What Is KLEVA Protocol (KLEVA)? Complete Guide & Review About KLEVA Protocol

What Is KLEVA Protocol (KLEVA)?

KLEVA Protocol is a DeFi protocol in Klaytn that specializes in Leveraged Yield Farming. We take advantage of the liquidity layers in Decentralized Exchanges and act as the amplifier for these exchanges. By integrating with farms, we trigger an inflow of liquidity to both exchanges and our protocol, leading to a higher TVL for the entire Ecosystem.

Important Points Table Of KLEVA Protocol

How to Buy the Continental & Trade On Exchange?

Vision

KLEVA Protocol aims to become the largest lending protocol for leveraged yield farmers and lenders within the Klaytn DeFi Ecosystem. Currently, when compared to layer-1 blockchain players like Ethereum, Binance Smart Chain, Terra, and Solana, Klaytn’s DeFi Ecosystem is rather small and needs work to progress.

Various types of protocols need to be introduced and protocols must work together to create a synergy effect. We believe Klaytn DeFi has only just started to expand, and that many more protocols will join the Ecosystem.

Offerings

KLEVA Protocol is the first DeFi protocol in Klaytn to specialize in Leveraged Yield Farming. We take advantage of the liquidity layers in Decentralized Exchanges and act as the amplifier for these exchanges. By integrating with farms, we trigger an inflow of liquidity to both exchanges and our protocol, leading to a higher TVL for the entire Ecosystem.

Moreover, farmers can maximize their yields and lenders can earn passive income by lending their assets to farmers. In short, they accelerate the growth of the entire Ecosystem by taking advantage of current DeFi protocols and opening a gateway to a bigger economy – bringing wider opportunities for all participants.

Terminology

Yield Farming

Yield farming is a concept solely applicable to DeFi where crypto native users get to maximize their profit. Users invest cryptocurrency either in the form of a pair or a single asset, to receive rewards in swap fees and governance tokens. In most cases, yield farming takes place in Decentralized Exchanges(DEX) and Lending Platforms.

Leveraged Yield Farming

Leveraged Yield Farming is a tactic where farmers borrow funds to ramp up their position in order to earn more yields. This tactic is especially attractive because in DeFi, your main goal is to always get the highest APY. Moreover, by controlling the leverage level, you can borrow more than you put up as collateral and take your profit to a higher level.

Unlike lending platforms that have an Over-Collateralization policy for borrowers, Leveraged Yield Farming is built to permit Under-Collateralized Loans. This enhances capital efficiency resulting in higher APYs not only for farmers but for lenders too.

Furthermore, there are multiple tactics in Leveraged Yield Farming to earn money. Simply from lending a single asset to position hedging, taking long/short positions with pair assets, and so on and so forth. Thus, as an investor, you can do much more than just passively stake your cryptocurrency.

Fair Launch

They believe everyone should start from ground zero; no institution nor individual should have bigger power over other participants. Thus, there will be no pre-sale, no investors, no pre-mining. They will always strive to give equal chances to all participants in our protocol. The first step to fair-for-all DeFi Protocol starts in the form of a launchpad. Details will be disclosed soon!

Lending

Lending APR : APR of Lending Interest that Lenders can expect

Staking APR : APR of KLEVA Token Reward from staking ibToken

Total APR : Sum of Lending APR and Staking APR

Total APY : Assumption based on Total APR and daily compounding

Farming

Equity Value : The value of Collateral Tokens

Debt Value : The value of Borrowed Tokens

Position Value : The value of Farming Position (Equity Value + Debt Value)

Debt Ratio : Debt Value to Position Value Ratio (Debt Value / Position Value)

Liquidation Threshold : The Debt Ratio at which Farmer’s position is liquidated. Liquidation Threshold may vary for each Farming Pool based on volatility and risk of the pair assets. Assets evaluated as more volatile tend to have lower Liquidation Threshold.

Leverage Multiple : The extent to which Farmers can borrow assets is determined by Leverage Multiple. By using this feature, Farmers can participate in Leveraged Yield Farming. Leverage Multiple may vary for each Farming Pool based on volatility and risk of the pair assets. Generally, the Farming Pools with higher volatility have lower Leverage Multiple.

Understanding ibTokens

• When Lenders deposit their assets into Lending Pools, ibTokens(interest-bearing Tokens) are minted. These tokens are used to keep track of the assets Lenders have deposited and act as proof of ownership. Thus, as long as Lenders are holding ibTokens, they are eligible to withdraw their deposited assets and accrued interests.
• ibTokens are “interest-bearing” in nature, which means that the Lending Interests Lenders earn are accrued and reflected in these tokens. Thus, the values of these tokens appreciate with time. However, as Lending Pools have different Utilization Ratios, apprecation of ibTokens inevtiably vary.
• Each Lending Pool has its own unique type of ibToken. For instance, Lenders who deposit WEMIX will receive ibWEMIX, and Lenders who deposit KLEVA will receive ibKLEVA, and so on.
• At initial launch, regardless of the type of each Lending Pool, exchange rate between ibToken and deposited Token will begin at 1:1 (i.e. Depositing 100 WEMIX means receiving 100 ibWEMIX).