Automated portfolio manager and trading platform on Klaytn network
What is KLEX
- KLEX is an implementation of the Balancer v2 Protocol on Klaytn.
- Balancer is an automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems.
- Balancer Pools contain two or more tokens that traders can swap between. Liquidity Providers put their tokens in the pools in order to collect swap fees.
- Balancer is based on an N-dimensional invariant surface which is a generalization of the constant product formula described by Vitalik Buterin and proven viable by the popular Uniswap dapp.
- Balancer V2 brings powerful new features to slash gas costs, super-charge capital efficiency, unlock arbitrage with zero-token starting capital, and open the door to custom AMMs.
Pools are the fundamental building blocks of the Balancer Protocol; they are smart contracts that define how traders can swap between tokens on Balancer. What makes Balancer Pools unique from those of other protocols is their limitless flexibility. While other exchanges have pools with constrained parameters, Balancer can accommodate pools of any composition and underlying math. Balancer's architecture allows for anyone to develop their own pool type, opening the door for customized pricing functions in trading pools.
KLEX Liquidity Provision
There are a few different types of fees on Balancer, each collected to support a healthy ecosystem. For example, Liquidity Providers collect swap fees as users trade with pools; this acts as an incentive for them to continue providing liquidity, which is useful to facilitate trades.
KLEX Protocol Fees
- A small percentage of the trade paid by traders to pool LPs, set by the pool creator or dynamically optimized by Gauntlet. Additionally, Balancer governance can vote to introduce a Protocol Trading Fee, which is a percentage of the Trading Fee.
- For instance, if a pool had a 1% fee, and governance introduced a 1% protocol fee - the total swap fee to the trader would remain at 1%, but now 0.99% would accrue to the pool's LPs, and 0.01% would accrue to the protocol fee collector contract.
Flash Loan fees:
- A small percentage of assets that are used for flash loans from Balancer’s vault. This is the protocol fee - it accrues to the protocol, for allocation by governance.
KLEX holders, vesters, and KLEX-KLAY LPs can lock their tokens in order to receive veNFTs.
Ve NFTs give you the following:
- - Voting rights to determine KLEX emissions for liquidity pools on KLEX
- - Yield Boosters on liquidity mining rewards for supplying liquidity as well as Pool 2
- - Ve holders can also vote on wider protocol-level decisions, such as the usage of Treasury funds, as well as adding additional utilities.
- - Other protocols can direct rewards to their liquidity pools by bribing veKLEX holders to vote KLEX emissions toward their pools