Cypto asset investment firm ParaFi Capital has invested in Kyber Network Crystal (KNC), an ERC-20 token and an integral part of Kyber Network, through a direct purchase from the Kyber team earlier this year.
Based in San Francisco, ParaFi Capital is crypto investment firm with a fundamental, multidisciplinary approach to investing in the blockchain and decentralized finance ecosystem. ParaFi is uniquely positioned as both an investor and power user of DeFi protocols. They are early-stage investors in many of the leading DeFi projects including MakerDao, Compound, and now Kyber Network.
Kyber Network is a ethereum-based protocol focused on aggregating liquidity and facilitating swaps for ERC-20 tokens. Using its payment APIs, users can send one token to a recipient who wishes to receive the payment in another token in a single transaction. Users can also mitigate the risks of price fluctuations in the cryptocurrency world with the company’s derivative trading.
As part of the deal, ParaFi and Kyber will work closely to prepare for the launch of KyberDAO,, a decentralized community platform that allows KNC token holders to participate in protocol governance, and accelerate the adoption of Kyber’s on-chain liquidity protocol. Through this partnership, Kyber will be able to leverage ParaFi Capital’s experience in DeFi and their deep connections in the investing and market-making spaces to build a robust liquidity infrastructure and governance framework as well as grow Kyber’s taker and maker ecosystems.
“ParaFi Capital has been a driving force in the governance and growth of DeFi,” said Loi Luu, CEO of Kyber. “With their support and active participation in the KyberDAO, we are confident that we can bring Kyber’s role as the liquidity layer for DeFi to the next level.”
According to Kyber, ParaFi will participate in governance by staking KNC and voting in the KyberDAO and engaging in critical discussion with the community to help Kyber’s growth. Since ParaFi shares Kyber’s desire to enhance decentralized liquidity for DeFi by bridging the gap between professional market makers and on-chain market-making, ParaFi will connect professional market makers to DeFi through Kyber’s unique liquidity providing system called Fed Price Reserve (FPR).
“We have been working closely with the Kyber team on their crypto-economic re-design and transition to a DAO with Katalyst,” said Santiago Roel Santos, Partner at ParaFi Capital. “Kyber’s growth trajectory and breadth of integrations across the DeFi stack are impressive, as it evolves to become a liquidity protocol for the ecosystem.”
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