s Head of Business TN Lee: Liquidity and Reserve of the Platform

On June 3, 2018, CSDN and LinkTime hosted the Conference on Ethereum Technology and Application in Beijing. In the conference, TN Lee, head of business of Kyber Network, presented a speech on “Kyber Network and Coexisting with Centralized Exchanges”.  After the conference, Unitimes carried out an interview with TN Lee who shared with us some information concerning the liquidity and reserve of Kyber Network. He also talked about some greatest changes of the incoming Kyber Network 2.0. Would you like to know the change that excites TN Lee the most? Please find out the answer below.

Unitimes: As you have mentioned in your speech, Kyber Network supports instant and secure token-to-token conversion with guaranteed liquidity. How does Kyber Network Guarantee liquidity for the conversion?

TN Lee: Kyber runs reserves at the bank, so Kyber Network is a liquidity network in which it bridges the liquidity consumers and the liquidity providers. So that the liquidity guarantee comes from the liquidity providers. How we guarantee it is that, firstly, when we started out, we were the only one that were providing the tokens or ether for the pool. We did an ICO last year. Half of the amount that we raise, which is equivalent to 100,000 ether, will be used to support the liquidity network. Now subsequently, we will on board and as we have on-boarded more liquidity providers, from different parts of the world to join the network, they essentially become a set of token inventories in our network. So that means that when I use it to place an order, chances are that we fill up their order quite easily because of these reserves.

Unitimes: How does Kyber Network introduce reserves into token-to-token conversion? And what makes Kyber Network attractive to third party reserve operators?

TN Lee: We have a design for the reserve operator here. Because we believe that, for the reserve to participate in the network, there needs to be an incentive for them to do so. So, by providing liquidity to the network, they get to set a spread, they can charge. Now when there is a transaction that comes in, and they are the reserves that supports their transaction, they get to pocket the spread. Because they incur the spread, right? And this becomes an incentive for the liquidity providers to do so. Between different reserves, some of them might be providing the same kind of tokens. So there is an element of competition between these reserves. And they have to consider the demand of token from muti-perspectives. They have to consider the competition as well, before they can come up with a conclusive strategy for how they want to set their spread.

In terms of how Kyber introduces reserves to token-to-token conversion, everything runs at the back. When there is a placement of, say, KNC for OMG, what we do is, we pack the price of KNC to ETH, and then we use the conversion rate from ETH to OMG, so we do the bridge in-between.

Unitimes: How would Kyber Network bring market makers on-chain? Or what incentives does Kyber Network provide for the market makers in order to bring them on-chain?

TN Lee: As of now, we have the design for them to provide liquidity and then they get to pocket the spread if they support that transaction. That was the incentive part to pull them on-chain. And at the same time, we also are working to simplify the documentation in which people who have sizeable amount of assets that they want to use to generate revenue could integrate with our network easily. So we are fixing the documentation as yet. We will come up with use cases and several other examples that reserve, like potential reserve providers, can subscribe or refer to in order to ease the on-boarding process.

Unitimes: As is known to us, Kyber Network is now live on the mainnet and it is only accessible to the Kyber’s contributors. Is it possible that non-contributors will also have access to Kyber Network in the future?

TN Lee: Yeah, absolutely. That is why we envision ourselves to be present in most other people’s platforms. We want to be able to allow users of different kinds of backgrounds to access our platform from anywhere. So, of course when we started out we had to do pilot phase in order to test the scalability of the platform as well as the durability of the performance of our platform. That’s why we were very conscious with the kind of people that we want to on-board. But moving forward as we have now, we are already integrating with some of the largest wallet providers in the world, like imToken, My Ether Wallet as well as Coinbase Toshi, among the few that we have partnership with. People could do token conversion on these wallet providers without having to send them to exchanges. So these are the use cases that we are currently working on, and we will have more use cases that we can supply with in the coming months. We are generally excited about working with even more good platforms that could allow seamless and secure kind of user experience for the end consumers. So, definitely, to answer your question, I think, the non-contributors to the Kyber ICO, they will be able to participate in Kyber, without going to the Kyber site, but do it through their favorite wallet providers and service platforms.

Unitimes: We learned that Kyber Network 2.0 is going to come on June 8. Would you like to share with us its greatest changes and improvements compared to the previous version?

TN Lee: Yeah, sure. I think the first thing I’m personally most excited about is, the logo change. I think the new logo, as some of us have seen, is much simpler and more encompassing in kind of design, which can be used in many different contexts. So that’s one. We also plan to support token-to-token conversion, that means, instead of having to denominate the rate of an ERC20 token to ETH, we could have the conversion rate between KNC to ETH, basically ERC to ERC20 tokens. We are also going to introduce a new product, as announced yesterday, KyberGo. So this KyberGo is very seamless and secure way for people to participate in token sale. So as of now, these are the things that are public, there will be things that we will announce, coming on 8 of June. So I’ll leave that to then.

These are the main contents of our interview with TN Lee, and we sincerely appreciate his support for Unitimes. If you have more questions, please feel free to tell us in the comments area or send email to contact@unitimes.media., or you may also subscribe our Wechat account and submit the questions. We will convey your questions to TN Lee to answer. Thanks very much for following Unitimes. We hope that we could become your most valuable companion.

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