KlaytnSwap: Swap ERC20 with KCT
The ERC20 to KCT Swap Tool is a project that aims to expand the usability of a token by making it compatible with two chains, in line with Orbit Chain’s goal of creating diverse opportunities for token usage.
It may look simple, but Klaytnswap service is capable of instantaneous conversion of ERC20-based tokens into Klaytn-based KCT (Klaytn Compatible Token), and the entire process is decentralized.
Token Swap process is simple, and requires no registration of accounts.
The process is as follows:
- Entering an address to receive your KCT
- Entering an address that you will send your ERC20-based token from
- Sending your ERC20-based tokens
- Receiving KCT
All of these processes are recorded on the blockchain, and the entire process itself is automated and smart contract-based, allowing the transaction to occur without a third party intervention.
Token swap cases in issuing a new token can be categorized by
(A) Same standard (e.g, ERC20> ERC20)
(B) Coin migration according to a mainnet launch (e.g, ERC20> Mainnet coin)
(C) Token swap following platform transfer (e.g, ERC20> KCT)
Such token swap may be centralized (using exchange or wallet service) or decentralized through smart contract, but there is virtually no other method than swap in the same standard token (eg, ERC20 <> ERC20), which is an example of (A).
In particular, coin migration according to a mainnet launch (B) or swapping tokens resulting from the platform transfer © is not an easy process. Collaboration with exchanges is essential, resulting in excessive costs, integrating wallets, limiting swap periods, and excessive investment costs incurred during separate sign-up and KYC.
However, it is also inefficient for foundations that need to focus on business to keep an eye on token swaps. This means that the answer to overcome these shortcomings and inefficiencies can be the token swap protocol that uses Orbit Chain’s IBC.
The Klaytn Swap Protocol consists of three main features to enable smooth ERC20 <> KCT token swap as follows:
1.Reserve Pool to provide a sufficient amount of tokens to be swapped
As a token swap protocol following the platform relocation, the swap volume is provided only by the Foundation. This means that suppliers are made up of a single type of liquidity source and can respond quickly to rapidly changing swap-available volumes, providing optimal decentralized swap services in the event of a shortage of swappable volumes.
2. 100% On-chain Transaction
All transactions in the Klaytn Swap Protocol occur on the blockchain, meaning it is on-chain transaction through the smart contract, so users are able to access the swap tool and convert their ERC20 tokens to Klaytn-based KCT tokens without being constrained by a specific subject or management system.
3. IBC (Inter-blockchain Communication) of Orbit Chain
Lastly, the decisive point that makes Klaytn Swap work is Orbit Chain’s Inter-blockchain Communication (IBC) technology. Connecting two different chains with different smart contracts is surely a daunting task. We solved this problem by using IBC technology that enables Orbit Chain to accept swap request transactions from Ethereum and provide the corresponding KCT to token holders.
Additionally, Orbit Chain acts as an administrator at the initial stage to manage the foundation’s token registration and protocol specification inspection, providing stable swap service. In particular, as an administrator, we support instant updates in the event of changes between heterogeneous chains.
Klaytn is a public blockchain platform developed by ‘Ground X’, a blockchain technology subsidiary of Kakao, Korea’s leading social media service with more than 40 million MAUs. As they have a large user pool, many blockchain developers are moving from the Ethereum to Klaytn with great interest. In this situation, the Klaytn Swap tool, with its intuitive interface, can help Klaytn’s BApp users, as well as BApp Foundations, more easily incorporate into the Klaytn ecosystem.
Orbit Chain and Klaytn together are planning to expand its ecosystem so that blockchain and cryptocurrency can be used anytime and anywhere, starting with this Klaytn Swap Service. So, we hope you look forward to seeing the growth of Orbit Chain and Klaytn as well as your interest!