Deep Dive
1. Swap Flow Upgrade V3 (Q3 2025)
Overview: This upgrade introduced smart contract optimizations and router improvements, achieving 20% additional gas savings over the V2 engine.
The V3 update refactored swap execution logic, reducing redundant computations and optimizing storage access patterns. Combined with V2’s 13% gas reduction earlier in 2025, cumulative savings now reach 33% per swap vs. pre-2025 baselines.
What this means:
This is bullish for KNC because cheaper swaps could attract more traders to KyberSwap, increasing protocol fees – a portion of which flows to KNC stakers. (Source)
2. Smart Liquidity Governance V2 (Q3 2025)
Overview: A security-focused update that automatically scans liquidity pools for anomalies using historical transaction simulations.
The system cross-references live swap data with predicted outcomes from virtual trades. Pools showing >5% deviation are flagged for manual review or automatic deactivation.
What this means:
This is neutral-to-bullish for KNC – while it reduces exploit risks (a plus for user trust), the stricter monitoring might temporarily lower liquidity provider participation during adjustments. (Source)
3. KyberDAO Voting Campaigns (Q2 2025)
Overview: Reactivated governance after a security incident, enabling KNC holders to vote on proposals and earn staking rewards.
The update introduced a revised reward structure where 65% of protocol fees go to stakers, 30% to liquidity incentives, and 5% to treasury burns. Voting requires staking KNC, with rewards distributed every 2-week epoch.
What this means:
This is bullish for KNC because it reactivates a core utility – holders can now directly influence protocol direction while earning yield, potentially reducing sell pressure. (Source)
Conclusion
Kyber Network’s 2025 upgrades prioritize transactional efficiency (Swap Flow V3), risk mitigation (Liquidity Governance V2), and governance utility – aligning KNC’s value with platform adoption. With gas fees now 33% lower than 2024 levels, will KyberSwap’s volume rebound offset its -61% yearly price decline?