Klaytn Ecosystem Overview – Ecosystem with more than 1.5 billion TVL
Does DeFi on Klaytn really have potential? And what stage is DeFi on Klaytn? Let’s get an overview of the Klaytn ecosystem!!!
In the past time, the ecosystems continuously took turns achieving strong growth, attracting users and stimulating the development of the ecosystem.
One of the ecosystems that has had a relatively large TVL and significant growth but has not received much attention from the community is the Klaytn ecosystem.
To help you keep up with what is happening in the Klaytn ecosystem, I will go with you in turn through the arrays in this ecosystem, to have the most overview of the system, thereby looking for opportunities. investment association.
Does DeFi on Klaytn really have potential? And what stage is DeFi on Klaytn? We will find out through the next article!
Klaytn Blockchain Overview
What is Klaytn?
Klaytn is a blockchain platform focused on businesses and private individuals, aimed at supporting the development of decentralized applications.
The project will combine the best features of both Public Blockchain (decentralized data, distributed control and governance) and Private Blockchain (low latency, high scalability) to create one blueprint hybrid with high efficiency.
As such, Klaytn will help businesses and entrepreneurs increase sales by integrating Blockchain technology into their business models.
Highlights of Klaytn
Key features of Klaytn’s Blockchain include:
- Fast network response, strong transaction speed.
- Flexible scalability.
- Subsidizing transaction costs for the last person.
With the above outstanding features, some of the uses of this blockchain can be as follows:
- Entertainment: With an entertainment industry that has never stopped being hot, building BApps and collecting fees from music and movie copyright services; The communication service between celebrities and fans,… will be very developed.
- Gaming: Potential smokeless Esport Gaming industry. In the future, it will attract developers to build BApps into in-game item exchange services, livestream services that connect gamers and fans together…
- Payment/Remittance: Applied to financial services for payment and money transfer between users.
- Web-Based Content: The collection of service fees from the distribution of copyright of manga and anime content from readers will also develop in the future.
Outstanding parameters of the Klaytn blockchain:
- Blockchain: Klaytn Service Chain (EVM Compatible).
- Amount of Fungible tokens: 121 tokens.
- Number of non-fungible tokens (NFT): 48.
- Token standard: KIP-17; KIP-37 (NFT).
- Consensus Algorithm: Istanbul BFT (Byzantine Fault Tolerant) – Proof of Contribution.
Puzzles on Klaytn
In general, the Klaytn ecosystem is still quite new and has few applications, but basic applications have appeared, have been formed and are in the stage of rapid development.
Some of the key applications in the Klaytn ecosystem can be seen in the figure below. Next, I will talk more about each segment in the Klaytn ecosystem.
Klaytn Ecosystem Overview
Let’s take a look at each piece of the Klaytn ecosystem to get an overview, and then look for important keywords to identify investment opportunities.
Currently, on the Klaytn ecosystem, there are decentralized exchanges including:
- KLAYswap: AMM DEX native on the Klaytn blockchain, is the main AMM DEX and has the largest TVL and leads the entire ecosystem (over 1.4 billion TVL).
- Exnomy: This is also an orderbook exchange that already operates on Klaytn.
- Kompos Trade: A DEX on Klaytn, allowing to trade standard tokens KCT20 and KCT721. The exchange operates according to the orderbook mechanism.
Although there are 3 DEX exchanges, liquidity is mainly concentrated on KLAYswap exchange, with the most abundant TVL in the ecosystem – 1.4 billion USD, of which more than 1 billion is TVL from LP and 400 million USD staking project tokens .
With 129 pools and 94 tokens traded on this DEX, the exchange’s lowest 24-hour trading volume in the past few months is at $50 million, the highest is around $250 million – a relatively impressive volume/TVL .
Trading volume on KLAYswap
In addition to its function as the main AMM DEX for the entire ecosystem, KLAYswap also has many protocols that support the overall development of the ecosystem and bring value to the project’s KSP token, such as the lockdrop feature through staking KSP tokens.
Specifically, in the past, the project held a lockdrop and is in the process of implementing a second lockdrop for two tokens on the ecosystem (KQBT and MIX).
You can stake KSP and choose the time to lock stake. The longer you choose to stake and lock (from 4 to 12 months), the greater your voting power, the higher your APY, and the higher the amount of airdrop tokens you will receive.
The APY amount of KSP staking is around 16.58% ~ 66.35%. Overall, this is a mechanism that both brings value to the KSP token very well and helps to expand the Klaytn ecosystem that has not yet had many pieces.
Although the DEX array does not have many pieces, the key piece of the ecosystem is KLAYswap.
But the ecosystem has not yet promoted applications on other systems to fork or scale through Klaytn, making the number of pieces of the ecosystem in this important area still small.
You can compare the Klaytn ecosystem with the Near ecosystem about 12 months ago, when the number of projects was small because it could not attract developers from other EVM-compatible chains, and only one AMM DEX took the lead. lead this segment of the ecosystem.
The Klaytn ecosystem has the following stablecoin puzzle pieces:
- Kai Protocol: KAI algorithmic stablecoin implementation, crosschain operation, and Klaytn operation.
The app also issues synthetic assets like tokenizing the stocks of top companies like Apple, Tesla, Coinbase, and more.
The app’s TVL is only at $82 million, and the price of stablecoin KAI is still fluctuating quite a bit.
At the time of writing, the price of stablecoin KAI is at $0.94, and the KUSDT-KAI pool is just over $40 million TVL. The total amount of KAI on the system is 54 million KAI.
- Kompos KUSD: Protocol stablecoin KUSD. However, the project website is currently inactive, the project is not operating, or has stopped operating.
