[KGP-26] Dragon DeFi Initiative (D2I): Crafting the Core of Project Dragon’s DeFi Ecosystem

[KF_DeFi]

Note
This proposal is an introduction to an incentive program to build a strong DeFi ecosystem on Project Dragon (tentative name). We intend to utilize this proposal to receive feedback from the Project Dragon community and ecosystem members on the need for an incentive program, its framework, and its process and timeline, all of which will be decided upon after discussion and input. We look forward to hearing from community members and DeFi builders.

Our DeFi Endgame

Current Landscape
The liquidity mining (LM)-centric blockchain ecosystem that began with the DeFi Summer of 2020 saw TVL surge from $1B to $170B by the end of 2021, but from mid-2022, the bubble burst due to over-leveraging, and the deleveraging process brought down the existing ecosystem that relied on LM.

During this period, some DApps failed to create synergy between services despite adopting LM, while others survived by improving their business model (BM). Post-bubble, DApps could be categorized into three broad groups:

• (A): DApps that introduced LM but failed to create synergy with other services and collapsed
• (B): DApps that adopted LM and synergized with other services and survived.
• (C): DApps that did not rely on the LM structure, but improved their BM and increased their value as a real financial product.

In the Klaytn DeFi ecosystem, LM-based DApps grew during the DeFi Summer, but the growth of DApps was hindered by closed operating policies. As a result, the growth of the ecosystem as a whole was stagnant, resulting in an ecosystem centered on (A), which collapsed in 2022 with a sharp drop in TVL during the on-chain bubble burst and deleveraging process.

As-Is: An ecosystem centered around (A)

Dragon Chain Landscape
In order for DeFi ecosystems like Ethereum, Arbitrum, and Optimism to be firmly established, it is necessary to improve asset accessibility, create an environment for new DApp growth, currency multiplier effect, and safe movement of external funds, and such an ecosystem is centered on DApps of types (B) and (C).

D2I is the first project that aims to lay the foundation for the creation of Dragon Chain’s DeFi ecosystem, and will prioritize the discovery of DApps that are characterized as public infrastructure, such as DEX and Lending Protocol, among other core infrastructures. However, Dapps that adopt innovative structures such as Onchain Orderbook, Hybrid DEX (Orderbook + AMM), and existing ecosystem participants that meet all the requirements of D2I will also be included in D2I.

To-Be: An ecosystem centered on (B) and (C)

In addition, Dragon Chain anticipates that each layer will eventually include the following DApps to create an ecosystem with diversity, including but not limited to:

• DEX
  • CLAMM (Concentrated Liquidity AMM) – Current Priority
  • Weighted Pools – Current Priority
  • Stableswaps – Current Priority
  • Onchain Orderbook
  • Hybrid DEX (Orderbook + AMM)
• Lending
  • Legacy Lending (e.g. Aave, Compound) – Current Priority
  • Risk-Isolated Lending (e.g. Silo Finance) – Current Priority
• Asset Layer
  • Native Coin, Dapp Tokens, RWA tokens, LSTs, Stablecoins, bridged tokens
• Gov. Aggregator
  • Gov. Efficiency Booster + Liquid Wrapper (e.g. Aura, Convex)
  • Bribe Market (e.g. Votium, Hidden Hand)
• Derivatives
  • Perp DEX (e.g. Hyperliquid, Vertex)
  • Tick-based Options(e.g. Dopex v2, InfinityPools)
• Yield Aggregator
  • Yield Compounding (e.g. Beefy)
  • Onchain Asset Management (e.g. Gearbox, Yearn, Sommelier)
• LSDfi
  • Yield-Stripping Derivatives (e.g. Pendle)
  • CDP (e.g. Lybra, Raft)
  • LSD ETF (e.g. unshETH)
• Swap Aggregator
  • Onchain Aggregator (e.g. 1inch, Swapscanner)
  • Intent-based Swaps (e.g. CoW Swap, Uniswap X)
• Bridge
  • Legacy Bridge (e.g. Wormhole, Synapse)
  • Restaking Bridge

Lead the Wave: Seize Dominance in an Emerging Ecosystem
Previously, the DeFi ecosystem has been plagued by various issues, for example, the recent depegging of bridged assets has led to abnormal on-chain pricing of KLAY and KCT, which in turn has led to liquidity borrowing (e.g. Lending, CDP, LYF) and toxic debt centered on several DApps. Moving forward, we intend to prioritize minimizing DeFi risks through various initiatives such as an insurance fund.

Meanwhile, both Klaytn and Finschia have many years of mainnet operation experience, as well as the capabilities of mature networks in terms of chain size, core team technical skills, and Web3 resources. Post-merge, we will also have the largest user base among Asia-based blockchains, giving our DeFi ecosystem explosive growth potential.

• Klaytn
  • Accumulated Tx Volume : $376B
  • Web3 Wallets Users : 29M+
  • Community : 240k+
  • KLAY Mcap : $673M+
  • ATH Onchain TVL : $1B+
  • Strong Presence : Korea, Singapore, and Vietnam
• Finschia
  • Web 3 Wallet Users : 5.6M+
  • Community : 170k+
  • Finschia Mcap : $213M+
  • Strong Presence : Japan, Taiwan, Thailand, and Abu Dhabi

In addition, the two networks have a potential user base of 250M+, powered by Kakao and Line. When the time comes for DeFi to be institutionalized, builders will be able to more easily offer DeFi services to a customer base that is less familiar with crypto.

The Foundation will actively utilize its resources to provide monetary and non-monetary support to builders on Project Dragon in order to lay the foundation for a robust DeFi ecosystem anchored by (B) and (C) type DApps, and builders. As partners in creating the ecosystem with the Foundation, these DApps will be expected to return a portion of the revenue generated from the activation of DeFi so that the success of their services can lead to value creation for the network.

Rationale: Why We’re Starting From Scratch

The collapse of the DeFi ecosystem built around Liquidity Mining
The hype around Liquidity Mining (minting your own tokens to incentivize) and the projects that built Money Legos around it that sparked the DeFi Summer in June 2020 saw DeFi’s TVL explode from $1B to around $170B by the end of 2021.

However, as the bubble burst due to over-leveraging, deleveraging began in mid-2022, and the existing ecosystem, which was overly dependent on LM, collapsed.

During the deleveraging process, DApps that adopted LM but failed to synergize with other services collapsed (A), while DApps that adopted LM but adopted a structure that could synergize with other services took a hit but survived (B). At the same time, DApps that did not rely on the LM structure but improved their BM to enhance their value as real financial products gained attention (C). As a result, the DeFi ecosystem was reorganized around (B) and (C).

Klaytn DeFi Ecosystem Yesterday and Today
The Klaytn DeFi ecosystem also saw a rapid increase in TVL since DeFi Summer 2020, with DApps based on LM as the mainstay. The amount of capital flowing into the on-chain was higher than the amount flowing out, maintaining the price of the governance token, and various derivatives utilizing it were newly created. In addition, DApps with LM structures (CDP, Algorithmic Stablecoin, Lending, Gov. Aggregator) have also emerged, attracting a lot of funds to Klaytn and revitalizing the DeFi ecosystem.

However, the closed operating policies of some DApps has put a brake on growth. Since new DApps need to establish a certain level of track record before they can be listed on a spot exchange, they form liquidity pools on DEXs and maintain the price of their tokens based on those pools. In other words, the pools on the centralized DEXs act as oracles that determine the price of the DApp’s tokens.

For the above reasons, new DApps will make various efforts to form a liquidity pool on the DEX and keep the size of the pool large, and a common structure seen in various DeFi ecosystems so far is to collect the DEX’s governance token to influence the Incentive Gauge.

