Klayswap has recently achieved remarkable success in its trading performance, with a TVL of 1.3 billion USD and an average trading volume of 79 million USD. As Klaytn has been gaining attention in the international market, it has become rather imperative to offer more details on the Klaytn DeFi ecosystem, so that users can get a better understanding of the project’s technological capabilities.
In today’s article, we will be introducing 3 key players within the Klaytn DeFi ecosystem: Klayswap, Klaystation, and Orbit Bridge.
Klayswap is by far the largest DEX on Klaytn by volume, and also an automated market maker, meaning that it enables crypto exchanges at an automatically set price, based on a carefully thought algorithm. Klayswap is a decentralized exchange
By being decentralized, Klayswap users will be given access to certain functions such as deploying their funds to a liquidity pool or being given governance rights. Furthermore, Klayswap users are being rewarded In multiple ways. They can either gain a percentage of the transaction fees, gain KLAY staking rewards, or KSP rewards. Currently, the KLAY staking function rewards its contributors with a 14.5% yield, subject to market volatility.
Klaystation is an important feature that helps users navigate through the Klaytn ecosystem. Through Klaystation, KLAY holders will be able to stake their tokens to get staking rewards. The system will allow users to swap their tokens for a wrapped version called sKlay. The amount of sKLAY that each user will receive should be equal to the amount of Klay that has been put through the system. For example, if a user stakes 100KLAY, then he will receive 100sKLAY in return and vice-versa. Each sKLAY token represents the proof of your staked coins and they shall be used to redeem KLAY tokens back from the KLAY liquidity pool.
The staking rewards for those users who choose to stake their KLAY through Klaystation are situated at around 5% annually.
Finally, Orbit Bridge is a cross-chain function to connect and communicate with the Klaytn network and other public blockchains. It is an application that runs on the Orbit chain and can transfer tokens from other Layer 1 blockchains such as Ethereum and Terra to the Klaytn network. Klatyn DeFi applications cannot at the moment directly interact with external blockchains. For this reason, Orbit Bridge connects external blockchains with Klaytn to support interchain liquidity supply.
Assets that can be imported from other chains to the Klaytn network through the Orbit Bridge are currently being utilized in Klayswap. Tokens transmitted through the Orbit Bridge are each attached with Klaytn, and the currently supported tokens are KETH, KUSDT, KORC, KWBTC, and KDAI.
