Holders of Kyber Network Crystal (KNC), the ERC-20 token of Kyber Network, can now participate in KyberDAO to earn Ethereum (ETH). All they need to do is to delegate their voting power to StakeWith.Us, a third-party staking pool.
Kyber Network had recently beefed up its mechanism for staking, voting, and claiming rewards following its Katalyst protocol upgrade.
StakeWith.Us provides secure staking services across blockchain projects as well as provide non-custodial white label solutions to institutions. It is backed by SG Innovate, the Singapore Government Deep-tech fund and LuneX Ventures, Golden Gate Ventures blockchain arm.
StakeWith.Us is also working on a separate venture this year called Unagii.com. This venture is a multi-chain yield management platform that aggregates different open finance services. One of the products includes the staking of KNC for its users.
How this will work
With this partnership, KNC holders have the option to delegate their tokens and voting power to ATLAS. It is the staking platform by StakeWith.Us. With this, StakeWith.Us will be able to participate in all KyberDAO votes on behalf of the KNC holders.
Delegators will be able to withdraw their KNC or re-delegate anytime they want. StakeWith.US promises complete transparency regarding their voting decisions. The third-party staking pool will also provide the delegators the reasoning behind how it has voted.
This partnership is also in line with Kyber’s Katalyst upgrade which will go live at the end of Q2 this year. This upgrade includes a new staking mechanism as well as the launch of KyberDAO.
As a result, KNC holders will be able to stake KNC to vote and in exchange, receive ETH from network fees. KNC will then formalize itself as the first deflationary staking token where actual network usage and DeFi growth will determine token burn and rewards.
What the partners had to say
Michael Ng, co-founder of StakeWith.Us said pointed out the difference with other Ethereum-based staking protocols including Livepeer and Synthetix. They usually have staking reward payouts in their native tokens. In contrast, Kyber would be the only protocol with a deflationary staking token with network fees paid out in ETH.
Speaking on the occasion, CEO of Kyber Network, Loi Luu, highlighted the advantages of Kyber staking that did not require any minimum amount, lockups, or slashing. He stated, “KyberDAO and the governance process were designed to empower our community while ensuring the security and stability of the network. Now with StakeWith.Us, KNC holders will possess even greater flexibility participating in in-network governance.”
In other news, Kyber Network recently partnered with HTC Exodus to provide users with crypto-to-crypto trading. Last year, the decentralized crypto exchange had teamed up with Unibright to join Libra Camp, a virtual boot camp for startups to build apps on the Libra blockchain.