There are various ways to collect governance tokens, some of which are directly purchased, but most of them utilize a market where voting rights can be temporarily purchased, and a new DApp - Bribe Market - naturally appears here. In addition, Governance Aggregators that solve the inefficiency of the VE model also naturally appear, and Money Lego (hereinafter referred to as “Lego”) is formed, which leads to DEX - Bribe Market - Gov. Aggregator. Based on this Lego, the scale of the DeFi ecosystem expands as new DApps build their own ecosystems with well-established strategies.

However, in Klaytn, new DApps were not able to enjoy this Lego effect, so the growth of the ecosystem stalled, and fewer and fewer builders joined the Klaytn network. In addition, as DApps failed to synergize with other services, they continued to experience a downward spiral in the deleveraging process, just like DApps in category (A).

As a result, an environment that is not suitable for creating DApps was created, and projects attempting to do things like (C) preferred other chains, and the ecosystem failed to move from (A) to (B).

Focal Points

Project Dragon will create an ecosystem centered on (B) and (C)
In order for an ecosystem centered on (B) and (C) to be created, four main conditions must be met:

1. There must be a marketplace where assets can be easily bought and sold, making them more accessible.
2. An environment must be created where new DApps can grow.
3. A currency multiplier effect must be possible.
4. Funds from large external chains can be safely moved to the Dragon Chain.

In order to become an ecosystem that meets the above four conditions, we will focus on the following two sectors:

• DEX (CLAMM / Stableswap / Weighted Pools + VE model)

  • Based on CLAMM and Stableswap, we will reduce price impact and improve on-chain swap conditions to create a place where assets can be easily bought and sold.
  • Through a structure that allows DApps to use LP tokens in Weighted Pools for governance, DApps’ tokens can reduce price volatility based on abundant on-chain liquidity and increase the utilization of PDT.
  • Based on the open VEmodel, it creates an environment where new DApps can use various strategies to adjust the price of assets on-chain, and provides a place for them to grow until they are listed on the spot exchange.
  • Derivatives based on CLAMM LP will be formed, paving the way for more sophisticated financial products to be launched.

• Lending

  • Create an environment where investors can safely borrow capital based on a risk-isolated structure, and create an environment where Dragon Token can be the backbone.
  • Provide a liquidity borrowing window for CLAMM delta neutral farming and encourage the LST Looping strategy to be activated, naturally increasing the amount of PDT deposits.
  • Lending-based tokens are highly versatile, paving the way for more advanced forms of financial instruments to be launched in the future.

Incentive Program Specifications

Overview

Funding categories

Financial resources are categorized as follows:

• Liquidity Provision
  • This is to provide the minimum liquidity needed to launch the service.
    • The liquidity is owned by the Foundation and is lent out interest-free to help Dapps take their first steps.
  • DEX
    • To support the initial liquidity required to form a KLAY-based liquidity pool.
    • Each DEX can receive approximately $600k worth of KLAY.
  • Lending
    • Provides initial liquidity for the formation of KLAY-based vaults.
    • You can receive $500k in KLAY per lending.
• DEV Grant
  • A grant to cover some of the costs of launching a service.
  • DEX & Lending
    • Separate security audit support if you use a security audit firm that has a working relationship with the Foundation.
    • You can receive up to $50k in KLAY per team.
• Liquidity Incentive
  • An incentive to increase TVL to reduce the burn rate of Dapps and support user acquisition costs (UAC).
  • DEX & Lending
    • The evaluation of the value contributed to the Klaytn network in relation to the incentives provided will be conducted from various perspectives, based on a pre-established framework with set benchmarks.
    • The liquidity incentives do not necessarily have to be exhausted within a specified period. Instead, considering various factors, the foundation and team will derive an appropriate method (e.g., Vesting, Linear Distribution) and distribute the incentives in the most effective manner.

Investors’ money flows when they see incentives, so it’s hard to expect an influx of new money with just a Liquidity Provision and DEV Grant that doesn’t affect the DApp’s incentive structure. Therefore, for the DeFi Incentive Program to be truly effective, there must be a separate Liquidity Incentive, and approval will be granted after careful scrutiny of whether the DApp has a strategy to effectively leverage the incentive program to attract and maintain TVL.

Program Design Framework

• All DeFi TVLs

  • Networks excluded from benchmarking
    • We excluded networks like Optimism, Arbitrum, Avalanche, and Polygon because their market cap and TVL were too high to be a short-term goal.
    • We excluded networks with high LST dominance, such as Ethereum and Solana, which have a different composition of the DeFi ecosystem than permissioned blockchains.
  • Networks we benchmarked
    • We used Base, Manta, Mantle, Sui, and Aptos, which have just started building their DeFi ecosystems, as our benchmarks, and targeted an overall DeFi TVL of $250M.

• DEX & Lending TVL

  • The average ratio of DEX and Lending TVL to total TVL for active chains is 31.54% and 33.95%, respectively, and the combined ratio is about 65%.
  • Since Dragon Chain aims to prioritize DEX and lending, the proportion of TVL from DEX and lending is expected to be higher than this, and we have set a target of $200M, which is 80% of the total TVL.

• MAW (Monthly Active Wallet)

  • Active chains are seeing TVLs at the MAW* (800-1,000) level, while Klaytn currently has a MAW in the 500s.
  • As it aims to revitalize the DeFi ecosystem, Dragon Chain has also set a target of MAW * $1,000, which is in line with other networks.

• Volume / TVL (Annualized)

  • The active chains have maintained a 30-day swap volume (Volume/TVL(30d)) of 10 or more relative to the DEX TVL, while Klaytn has fallen short, hovering around 5.
  • For Project Dragon, we have set a goal of reaching a Volume/TVL (Annualized) of 120 based on the activation of the DeFi ecosystem.

• Trading Volume (Annualized)

  • The value is derived from DEX TVL * Volume/TVL (Annualized), and we targeted $15B in annualized trading volume on the DEX.

• KLAY Value Accr. (DEX)
  

  

• KLAY Value Accr. (Lending)
  

  

Timeline
The Liquidity Provision and DEV Grant will be bundled together to manage milestones, and projects that diligently fulfill their milestones after the service launch will be eligible to receive Liquidity Incentives.

• Post Draft Proposal: Call for Proposals

  • Jan 22, 2024

• Request for Comment : Listening to Klaytn Builder/Community Feedback (2w)

  • Jan 22, 2024 ~ Feb 5, 2024

• Post Proposal and prepare for voting on Klaytn Square

  • Jan 25, 2024 ~ Jan 29, 2024

• Vote on Klaytn Square

  • Jan 29, 2024 ~ Feb 5, 2024

• Post Final Proposal : Finalized proposal based on feedback

  • Feb 6, 2024

• Call for Proposal : Period to receive builder proposals

  • Feb 6, 2024 ~ Feb 20, 2024

• Review CFP : Builder proposals are reviewed and projects are selected for Liquidity Provision & Dev Fund support

  • Feb 20, 2024 ~ Feb 27, 2024

• Deploy Product Beta Version : Beta version released

  • Apr 30, 2024

• Liquidity Provision for Eligible Builders : Liquidity Provision support for projects that are on track to meet their milestones

  • May 1, 2024 ~ May 15, 2024

• Liquidity Incentive for Eligible Builders : Liquidity Incentive support for projects that are on track to meet their milestones.

  • Jul 1, 2024 ~ Oct 1, 2024
  • We anticipate an influx of Liquidity Manager, Gov Aggregator, Bribe Market, and Yield Aggregator builders during this time.

