Klaytn is a blockchain developed by Ground X, the arm of a Korean Internet giant KaKao. Its community is mainly Korean but is expected to expand to other countries in the near future. Currently, Klaytn ranks 10th by TVL according to DeFi Lama, which is higher than some more familiar names like Celo, Near,...
However, the DeFi landscape in Klaytn compared to its peers is much less developed. KLAYswap as of now is the largest protocol on Klaytn, which contributed to the majority of Klaytn’s TVL. In this article, let’s find out more about this most important protocol on Klaytn.
What is KLAYswap?
KLAYswap is an AMM DEX on Klaytn. It captures the majority of liquidity for the whole ecosystem. As Klaytn is still a developing blockchain and does not have many projects, the majority of assets traded in KLAYswap are bridged assets.
At the moment, it supports bridging assets from 2 major chains: Ethereum and Binance Smart Chain, through the Orbit Bridge. However, the assets that are available to be bridged are still limited.
How does KLAYswap work?
KLAYswap functions under the same mechanism as many other AMM protocols. It is based on the mechanism x*y = k, where x = KLAY (the native token of the Klaytn blockchain), y = Klaytn Compatible Token, and k = constant function.
If the liquidity supply of KLAY increases, then to keep k constant, the supply of Klaytn Compatible Token decreases. This way, the supply of each token in the liquidity pool fluctuates with the prices set accordingly.
In addition, like other AMM, KLAYswap is offering some standard features including swapping, providing liquidity and staking.
See Also: How to use KLAYswap
What is KSP token?
KSP is the governance token of KLAYswap. It is mainly used to pay fees for creating a new pool and to participate in governance activities.
Detailed information about KSP token
KSP Key Metrics
- Token Name: KLAYswap.
- Ticker: KSP.
- Blockchain: Klaytn.
- Token Standard: KIP-7.
- Contract: 0xc6a2ad8cc6e4a7e08fc37cc5954be07d499e7654
- Token type: Governance.
- Total Supply: 126,117,700 KSP.
- Circulating Supply: 28,362,780 KSP.
KSP Token Mining Allocation
KSP Token Distribution
Currently, 73,440 KSP tokens are distributed daily. Of which, 10% or 7,344 KSP are distributed to KLAYswap’s voters (who stakes KSP to participate in governance voting), and the remaining 90% or 66,096 KSP are distributed to the liquidity providers.
KSP Token Sales
KSP Token Use Cases
KSP has 2 main use cases:
- Paying fees for creating pools in KLAYswap.
- Governance: stake KSP to be able to vote on the protocol’s direction and policies.
How to get KSP token
At the moment, you can get KSP from the following exchanges:
- CEXs: Probit (Korean Exchange).
- DEXs: KLAYswap.
How to store KSP token
You can store KSP on Metamask but I recommend you to use Klaytn’s wallet - Kaikas for easier interaction with its native protocol.
Team, Investors, and Partners
Is KLAYswap (KSP) a good investment?
I hope that from all the mentioned information, you can get a basic understanding of KLAYswap to start researching more about this project. It is hard to tell firmly whether any project/ token is a good investment or not.
However, I will provide you with some key highlights of KLAYswap so that you can do your own research and make your own investment decisions.
KLAYswap is the native AMM of Klaytn, so its development hugely depends on the potential growth of the whole ecosystem. Klaytn as of now seems to be more friendly with the Korean community. Many social channels and products of this blockchain are speaking Korean instead of English. Therefore, Klaytn is not a notable name among the international DeFi community.
Klaytn does have a plan to scale internationally to adopt more users but it may not happen in the short term. Besides that, the DeFi landscape in Klaytn still needs lots of improvement. It lacks many DeFi stacks and does not attract many new projects to be built on this blockchain.
As of now, KLAYswap is the only native AMM DEX in Klaytn which captures the most liquidity for this ecosystem. Hence, it will be the 1st protocol to benefit from the growth of the Klaytn in the future.
KLAYswap may not be a good deal in the short term. However, if you believe in the promising development of Klaytn then KLAYswap will be a good option.
Uniswap (UNI): One of the first fully decentralized exchanges (DEX) built in 2018 on top of the Ethereum blockchain. Uniswap allows users to control their funds and wallets at all times without having to deposit funds to the exchange.
SushiSwap (SUSHI): An Automated Market-Making (AMM) protocol on Ethereum that was controversially forked from Uniswap with several key changes.
KLAYswap is the largest AMM on Klaytn. It is the protocol that captures the most TVL of the whole ecosystem. But the Klaytn blockchain and KLAYswap, in particular, seem to be limited to Korean users. If they want to adopt an influx of new uses, then a global scalability plan is a must.
If you want to have more information about this project, feel free to comment down below. You can also join our community at Coin98 Community to discuss any topic that you are interested in.