Single-side Deposit
A single deposit is a simple and safe deposit method that allows you to deposit only one asset and earn interest income in return. If you are a user who deposits KLAY in a single pool, you can earn interest as a form of KLAY based on real-time returns. In addition, it distributes additional KSP rewards based on the liquidity supply contribution of a single pool depositor as well as deposit revenue, providing higher returns than any single asset depository service or protocol in the digital asset market.
The deposit income (interest) of a single depositor comes from the interaction with the plus deposit and Long/Short position deposit, another deposit service in KLAYswap. Through a structure in which borrowers pay interest in return for utilizing a single pool asset and distribute a certain portion of the interest back to a single depositor, the more active the assets deposited in a single pool are used for borrowing, the higher the deposit yield rate of single deposit pool can be formed.
On a single deposit-plus deposit interaction structure, asset utilization, interest payment, and asset return all proceed safely with automated smart contracts. In addition, KLAYswap manages a separate Safety Fund related to a single deposit on its own in order to safely manage the assets and profits of a single pool depositor. The Safety Fund functions as a rainy day fund that accumulates fees collected from plus depositors who exceed certain safety standards, and in the event of contingencies in which a single pool asset utilized by Plus Deposit cannot be returned, the Safety Fund will be used to cover the shortage instead. As a result, a single depositor can safely enjoy opportunities to generate profits by minimizing the asset loss risk.
Last modified 10mo ago