• Analyze the impact of the program : Analyze the impact of the program and share results with the community

  • Oct 1, 2024 ~ Nov 8, 2024

Requirements

Liq. Provision & DEV Grant Requirement (All)

• Based on the simulation data, it should be explained that Klaytn has an environment where more transactions can occur due to lower Tx fees compared to other networks, and that the success of the service can lead to the value creation of the network by returning part of the revenue generated from the activation of DeFi to KLAY.
  • The main items for KLAY value creation are Insurance Fund, Revenue Wallet, Burn Fund, and Weighted Pools, and please refer to the Appendix for details.
  • Include not only the amount of KLAY being utilized in the Dapp (Deposit, Stake, Trade (Spot, Margin, etc. etc.)) but also the use cases of KLAY in the linked ecosystem.
• Explain how you will provide an environment for new DApps to grow.
  • DEX ⇒ Launchpad, IFO(Initial Farm Offering) etc. etc.
  • Lending Market ⇒ Create an environment where low-mcap assets can also form a vault.
• All code must be open-sourced and have at least one audit.
  • Contracts must be validated on a block explorer
• Milestones and KPIs to evaluate the performance of each milestone must be set, and each milestone must include metrics to indicate quantitative performance as well as development progress.
  • Milestones must specify clear metrics to measure performance, including statements about KLAY value creation.
• DApps must go through the listing process in DeFiLlama, Dappradar, and the new governance portal.
• The project must be operational for at least one year after the grant is awarded, unless there are valid reasons. If not, the grant must be returned.
• Dapps must go through KYC process to receive incentives

Liq. Provision & DEV Grant Requirement (New DEX)

• Liq. Provision & DEV Grant Requirement (New DEX)
• AMM must follow at least one of the following structures: CLAMM, Stableswap, and Weighted Pool.
  • CLAMM (e.g. Trader Joe’s bin-based AMM, Uniswap v3 AMM
  • Stableswap (e.g. Curve, Wombat))
  • Weighted Pool (e.g. Balancer)
• Adopt the structure of an open VE model and explain how it will create an environment where DApps can build Money Lego.

Liq. Provision & Dev Grant Requirements (New Lending)

• If adopting the structure of Legacy Lending, be able to demonstrate how it is differentiated from existing marketplace lending.
• Share the risk framework you will use when listing new assets and explain the rationale for setting vault-specific parameters.
• Demonstrate that the clearing structure as designed is secure
  • The sensitivity of the clearing structure (are you looking at both on- and off-chain prices, and if so, at what frequency and from where are you calling the data, are you removing outlier values, etc.)
• Adopt an open clearing structure so that ordinary participants can participate in bidding

Liq. Provision & DEV Grant Requirement (Current Builders)

• Dapps that adopt innovative structures such as Onchain Orderbook, Hybrid DEX (Orderbook + AMM), etc. are all eligible for the incentive program.
  • In addition to DEX and Lending, any competitive product can participate in the incentive program.
• For AMM DEXs, the following conditions must be met:
  • Transition to an open VE model and explain how it will create an environment where DApps can build Money Lego.
  • The AMM must be a Concentrated Liquidity structure.

Liquidity Incentive Requirements (All) – Includes both current and new builders

• Liq. Provision and DEV Grant Requirements and consistently achieve the stated milestones.
• The value contributed to the Klaytn network compared to the incentive paid will be evaluated from various aspects, and incentive payments may be suspended if the threshold is not met.
• DApps are prohibited from farming incentives themselves
• DApps must publish a dashboard that provides on-chain data and key metrics (Daily Volume, Tx Fees, Unique Address, etc. etc.)
• DApps may not use Liq. Incentive for any other purpose.
• DApps must go through KYC procedures to receive incentive payments

Optional Requirements (All)

• How Kaikas can be used to improve usability or create synergies
• Utilizing Klaytn’s account model or transaction model (e.g. fee delegation function)

Appendix : Native Coin Value Accrual Method
The builders participating in this program will be responsible for creating DApps that are part of Project Dragon’s public infrastructure, and the structure they create will be the foundation of Project Dragon’s DeFi ecosystem, so the Foundation will actively utilize its resources to support them. The value they create should trickle down to the network, and the growth of the network will provide the foundation for builders to build on a stronger ecosystem.

Therefore, in the process of collaborating with the Foundation, it is necessary to contribute to the creation of value for the native coin, and all DApps selected for this program must contribute to the creation of value in the form of the following. The items and figures below are examples, and you can propose them according to your DApp’s situation. However, we may give more points to projects with greater contribution in the proposal.

• Insurance Fund - 10% of revenue

  • This is a fund to cover any financial losses that may occur due to exploits or contract malfunctions.
  • The revenue generated is periodically converted to the new native coin and stored in the designated wallet address.
  • If a native stablecoin is available on Project Dragon, contributions can be made in a combination of the native coin and stablecoin, in a ratio determined by consulting with the Foundation in advance.

• Revenue Wallet - 10% of revenue

  • This refers to the team’s revenue wallet and must be kept in the new native coin.
  • The revenue generated is periodically converted to the new native coin and stored in the designated wallet address.
  • If a native stablecoin is available on Project DragonNative Stablecoin is distributed to Klaytn in the future, contributions can be made in a combination the ratio of the native coinKLAY and sStablecoin, in a ratio determined bycan be adjusted by consulting with the Foundation in advance.

• Burn Fund - 30% of Revenue Wallet resources

  • 30% of the funds in the Revenue Wallet will be utilized to burn the new native coin.
  • The revenue generated is periodically converted to the new native coin and sent to the burn address.

• Introducing Weighted Pool LP in the governance structure

  • Native coin 30% / Gov. token 70% LP Token should be used to design the governance structure.

[KF_DeFi]

[KR]
Note
본 제안서는 Project Dragon Chain(가칭)의 DeFi 생태계를 굳건하게 조성하기 위한 인센티브 프로그램 소개문입니다. 인센티브 프로그램의 필요성, 프레임워크, 그리고 진행 절차 및 타임라인에 대해 커뮤니티 구성원들로부터 피드백을 수령하기 위한 목적으로 작성되었으며, 충분한 토론과 의견수렴 과정을 거쳐 진행 여부가 결정됩니다. 커뮤니티 구성원들과 DeFi 빌더들의 많은 관심과 참여 부탁드립니다.

DeFi Endgame

Current Landscape
2020년 DeFi Summer로 시작된 Liquidity Mining(LM) 중심의 블록체인 생태계는 2021년 말까지 TVL이 $1B에서 $170B로 급증했으나, 2022년 중순부터 과도한 레버리지로 인한 버블 붕괴와 deleveraging 과정을 겪으며 LM에 의존하던 기존 생태계가 무너졌습니다.

이때, 일부 Dapp들은 LM을 도입했음에도 불구하고 서비스 간 시너지를 창출하지 못해 실패한 반면, 다른 Dapp들은 BM(Business Model) 개선을 통해 생존하였습니다.

• (A) 군 : LM을 도입했지만 타 서비스와 시너지를 내지 못하고 무너진 Dapp
• (B) 군 : LM을 도입했지만 타 서비스와 시너지를 낼 수 있는 구조를 채택하고 생존한 Dapp
• (C) 군 : LM 구조에 의존하지 않고 BM을 개선해 실제 금융 상품으로서 가치를 끌어올린 Dapp

기존의 Klaytn DeFi 생태계도 DeFi Summer를 맞아 LM 기반 Dapp들이 성장했으나, 몇몇 dapp들의 폐쇄적인 운영 정책으로 인해 Dapp들의 성장에 제동이 걸렸습니다. 그 결과, 생태계 전반의 성장이 지체되어 (A)가 중심이 되는 생태계에 머무르게 되었고, 2022년 온체인 버블 붕괴 및 deleveraging 과정에서 TVL이 급격히 하락하며 무너지게 됩니다.

As-Is: (A)가 중심이 되는 생태계

Dragon Chain Landscape
Ethereum, Arbitrum, 그리고 Optimism과 같이 DeFi Ecosystem이 굳건하게 자리 잡기 위해서는 자산 접근성 향상, 신규 Dapp 성장 환경 조성, 통화 승수 효과, 그리고 외부 자금의 안전한 이동이 전제가 되어야 하며, 이와 같은 생태계는 (B)와 (C) 유형의 Dapp을 중심으로 조성이 됩니다.

