KLEX Finance Mainnet Is Now Live

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KLEX Finance, the decentralized finance (DeFi) protocol of smart contracts platform Klaytn, announced its official launch last August 26, 2022. KLEX is an implementation of the Balancer v2 Protocol on the platform. 

Along with the launch, the DeFi protocol invited users to participate as their first three incentivized pools were boosted stablecoin pools and the pre-mining of their token also began. They also noted that the boosted weighted pools for KLAY and other variables assets will be coming soon.

A balancer is an automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM-compatible systems.

Trading & Providing Liquidity

“The trading and liquidity provision will be available immediately at mainnet launch of the protocol and users will be able to swap between all sorts of assets. They can also join/create liquidity pools as they please,” the announcement read.

Moreover, users will also be able to choose specific weightings as needed or they can go with the classic 50/50 pools similar to Uniswap-v2 style automated market makers

(AMMs). As soon as liquidity is added, the smart-order-router will automatically pick the pool up, which will enable users to swap between assets in the pool.

Incentives

In a statement, the developers stated that they will be introducing pre-mining rewards after KLEX mainnet launch—where approximately $680,000 in KLAY and 9.5M KLEX will be available for pre-miners over the course of a maximum of 1 month. 

“Assuming an arbitrary launch price of approximately $0.1/KLEX, this would be a total of $1,630,000 in pre-mining rewards alone!” KLEX stated.

Accordingly, the DeFi protocol pointed out that aside from the incentives the liquidity pools will also include KLAP-boosted assets— this makes KLEX and KLAP mutually beneficial as well as an increase to the Klaytn ecosystem’s capital efficiency. 

The liquidity pools are:

  • Synapse USDT/USDC/DAI Stable Pool
  • Wormhole USDT/USDC/DAI Stable Pool
  • Synapse USDT / Wormhole USDT / Orbit USDT Stable Pool
  • Wormhole USDT / WBTC / ETH (33% Weighted Pool)
  • WKLAY / WBTC / ETH / BNB / AVAX (20% Weighted Pool)
  • WKLAY / USDT (20% / 80% Weighted Pool)
  • WKLAY / USDT (80% / 20% Weighted Pool)

Further, they highlighted that community pools utilizing liquidity mining will also receive incentives. 

“We are dedicated to continuing the growth of the dAPP ecosystem on Klaytn,” the developers said.

As per Klaytn, incentivizing the abovementioned pools will ample the stablecoin liquidity with low slippage through the use of Stable Pools thus making it more likely that aggregators will route volumes through KLEX, increasing protocol revenue. 

They also added that large KLAY-USDT liquidity is needed in order to decrease slippage on any Klaytn-native token swaps on KLEX. And by adding two weighted pools (20/80 vs 80/20), the platform can decrease IL for liquidity providers.

Moreover, the different types of stable pools will allow multiple bridge assets to live concurrently on the Klaytn blockchain with low slippage between any of those assets. 

And lastly, by adding some of the largest cap tokens/coins (WBTC, ETH, BNB, AVAX) in a pool with KLAY, Klaytn users will be able to trade large cap assets easily without the need for a centralized exchange. All users need will be a blockchain wallet to start trading all types of crypto on Klaytn via KLEX.

“In order to incentivize users to add liquidity early, the liquidity mining incentives for the above pools will be capped. This way, liquidity providers will be able to guarantee themselves a floor to their yield, and the protocol will be able to reach its desired liquidity sooner during the pre-mining period. Even if the cap is reached, users will be able to add more liquidity, but they won’t be able to earn pre-mining rewards via staking. However, they will still earn swap fees,” the announcement added.

This article is published on BitPinas: KLEX Finance Mainnet Is Now Live

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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