Kyber Network is an on-chain DEX. In its own words, it “allows instant exchange and conversion of digital assets (e.g. crypto tokens) and cryptocurrencies (e.g. Ether, Bitcoin, ZCash) with high liquidity.” It also provides payment APIs that helps  you to receive payments from any crypto tokens. The roadmap include cross-chain trades when available relays and protocols come out, and crypto derivatives (forwards and options) trading.

What’s worth mentioning is that Vitalik Buterin is advisor to the Kyber Network project. Some other projects also claim to have Buterin as advisor. But as I know Buterin is only advisor to OmiseGo and Kyber Network. 
https://twitter.com/vitalikbuterin/status/911217245094686720?lang=en 
https://twitter.com/vitalikbuterin/status/874522987885670400?lang=en

In Kyber Network, there will be no orderbook. It will just keep updating you the most updated conversion rate before you decide to exchange your tokens. The concept is that Kyber will maintain a reserve warehouse providing liquidity. It is direcly controlled by the Kyber contract and the rates are frequently updated by the reserve managers. “When a request to convert from token A to token B arrives, the Kyber contract checks if the correct amount of token A has been credited to the contract, then sends the corresponding amount of token B to the sender’s specified address. The amount of token A, after the fees, is credited to the reserve that provides the token B.”

![kyber1.png](https://steemitimages.com/DQmYop3UJT4Dv8LMFXRnnexBEk2mvHam4SMAuizG4MC6yj8/kyber1.png)
From Kyber.Network Whitepaper

Basically, users are market takers that take whatever is feeded. Reserve managers are traders/market makers that provide liquidity from their own reserves or reserve contributors. And operator is responsible for add/remove reserves and list/delist exchangeable pairs.

What I don’t understand is how it can be “instant”. Because if user accepts the rate, he’ll need to send token A to Kyber contract, but that needs to wait for the network to confirm before Kyber contract sends back token B. And during that period, the conversion rate can be changed, and it’s possible that the reserve manager revise the rate for own benefit. I have tweeted and waiting for Kyber’s answer.

The Kyber token, Kyber Network Crystals (KNC), is needed for reserves to participate. It is used to incentivise partners such as warm/cold wallets, blockchain explorers etc. for bringing in users. The partners are rewarded with KNC collected from the reserves for every trade they bring. A small portion (amount TBD) of the volume in KNC is paid by the reserve to for every trade, for having the right to operate and earn profits from trading activities. The residual KNC after paying for operating expenses and partner rewards will be burned. So KNC is a deflationary token in a long run. 

The initial total supply of KNC is 215,625,348.84 tokens. Around 62% was issued at ICO and are now circulating. 19% belongs to the company. 19% belongs to founders/advisors/seed investors. Tokens for founders and advisors (around 15%) will be fully vested in 2 years, with a one year lock-up period (ICO ended on Sep 2017).

Appreciate if you can leave any comments for my improvements.