KLAYswap
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English
  • Introduction
  • Protocol Overview
  • Core Concept
  • KLAYswap Advantages
  • Risk & Security
  • Privacy Policy
  • Audit
  • TOKENOMICS
    • KSP
      • KSP TOKENOMICS
      • Automation of KSP distribution rate
        • Voting policy on passing governance
        • KSP distribution ratio reflection policy
      • KSP Allocation
  • PRODUCT
    • SWAP
    • Single-side Deposit
      • Detailed policy of Single Deposit
    • Pair Deposit
    • V3 Pair Deposit
      • V2 to V3 Migration
        • V2 to V3 Migration Guide
        • V2 to V3 Migration Policy
      • V3 Pair Deposit
        • V3 Deposit Guide
        • V3 pair Deposit Policy
      • V3 to V3 Migration
        • V3 to V3 Migration Guide
        • V3 to V3 Migration Policy
      • V3 Pair Withdraw
        • V3 Withdraw Guide
        • V3 Withdraw Policy
    • Plus Deposit
      • Detailed policy of Plus Deposit
    • Long/Short Position Deposit
      • Open and Close Long/Short Positions
        • Open Short Positions
        • Open Long Positions
        • Remove Long Position
        • Remove Short Position
      • Position Deposit Details Policy
    • KSP Staking & Voting
      • Staking, Pool Voting Policy
    • Governance
      • Governance Voting Policy
    • Drops
    • Ecopot
    • Pool Airdrop
    • APR & APY
      • TVL
      • Pool
      • Staking
    • Interest rate
  • DEVELOPERS
    • Contract
      • Factory
      • Exchange
      • PoolVoting
      • VotingKSP
      • Treasury
      • Distribution
      • Governor
      • SinglePool
      • SinglePool Factory
      • PlusPool
      • PlusPool Factory
      • Store
      • Utils
      • Single/Plus Utils
      • Helper
      • EcoPotVoting
      • EcoPot
      • V3
        • V3Factory
        • V3Pool
        • NonfungiblePositionManager
        • NonfungibleTokenPositionDescriptor
        • V3SwapRouter
        • V3Migrator
        • V3Estimator
        • PositionMigrator
        • V3Treasury
        • V3AirdropOperator
        • UniversalRouter
    • Airdrop
      • Set Airdrop Operator
      • Start Airdrop
    • EcoPot
      • Set EcoPot
      • Start EcoPot
  • HOW-TO GUIDES
    • KLAYswap Guide
    • How to add liquidity on KLAYswap
    • [Burrito Wallet] How to deposit assets using mobile devices?
    • How to create a liquidity pool on KLAYswap
    • How to stake and vote on KLAYswap
    • How to deposit assets
      • Deposit Klaytn-based assets
      • Deposit Ethereum-based assets
      • Deposit XRP
    • FAQ
  • KLAYswap
  • Orbit Bridge
  • KLAYswap git
  • Orbit Bridge git
  • KLAYswap audit report
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  • Deposit, withdrawal policy
  • Terminology

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  1. PRODUCT
  2. Single-side Deposit

Detailed policy of Single Deposit

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Last updated 2 years ago

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Deposit, withdrawal policy

  • Users can freely deposit tokens and withdraw distributed interest earnings at any point. In addition to token interest earnings, KSP reward is additionally distributed in return for users’ contribution to provision of liquidity by depositing their assets, and the total rate of return on each single pool is the summation of deposit and KSP distribution yield.

  • The deposit return (%) and KSP distribution return (%) of each single pool are real-time variation values, which depend on the total deposit size of the pool, the deposit/utilization status, and the daily KSP distribution volume.

  • Upon initial deposit, the transaction approval process must be completed for each token, and after that, deposit service gets available once the process is completed.

  • Plus depositors will pay 80% of the accumulated interest earnings to a single pool depositor, 20% will be set aside as reserves, and will later be used as a reserve fund for KSP Buyback & Burn program.

  • Interest earnings based on real-time returns are accumulated on the assets deposited (principal), and withdrawals can be made, including interest earnings accumulated so far.

  • KSP rewards which are distributed up to the point until the change of balance (additional deposit/withdrawal) will be automatically received in my wallet.

  • The utilization cost (%) of each single pool depends on the pool activation rate, which indicates how many plus depositors are using assets of single depositors at the moment.

As can be seen from the deposit rate of return graph above, the higher the deposit rate of return (the higher the activation rate) as more assets are utilized in a single pool. The deposit yield for each pool activation section is as follows.

On the other hand, the more assets are utilized in a single pool, the steeper the utilization costs that plus depositors have to pay. As such, the mechanism of interest rate formation according to the interaction between asset utilization demand (plus depositor) and a single depositor (single depositor) induces more deposits by providing higher returns to depositors as a single pool asset is actively utilized. However, if it is overly active (more than 90%), a high cost is set to naturally induce a return of the assets in use.

Terminology

*Please refer to of each token's deposit & borrow APR by pool activation rate

Borrowing rate Model