- Kokoa Finance: A collateralized stablecoin Defi, operating natively on Klaytn. The total amount of KSD stablecoins issued is $35 million.
In addition, in the Klaytn ecosystem, there are many other stablecoins bridged from ecosystems like Ethereum, including:
- KDAI – DAI on Klaytn, with total capitalization on the system at $73 million;
- KUSDT – USDT on Klaytn with total capitalization on the system at $183 million;
- KUSDC – USDC on Klaytn with total capitalization on the system at $22 million.
In total, the number of stablecoins on the system stands at $367 million.
The next problem of this ecosystem is how to use this stablecoin effectively to increase capital utilization and get more users.
You can check the amount of stablecoins on the Klaytn system here.
The Klaytn ecosystem has two yield farming pieces at the forefront:
- KlayFi: Application of yield farming on the system. So in this section, I will analyze this application and what they are doing to contribute to the development of the whole ecosystem.
Currently, KlayFi has $27 million of TVL in the app. With the amount of APR still relatively high (664% APR in the highest pool), I predict this amount of TVL will continue to increase in the short future.
In addition, KlayFi has just launched KlayStarter – an IDO platform on the Klaytn platform.
However, looking at the project’s Twitter interaction, it can be seen that the project is weak in the marketing segment, and needs to add resources to this area to continue developing the project.
Perhaps this is also the reason why the farm pool has been open for 2 weeks, but the APR is still high, the amount of money deposited to farm is not large.
- Klaymore Stakehouse: The second yield farming puzzle piece on the Klaytn system with a $120 million TVL. The project has only been launched since the beginning of September, and is showing remarkable growth in recent times.
With relatively high APY launch and implemented liquidity mining, this Dapp is having the highest TVl in yield farming on Klaytn.
You can see the yield aggregator and farming array on Klaytn is in a relatively developed stage.
However, mainly the cash flow is speculative, because the money flows around between projects with high APY to farm and withdraws when that yield is no longer high. Therefore, besides the marketing problem that the projects need to solve, they also need to find a solution to have a more stable TVL volume.
The Klaytn ecosystem has a relatively developed array of NFT:
- Tessa: Fractionalized ownership application for NFTs;
- The Klaytn Punks: The Klaytn NFT Collection;
- CatTownPunks: The NFT Collection on Klaytn;
- Orb Explorer: Explorer for NFT on Klaytn;
- Crypto Sword & Magic: Game on Android on Klaytn ecosystem;
- RaniaSaga: Klaytn MMORPG;
- Klaytn Herorats, KnightStory: Games on the Klaytn ecosystem;
- Krafterspace: Marketplace NFT on Klaytn.
Currently, the ecosystem does not have a tool to track performance as well as the number of game players or the amount of NFT exchange on the Klaytn ecosystem, so I cannot give an analysis and evaluation of this segment.
I will update more in the near future.
Other puzzle pieces
The Klaytn ecosystem has many other pieces:
- INSUREUM: Insurance app on Klaytn. However, the project has been discontinued for a long time.
- KLAYstation: The staking application on Klaytn. This is the main KLAY staking gateway on the Klaytn ecosystem.
- KLAYportal: Another staking app on Klaytn;
- Orbit Bridge: Bridge connects 6 ecosystems: Ethereum, Klaytn, BSC, Terra, ICON, XRP. This is an extremely important piece to bring cash flow into the Klaytn ecosystem. Bridge charges 0.1% fee for money transfer between systems.
- PER PROJECT: DeFi station with many products such as Wallet, NFT, DeFi apps,…
and many other important pieces in the array of end-user applications.
Of the pieces above, perhaps the most important piece is the Orbit Bridge.
With over $270 million in stablecoins being brought into the ecosystem through the Orbit Bridge, this piece of the puzzle is crucial to the growth of the Klaytn system.
Currently, you can see that the Klaytn ecosystem has a relatively large and stable number of TVLs, but mainly focuses on a few key players such as KLAYswap (1.4 billion TVL), Klaymore Stakehouse or Kai Protocol.
In general, the ecosystem is at the stage where key players appear, and is gradually adding other players in each segment.
In the near future, I predict that for the ecosystem to develop, maybe the following areas will have many changes.
In the near future, it is possible that more AMM DEXs will appear on Klaytn, mainly AMM DEXs that are fork from EVM Compatible chains and have a structure similar to Uniswap V2.
As there are other players in the AMM DEX array, you can provide liquidity and try the product to earn retroactive opportunities.
However, at present and in the short term, perhaps KlaySwap will still be the leader in the AMM DEX segment on Klaytn, because of the large amount of TVL ($1.4 billion) and many outstanding features that attract users and stay. with protocols like staking by time, lockdrop when staking and receiving transaction fees.
Currently, I have not seen any Lending application on Klaytn. This is a huge shortcoming of an ecosystem, because Lending applications greatly increase the ability to utilize the capital of the ecosystem.
As the number of stablecoins and stablecoin puzzle pieces on Klaytn has been relatively complete, perhaps this is the next necessary piece of this ecosystem.
Currently, because Lending applications have not appeared, new yield farm applications can only aggregate yield from DEXs, specifically KLAYswap. Therefore, the Yield Farm puzzle piece on Klaytn has not yet developed significantly.
In addition, the current Yield Farming Dapps on Klaytn are also launching high APY to attract each other’s TVL, but there is no significant innovation in terms of products or more specifically the ability to utilize capital.
Hopefully, through the above article, you have had a better overview of the Klaytn ecosystem, understand the situation of the arrays on Klaytn and know which areas to invest time in looking for opportunities.