D2I는 Dragon Chain의 DeFi 생태계 조성을 위한 초석을 다지는 것을 목표로 하는 첫 번째 프로젝트로, 가장 핵심이 되는 Infrastructure 중에서도 DEX와 Lending Protocol과 같이 공공 기반시설의 성격을 띄는 Dapp을 발굴하는 것에 우선순위를 둘 것입니다. 단, Onchain Orderbook, Hybrid DEX(Orderbook + AMM) 등과 같이 혁신적인 구조를 채택한 Dapp들과 D2I의 요구 조건들을 모두 충족하는 기존 생태계 참여자들 또한 D2I의 대상자에 포함됩니다.

To-Be: (B)와 (C)가 중심이 되는 생태계

아울러 Dragon Chain에서는 최종적으로 각 Layer별로 아래와 같은 Dapp들이 포함될 것으로 예상하고 있으며, 나아가 이에 국한되지 않는 다양성을 갖춘 생태계가 조성되는 것을 목표로 하고 있습니다.

• DEX
  • CLAMM(Concentrated Liquidity AMM) – Current Priority
  • Weighted Pools – Current Priority
  • Stableswaps – Current Priority
  • Onchain Orderbook
  • Hybrid DEX(Orderbook + AMM)
• Lending
  • Legacy Lending (e.g. Aave, Compound) – Current Priority
  • Risk-Isolated Lending (e.g. Silo Finance) – Current Priority
• Asset Layer
  • Native Coin, Dapp Tokens, RWA tokens, LSTs, Stablecoins, bridged tokens
• Gov. Aggregator
  • Gov. Efficiency Booster + Liquid Wrapper (e.g. Aura, Convex)
  • Bribe Market (e.g. Votium, Hidden Hand)
• Derivatives
  • Perp DEX (e.g. Hyperliquid, Vertex)
  • Tick-based Options(e.g. Dopex v2, InfinityPools)
• Yield Aggregator
  • Yield Compounding (e.g. Beefy)
  • Onchain Asset Management (e.g. Gearbox, Yearn, Sommelier)
• LSDfi
  • Yield-Stripping Derivatives (e.g. Pendle)
  • CDP (e.g. Lybra, Raft)
  • LSD ETF (e.g. unshETH)
• Swap Aggregator
  • Onchain Aggregator (e.g. 1inch, Swapscanner)
  • Intent-based Swaps (e.g. CoW Swap, Uniswap X)
• Bridge
  • Legacy Bridge (e.g. Wormhole, Synapse)
  • Restaking Bridge

Lead the Wave : Seize Dominance in an Emerging Ecosystem
Klaytn 생태계는 KLAY와 KCT(Klaytn Compatible Tokens) 중심으로 구성되어 있었으나, 최근 브릿지된 자산들의 디페깅이 발생하면서 KLAY, KCT의 온체인 가격이 비정상적으로 평가 받고 있으며, 이로 인해 유동성 차입(e.g. Lending, CDP, LYF)이 발생하는 여러 Dapp에서 악성부채가 발생했습니다. 추가로, 일반 Dapp들 또한 자산의 가격이 비정상적으로 반영이 되면서 Klaytn DeFi 자체를 유저들이 활용하기 어려운 상황이 지속되고 있습니다. 아울러 Finschia의 경우 이제 막 Public Blockchain으로서 걸음마를 뗀 단계로, DeFi 생태계가 아직 활성화되어 있지 않습니다.

하지만, 두 네트워크의 DeFi 생태계 성숙도와는 별개로, Klaytn과 Finschia는 다년간의 메인넷 운영 경험이 있고 아시아 기반의 블록체인 중 가장 큰 유저 베이스를 보유하고 있습니다. 즉, 타 네트워크들에 비해 상대적으로 DeFi 생태계의 규모가 작은 것은 사실이나, 체인의 규모나 코어팀의 기술력, 유저 베이스, 그리고 web3 리소스 측면에서는 성숙한 네트워크들에 버금가는 역량을 보유하고 있습니다.

• Klaytn
  • 누적 Tx Volume : $376B
  • Web3 Wallets Users : 29M+
  • Community : 240k+
  • KLAY Mcap : $673M+
  • ATH Onchain TVL : $1B+
  • Strong Presence : Korea, Singapore, and Vietnam
• Finschia
  • Web 3 Wallet Users : 5.6M+
  • Community : 170k+
  • Finschia Mcap : $213M+
  • Strong Presence : Japan, Taiwan, Thailand, and Abu Dhabi

또한, 두 네트워크는 Kakao와 Line을 기반으로 하는 250M+의 잠재적인 유저 베이스가 있습니다. DeFi의 제도권 편입 시기가 도래했을 때, 빌더들은 조금 더 손쉽게 암호화폐에 익숙하지 않은 고객군들에게 DeFi 서비스를 제공할 수 있을 것입니다.

재단은 Dragon Chain에서 (B)와 (C) 유형의 Dapp들이 주축이 되는 굳건한 DeFi 생태계의 초석을 다지기 위해 보유한 리소스를 적극 활용하여 Dragon Chain의 빌더들에게 금전직/비금전적인 지원을 할 것이고, 빌더들은 재단과 함께 생태계를 만들어나가는 파트너로서 DeFi의 활성화에서 발생하는 수익의 일부를 KLAY로 환원하여 서비스의 성공이 네트워크의 가치 창출로 이어질 수 있는 구조를 재단과 함께 그려 나가야 합니다.

Rationale : Why We’re Starting From Scratch

Liquidity Mining을 중심으로 형성된 DeFi 생태계의 붕괴
2020년 6월 DeFi Summer를 촉발한 Liquidity Mining(자체 토큰을 발행해 인센티브로 지급하는 방식) 및 이를 기반으로 머니레고를 쌓은 프로젝트들로부터 발생한 hype로 DeFi의 TVL이 $1B에서 2021년 말에 약 $170B까지 폭등했습니다.

그러나 과도한 레버리지로 인한 버블이 꺼지면서 2022년 중순부터 deleveraging이 시작되었고, LM에 과도하게 의존하던 기존 생태계가 무너졌습니다.

이때, Deleveraging 과정에서 LM을 도입했지만 타 서비스와 시너지를 내지 못한 Dapp들(A)은 무너진 반면, LM을 도입했지만 타 서비스와 시너지를 낼 수 있는 구조를 채택한 Dapp들(B)은 타격을 입었지만 생존했습니다. 아울러 LM 구조에 의존하지 않고 BM을 개선해 실제 금융 상품으로서 가치를 끌어올린 Dapp들(C)이 주목을 받게 되면서, 현 DeFi 생태계는 (B)와 (C)를 중심으로 재편되었습니다.

Klaytn DeFi 생태계의 어제와 오늘
Klaytn DeFi 생태계 또한 2020년 DeFi Summer 이후로 LM을 기축으로 한 Dapp들이 주를 이루면서 TVL이 빠르게 증가했습니다. 온체인에 흘러들어오는 자본의 규모가 이탈하는 규모보다 높아 거버넌스 토큰의 가격이 유지되었고, 이를 활용하는 다양한 파생상품들이 새롭게 생겨났습니다. 이외에도 LM 구조를 탑재한 Dapp들(CDP, Algorithmic Stablecoin, Lending, Gov. Aggregator) 또한 등장하면서 Klaytn에 많은 자금이 유입되어 DeFi 생태계가 활성화 되었습니다.

