HABL has participated in KLAYswap to strengthen DeFi starting of May 14th, 2021.
DeFi is a compound word of Decentralize + Finance, which is a decentralized financial system. Because it is not centralized, you can use various financial services without the role of a third-party.
KLAYswap is the AMM (Automated Market Making) protocol of the Klaytn Network created by Ozys, a company specializing in DeFi and cross-chain technology. AMM is a protocol that supports instant swaps between tokens by replacing the existing buy/sell order book with an on-chain liquidity pool created by liquidity providers.
This AMM protocol is the decisive DEX (Decentralized Exchange) protocol that made the above-mentioned decentralized financial system called DeFi known to the general public.
-Refer to KLAYswap medium
In KLAYswap, swap means exchange or replacement! Tokens created based on Klaytn can be exchanged for a certain fee.
HIBS, a Klaytn-based token provided by HABL, is not only traded and cashed in Bithumb and Coinone but can be exchanged between Klaytn-based tokens through KLAYswap. These further increases HIBS’ flexibility and scalability, therefore making it an extremely good news for overseas users who have had a hard time accessing HIBS.
KLAYswap, a decentralized exchange (DEX), does not issue or own coins, therefore users are the ones who supply and trade the coins.
Some might ask, “What’s the purpose of trading and supplying coins for KLAYswap while still paying a fee?”This is because of the full liquidity service provided by KLAYswap. If you make a deposit in the liquidity pool, you can receive interest (KSP) from the deposit.
Liquidity Pool
There are two methods of deposit service in Liquidity Pool: single deposit and pair deposit.
Among both, one point that we should pay more attention to is the pair deposit! Pair deposit is a method of depositing two cryptocurrencies of Klay and Klaytn-based tokens in a 1:1 ratio, and our HIBS is now available to deposit from LlaySwap to Klay+HIBS as Klaytn-based tokens!
As seen in the reference image, KLAY+HIBS is displayed. Once the number of HIBS owned is entered, the number of corresponding KLAYs will show up as well. If a deposit of 1:1 ratio of KLAY and HIBS are made, a compensation in form of interest (KSP) will be given.
In KLAYswap, there is not only a liquidity pool, but also a service that can generate profits by obtaining voting rights through KSP staking!
Voting
KLAYswap has a feature called ‘voting’. To use this feature, you need to stake KSP, a KLAYswap token. Of course, staking alone is profitable, but needs more attention is ‘voting.’ The staking period is divided into 4 months / 8 months / 12 months, and you can get vKSP for voting rights equal to 1x/2x/4x the staked KSP.
When you get the voting right vKSP, you can vote in the ‘liquidity pool’ described above. If you vote for the liquidity pool of the desired item, you can receive a fee (two tokens from each pool) distributed from the pool. It is important to note that in order to transfer tokens to KLAYswap, you need to connect a wallet.
Here below are the steps to connect the wallet:
1. On the KLAYswap homepage, click ‘Connect Wallet’ in the upper right corner.
2. Select preferred wallet and link it.
As simple as it can be!
In conclusion, DeFi allows people to use financial services such as payment, insurance, investment, and deposit, without having to use intermediaries like banks and securities companies, as long as they can connect to Internet.
Now, try swapping your existing Klaytn-based tokens with HIBS through KLAYswap and deposit them to receive deposit interest!
