The Kyber Challenge – Future of Blockchain – Medium
In the Future of Blockchain competition, you can choose to build your own idea or answer a partner challenge. In return for answering a partner challenge, you can win one of up to 3 x £2,000 cash prizes as well as being considered for the £20,000 top prize.
One of our challenge partners is Kyber, an on-chain liquidity protocol that anyone can tap into for a wide variety of inter-token use cases. For example, vendors are able to accept payments in multiple tokens on their e-commerce platforms yet receiving in their preferred token. In addition, dApps can allow users who are not their token holders to utilize their platform and services with other tokens, and decentralized financial projects have the means to rebalance their portfolio instantly.
Using Kyber’s protocol, develop any type of application that incorporates on-chain token swaps.
Example 1: Collateral liquidation on-chain.
Lending platforms such as ETHLend, Dharma and Bloqboard allow for ERC20 tokens to be put as collateral. In the event of a loan default, the lender keeps the collateral. In the event that the lender wants to liquidate the collateral in another token of his choice, he will need to perform this operation separately. But by integrating Kyber’s on-chain liquidity protocol, this liquidation to another token can be done seamlessly and in a single transaction.
e.g. The borrow puts in ETH as collateral for a loan. His loan defaults, and the collateral is liquidated into DAI (stablecoin).
Example 2: Single Step Payment for NFTs
Allow NFT platforms such as Decentraland, CryptoKitties, Zombie Battlegrounds, and others to accept a wider range of ERC20 tokens as payments aside from their native token or ETH. This allows users of these NFT platforms to pay with the token of their choice to acquire the NFT in a single transaction.
e.g. Decentraland only accepts MANA to buy virtual parcels of land in their platform. By integrating the Kyber, users can now pay using any token but Decentraland still receives MANA.
Example 3: On-Chain Fund Rebalancing
A decentralized fund holds a basket of different tokens, and regularly rebalances their portfolio to achieve a positive return on investment. Currently, rebalancing this fund requires the manager to send the tokens to different exchanges to trade the asset. Using Kyber, this rebalancing process can be done in a single step for multiple tokens, and without having to interact with exchanges.
e.g. Based on market opportunities, a basket of tokens comprising of ETH, DAI, and KNC that is managed by a smart contract can be rebalanced seamlessly in a single transaction.
For Kyber’s documentation, please click here.