그러나, 몇몇 Dapp들의 폐쇄적인 운영 정책으로 인해으로 인해 Dapp들의 성장에 제동이 걸렸습니다. 신규 Dapp의 경우 현물 거래소에 상장하기 위해서는 일정 수준 이상의 track record를 쌓는 작업이 선행되어야 하기 때문에, 현물 거래소 상장 이전에는 DEX에 유동성 풀을 형성하고 해당 풀을 기반으로 토큰의 가격을 유지하게 됩니다. 즉, 중심 DEX의 풀이 곧 Dapp의 토큰 가격을 결정하는 오라클 역할을 수행하게 됩니다.

위와 같은 이유로 신규 Dapp들은 DEX에 유동성 풀을 형성하고 해당 풀의 규모를 크게 유지하기 위해 다양한 노력들을 하게 되며, 지금까지 여러 DeFi 생태계에서 공통적으로 보이는 구조는 DEX의 Gov. Token을 수집하여 Incentive Guage에 영향력을 행사하는 형태입니다.

이때, Gov. Token의 수집 방식은 다양한데 직접 매수하는 경우도 있지만 대부분은 투표권을 일시적으로 매수할 수 있는 시장을 활용하게 되며 여기서 새로운 Dapp인 Bribe Market이 자연스럽게 등장합니다. 추가로, ve모델의 비효율성을 해소하기 위한 Gov. Aggregator들도 자연스럽게 등장하면서 DEX - Bribe Market - Gov. Aggregator로 이어지는 머니레고(이하 “Lego”)가 결성됩니다. 이런 Lego를 기반으로 신규 Dapp들이 전략을 잘 수립하여 자체적인 생태계를 구축하면서 DeFi 생태계의 규모가 확장됩니다.

하지만, Klaytn에서는 신규 Dapp들이 이와 같은 Lego 효과를 누릴 수 없었기에 생태계의 성장이 지체되어 Klaytn Network에 신규로 유입되는 빌더들이 점점 줄어들었습니다. 또한 Dapp들이 타 서비스들과 시너지를 내지 못하면서 deleveraging 과정에서 (A)에 속하는 Dapp들과 마찬가지로 계속해서 하락세를 겪게 되었습니다.

결과적으로 Dapp을 만들기에 적합하지 않은 환경이 조성되면서 (C)와 같은 시도를 하는 프로젝트들이 다른 체인을 더 선호하게 되었고 (A)에서 (B)로 넘어가지 못한 채 생태계가 활성화되지 못했다고 볼 수 있습니다.

Focal Points

Dragon Chain에서는 (B)와 (C)가 중심이 되는 생태계를 조성합니다.
(B)와 (C)가 중심이 되는 생태계가 조성되기 위해서는 크게 네 가지 조건이 충족되어야 합니다

• 1. 자산들이 손쉽게 매매될 수 있는 장이 마련되어 자산들에 대한 접근성이 높아져야 합니다
• 2. 신규 Dapp들이 성장을 할 수 있는 환경이 조성되어야 합니다
• 3. 통화 승수 효과가 발생할 수 있어야 합니다
• 4. 규모가 큰 외부 체인에서 자금이 안전하게 Dragon Chain으로 이동할 수 있어야 합니다

위에 명시된 네 가지 조건을 갖춘 생태계가 되기 위해서 아래 두 개의 섹터에 집중할 것입니다

• DEX(CLAMM / Stableswap / Weighted Pools + ve모델)
  • CLAMM과 Stableswap을 기반으로 Price Impact를 줄이고, 온체인 스왑 조건을 개선하여 자산들이 손쉽게 매매될 수 있는 장을 마련합니다.
  • Weighted Pool의 LP 토큰을 Dapp들이 Governance에 활용할 수 있는 구조를 통해 Dapp들의 토큰이 온체인에서 풍부한 유동성을 기반으로 가격 변동성을 줄일 수 있도록 하고 PDT의 활용도를 높입니다.
  • 개방형 ve모델을 기반으로 신규 Dapp들이 온체인에서 자산의 가격을 조절하기 위한 다양한 전략을 구사할 수 있는 환경이 조성되도록 하고, 현물 거래소 상장 전까지 성장할 수 있는 장을 마련해 줍니다.
  • CLAMM LP 기반의 파생상품들이 형성되어 더 고도화된 형태의 금융상품들이 출시될 수 있는 기반을 마련합니다.
• Lending
  • Risk-Isolated 구조를 기반으로 투자자들이 안전하게 자본을 차입할 수 있는 환경을 조성하고, Dragon Token이 기축이 될 수 있는 환경을 조성합니다.
  • CLAMM delta neutral farming에 필요한 유동성 차입 창구를 마련하고, LST Looping 전략이 활성화되도록 장려하여 PDT의 예치량을 자연스럽게 늘립니다.
  • Lending 기반의 증표 토큰은 그 활용도가 높아 추후 고도화된 형태의 금융상품들이 출시될 수 있는 기반을 마련해 줍니다.

Incentive Program Specifications

개요(Overview)

재원의 구분
재원은 아래와 같이 구분됩니다.

• Liquidity Provision

  • 서비스 출시를 위해 필요한 최소한의 유동성을 지원하기 위함입니다.
    • 유동성의 소유권은 재단에게 있으며 Dapp이 첫 발을 떼는 것에 도움을 주기 위해 무이자로 대출해 줍니다.
  • DEX
    • KLAY 기반의 유동성 풀 형성에 필요한 initial liquidity를 지원합니다.
    • DEX당 약 $600k만큼의 KLAY를 수령할 수 있습니다.
  • Lending
    • KLAY 기반의 Vault 형성에 필요한 initial liquidity를 지원합니다.
    • Lending당 $500k만큼의 KLAY를 수령할 수 있습니다.

• DEV Grant

  • 서비스 출시에 필요한 비용을 일부 지원하는 보조금입니다.
  • DEX & Lending
    • 재단과 협업관계에 있는 보안 감사 업체를 이용할 경우 별도의 보안 감사 지원이 제공됩니다.
    • 팀당 $50k만큼의 KLAY를 수령할 수 있습니다.

• Liquidity Incentive

  • TVL 증진을 위한 인센티브로 Dapp들의 Burn Rate을 줄이고 모객 비용(UAC)을 지원하기 위함입니다.
  • DEX & Lending
    • 지급한 Incentive 대비 Klaytn 네트워크에 기여한 가치가 어느정도인지 여러 측면에서 평가할 예정이며 사전에 정한 프레임워크를 기반으로 기준치가 설정됩니다
    • Liquidity incentive는 지정된 기간 안에 반드시 소진할 필요가 없으며, 다양한 요인들을 고려해 재단과 팀이 적정 방식(e.g. Vesting, Linear Distribution)을 도출한 후 가장 효과적인 방식으로 분배하게 됩니다

투자자들의 자금은 인센티브를 보고 흘러 들어오기 때문에 Dapp의 인센티브 구조에 영향을 주지 않는 Liquidity Provision과 DEV Grant만으로는 신규 자금의 유입을 기대하기 어렵습니다.

따라서 DeFi Incentive Program이 실질적으로 효과를 거두기 위해서는 Liquidity Incentive가 별도로 있어야 하며, Dapp이 해당 Incentive Program을 효과적으로 활용하여 TVL을 끌어오고 이를 유지할 수 있는 전략이 있는지에 대한 면밀히 심사가 진행된 이후 승인이 이루어지게 됩니다.

프로그램 설계 프레임워크

• 전체 DeFi TVL

  • 벤치마킹에서 제외한 네트워크
    • Optimism, Arbitrum, Avalanche, 그리고 Polygon과 같이 Market Cap과 TVL 규모가 너무 높아 단기적인 목표로 달성하기엔 부적절한 네트워크는 제외했습니다.
    • Ethereum과 Solana와 같이 LST Dominance가 높아 permissioned blockchain과는 DeFi 생태계의 구성이 다른 네트워크는 제외했습니다.
  • 벤치마킹에 참고한 네트워크
    • DeFi 생태계 조성을 시작한지 얼마 되지 않은 Base, Manta, Mantle, Sui, 그리고 Aptos를 참고했고 이를 기반으로 전체 DeFi TVL $250M을 목표로 잡았습니다.

