KLAP (Klaytn Lending Application) is set to launch its native token, available for trading on decentralized exchange ClaimSwap.
The decentralized non-custodial liquidity market protocol operating on the Klaytn blockchain is the first product developed by Krew.
Despite the collapse of the Terra/LUNA protocol, the South Korea DeFi ecosystem shows signs of strength and confidence as the new DeFi incubator, Krew, recently raised $4 million in a pre-seed round led by Quantstamp and Ascentive Assets, with other investors including ROK Capital, Manifold, Krust, and Novis.
The protocol allows users to participate as depositors (who provide liquidity to the market to earn a passive income) and borrowers (who are able to borrow in an over-collateralized (perpetually) or under-collateralized (one-block liquidity) fashion).
This can be summarized as the “foundational money legos of DeFi” with Krew planning to support projects building on Klaytn with things like liquidity, PR, and go-to market strategies.
Launched today, the KLAP token is intended to power a range of use cases within the protocol’s ecosystem. Popularity is strong. The lending protocol recorded 100,000 pre-registration entries within 48 hours of launch.
Since launching in May, the Total Value Locked (TVL) on KLAP has soared to over $100 million.
The KLAP team is focused on community engagement and long-term evangelism, having already committed 5% of the total token supply to early users. A portion of the total supply will be awarded to liquidity providers and early adopters.
Anyone who participated in their pre-mining or lockdrop initiatives will be able to claim their KLAP tokens upon launch, said the official announcement.
“We are truly excited to allow the KLAP token to gain utility within our system and provide additional functionality for users after our protocol launch. As KLAP decentralizes, this is an important next step in community development and growth”, said a spokesperson.
Richard Ma, Chief Executive Officer of Quantstamp, commented: “We see Klap in a great spot 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.”
The KLAP token has a total supply of 1 billion, but only 60 million (6%) will initially be made available, setting KLAP a market cap of $75 million upon launch, the firm stated.
KLAP offers orchestrating governance (token-holders can vote on key decisions) and will be at the heart of the lending protocol’s operations for users that lock their tokens on the platform for a fixed period.
KLAP holders, vesters, and KLAP-KLAY LPs who lock their tokens in this manner will receive veNFTs which confer various rights including:
- Voting rights to determine KLAP emissions for lend/borrow pools of each token on KLAP;
- Yield Boosters on liquidity mining rewards for both lending/borrowing as well as Pool 2;
- veKLAP holders can also vote on wider protocol-level decisions such as the usage of Treasury funds, as well as proposals to incorporate additional utilities;
- KLAP token holders can also provide liquidity against various KLAP pairings on ClaimSwap.