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Klex Finance deploys testnet in preparation for Klaytn launch


05 August 2022 09:28 UTC

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The countdown to the mainnet launch of Klex is on. On August 2nd, the project Krew incubated invited the public to put its testnet through its paces, including smart contract interaction, ahead of an alpha release. The mainnet is scheduled to go live shortly thereafter, bringing balancer-style portfolio management to the Klaytn network.

With Krew’s first project, KLAP, breaking records for TVL within days of mainnet launch, there is confidence that Klex Finance will follow suit. Given the lack of intelligent liquidity pools and portfolio adjustment tools on Klaytn, the platform certainly fills a gap in the market.

Announcing the inspiration behind Klex, his team explained: “We envision a new trading space enabled by a novel AMM implementation leveraging weighted pools, stable pools, and liquidity bootstrapping pools. We believe that with these essential tools, we can take DeFi to the next level on Klaytn.”

From DeFi to Metaverse

Klaytn is currently billing itself as a “metaverse blockchain for everyone”. While that promise may materialize, there is a strong need in the here and now for DeFi primitives: the building blocks essential to the evolution of any EVM network. Clap closed a gap for decentralized lending; Klex now has the ability to do the same for portfolio management.

The codebase for the Klex platform has been derived balancers Battle-tested open-source code with modifications kept to a minimum. However, there is a need to rigorously test the Klex platform on testnet before going live on mainnet. Compared to a traditional AMM like Uniswap, Balancer supports pools of more than two tokens. Klex Finance allows up to eight tokens to be included in a single pool, making it easier for traders to switch between assets like USDC. cl, WBTCand the native KLEX token at launch.

More efficiency for all parties

One of the main advantages of Klex Finance over existing Klaytn platforms will be more efficient capital management. Swaps can be executed with less slippage and lower fees; even the gas consumption per transaction will be lower than with current solutions. Klex will use asset managers: external smart contracts that can control the assets in a specific vault. This will allow the entity managing these assets to pursue strategies designed to maximize returns to the benefit of all LPs.

Meanwhile the KLEX token serves as a general governance token and is assigned to early adopters of the protocol. Liquidity providers can earn KLEX on top of the pool fees they charge. On July 26, Klaytn Lending Application (KLAP) launched its governance token, which now plays a central role in the lending platform. Should the testnet program go smoothly, Klaytn users shouldn’t have to wait long for Klex to set its mainnet date and follow suit.

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