By utilizing KLAYswap's airdrop function, various Dapp projects in Klaytn Chain can also freely distribute their tokens in the pool as a form of airdrop. If a liquidity provider supplies liquidity to a pool with availability of airdrop, the provider will receive an airdrop token set for each block based on my LP Token stake(%). Airdrop supports multiple settings in a specific pool, allowing users to receive rewards for all multiple tokens. In the meantime, KLAYSwap has led to active participation of various users in the ecosystem by providing high rewards opportunities, but there have been regrets that the rewards are limited to KSP and transaction fees, and that it is a one-way distribution structure that offers rewards only to participants in the KLAYswap protocol.
In response, KLAYswap aims to become a decentralized liquidity node that economically connects the Klaytn ecosystem by transforming it into an organic system that connects all [Dapp Project - KLAYswap - Participants] rather than simply [KLAYswap - Participants] beyond a limited environment.
By providing additional rewards such as new token airdrops as well as existing transaction fees and KSP rewards, users can gain more value when supplying liquidity. This can offset the possible risks of token price changes when participating as an initial liquidity provider, which allows users to supply liquidity to KLAYswap in a more stable environment than before.
The token Airdrop model can not only lead to the expansion of the unique token economy model that DApp projects already have, but also serve as a strong incentive to maintain the intrinsic value of the project. In particular, DApp projects that are about to grow in the Klaytn ecosystem have been greatly affected by high price volatility due to lack of initial provision of liquidity; however, in the AMM environment of KLAYswap where additional rewards are made, better quality and quantity of liquidity can be provided. Therefore, projects using KLAYswap can focus on increasing the original value of the project while defending short-term price volatility.
In summary, the additional feature that newly opens has a special meaning of the establishment of an advanced incentive environment in which organic connections between liquidity providers and participants, including DApps, can take place with additional value provision.