LOCKDROP IS LIVE! AND ALL KLAPPERS CAN GET INVOLVED TO EARN KLAY AND KLAP!
To incentivize long term depositors and believers in our ecosystem, KLAP will run a lockdrop prior to launching the protocol!
The name of the game is simple…
Temporarily lock your deposits (USDC, USDT, DAI, WBTC, WETH, and/or KLAY) for 1–12 months to receive KLAP and KLAY tokens in rewards.
The longer your collateral is locked, the more KLAP rewards you will receive. On the claim unlock date, users can reclaim 100% of their locked collateral and unlock it. The rewards up for grabs are $1.5M USD worth of KLAY tokens and 30 million KLAP tokens (3% of total supply).
Users will also continue receiving interest on their deposits. For example, if a user deposited USDC into KLAP and locked their deposit (aUSDC) for the lockdrop, they will still earn interest on their USDC over the lockdrop period.
- The Lockdrop window will be open for 48 hours. It will begin at 8PM EDT on Mon, Jun 27 and end at 8PM EDT on Wed, Jun 29.
- The point during the lockdrop when you deposit doesn’t matter — however you should consider the monthly caps on each month (see more details below).
- The pre-mining program (with both KLAP and KLAY rewards) will continue to run, however, we recommend participating in the lockdrop.
- Our lockdrop contract has been audited by Quantstamp.
Any Klapper or to be Klapper can participate — the lockdrop is open to all!
Lockdrop Tutorial
- Make sure you have some aTokens (deposits of any asset in KLAP). You can deposit assets on https://app.klap.finance/deposit
2. Go to https://app.klap.finance/lockdrop and choose the token that you have deposited into KLAP. Decide how long you want to stake for, and deposit!
Lockdrop Monthly Caps
We designed our lockdrop mechanism to align with our governance vision, and to ultimately take in less mercenary capital. Some sections of the lockdrop (where we believe lies the most mercenary capital) will have a max deposit cap to ensure we get less short term capital in certain buckets and to distribute rewards evenly.
Lock Time
Collateral Deposit Cap
1 month → $30M
3 months → $60M
6 months → No Cap
12 months →No Cap
You get more KLAP rewards based on locking time:
- 12x for 12 month lock
- 6x for 6 month lock
- 3x for 3 month lock
- 1x for 1 month lock
Lockdrop Bucket
KLAP Rewards (Amount)
1 month → 1.36m
3 months → 4.09m
6 months → 8.18m
12 months → 16.36m
On the other hand, slightly more KLAY will go to shorter lock terms who are likely more mercenary. This could help decrease sell pressure on KLAP through KLAY:
- $600K for 1 month
- $450K for 3 month
- $300K for 6 month
- $150K for 12 month
Lockdrop Bucket
KLAY Rewards (Amount)
1 month → $600,000
3 months → $450,000
6 months → $300,000
12 months →$150,000
KLAP rewards
The KLAP token will go live within a couple weeks after the lockdrop deposit period is complete. KLAP rewards will be credited to addresses immediately as the token goes live. General KLAP tokenomics and reward mechanics are yet to be finalized. The value of your KLAP rewards will depend on the amount deposited in each lockdrop portion as well as the KLAP token market value after token launch.
We included a hypothetical KLAP rewards scenario calculator here
Example Scenario
Alice, Bob, Charlie, and Diana deposit $10M each into the 4 lock buckets and we use $100M as the KLAP FDV. Assume no other depositors.
- Alice will get 600K and 136K in KLAP = $0.736M
- Bob will get 450K and 409K in KLAP = $0.859M
- Charlie will get 300K and 818K in KLAP = $1.118M
- Diana will get 150K and 1,636,363 in KLAP = $1.786M
Note: We have removed APR from above calculations
APR really depends on how much was deposited into each tranche, and how long you lock up for. It also takes into account price of KLAP. At time of writing, 22M has been deposited into the 1-month tranche but not a lot of funds have been deposited into the 3-month, 6-month, and 12-month tranches.
Therefore, hypothetically, if the lockdrop were to stop now, the higher tranches would be earning over 1,000–10,000% APRs.
KLAP token utility
KLAP token holders can also engage in the following:
- Lock KLAP in order to receive veNFTs.
- 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.
- Ve holders can also vote on wider protocol-level decisions, such as the usage of Treasury funds, as well as adding additional utilities.
KLAY rewards
KLAY token rewards will be distributed shortly after the end of the lockdrop deposit period. Keep an eye on Discord and Twitter for more specific information around distributions.
Disclaimer
You understand that the $KLAP tokens may have no intrinsic value and are solely tools of governance, and as such have no intrinsic potential for future appreciation in any form whatsoever. You further represent and warrant that you are an active user of blockchain technology and blockchain-based software systems and have the pre-requisite technical knowledge to understand what has been mentioned in this article and the risks that follow.
The information provided within this article is for general informational purposes only pertaining to the governance tool. You understand that the Klap Finance governance structure is an experiment in the field of decentralization and community governed structures, in which participation via the KLAP token and otherwise is entirely at your own risk.
Information contained in this announcement should not be relied upon at any time as advice to buy or sell or hold the aforementioned governance tokens and particular note should be made as referenced prior to the solely governance based nature of the $KLAP token and their lack of intrinsic ownership or economic value. This announcement does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Klap Finance and its associated parties as appropriate make no representation or warranties, expressed or implied, as to the accuracy of such information and Klap Finance expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Klap Finance reserves the right to amend or replace the information contained herein, in part or in entirety, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this announcement supersedes any prior representation, post or conversation whether informal or formal, concerning the same, similar or related information.
This communication is not for distribution to U.S. newswire or similar services or for any dissemination in the United States. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, KLAP Tokens to any U.S. person (including, without limitation, any citizen or resident of the United States) or in the United States or in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the laws of any such jurisdiction.
