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Summary of KLAYswap Protocol
- KLAYswap is an on-chain instant swap protocol with an on-chain liquidity pool and automated market-making (AMM) mechanisms.
- Liquidity providers can earn income from transaction fee commissions.
- Ethereum-based tokens can be transferred to the Klaytn ecosystem via Orbit Bridge.
- KSP token is the governance token, allowing holders to determine governance agendas, fees, mining distribution, and contracts.
- KSP is required to create new liquidity pools, with a specific amount paid as a pool contract creation fee.
- KSP tokens can be acquired through liquidity mining, distributed as compensation to liquidity providers.
- Figures mentioned: None
Introducing KLAYswap Protocol: A Revolutionary DeFi Solution
KLAYswap is a comprehensive on-chain instant swap protocol that leverages an on-chain liquidity pool, ensuring liquidity through automated market-making (AMM) mechanisms. This innovative on-chain swap service empowers anyone holding KLAY or KCT-type token cryptocurrencies to become a liquidity provider, earning income from transaction fee commissions. Notably, KLAYswap facilitates the seamless transfer of Ethereum-based tokens (ETH, ORC, DAI, WBTC) to the Klaytn ecosystem via Orbit Bridge, a transparent IBC bridge built on Orbit Chain, thereby unlocking yield farming opportunities with previously unconnected asset pairings in the decentralized realm.
The KSP token serves as the governance token of the KLAYswap platform, empowering holders with the authority to shape the platform’s development by determining governance agendas in accordance with protocol-related rules and regulations. As such, KSP holders play a direct role in deciding key aspects, including fees, mining distribution, and contracts. Furthermore, KSP tokens have an additional utility, as a predetermined amount is required as a pool contract creation fee when establishing new KCT token pair pools on KLAYswap.
The KSP token features a unique structure, wherein tokens can be obtained through liquidity mining. Notably, KSP is exclusively distributed via liquidity mining in each Genesis block, serving as a form of compensation to KLAYswap liquidity providers, proportionate to their individual contributions to the overall pool.