Hello KLAYswap Community!
We would like to inform you about the changes to the service operation of the existing version of KLAYswap, as the proposal to transfer $KSP governance was passed after the launch of the new version of KLAYswap.
1. Summary
1) Instructions on how to use existing versions of the service
- Providers of single deposit/pair deposit(V2)/concentrated deposit(V3) of existing version can supply liquidity to new version after removing their liquidity.
- Participants of existing versions of plus deposit and position deposit can close their position and liquidity. However, since the impact of downsizing a single pool may also lead to position closure, removing the supplied liquidity and closing the position is recommended.
- After the governance update, stake participants will seamlessly receive rewards in the new version without asset transfers.
- Please refer to ‘2. existing version service changes’ section to understand the details of the existing version.
2) KSP Governance Migration
- Governance migration schedule: July 3rd, 2024
* Content and schedule of updates are subject to change.
- The KSP inflation will be distributed only in the new version after the governance transition date, and the old version will not be distributed KSP. After the governance transition date, liquidity withdrawn from the old version of the service will be eligible for KSP rewards if supplied to the new version.
- The pool usage fee distribution structure (percentage) for using the old protocol will change after the governance transition date. With the removal of token-level policies, all KSP distribution pools will convert to non-distribution pools, adopting the same fee distribution model. Accordingly, the pool usage fees generated from the V2 pair deposit on KLAYswap will be distributed as follows: 50% to liquidity providers and 50% to KSP buyback. For the V3 pair deposit, the pool usage fees will be distributed as follows: 70% to liquidity providers and 30% to KSP buyback.
- The post below provides a more detailed description of KSP governance in the new version.
2. Service updates for the old version
1) My Asset Guide
- The My Assets menu will no longer allow you to transfer assets between wallets via bridge connections.
- Users can transfer assets to their wallets via any bridge site that is compatible with the Klaytn network (e.g., Orbit Bridge/Wormhole Bridge).
2) Swap Guide
- Swap is still available on the old version, but may occur on a smaller pool size due to liquidity migration. Swap rates may differ from those you are familiar with. Since pools are always variable based on the number of liquidity providers, supply volumes, etc., it is advisable to carefully check the price, price impact, slippage, etc. of the swap before using it.
- If your requested trade size exceeds the pool size, there may not be a viable swap path. Several smaller executions may reduce the price impact and enable the trade to proceed.
3) Single Deposit Guide
- A single deposit provider may participate in the pools using the new system’s ‘Supply & Borrow’ feature. In contrast to KLAYswap’s existing Single Deposit service, which utilizes liquidity borrowed directly from a single pool of liquidity in a form of Leveraged Yield Farm (Plus Deposit and Position Deposit), Supply & Borrow allows participants to participate in a variety of ways by freely acquiring assets of their choice from each other. The Supply feature currently allows you to contribute to a single asset pool, and the Borrow service is scheduled to be updated in the near future.
- Since July 3rd, 2024(KST), the existing version of the Single Deposit service will no longer accrue KSP rewards. Single Deposit users can remove their assets before the governance transition date and join a liquidity pool through the new system’s ‘Supply & Borrow’ feature to start earning KSP rewards after the governance transition date.
- Single pool participants of the old version will continue to receive the pool’s utilization fee as before.
4) Regular Pair Deposit (V2) Guide
- Since July 3rd, 2024, the existing version of the Regular Pair Deposit service will no longer accrue KSP rewards. Regular Pair Deposit users can remove their assets before the governance transition date and join a liquidity pool through the new system’s ‘V2 Pool’ feature to start earning KSP rewards after the governance transition date.
- Regular pair pool participants of the old version will continue to receive the pool’s utilization fee as before.(excluding KSP rewards)
- As of the governance transition date, the fee distribution structure (percentage) for using the regular pair pool will change. With the removal of Pool Voting from the fee distribution structure, pool usage fees from V2 pair deposit will be distributed as follows: 50% to liquidity providers and 50% to KSP buyback. Please see 7) Changes to the pool usage fee distribution ratio for regular/ concentrated pairs for more information.
