SWAP - KLAYswap

Once users swap (trade) tokens through Klayswap, the transaction fee will be determined by the reward policy of each liquidity pool, and the transaction fee will be distributed as …

Introduction

Welcome to the KLAYswap documentation! This book covers everything you need to know KLAYswap, from about how to use the AMM protocol, what makes it unique, its token economy, and functions.

In this documentation, we introduce KLAYswap, the AMM protocol for the Klaytn Network, as well as KLAYswap’s capabilities and governance token, KSP (KLAYswap Protocol).

The AMM (Automated Market Maker) protocol we are launching is a decisive DEX protocol that has now brought the Decentralized Finance (DeFi) market to the general public. Simply put, AMM is a protocol that supports immediate swapping between tokens by replacing the existing buy/sell orderbook structure with a Liquidity Pools created on- chain by liquidity providers.Looking at representative DEX examples like Uniswap, an Ethereum-based AMM protocol currently hosting around $2.7B USD in liquidity pools, it is clear that plentiful liquidity is needed to boost the Decentralized Finance ecosystem as a whole by allowing easy transactions. For this reason, ozys, the developers of KLAYswap, created a high liquidity environment in which assets not only of the Klaytn network but also of other networks, including Ethereum, can enter Klaytn.We even take it a step further than Uniswap by ensuring significant trade volume by using a transparent IBC bridge, ozys’ Orbit Bridge, to offer yield farming with asset pairings previously unconnected in the decentralized world. We’ll touch upon more of that later. Today, we introduce KLAYswap, a DeFi solution that can take advantage of this high liquidity environment.

KLAYswap awaits your participation

In KLAYswap, a complete on-chain instant swap protocol, traders can not only experience immediate transactions via liquidity pools, but also develop services by deciding the policy and direction of KLAYswap with the KSP governance token.In addition, users can receive various forms of compensation, including transaction fee revenue, for contributing to the growth of the protocol. Various people can participate in the KLAYswap ecosystem, including long-term investors who want to hold cryptocurrency for a long time, investors who want to earn income through commission fees, and miners who want to participate in KLAYswap governance through KSP mining. For those of you who have wanted to experience DeFi but have had difficulty participating due to its low accessibility and being unfamiliar with how it works, we expect that you will be able to experience and enjoy DeFi easily with the launch of KLAYswap.For those of you who are familiar with DeFi, we expect that you will be able to experience a new avenue of growth opportunities, where returns and APY are set with full transparency with Orbit Bridge. With KLAYswap you have the chance to be an initial user, with the initial allocation volume being zero. Everyone has free opportunity to grow. You will be the first users that decide and make the system.We look forward to your participation and look forward to the various DEFi protocols that will be created in the Klaytn network with the start of KLAYswap.