Kyber Protocol Partners With Protofire And Stake Capital


The Kyber Katalyst is all set to be launched by the end of this month (Q2 2020). It will introduce KyberDAO and a new staking mechanism, which will allow KNC holders to participate in governance and earn rewards. The team is highly active in making certain that users staking, vote, delegation and rewards claiming experience on the KyberDAO (the Kyber Protocol’s decentralized governance initiative) is smooth and they can contribute to the progress and development of the Kyber Protocol easily and conveniently, without having to deal with complex interfaces and high requirement of technical knowledge.

Kyber Protocol has joined forces with external third parties to provide non-custodial, trustless and convenient staking services to KNC holders. The prominent blockchain companies of Protofire and Stake Capital have recently partnered with Kyber, to stake and vote on behalf of the people, so they can claim rewards conveniently, with minimal effort.

🔥 @StakeCapital partners with Kyber to provide convenient KNC staking services! KNC holders can delegate their @KyberDAO voting power and earn ETH rewards via a trustless process. Users maintain full control over their KNC tokens and rewards. Learn more: https://t.co/sVguo07ZLO— Kyber Network (@KyberNetwork) June 1, 2020

Kyber partners with @ProtoFire_io @rmgarciap to create a trustless smart contract proxy, allowing anyone to be a non-custodial @KyberDAO pool operator without building new smart contracts! KNC holders can delegate to such pools & get rewards trustlessly. https://t.co/vN1E5Vyxy1— Kyber Network (@KyberNetwork) May 28, 2020

There are several other ways to become a KyberDAO pool operator and participate in governance on behalf of stakers, which are mentioned below.

Kyber Protocol DAO Pool Delegation

The default way to run a voting pool is through the official KyberDAO (members can delegate KNC tokens on Kyber.org). It doesn’t require pool operators to deploy any smart contract, hold the rewards or build a UI. However, the mechanism for distributing the reward needs to be determined by the pool operator, since that ability isn’t provided by the default KyberDAO interface. The KNC staked will be non-custodial and a pool can only vote on behalf of its members and the service will go live with Kyber Katalyst launch.

Trustless Pool Operator Proxy Contract Or Self Smart Contract Deployment

Another good option is to deploy a trustless pool operator proxy contract, which stores the rewards in a contract and lets pool stakers claim them trustlessly. Otherwise, a custom smart contract can also be used to provide pool operation services and interact with the KyberDAO system.

The rewards can be automatically distributed by minting and distributing unique ERC-20 based “pool tokens” also, so people can stake KNC in the pool and receive equivalent pool tokens. The rewards for staking KNC given out in ETH can be converted back to KNC, added to the pool and restaked. This restaking will reward token holders indirectly by value accrual and token holders can claim rewards by burning pool token for KNC again. However, the pool operators need to develop an interface for minting and burning back pool tokens.

Custodial Pool Operation

The pool operators can also take “custody” of the KNC token from people, vote on their behalf, receive rewards and distribute them. The only benefit in this situation is that a smart contract doesn’t need to be deployed (voting through the default kyber.org interface), however it has major trust concerns as pool stakers need to rely on a third party. A portal to allow users to deposit/withdraw KNC tokens and claim the rewards, would still be required.

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