KLEVA Protocol aims to be the largest leveraged lending protocol for farmers and lenders in the Klaytn DeFi ecosystem. At present, compared to Tier 1 blockchain players such as Ethereum, Binance Smart Chain, Terra and Solana, Klaytn's DeFi ecosystem is quite small and needs work to grow.
How does KLEVA Protocol work?
KLEVA Protocol — the first DeFi protocol on Klaytn, specializing in leveraged farming. The team leverages the layers of liquidity on decentralized exchanges and acts as a booster for those exchanges. By integrating with farms, developers trigger liquidity flow to both exchanges and protocol, resulting in higher TVL for the entire ecosystem. In addition, farmers can maximize their yields and lenders can earn passive income by lending their assets to farmers.
Some features:
| 1. | From the beginning, the team designed the KLEVA token to take advantage of the economic incentives of the KLEVA protocol. |
| 2. | A portion of the performance fee is rewarded to ibKLEVA stakers, and the resulting profits are primarily used to buy back and burn KLEVA tokens. |
The KLEVA token is distributed as follows: 75% for the protocol, 15% for the development fund and 10% for the ECO fund.
75% is distributed, according to the protocol for all participants of the KLEVA protocol: at the current stage, creditors and farmers. The 15%, allocated by the Dev Fund, will help to develop and stabilize the protocol, to create and maintain a healthy project. The 10%, allocated in the ECO Fund, helps to expand and improve the KLEVA ecosystem.
Once KLEVA governance is activated, the KLEVA creation logic can be changed, based on a governance vote. Participants will be able to decide whether to continue by using the rolling model or implement a new one.
Lending pool
Farmers, wishing to participate in farming on various DEXs, can borrow assets in various credit pools. This allows them to open farm positions with leverage, earning multiple returns.
By contributing assets to the credit pool, lenders earn ibTokens, which help to keep track of the assets they have lent. Lenders can stake their ibTokens in the staking pool and receive additional KLEVA rewards. Please note that when lenders do not stake their ibTokens, they can only earn interest on the loan, based on the credit pool utilization rate.