KLAYswap’s NEW Roadmap

KLAYswap has developed the KSP token economy into a complete stage by the recent strengthening of the vKSP profit model. KLAYswap as a global blue chip protocol not limited its growth potential to the domestic environment plans to go one step further in order to expand its ecosystem to a multi-chain based on the token economy that has a high level of completion.

The core multi-chain that KLAYswap is currently pursuing to transplant its economy and ecosystem into will be the Polygon chain, and the various financial opportunities and benefits arising from this advance and fruitful cooperation will be enjoyed by the core community of the multi-chain token economy and KLAYswap’s vKSP holder as well.

Advance of autonomous financial protocol into a multi-chain

KLAYswap is the autonomous financial protocol with its own originality, and it provides various financial opportunities such as swap(exchange), lending/leverage farming, staking, all of which a traditional financial system has not been able to provide in the past.

• 1. Advancing into Frontier Chain

The chain where the frontier protocol of KLAYswap will be placed is Polygon. Polygon is showing rapid growth, with 7,000+ Dapps being hosted so far and about 300% more transactions (1B+ total transactions processed) than Ethereum as they offer low gas fee and transaction speed-enhancing Ethereum scalability solutions. However, despite this ecosystem growth and the presence of notable AMM DEXs from Ethereum, each AMM protocol’s asset TVL remains relatively low.

In order to improve and maximize the original possibility of the Polygon network, Ozys (KLAYswap’s main developer) will form an official partnership with them and jointly design the token economy of the Frontier Protocol to target the overseas DeFi market in earnest. In particular, the Frontier Protocol’s governance token provides a higher initial revenue APR than any other Dapp in Polygon to the liquidity provider by providing it to the market in a fair launch manner. This allows the Frontier Protocol to grow into the core AMM DEX of the network by absorbing not only the liquidity within Polygon but also the liquidity of the Ethereum connected thereto.

• 2. Distribution of initial supply

The Frontier Protocol issues and supplies a separate governance token that is distinct from the main protocol (KLAYswap) to grow into the core AMM of the Polygon network. At this time, the Initial token supply, which will provide explosive field farming opportunities, prioritizes the native token holder of Polygon chain, and the vKSP holder of the main protocol. vKSP holders are liquidity providers who fully understand the economic potential of the initial token volume, and the strategy of distributing the initial volume to them can serve as core liquidity providers for the Frontier protocol, thereby quickly building a liquidity infrastructure inside the protocol.

• 3. Token inflation allocation

The Frontier Protocol continues to distribute a portion of token inflation to vKSP holders, our core user community, even after the initial token distribution. This is a reasonable reward for key contributors to KLAYswap, which has an autonomous financial protocol license, and a distribution strategy of Frontier protocols to leverage main protocol’s users and liquidity through long-term ecosystem combination with the main protocol.

• 4. Token economy leverage

KLAYswap’s multi-chain token economy strategy is different from the usual way that other protocols do when they expand into new chains. The same autonomous financial protocol as KLAYswap is deployed in Polygon, but the ecosystem built by the new token economy of the Frontier protocol has relative independence depending on the liquidity characteristics of Polygon; user base, trading demand, and interacting with other Dapps. This difference between the main and frontier protocols inevitably creates an opportunity to leverage the mutual ecosystem, which takes advantage of the simultaneous expansion of the two ecosystems.

Inflow of new users and expansion of liquidity

The main protocol and the Frontier protocol secure liquidity and new users by mutually introducing liquidity and native users of the chain. The Frontier Protocol draws the native asset liquidity of KLAYswap’s users and Klaytn chains into the Frontier Protocol through the distribution of initial tokens and continuous inflation distribution strategies.

Securing demand for new transactions and creating trading volumes

In this combined ecosystem, various transaction demands arise in order to shift liquidity in the process of moving between the main ↔ Frontier ecosystems or in the process of participating in various compensation acquisition opportunities provided by each ecosystem. At this time, both protocols have increased liquidity in terms of diversity and scale based on assets introduced from different chains, resulting in sufficient trading volume within the protocol by meeting the various transaction needs of users mentioned earlier.

Expanding the reward creation power of governance tokens.

The occurrence of high transaction volumes not only provides more pool transaction fee rewards to vKSP holders and Frontier protocol governance token holders, but also leads to the expansion of user communities that support governance tokens by Buyback & Burn.

Expanding the use of governance tokens.

Governance tokens of the main and frontier protocols can also be used as liquidity supply resources to advance into a mutual ecosystem and obtain additional rewards. Some of the initial quantities of Frontier Protocol tokens are utilized as continuous LP incentives for key pairs, e.g., KSP- Frontier protocol’s governance token pairs, and holders of KSP tokens and tokens of new protocols can use their assets to earn additional rewards. It also expands the use of each governance token by providing opportunities for yield farming using KSP within the new protocol. This strategy has a positive effect on the increase in token value by increasing the demand for each governance token together.

Interaction with multi-chain Dapp

The Defi ecosystem forms a money Lego system that creates new financial services on top of existing Defi products through free combination of various open source-based protocols.

This means that it is impossible for any Defi protocol to continue its operation alone, and the combination with other Dapps in the chain can strengthen its own growth as well as the financial infrastructure of the entire chain where the protocol operates.

The Polygon chain, where KLAYswap’s Frontier Protocol advances, has a number of major overseas Dapps, including Uniswap, Sushiswap (DEX), Beefy (Yield aggregator), Curve (Stable), and AAVE (Lending), and interaction with them leads to indirect interaction with KLAYswap as well as the Frontier Protocol itself, creating new financial opportunities.

2. KLAYswap Code Disclosure and Ecopot Compensation Systemization

With the advance to the Polygon chain, we will unveil the source code of KLAYswap. The disclosed program code can be used by anyone to develop new financial services without going through any qualification criteria or screening.

3. Advancement of KLAYswap governance

Starting with a governance vote to determine the entry of general assets into the KSP ecosystem, KLAYswapDAO has conducted a total of eight agendas so far and has successfully carried out autonomous operations by DAO. KLAYswap will update its fully decentralized protocol operation tool within this year, and accordingly, it will update various governance agendas, including setting various fees and changing the overall KSP inflation rate, through DAO’s vote.

Summary

Starting with Polygon Chain’s Frontier Protocol, for KLAYswap, 2022 will be a year of mustering all its efforts to expand the entire autonomous financial protocol ecosystem through multi-chain token economy strategies.

KLAYswap, as a main protocol, gains additional growth engines by expanding users and asset liquidity of heterogeneous chains that are not owned by the Klaytn chain through the placement of frontier protocols in the Polygon chain, it further strengthens the rewards they earn by holding KSPs by allowing existing vKSP holders to preoccupy the opportunities to participate in the new financial opportunities provided by the Frontier Protocol. This not only accelerates the influx of new users and liquidity, but also builds a rich liquidity ecosystem for the Frontier protocol that leverages the main protocol.

Now, KLAYswap will continue to expand its strong ecosystem targeting the entire overseas Defi market beyond the current top market share in the domestic market, and KLAYswap as a global autonomous financial protocol will continue to distribute financial opportunities to KSP ecosystem participants and the vKSP community.

* KLAYswap’s first frontier protocol will be distributed for the first time through KLAYswap Drops in early April, and various marketing collaborations with the Polygon Foundation will be carried out with the aim of opening a new protocol in mid-April. They will inform you of the detailed schedule through continuous posting and notice on the community channel.

SOURCE: https://medium.com/klayswap/klayswaps-new-roadmap-eng-f831313bbee9