• DEX & Lending TVL

  • 활성화된 체인 대상으로 전체 TVL 대비 DEX와 Lending TVL 평균 비율은 각각 31.54%, 33.95% 이며 두 항목을 합치면 65% 정도를 차지하고 있습니다.
  • Dragon Chain의 경우 DEX와 Lending을 우선적으로 키우는 것을 목표로 하고 있기에 DEX와 lending의 TVL 비중이 이보다 높을 것으로 예상되며 전체 TVL 중 80% 수준인 $200M을 목표로 잡았습니다.

• MAW(Monthly Active Wallet)

  • 활성화된 체인들은 MAW * (800~1,000) 수준에서 TVL이 형성되고 있는 반면, 현재 Klaytn은 MAW가 500 선에 그치고 있습니다.
  • DeFi 생태계를 활성화시키는 것을 목표로 하고 있는 만큼, Dragon Chain 또한 타 네트워크와 비슷한 수준인 MAW * $1,000을 목표로 잡았습니다.

• Volume / TVL (Annualized)

  • 활성화된 체인들은 DEX TVL 대비 30일간 스왑 볼륨(Volume/TVL(30d))이 10 이상의 값을 유지하고 있는 반면, Klaytn은 이에 못 미치는 5 정도에 머무르고 있습니다.
  • Dragon Chain에서는 DeFi 생태계 활성화를 기반으로 Volume/TVL(Annualized)이 120이 되는 것을 목표로 잡았습니다.

• Trading Volume (Annualized)

  • DEX TVL * Volume/TVL(Annualized)를 통해 도출되는 값으로 DEX에서 연간 $15B의 거래 볼륨이 발생하는 것을 목표로 잡았습니다.

• KLAY Value Accr. (DEX)
  

  

• Klay Value Accr. (Lending)
  

  

Timeline
Liquidity Provision과 DEV Grant를 하나로 묶어서 마일스톤을 관리하게 되며 서비스 출시 이후 성실히 마일스톤을 이행하는 프로젝트를 대상으로 Liquidity Incentive를 수령할 수 있는 권리가 부여됩니다.

• Post Draft Proposal: 프로포절 공고

  • Jan 22, 2024

• Request for Comment : 클레이튼 빌더/커뮤니티 피드백 청취 및 GC 투표 절차 시작 (2w)

  • Jan 22, 2024 ~ Feb 5, 2024

• Post Proposal and prepare for voting on Klaytn Square

  • Jan 25, 2024 ~ Jan 29, 2024

• Vote on Klaytn Square

  • Jan 29, 2024 ~ Feb 5, 2024

• Post Final Proposal : 피드백을 반영한 최종 프로포절 공고

  • Feb 6, 2024

• Call for Proposal : 빌더 제안서 수령 기간

  • Feb 6, 2024 ~ Feb 20, 2024

• Review CFP : 빌더들의 제안서 검토 및 Liquidity Provision & Dev Fund 지원 프로젝트 선정

  • Feb 20, 2024 ~ Feb 27, 2024

• Deploy Product Beta Version : 베타 버전 출시

  • Apr 30, 2024

• Liquidity Provision for Eligible Builders : 마일스톤을 성실히 수행하고 있는 프로젝트들을 대상으로 Liquidity Provision 지원

  • May 1, 2024 ~ May 15, 2024

• Liquidity Incentive for Eligible Builders : 마일스톤을 성실히 수행하고 있는 프로젝트들을 대상으로 Liquidity Incentive 지원

  • Jul 1, 2024 ~ Oct 1, 2024
  • 해당 기간 동안 Liquidity Manager, Gov Aggregator, Bribe Market, 그리고 Yield Aggregator 빌더들이 유입될 것으로 예상하고 있습니다

• Analyze the impact of the program : 프로그램의 효과를 분석하여 커뮤니티에 결과 공유

  • Oct 1, 2024 ~ Nov 8, 2024

Requirements

Liq. Provision & DEV Grant Requirement (All)

• Klaytn은 Tx 수수료가 타 네트워크에 비해 저렴해 더 많은 트랜잭션이 발생할 수 있는 환경을 갖추고 있으며, DeFi의 활성화에서 발생하는 수익의 일부를 KLAY로 환원하여 서비스의 성공이 네트워크의 가치 창출로 연결될 수 있다는 점을 시뮬레이션 데이터를 기반으로 설명해야 합니다.
  • KLAY 가치 창출은 위한 주요 항목으로는 Insurance Fund, Revenue Wallet, Burn Fund, Weighted Pools가 있으며 자세한 내용은 Appendix을 참고해 주시기 바랍니다
  • Dapp에서 활용되고 있는 KLAY의 양 (Deposit, Stake, Trade(Spot, Margin etc. etc.))뿐만 아니라 연동된 생태계에서의 KLAY 활용 사례들도 모두 포함 가능합니다
• 신규 Dapp들이 성장을 할 수 있는 환경을 어떤 식으로 마련할 것인지 설명해야 합니다.
  • DEX ⇒ Launchpad, IFO(Initial Farm Offering) etc. etc.
  • Lending Market ⇒ Low Mcap 자산들 또한 Vault를 형성할 수 있는 환경 조성
• 컨트랙트 코드는 모두 오픈소스로 공개해야 하며 오딧을 1회 이상 받아야 합니다
  • 블록 익스플로러에 컨트랙트를 검증해야 합니다
• 마일스톤과 각 마일스톤의 성과를 평가할 수 있는 KPI를 설정해야 하며, 각 마일스톤에는 개발 경과사항뿐만 아니라 정량적인 성과를 나타낼 수 있는 지표가 포함되어야 합니다
  • 마일스톤에는 KLAY 가치 창출에 대한 내용을 포함해 성과를 측정할 수 있는 명확한 지표가 명시되어야 합니다
• DefiLama, DappRadar, Square에 등록해야 합니다
• 정당한 사유가 없는 한, Grant 지급 이후로 최소 1년 이상 프로젝트를 운영해야 합니다. 만약 그렇지 않다면, 지급받은 그랜트를 반환하여야 합니다.
• Dapp들은 인센티브를 지급받기 위해 KYC 절차를 거쳐야 합니다

Liq. Provision & DEV Grant Requirement (신규 DEX)

• AMM이 CLAMM, Stableswap, 그리고 Weighted Pool의 구조 중 최소 1개 이상을 따라야 합니다
  • CLAMM (e.g. Trader Joe’s bin-based AMM, Uniswap v3 AMM
  • Stableswap (e.g. Curve, Wombat))
  • Weighted Pool (e.g. Balancer)
• 개방형 ve모델의 구조를 도입해야 하며 이를 통해 Dapp들이 머니레고를 쌓을 수 있는 환경을 어떻게 조성할 것인지 설명해야 합니다

Liq. Provision & DEV Grant Requirements (신규 Lending)

• Legacy Lending의 구조를 채택할 경우, 기존 시장에 있는 Lending과의 차별점을 제시할 수 있어야 합니다
• 새로운 자산을 상장할 때 사용하게 될 Risk Framework를 공유하고 Vault별 파라미터 설정의 근거를 설명해야 합니다
• 설계된 청산 구조가 안전하다는 점을 증명해야 합니다
  • 청산 구조의 민감도(온/오프체인 가격을 다 보고 있는가? 보고 있다면 어떤 주기로 어디서 데이터를 호출해서 오고 있는가? 아웃라이어 값은 제거하고 있는가? 등등)
• 개방형 청산 구조를 채택해 일반 참여자들도 bidding에 참여할 수 있도록 해야 합니다

