KLAP (Klaytn Lending Application) is a decentralized, non-custodial liquidity market protocol that lets participants act as either depositors or borrowers. Depositors supply funds to the market to generate passive returns, while borrowers can take loans in an over-collateralized (perpetually) or under-collateralized (one-block liquidity) structure.

Utility

The KLAP token supports several use cases.

1.Ve

KLAP holders, vesters, and KLAP-KLAY LPs can lock their tokens to receive veNFTs.

With ve NFTs, you get:

2.A growing treasury

Because KLAP is decentralized, no single individual can stop it after launch. As long as there is a non-zero balance of assets being lent and borrowed on KLAP, the treasury keeps growing since the protocol charges a small fee tied to interest rates. The treasury collects 80% of all protocol fees. Later on, ve holders can vote to enable KLAP holders to burn and redeem treasury funds for KLAP. For instance, if someone owns 1% of the total KLAP supply, burning their KLAP could allow them to redeem 1% of the treasury funds.

KLAP has a maximum total supply of 1,000,000,000 (1 billion) tokens.

That said, if the burn-and-redeem process is approved by the community through a vote, the maximum total supply would likely end up being well below that figure.