About KlayFi Finance
KlayFi Finance is a Yield Optimizer that provides the user-oriented Yield Farming experience to Klaytn DeFi users. This is inspired by innovative Yield Farming models like PancakeBunny, Yearn Finance, Curve Finance, Convex Finance, and Synthetix. The team redesigned these models and developed a progressive DeFi protocol, KlayFi, to bring innovative Yield Farming in the Klaytn ecosystem.
These protocols are highly recognized by communities. KlayFi specifically studied the following protocols in depth; The seamless auto-compounding user experience of PancakeBunny, Proposing the optimal investment strategy for users of Yearn Finance, and mainly utilizing the governance model and token economy of DeFi pool in Convex Finance.
KlayFi is inspired by innovative Yield Farming models like PancakeBunny, Yearn Finance, Curve Finance, Convex Finance, and Synthetix. The team redesigned these models and developed a progressive DeFi protocol, KlayFi, to bring innovative Yield Farming in the Klaytn ecosystem. These protocols are highly recognized by communities. KlayFi specifically studied the following protocols in depth; The seamless auto-compounding user experience of PancakeBunny, Proposing the optimal investment strategy for users of Yearn Finance, and mainly utilizing the governance model and token economy of DeFi pool in Convex Finance.
Quick Fact About KlayFi Finance
|DEFI Coin Name||KlayFi Finance|
|$KFI Market Cap||$27,282,203|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To Visit|
|Twitter Group||Click Here To Visit Telegram Group|
|Documentation||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Why they build KlayFi
Klaytn provides a good condition for developing DeFi protocols due to its higher TPS and lower gas fees. There are many leading DeFi protocols such as KLAYswap, ClaimSwap, and KLEVA Protocol in the Klaytn ecosystem. The total TVL of these protocols reached almost 1.5 Billion USD. These protocols have many users, advanced governance models, and outstanding token economy schemes, but unfortunately, users do not fully utilize each protocol model.
The value of KlayFi
KlayFi proposes a sustainable model, which utilizes the governance model and token economy of leading DeFi protocols in the Klaytn ecosystem. We believe the governance and economy are fundamentals of the ecosystem. Most Yield Aggregators in the scene only provide auto-compounding yield farming features of associated Pools. By doing so, it is challenging to create the value of Performance Fee.
On the other hand, it is quite challenging for each DeFi user to understand the protocol’s governance model and token economy(e.g., vKSP system) and develop an optimized investment strategy, even managing it.
KlayFi supports the auto-compounding feature, the core feature of Yield Optimizer, and provides an advanced incentive model that allows profit maximization for users by connecting the fundamentals of DeFi protocols and KlayFi. The fundamentals, we define them as tokenomics of DeFi protocols. by connecting dots, KlayFi will positively impact the value of governance tokens of DeFi protocols.
$KFI, a governance token of KlayFi. Users may stake $KFI into the $KFI Staking Pool and claim rewards. Rewards are profits from Performance Fee and vKSP System(KLAYswap’s governance model and token economy).There is no maximum supply like most Yield Optimizers(Aggregators). Yet, the team considers several deflationary mechanisms to maintain constant upwards price pressure and market stability, such as buyback and burn, limiting supply, and more as the ecosystem grows.
$KFI is minted proportionate to the Performance Fee, and in the early launching period, 7 $KFI(Updated 2021 Nov 30th) will be minted for every 1 KLAY.Users can earn $KFI by staking LP in each vault or buy $KFI through KLAY-KFI pool from KLAYswap.
Around 24.8% of $KFI, generated from Vaults’ Performance Fee, will be used for product development, marketing activities, and market stabilization. Also, part of them will be used for buyback and burn.
There was no pre-sale of $KFI. 300,000 $KFI will be minted to provide early liquidity and distribute to LaunchPad participants along with KlayFi’s official launch. Depending on the result of KlayFi LaunchPad, there might be one additional minting possible.
$KSTA Minting Ratio
$KSTA minting will be executed as follows. In order to effectively compensate initial KlayStarter participants for their contribution, both the minting ratio and mining are high in the beginning and gradually decrease as the end of the season approaches. In addition, $KSTA has a token economy in which the circulation volume is further reduced through the burning event each time a KlayStarter LaunchPad project is launched. The continuous decrease in the circulation amount of $KSTA will keep the mining efficiency of each pool, including the $KFI Lock Pool, at an appropriate level.
How to earn $KSTA
There are two ways to earn $KSTA, 1) Yield Farming by staking assets into KlayStarter, 2) Buying $KSTA from exchanges like KLAYswap.
Yield farming by staking assets to earn $KSTA
- $KFI Lock Pool: Users can select $KFI staking period (1 month, 3 months, 6 months) and earn KSTA allocated to each staking period. There will be more rewards as users select a pool with a 6M locking period.
- $KSTA Pool: Users also earn $KSTA by staking $KSTA. To withdraw staked $KSTA, there is a 7-day unstaking period.
- KSTA-KFI LP Pool: Users can earn $KSTA by depositing KSTA-KFI LP. KSTA-KFI LP Pool has no locking period
Using $KSTA in KlayStarter
$KSTA is a token for participating in LaunchPad of new projects in KlayStarter. Users provide $KSTA into LaunchPad Pool when it begins. Instead, users receive projects’ tokens. When users send KSTA tokens, they will be burned or received by participating projects. Conditions are different for each project, and the team will inform the users before LaunchPad begins.
$KSTA Token Economy
Season 1 runs for 6 months (182 days), the total supply of KSTA is 127,000,000. $KSTA will be generated only during the season of KlayStarter. Most KSTA will be burned towards the end of Season 1 by participating in LaunchPad.
For every LaunchPad, there will be a dramatic burn of $KSTA and a gradually increasing structure of mining rewards for KlayStarter Pools. $KSTA is developed in a way, sustainable growth of the token economy by LaunchPad participants.