Introducing Klex Finance: from Krew DeFi the creators of Klap
Introducing Klex Finance: from Krew DeFi the creators of Klap
Currently, Klaytn lacks a native and efficient automated portfolio management and swaps protocol that supports all types of AMM pools. This hampers the overall capital efficiency of the entire ecosystem, which hurts your bottom line. Klex is committing to providing these essential services across the entire chain. To do so, we envision a new trading space enabled by a novel AMM implementation leveraging weighted pools, stable pools, and liquidity bootstrapping pools. We believe that with these essential tools, we can push DeFi on Klaytn to the next level.
KLEX is an implementation of the Balancer v2 Protocol on Klaytn.
Balancer is an automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems. Balancer Pools contain two or more tokens that traders can swap between. Liquidity Providers put their tokens in the pools in order to collect swap fees.
Klex is determined to differentiate itself by leveraging Klaytn’s inherent advantages. We intend to focus on metaverse adoption, protocol interactivity, and the broader cohesion of all interactions on Klaytn. With distinct first-mover advantages as the prime portfolio managing and next-level trading protocol on the chain, we expect Klex to take an essential role in fostering adoption and scaling in the very near future.
Read on to learn about how you can participate early to earn community rewards.
KLEX Launch Features
Weighted Pools: Weighted Pools are a generalization of the standard constant product AMM popularized by Uniswap. Each pool can contain up to 8 different tokens and each token is assigned a weight defining what fraction of the pool is made up by each asset.
Stable Pools: For certain assets that are expected to consistently trade at near parity (e.g. different varieties of stablecoins or synthetics) a more efficient design is the StableSwap AMM as popularized by Curve. These pools allow for larger trades of these assets before encountering significant price impact.
Liquidity Bootstrapping Pools: These pools are useful for launching tokens and swapping large amounts over time. They feature weight shifting mechanisms that results in high start prices with continuously changing sell pressure.
Klex is the only Klaytn-native automated portfolio management protocol that can commit to consistently reducing gas fees while simultaneously ensuring maximum capital efficiency on all swaps through our proprietary pool products listed above. Users who identify with our favorite L1’s community and metaverse vision should use Klex for all their swap and pool needs. We are committed to aligning our vision with Klaytn’s overall needs by providing essential balancing, swapping, and arbitrage services to the community.
How Klex Works For Users: Providing Liquidity
Traders pay swap fees when they trade with a pool. The fees ultimately go to Liquidity Providers in exchange for them putting their tokens in the pool to facilitate trades. Trade fees are collected at the time of a swap, and it goes directly into the pool, growing the pool’s balance.
Let’s say Alice, Bob, Chuck, and Diana all provide liquidity in the same pool starting out with a total value of $100. After some time, the pool has collected many trade fees and is now worth $200.
The pool itself grows while the Liquidity Providers’ proportional shares stay the same.
DeFi Money Legos & Interoperability
Bespoke AMMs with a variety of pool options have proven themselves to be one of the essential features of an L1 with any hope of mass adoption and parity with other market-defining chains such as Ethereum or Solana. We believe that Klaytn has the potential to reach the heights set by these forerunners. With Klex, all of this and more is possible.
Here are the main ways Klex will be integrated within the Klaytn ecosystem:
- KLAP aToken Liquidity - KLEX will spin up aUSDC, aDAI, and aUSDT pools (interest bearing KLAP stablecoins) and direct significant emissions to these pools. This will work towards making KLAP aTokens the base layer of Klaytn stablecoin liquidity.
- veKLEX deposited into ROME (Convex Fork) — Enables even greater yield for KLEX holders and a natural token sink.
- KLEX will serve as an LBPs/token launchpad on Klaytn as no one offers this key service for initial token price discovery and fundraising
KLAP/KLEX reward
The Klaytn ecosystem, under Krew projects like Klap and Klex, is tightly integrated. We want to ensure that our loyal early users of Klap are properly rewarded. Therefore we’ve decided to allocate 1% tokens from the Klex treasury to KLAP holders. We want Klex governance token holders to be strongly aligned with all of our projects — and we believe Klap users are one of the best sources of this. We are working on finalizing details on the reward plan, and will post an announcement soon.
What’s next?
We plan to have the Klex testnet live in late July and mainnet in early August. Announcements on progress of this will be posted to our social media channels.
As with Klap, being on our Discord and following our Twitter now will significantly increase your chances of earning $KLEX. Our community managers are watching closely on meaningful discussion, product feedback, ecosystem ideas, and more over there.
Discord:https://discord.gg/klexfinance
Twitter: https://twitter.com/klexprotocol
