Klaytn Lending Application (KLAP), first-ever DeFi protocol on Klaytn (KLAY) blockchain, will have its own utility token
Klaytn Lending Application, a noncustodial cryptocurrency lending/borrowing protocol, smashes through a massive milestone in its adoption and tech development.
First-ever Klaytn DeFi releases KLAP token on ClaimSwap exchange on July 25
According to the official statement shared by the team of KLAP DeFi protocol, its team launches its own token, KLAP.
We’ve spent time researching and writing an extensive piece on the latest developments and the most important happening of Klaytn since the start of 2022.
Presenting: The State of Klaytn! 🌏🌎🌍https://t.co/naVO7s3Bk2
— 👏 Klap 👏 (@klapfinance) July 23, 2022
The new asset debuts on mainstream decentralized cryptocurrency exchange (DEX) ClaimSwap. Trading of major pairs starts on July 25 at 10 p.m. ET.
The KLAP team highlights that this release is of particular importance for both the community management and tokenomic design progress of Klaytn’s DeFi ecosystem:
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.
KLAP’s token supply is capped at 1 billion tokens. Initially, 6% of this aggregated supply (or 60 million tokens) will be available to claim. That said, KLAP is estimated to reach about $75 million upon launch.
New-gen utility and governance asset for Klaytn’s ecosystem
Out of this supply, 5% will be distributed between early adopters and active community enthusiasts.
KLAP token will underpin the economics of Klaytn Lending Application as its major utility and governance digital asset. For staking KLAP, Klaytn’s enthusiasts will be awarded veKLAP rewards. KLAP-KLAY lending providers will receive veNFTs for their participation.
veNFT owners will be able to obtain exclusive rights. For instance, they will be able to decide on further KLAP emissions for lending/borrowing pools.
Also, veNFTs will act as liquidity mining reward boosters for various liquidity programs on KLAP.
Richard Ma, CEO of Quantstamp — one of the early investors in KLAP — is fascinated by the protocol’s vision and mission:
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.
As covered by U.Today previously, KLAP protocol is a building block of Klaytn’s DeFi ecosystem.