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Klaytn Lending Application KLAP Records $100M TVL in First Week

coinquora.com 05 July 2022 09:35, UTC
Reading time: ~2 m

KLAP (Klaytn Lending Application) enables users to deposit cryptocurrency and borrow stablecoins in a non-custodial manner. Provided their position remains sufficiently collateralized, users are free to deploy borrowed assets however they see fit, be it for yield farming, staking, or trading.

According to Defi Llama, KLAP is already the second largest dapp on Klaytn after pioneer DEX KlaySwap. Launched on June 24, KLAP has already reached $102M in total value locked (TVL) and its team aims to claim the top spot in the Klaytn dapp charts.

KLAP Borrows the Best Bits of Curve and Aave

KLAP draws its inspiration from Curve and Aave — two industry titans whose protocols are accessible across multiple EVM networks. To date, neither has deployed a Klaytn-compatible version of their protocols despite the layer-one network also working with the Ethereum Virtual Machine. KLAP has stepped in to create a platform that emulates the ve-tokens popularized by Curve and paired with an Aave-style lending interface.

In addition to KLAY, the native token of the Klaytn blockchain, KLAP supports its own KLAP governance token, which can be staked to earn veKLAP. Other assets currently supported on the platform include DAI, USDC, USDT, WETH, and WBTC. Users can deposit one asset and borrow another; thus far, USDC is the most popular token, followed by KLAY. A lockdrop, designed to incentivize further deposits, is promising $1.5 million of KLAY tokens by way of rewards and a further 30 million KLAP tokens on top.

Krew Prepares $4M DeFi Warchest for All Things Klaytn

KLAP is the first project to be supported by Krew, a venture fund focused on growing the Klaytn ecosystem. Its mandate is to support enterprising projects that are bolstering decentralized finance on the network. Industry veterans Hugo Campanella and Adam Cader are among Krew’s founders. The DeFi accelerator has already received $4 million in commitments from the likes of Quantstamp and Ascentive Assets.

“[Klap is] in a great spot to leverage Klaytn’s technical architecture enabling high TPS, fast finality, and cheap transactions,” said Quantstamp CEO Richard Ma. “We are confident in Klap’s compelling protocol design features and veteran builders to serve the nascent Klaytn [DeFi] ecosystem and scale it for retail adoption.”

KLAP is already the top lending platform on Klatyn by some distance, and if it can overtake KlaySwap DEX for TVL, it will officially become the largest Klaytn dapp.

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