Klaytn Protocol KLAP launches token to power DeFi lending

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KLAP (Klaytn Lending Application), a DeFi protocol running on the Klaytn blockchain, is about to launch its native token. The token has already been available for trading on popular decentralized exchange ClaimSwap since July 25.

KLAP soared over $100 million in TVL

The KLAP token powers a range of use cases within the protocol’s growing ecosystem. A portion of the total supply will be allocated to liquidity providers and early adopters. Since its launch in May, the total value locked (TVL) on KLAP has soared to over $100 million, making it the second most popular Klaytn app by this metric.

Klap’s team said:

“We are really excited to allow the token to gain utility in our system and provide additional functionality to users after the launch of our protocol. As KLAP decentralizes, this is an important next step in the development and growth of the community. »

Their focus on community involvement and long-term evangelism is clear. Impressively, the protocol has already committed 5% of the total token supply to early adopters, and anyone who participated in their pre-mining or lockdown initiatives will be able to claim their KLAP tokens upon launch.

The KLAP token has a total supply of 1 billion. 60 million of these tokens, representing 6% of supply, will initially be made available, giving the protocol a market capitalization of $75 million at launch. In addition to orchestrating governance – allowing token holders to vote on key decisions, KLAP will be central to the operations of the lending protocol.

Protocol users who choose to lock their tokens to the platform for a set period of time will be awarded veKLAP, a non-tradable representation of their stake, unlocking an array of new features. KLAP-KLAY token holders, vesters and LPs who lock their tokens in this manner will receive veNFTs. These confer various rights including:

  • Voting rights to determine token issuances for lending/borrowing pools of each token on KLAP
  • Yield boosters on liquidity mining rewards for lending/borrowing as well as pool 2

veKLAP holders can also vote on broader protocol-level decisions such as the use of treasury funds, as well as proposals to incorporate additional public services. Token holders can also provide liquidity against various KLAP pairings on ClaimSwap.

KLAP is the first product developed by Krew, which raised $4 million in a pre-seed round in June led by Quantstamp and Ascentive Assets. Other investors include ROK Capital, Manifold, Krust and Novis.

Richard Ma, CEO of Quantstamp, said:

“We see Klap in an ideal position to leverage Klaytn’s technical architecture enabling high TPS, fast finality and cheap transactions. We are confident in Klap’s compelling protocol design features and veteran builders to serve the nascent Klaytn DeFi ecosystem and scale it for retail adoption.

KLAP (Klaytn Lending Application) is a decentralized non-custodial liquidity market protocol in which users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn passive income, while borrowers can borrow over-collateralized (perpetually) or under-collateralized (block liquidity).

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