Liq. Provision & DEV Grant Requirement (Current Builders)

• Onchain Orderbook, Hybrid DEX(Orderbook + AMM) 등과 같이 혁신적인 구조를 채택한 Dapp들은 모두 Incentive Program의 대상에 포함됩니다
  • DEX와 Lending 이외에도 경쟁력이 있는 상품이면 모두 Incentive Program에 참여 가능합니다
• AMM DEX일 경우 아래 조건을 충족해야 합니다
  • 개방형 ve모델의 구조로 전환해야 하며 이를 통해 Dapp들이 머니레고를 쌓을 수 있는 환경을 어떻게 조성할 것인지 설명해야 합니다
  • AMM이 Concentrated Liquidity의 구조이어야 합니다

Liquidity Incentive Requirements (All) – Includes both current and new builders

• Liq. Provision 및 DEV Grant Requirements를 모두 충족해야 하며 명시된 마일스톤을 지속적으로 달성해야 합니다
• 지급한 Incentive 대비 Klaytn 네트워크에 기여한 가치가 어느정도인지 여러 측면에서 평가할 예정이며 기준치에 미달할 경우 인센티브 지급이 중단될 수 있습니다
• Dapp들은 인센티브를 KLAY의 형태로 지급해야 하고 지급을 담당하는 컨트랙트 주소를 공개해야 합니다
• Dapp들이 직접 인센티브를 파밍하는 것을 금지합니다
• Dapp들은 인센티브로 지급한 KLAY의 온체인 데이터 및 Key Metric(Daily Volume, Tx Fees, Unique Address etc. etc)들을 제공할 수 있는 대시보드를 공개해야 합니다
  • Liq. Incentive의 효과를 파악하기 위해 Liq. Incentive 지급 전부터 지급 이후까지의 데이터를 모두 포함해야 합니다
• Dapp들은 Liq. Incentive를 다른 용도로 사용해서는 안 됩니다
• Dapp들은 인센티브를 지급받기 위해 KYC 절차를 거쳐야 합니다

Optional Requirements (All)

• Kaikas와 연동하여 사용성을 개선하거나, 시너지가 날 수 있는 부분에 대한 내용
• Klaytn의 account model이나 transaction model을 활용 (예. 대납기능)

Appendix : KLAY Value Accrual Method
금번 프로그램에 참여하는 빌더들은 Dragon Chain의 공공 인프라에 해당하는 Dapp을 만드는 중책을 맡게 되며 이들이 만든 구조를 기반으로 Dragon Chain의 DeFi 생태계가 조성되기 때문에 재단은 보유한 리소스를 적극 활용하여 빌더들을 지원할 것입니다. 이때, 빌더들이 창출하는 가치가 네트워크로까지 영향력이 닿아야 하며, 네트워크가 성장을 하는 것이 빌더들 입장에서도 더 굳건한 생태계에서 빌딩을 할 수 있는 기반을 마련해 줄 것입니다.

따라서, 재단과 협업을 하는 과정에서 KLAY 가치 창출에 기여를 해야 하며 금번 프로그램에 선정되는 모든 Dapp들은 아래와 같은 형태로 KLAY 가치 창출에 기여해야 합니다. 아래의 항목들과 수치들은 예시이며, DApp의 상황에 맞게 제안하실 수 있습니다. 다만 제안서에서 기여도가 큰 프로젝트들에게 더 가산점을 부여할 수 있습니다.

• Insurance Fund - 매출의 10%
  • Exploit이나 컨트랙트 오작동 등으로 발생하는 금전적인 손실을 메꾸기 위한 기금으로 KLAY로 재원을 보관해야 합니다
  • 발생하는 매출을 주기적으로 KLAY로 전환 후 지정된 지갑 주소에 보관합니다
  • 추후 Native Stablecoin이 Klaytn에 배포될 경우 재단과 사전에 협의하에 KLAY와 Stablecoin의 비중을 조절할 수 있습니다
• Revenue Wallet - 매출의 10%
  • 팀의 매출 지갑을 의미하며 KLAY로 재원을 보관해야 합니다
  • 발생하는 매출을 주기적으로 KLAY로 전환 후 지정된 지갑 주소에 보관합니다
  • 추후 Native Stablecoin이 Klaytn에 배포될 경우 재단과 사전에 협의하에 KLAY와 Stablecoin의 비중을 조절할 수 있습니다
• Burn Fund - Revenue Wallet 재원의 30%
  • Revenue Wallet에 포함되는 재원 중 30%는 KLAY 소각에 활용합니다
  • 발생하는 매출을 주기적으로 KLAY로 전환 후 소각 주소로 전송합니다
• Governance 구조에 Weighted Pool LP 도입
  • KLAY 30% / Gov. Token 70% LP Token을 활용해 Governance 구조를 설계해야 합니다

[Trinito]

This proposal presents a thorough framework for fostering a DeFi ecosystem within Klaytn, initiating a constructive dialogue.

We’d like to raise a point regarding the Insurance Fund’s reliance on KLAY. The Fund’s objective is to offer financial stability during periods of high volatility or uncertainty, which are often systematic and could negatively impact KLAY’s liquidity. This scenario could compromise both KLAY’s stability and the security of the projects it aims to protect.

Therefore, it is essential to base the Insurance Fund on highly liquid and external assets. While the original proposal from the Klaytn Foundation considers the future inclusion of native stablecoins, which is a positive step, this aspect merits closer attention as the ecosystem develops and these stablecoins become operational. Ensuring the Insurance Fund’s robustness and responsiveness to market dynamics is crucial for the sustained health and growth of Klaytn’s DeFi ecosystem.

[Colin_Kim]

Dear Builders, if you have any questions or concerns, please leave a comment here.

You can also ask questions in the Klaytn Discord.

We hope to see many builders actively participating the discussion.

Thanks.

[Nectar]

I would like to express my appreciation for the comprehensive insights provided in the D2I article. The dedication to crafting a dynamic and inclusive DeFi ecosystem is audacious and aligns closely with our vision at Nectar.

As the founder of Nectar, a next-generation on-chain order book DEX, I propose elevating the role of order book DEXes in Project Dragon’s roadmap, especially as a “Current Priority” alongside models like CLAMM DEX.

1. Learning from Other EVM Chains:

We have observed significant growth in ecosystems where order book DEXes are integral. For example, GRVT on zkSync, although still in its pre-launch phase, is generating substantial interest by promising to bring CEX liquidity to the zkSync chain. Similarly, Vertex on Arbitrum, functioning as a hybrid order book and AMM DEX, has notably increased TVL, echoing the success of GMX. These cases are strong indicators that order book DEXes can significantly catalyze the growth of Klaytn’s ecosystem. We should recognize that order book DEXes could be pivotal in the next bull run.

2. Familiarity and Accessibility for Traders:

The order book model, being the predominant format in CEXs, is familiar to a vast majority of traders, particularly those in quant trading. Integrating this model can greatly ease the transition for these traders to on-chain trading, thus expanding Klaytn’s user base. Nectar, mirroring the UX of leading CEXs and offering similar APIs, is positioned to act as a bridge for this transition. This initiative is a strategic move to attract a market segment currently underrepresented in the DeFi space.

I look forward to the opportunity to further discuss this and contribute to the vibrant future of the Klaytn ecosystem.

[Colin_Kim]

Thanks for sharing your opinion, Nectar team!

I also see the emerge and dragging attentions of order book DEXes. To be higher priority of the order-book DEX, I would ask you to provide more reasons of how the order-book DEXes can be used for the money lego.

Can you provide answers to the questions below?

1. How order-book DEXes can be worked/integrated/co-operated with other components like derivatives, yield aggregators, and swap aggregators?

