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KLAP (Klaytn Lending Application) is a decentralized non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over-collateralized (perpetually) or under-collateralized (one-block liquidity) fashion.

How is KLAP different?

KLAP will have several fundamental differences from AAVE and other DeFi protocols in the Klaytn ecosystem.

  • Firstly, KLAP will be built by several experienced DeFi/Web3 developers who want to build a bigger DeFi ecosystem on Klaytn. KLAP will be fully open-source, and will be built with security in mind.
  • They also place a lot of importance in developer UX. Interoperability in DeFi is extremely important, and we will build KLAP in a way that it is easier for other developers in the ecosystem to integrate with it. KLAP will be fully open-source from day 1.
  • The team has a wide network across developers and projects not only in Klaytn but also other ecosystems. We will be bringing in more projects and liquidity, including bridges, DeFi users and funds, partnerships, etc in order to boost the protocol.

KLAP Token Utility


KLAP holders, vesters, and KLAP-KLAY LPs can lock their tokens in order to receive veNFTs.

Ve NFTs give you the following:

  • - Voting rights to determine KLAP emissions for lend/borrow pools of each token on KLAP
  • - Yield Boosters on liquidity mining rewards for both lending/borrowing 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.

A growing treasury

  • As a decentralized protocol, no one person has the power to shut KLAP down once it is launched. As long as there is a non-zero amount of assets lent/borrowed on KLAP, the treasury will continue to grow, as the protocol takes a small fee on the interest rates. The treasury receives 80% of all fees on the protocol.
  • Klap Tokenomics
    At some point down the line, Ve holders can vote and decide to allow KLAP holders to burn & redeem the treasury funds for their KLAP. For example, if someone holds 1% of the total supply of KLAP, they could burn all of their KLAP to redeem 1% of all treasury funds.