Smart Contracts Developed by Kyber Network
Kyber Network is being developed using Ethereum smart contracts.
A smart contract is a convenient mechanism that automatically executes a transaction when predetermined conditions are met.
Kyber Network provides smart contracts related to "value exchange" in particular.
For example, if you write an instruction such as "buy DAI with ETH," the exchange will be automatically executed from the Kyber Network's reserve when the condition is met.
When the exchange is made, the optimal rate for the user is calculated from a number of reserves.
Communication between Smart Contracts
One of the major features of smart contracts is that they can communicate with each other.
Utilizing this feature, Kyber Network's smart contracts can be connected to smart contracts developed by any developer, and can provide continuous value exchange.
For example, on a platform where game characters can be purchased with ETH, Kyber Network can be connected to a smart contract that exchanges ETH for game characters.
Therefore, even if the purchaser only has DAI, the Kyber Network will automatically exchange DAI for ETH, and as a result, the purchaser can purchase game characters with DAI.
In this way, the convenience of various services can be enhanced.
Integration with Kyber Network
As mentioned above, more complex services can be built by connecting smart contracts to each other.
In Kyber Network, collaborating with smart contracts from other projects is sometimes referred to as "integration".
The more DeFi projects that integrate the Kyber Network and use it to exchange value, the more liquidity the Kyber Network will provide.
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Example of integration with Kyber Network
Kyber Network's on-chain liquidity is currently being used by DeFi projects through a number of smart contracts.
In this lesson, we'll learn more about smart contract integration in a more applied way.
TokenSets
TokenSets, a cryptocurrency mutual fund, leverages the on-chain liquidity of the Kyber Network.
TokenSets also integrates Kyber Network's smart contracts.
For example, if a smart contract provided by TokenSets automatically calculates that "DAI in the portfolio should be exchanged for ETH," that smart contract will issue an order to the smart contract of Kyber Network.
The Kyber Network smart contract will execute the exchange of ETH and DAI based on the TokenSets smart contract's instructions.
The integration of smart contracts enables this kind of system coordination and facilitates the value exchange.
Betoken
Betoken is a decentralized hedge fund.
Anyone can participate in the management of the fund as a manager and will have the authority to manage a large amount of the fund depending on the performance of the cryptocurrency trade for a certain period of time.
Betoken also leverages on-chain liquidity by integrating Kyber Network's smart contracts to create an environment where managers can trade immediately.
Betoken does not need to develop its own reserves, but can immediately utilize them by connecting to Kyber Network's smart contracts.
Fulcrum
Fulcrum is a platform that allows margin trading by borrowing cryptocurrencies.
You can take long or short positions without depositing cryptocurrency.
Fulcrum integrates Kyber Network's smart contracts to allow you to choose the currency in which you receive your profits and to allow instant collateral settlement.
Kyber Network's smart contracts can be integrated into Fulcrum's system to enable the exchange of cryptocurrency and deliver it to borrowers and lenders.
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