KLAYswap Update: Introducing Single-Sided KLAY deposits
Even before KSP is unfrozen, users have shown great interest and trust in KLAYswap by providing liquidity and conducting transactions. As a result, KLAYswap has been growing explosively. In just a little over a month since our launch, we’ve reached more than $67M USD in TVL with daily trading volume reaching over $4M at times. We’ve seen a total trading volume of more than $66M and have garnered more than $200,000 in transaction fees.
We’ve been hard at work to make KLAYswap even better for you! Our new changes add more liquidity mining opportunities for users unfamiliar with the processes of DeFi and yield farming. We’ll also be further explaining how KLAYswap will help you get the best returns on your crypto holdings.
Single-sided KLAY deposits
We’ve made it easier to participate in KLAYswap by now offering a single-sided KLAY deposit option for providing liquidity to the KLAY-SKLAY liquidity pool. There are now two ways to add to the KLAY-SKLAY liquidity pool. Like before, you can provide a pairing of KLAY+SKLAY, and now, just provide KLAY.
This new KLAY only method calls a separate smart contract that adds to/takes liquidity from the KLAY-SKLAY pool. It works by preemptively staking a portion of the KLAY to get SKLAY before depositing the pair into the liquidity pool. There are two main benefits to doing this. Firstly, it makes the process of both staking KLAY on KLAYstation and yield farming on KLAYswap easier and more streamlined by combining the two. This is made seamless by simply using the same Kaikas wallet you are using for either KLAYstation or KLAYswap.
More importantly, with this new update, just by having KLAY, you can get staking rewards in addition to the KSP and Transaction fee rewards that KLAYswap gives liquidity providers. Staking is done through the aforementioned KLAYstation, a KLAY staking provider and issuer of the SKLAY token. KLAYstation also has the advantage of charging the least commission in comparison to other staking services.
The process is outlined in this diagram:
If a user wants to provide 1000 KLAY to the liquidity pool in a single-sided deposit, 500 KLAY will be staked, leading to around 500 SKLAY. The remaining 500 KLAY and the newly acquired 500 SKLAY are then deposited into the pool. If a user wants to remove their 1000 KLAY from the pool, the 500 KLAY and 500 SKLAY are removed. After a 7 day unstaking period for SKLAY, 1000 KLAY is claimed and returned to the users’ wallet.
On the dashboard, the liquidity added from both the single-sided KLAY method and the KLAY + SKLAY pair deposit method will be reflected in the KLAY-SKLAY liquidity pool.
PC/Mobile Klip Wallet A2A (App to App) Support
To better leverage the single-sided KLAY deposit functionality, this update of KLAYswap supports connecting Klip wallets (PC and mobile versions). Just like logging in by using Klip on KLAYstation, you can select Klip when connecting your wallet in KLAYswap and scan the QR code through the Kakaotalk app. This new Klip support allows users to participate in KLAYswap’s KSP liquidity mining in a single transaction that is easier than ever before.
KSP claims are made automatically through smart contracts when liquidity is provided through the KLAY-only single-sided deposit method
Until the 61 day lock-up period (~block num 48681371), users will not be able to retrieve automatically claimed KSP acquired from deposits/withdrawals. Distributed quantities will also not be able to be manually claimed
After the 61 day lock-up period, KSP automatically acquired from deposits/withdrawals will automatically be sent to the user’s wallet. Distributed quantities will be able to be claimed.
Some users have been curious as to the value of the KSP token when it gets unlocked. Here is a simple estimated projection. With this update and improvement in the KLAY-SKLAY pool’s ease of use, we expect the KLAY/sKLAY pair liquidity pool to grow and lead to an increase in KLAYswap’s overall TVL (Total Value Locked). A growth in the TVL should lead to a higher KSP token value.
The value of KSP, KLAYswap’s governance token, can be reliably set by developing TVL and trading volume. Looking at other similar projects, we found that governance tokens typically have a correlation of having a market cap worth 20–40% of TVL. This is how we estimate the current value of KSP, prior to it being unlocked.
The left side of the image shows KLAYswaps current numbers at the time of writing. The right side shows our estimation at a higher KLAYswap TVL, our short term goal. In the long run, we plan to continuously improve our services and secure a variety of opportunities so that the size of our TVL can keep growing at the current pace. This means that the moment you read this could be your best, most efficient opportunity to start participating in KSP liquidity mining.
As always, however, we urge you to DYOR.
Ending Thoughts and Future Plans
As KLAYswap continues to grow, as it has done till now, we’re excited for the changes to come. With a higher KSP value and larger TVL, we will bring in more inflow of heterogeneous chain assets. The current KLAY to Heterogeneous chain ratio is around 6 to 4. We will work to expand this to a 5:5 ratio. This will lead to more DeFi ecosystem expansion within Klaytn’s network. We believe that this will ultimately drive KLAY’s utilization and value.
As always, thank you for your support and know that we’re committed to making KLAYswap easier to use and adding new features and mining options. Stay tuned for more exciting updates!