KLAP Rewards and Token Launch Deep Dive

KLAP Finance
4 min readJul 7, 2022

--

The KLAP token launch is just a couple of weeks away. We have been overwhelmed by the support from the community, and are so excited to take the next step for the protocol and take the future of KLAP in the hands of the community.

Over the last few days, we have gotten several questions from our community about more details on pre-mining, lockdrop, and token launch. We’ll use this opportunity to answer some of these questions.

Pre-mining

There are 15 million KLAP tokens up for grabs in the pre-mining period. There are also 250K USD worth of KLAY tokens to be distributed as rewards as well.

What about APR?

It’s not possible to put an exact number on pre-mining APR, because the KLAP token has not launched yet. APR depends on the performance of the token.

However, here is an example scenario:

  • Assume total deposited + borrowed is $150M
  • Assume KLAP FDV at $100M
  • Assume pre-mining lasts 1 month
  • Assume that you have $1M USDC to deposit

By folding (recursive lend/borrow) several times on KLAP, your total $ deposited + borrowed on KLAP should be able to reach around $7M.

Further assume that net APR from lending and borrowing is negligible (given you are lending more than borrowing).

If you were in for the whole pre-mining period, you would receive:

(7,000,000 / 150,000,000) * 15,000,000 = 700,000 KLAP

At $100M FDV, 700,000 KLAP would be worth $70,000.

(7,000,000 / 150,000,000) * 250,000 = $11,667 worth of KLAY

This means that the total $ earned would be $81,667 on $1M in one month.

In APR terms, this would be 81,667 * 12 / 1,000,000 = 98% APR.

As noted above, this is purely based on the assumptions listed above. However, at current TVL, there should be plenty of upside in available yield.

Here is the pre-mining reward calculator for you to play around with:

https://docs.google.com/spreadsheets/d/1Zn5AgM8tgRETrzus7yE30pKprTPvstwoVDNn-zzaixc/edit?pli=1#gid=0

Lockdrop

Community members have been asking about whether locked aTokens in the lockdrop receive pre-mining yield.

Yes — aTokens in the lockdrop do receive pre-mining rewards. The team is currently working on a way to map the lockdrop depositor addresses to the time-weighted aTokens.

Reward Distribution

For both the lockdrop and pre-mining events, KLAY tokens were or will be distributed immediately. KLAP tokens will also be credited to addresses immediately after token launch.

By default, KLAP tokens follow a 6 week vesting schedule once awarded to an address. The tokens vest linearly each week. They can be immediately claimed for a 50% penalty at any time within those 6 weeks.

Why vest?

The community has made its concerns clear about the immediate sell pressure of high float of circulating KLAP supply on day 1. As experienced developers in DeFi, we have merged ideas behind several protocols (Geist/Ellipsis Finance) to penalize mercenary farm & dumpers along with Ve-tokenomics to incentivize lockers (Platypus Finance / Curve). These nuances to KLAP’s token mechanism can naturally help move KLAP tokens from the hands of short-term farm & dumpers to long term holders of the protocol.

More details have been public on our docs since day 1:

https://docs.klap.finance/klap-token/klap-rewards-and-ve

Token Launch

There will be $500,000 worth of KLAP/KLAY liquidity provided to seed the pool for token launch at $75M FDV. There will also be a second lockdrop — the Liquidity Drop — where the final 5M KLAP for early incentives will be rewarded.

The Liquidity Drop will allow community members to participate in seeding the liquidity pool at launch FDV with KLAY. More information on the Liquidity Drop will be released closer to the event.

The launch date itself has not been finalized, but we are working around the clock to try to make it happen before the end of July. Keep posted on our social media channels to stay up to date on the news!

Community Incentives

Don’t forget that there are 10 million KLAP tokens up for grabs by active and loyal KLAPPERS in the community!

We will be announcing additional events and campaigns where community members will be able to earn more of these rewards. Our roles program on Discord is still rolling, and our mods are diligently working on assigning roles to those that are adding value and being active (some roles are worth more than others)! We have not forgotten about our OG’s and testnet participants either.

Want to join the fun?

Remember to follow us on all of our channels! If you have any questions, feel free to ask any time.

KLAP website

Medium

Naver

Kakao

Twitter

Telegram

Discord

--

--

KLAP Finance
KLAP Finance

No responses yet