KLAP (Klaytn Lending Application), which is a distributed finance (DeFi) system running on the Klaytn blockchain, is about to issue its own native coin. On July 25 at 10 p.m. Eastern Time, the KLAP token will be made publicly available for trade on the well-known decentralized exchange (DEX) known as ClaimSwap.
Within the expanding ecosystem that the protocol is fostering, the KLAP token will serve as the fuel for a variety of use cases. Liquidity suppliers and early adopters will each receive a reward comprising a part of the overall supply. Since its initial introduction in May, the Total Value Locked (TVL) on KLAP has skyrocketed to over $100 million, propelling it to the position of the second most popular Klaytn dApp, according to this statistic.
According to the Klap team:
“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.”
Community Engagement & Long-Term Evangelism
It is very evident that the platform places emphasis on public participation and evangelism over the long run. Admirably, KLAP has already pledged 5% of the total token supply to early users. This means that everyone who took part in the company’s pre-mining or lockdrop activities will be able to collect their KLAP tokens following the debut of the cryptocurrency on the 25th.
There are a total of one billion KLAP tokens available for purchase. KLAP will have a market cap of $75 million when it first launches, with 60 million of these tokens (representing 6% of the total supply) being made available to the public at the same time. In addition to playing a major role in the governance of the loan protocol by granting token holders the right to vote on important issues, KLAP will also play an essential part in the day-to-day functioning of the protocol.
Users of the protocol who make the choice to keep their KLAP tokens locked on the platform for a predetermined amount of time will be given veKLAP as a representation of their investment. This will enable a wide variety of previously unavailable capabilities. veNFTs will be distributed to any KLAP holders, investors, or KLAP-KLAY LPs that successfully lock their tokens using this method. This grants a variety of privileges, including the following:
- Voting rights to select KLAP emissions for each token’s lend/borrow pool on KLAP
- Enhanced returns on liquidity mining incentives for lending/borrowing and Pool 2
Scaling Retail Adoption With Optimal Solutions
veKLAP holders have the ability to vote on wider protocol-level issues, such as how the Treasury funds are utilized, as well as suggestions to introduce more utilities. Token holders of the KLAP cryptocurrency can also supply liquidity against a variety of KLAP pairings on the ClaimSwap platform. KLAP is the first product developed by Krew, who secured $4M in a pre-seed round in June which was managed by Quantstamp and Ascentive Assets. Manifold, Krust, ROK Capital, and Novis are a few additional investors.
KLAP, or the Klaytn Lending Application, is a protocol for a decentralized and non-custodial liquidity market. Users of the protocol can take part in the market either as depositors or as borrowers. Depositors are able to make a passive income by providing the market with liquidity, while borrowers have the option of borrowing in an over-collateralized (perpetually) or under-collateralized (one-block liquidity) form.
According to Richard Ma, CEO of Quantstamp:
“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 blockchain DeFi ecosystem and scale it for retail adoption.”
