veNFT holders will retain certain powers that aren’t available to regular KLAP users. These include the ability to determine KLAP emissions for lending and borrowing pools as well as KLAP yield boosters, to juice the returns for LPs. There’ll also be the option to provide KLAP liquidity on ClaimSwap DEX, of course, which should bring its own rewards. Additionally, by placing protocol control in the hands of token-holders, the KLAP team aims to decentralize in an expeditious and orderly fashion.
Klaytn Lending Application is the first project to have been developed by Krew, a web3 incubator that’s focused on extending the Klaytn ecosystem. Krew completed a $4M raise earlier this year, with Quantstamp’s Richard Ma, who participated in the round, saying: “We see Klap in a great spot to leverage Klaytn’s technical architecture enabling high TPS, fast finality, and cheap transactions. 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.”
So far, retail seems to have been enamored with what Krew is cooking via KLAP. The protocol has quickly found product-market fit and risen to become the largest lending protocol on Klaytn. Closest lending competitor KlayBank has just one sixth the TVL of KLAP. While Klaytn network has hosted DeFi up until now, its architects have since thrown their hat into the metaverse ring, believing it to be crypto’s next big thing.