5) Concentrated Pair Deposit (V3) Guide
- Since July 3rd, 2024, the existing version of the Concentrated Pair Deposit service will no longer accrue KSP rewards. Concentrated Pair Deposit users can remove their assets before the governance transition date and join a liquidity pool through the new system’s ‘V3 Pool’ feature to start earning KSP rewards after the governance transition date.
- Concentrated pair deposit participants of the old version will continue to receive the pool’s usage fees as before.(excluding KSP rewards)
- As of the governance transition date, the fee distribution structure (percentage) for utilizing the concentrated pair pool will change. With the removal of Pool Voting from the fee distribution structure, pool usage fees from V3 pair deposit will be distributed as follows: 70% to liquidity providers and 30% to KSP buyback. Please see 7) Changes to the pool usage fee distribution ratio for regular/ concentrated pairs for more information.
6) Changes to the pool usage fee distribution ratio for regular/ concentrated pairs
- From the governance transition date on, the pool usage fee distribution structure (ratio) for regular pair (V2) pools and concentrated pair (V3) pools will be as follows.
- Please refer to the link below for the updated distribution structure for pool usage fees.
7) Plus/Position Deposit Guide
- The migration of single deposit pool liquidity to the new version may affect the utilization cost (APR) for Plus/Position Deposit service users. The impact of downsizing a single pool may also lead to position closure, and unpredictable asset utilization may occur due to price impact/slippage. In this regard, users of the Plus/Position Deposit service are advised to remove the supplied assets and close their positions. KLAYswap team is not responsible for any subsequent issues.
- If the requested trade size exceeds the pool size, there may not be a viable swap path. Several smaller executions may reduce the price impact and enable the trade to proceed.
8) Staking
-After the governance update, stake participants will seamlessly receive rewards in the new version without transfering.
- The percentage of inflation distribution to Staking Participants will change as follows.
- After the launch of new version — Before governance transition: In the current version, the KSP inflation distribution is split in thirds, with 62% being for staking participants.
- After the governance transition date: KSP inflation distribution will end on the existing version when the governance transition is complete, and will continue on the new version, changing to four split under the new governance. The proportion of staking participants changes to 65%.
- Please refer to the post below for the updated KSP inflation distribution structure for the new protocol.
9) Pool Voting Guide
- The pool voting feature will be closed as of the governance transition date. Pool usage fee rewards for utilizing the protocol, which are distributed to pool voters, will be accrued until the governance transition date.
- The V2 pair deposit on KLAYswap will be distributed as follows: 50% to liquidity providers and 50% to KSP buyback. For the V3 pair deposit, the pool usage fees will be distributed as follows: 70% to liquidity providers and 30% to KSP buyback.. Please check 7) Changes to the pool usage fee distribution ratio for regular/concentrated pairs for more information.
- Those who vote after the governance transfer date will not be eligible to receive the pool usage fee rewards. The fees distributed before the governance transition date can be claimed to your wallet. It is recommended that you withdraw your votes before the governance date and claim your rewards directly from your wallet (You can collect all reward tokens from all pools you voted for by clicking the ‘Collect All’ button).
- Please refer to the link below for the distribution structure for the new version.
10) Ecopot Guide
- The Ecopot service will be discontinued. Rewards that were previously unclaimed can be claimed in the old version.
-This service will be relaunched with improvements through Quickstarter so that it can be extended to a broader ecosystem.
11) Drops Guide
- The Drops service will be discontinued. Rewards that were previously unclaimed can be claimed in the old version.
-This service will be relaunched with improvements through Quickstarter so that it can be extended to a broader ecosystem.
[KLAYswap]
Official Website: https://new.klayswap.com
Docs: https://docs.klayswap.com/
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