2. How order-book DEXes can be worked/integrated/co-operated with CEXes? How can they bring traditional traders to DeFi sectors and make them to use other DeFi protocols so that it can contribute to on-chain activities?

3. What kinds of order-book DEXes will survive in the future? There are so many types or order-book DEXes like fully on-chain order-book DEXes, hybrid (on-chain and off-chain) order-book DEXes, Hybrid DEXes including AMM and order-book DEX in one service.

Thanks for sharing your opinion in advance!

[Nectar]

Thank you for these insightful questions! They not only challenge us but also enrich our roadmap planning. Here’s a glimpse into our strategy:

1. Human-Centric DeFi Markets: Our approach diverges from the current DeFi market’s focus on full automation. We aim to transition traders from CEX to on-chain, where they will actively engage in yield generation and trading. This human-centric model envisions quant traders managing yield farming and aggregation, while fund products are overseen by human managers. Importantly, fund managers won’t have deposit/withdrawal permissions, ensuring LP’s can only mandate them via smart contracts. I believe this approach can supplement and diversify current DeFi market.
   Our roadmap also includes integrating perpetual markets (derivatives) and collaborating with leading swap aggregators.
2. CEX Synergy: With our trading engine designed to sync with CEX mechanisms, we’re exploring opportunities to share order books with CEXs. This synergy would facilitate a smoother transition for CEX traders to on-chain, thereby boosting on-chain activities.
3. Future of Order Book DEXes: Predicting the future landscape is challenging, but our strength lies in our hybrid architecture. This balance between capital efficiency and fund security is ideal. Considering Klaytn’s 1-second finality, it can also support the potential success of fully on-chain order book DEXes.

I look forward to the opportunity for further discussions and collaboration!

[KF_DeFi]

To ensure comprehensive due diligence in selecting a recipient for the D2I program, the evaluation period may be extended from one week to two.

However, this adjustment will not impact the overarching schedule, and Builders are still required to submit a beta version by April 30th.

[KF_DeFi]

Dear builders,

Application Form is now live.

• https://bit.ly/49449Ku

For additional information and guidelines, please refer to the links below

• Milestone Guideline

  • https://klaytn.foundation/wp-content/uploads/2024/02/D2I-Milestone-Guideline.pdf

• Submission Guideline

  • https://klaytn.foundation/wp-content/uploads/2024/02/D2I-Submission-Guideline.pdf

Moreover, all questions regarding the application form will be answered in the discord channel stated below:

• Discord

[KF_DeFi]

Before the commencement of the D2I Project, we are planning a pre-test aimed at enhancing Onchain Metrics.

For further information, please refer to the link below()

[Notice] Boosting Onchain Metrics Pre-D2I

Boosting Onchain Metrics Before the commencement of the D2I Project, we have identified the verification of the estimation framework we made for (1) Liquidity Provision and (2) Liquidity Incentive disbursements, to be evaluated through an initial pre-test aimed at enhancing Onchain Metrics. With the anticipated approval of KGP-27 by the GC, we are set to carry out preliminary assessments to test our theories, with the goal of reaching the set Trading Volume/TVL objectives for the D2I. It is im…

[KF_DeFi]

Dear builders,

the Evaluation Guideline for D2I is now live

• [Notice] Public Announcement: D2I Program Evaluation Guideline

This guideline outlines the structured and comprehensive framework we’ve established for assessing DApp applications within the D2I program.

We highly encourage you to review this document to understand the evaluation process better.

[KF_DeFi]

Dear Builders,

We are delighted to inform you that the D2I initiative has attracted applications from 20 teams, with 15 focusing on DEX development and 5 on lending protocols, CDPs included.

Your enthusiasm and willingness to engage, despite the tight deadlines, are truly appreciated. We extend our heartfelt thanks for your dedication.

The grant committee is currently in the process of reviewing applications.

Teams selected for the shortlist will be invited for interviews on March 4th and 5th.

Warm regards,

Klaytn Foundation DeFi Working Group

[KF_DeFi]

Highlighting the Achievements of the D2I Grant Committee and the Central Role of the Working Group
As the D2I progresses, we wish to highlight the achievements of our Grant Committee and underscore the central role of the Working Group in driving the initiative forward.

The dedication and expertise of these groups have been pivotal in laying the groundwork for a robust DeFi ecosystem on the merged chain.

Grant Committee Members
The Grant Committee has successfully completed its role, having conducted a thorough and transparent selection process for D2I grantees. Their diligent work, characterized by bi-daily meetings and in-depth interviews with shortlisted teams, has been instrumental in identifying projects with the potential to significantly contribute to the DeFi landscape. We express our profound gratitude to the committee members for their commitment and hard work:

• Alwin Peng, CTO of Vertex
• Colin, VP of Strategy at Klaytn Foundation
• Doo Wan Nam, COO of Stablelabs
• Earl, Senior Consultant at Despread
• John, Research Analyst at Presto Labs
• Mike, Head of Research at Undefined Labs
• Moonsoo, Co-founder of Lano Technology
• Ryan, CTO of Swapscanner

The names of the Grant Committee members are presented in alphabetical order.

Working Group Participants
With the Grant Committee’s role now concluded, the Working Group assumes a central position in the ongoing development and strategic direction of the D2I program. This group’s continuous efforts are vital to navigating the complexities of the DeFi sector and ensuring the long-term success and sustainability of the ecosystem. We acknowledge and appreciate the invaluable insights and leadership provided by the Working Group members:

• Colin, VP of Strategy at Klaytn Foundation
• Jason, DeFi Lead / Business Manager at Klaytn Foundation
• Steve, Strategy / Product Manager at Klaytn Foundation
• Taeheon, Co-founder of Lano Technology
• Moonsoo, Co-founder of Lano Technology
• Woosik, Business Development / Co-founder of Lano Technology
• Bill, Founder of Encoding Labs

The foundational work of the Grant Committee and the ongoing leadership of the Working Group are crucial to the D2I program’s achievements and future prospects. We are confident that the continued efforts of the Working Group will lead to significant advancements in the merged Chain’s DeFi ecosystem.

[KF_DeFi]

After a rigorous selection process by the Grant Committee, we are proud to announce the selection of three grantees from over 20 candidates: Dragonswap, iZUMi Finance, and Wombat Exchange. Each team underwent an interview round, showcasing their unique strengths.

Dragonswap was selected for its:

• Strong connections within the industry, capable of attracting numerous partners to the ecosystem.

• Impressive early achievements, including attracting over $6M in TVL and generating the highest trading volume among DEXes.

Key Highlights:

• A collective of anons with extensive experience in traditional finance, cryptocurrency exchanges, and blockchain projects, deeply involved in the Klaytn mainnet.

• Specializes in digital asset trading, and holds influential roles in both traditional financial institutions and crypto ventures.

• As active participants in the Klaytn ecosystem, they have a proven track record in generating trading volume

• Exceptionally well-connected, Dragonswap has the potential to attract prominent figures and entities to the ecosystem.

• Less than a month after its release, DragonSwap has attracted more than $6M in TVL, and ranked 2nd within Klaytn’s DEX hierarchy. It has also reached a cumulative $50M in trading volumes within this short period of time.

iZUMi Finance was chosen for its:

• Extensive launch history across multiple chains, showcasing robust operational capabilities and over 3+ years of experience.

• Unique DL-AMM features and innovative offerings, distinguishing it from standard DEXes.

• Support from major industry players, indicating its competence and reliability.

Key Highlights:

• A multi-chain DEX utilizing a Discretized-Liquidity-AMM model, maintaining a $40M TVL with stable operations for over 670 days across multiple chains (Mantle, Manta, zkSync Era, Linea, Scroll, Zeta, BSC, etc.).

  • Analytics available at iZUMiswap Analytics.

• Known for innovative features like iZiSwap, iZiSwap Pro, CL-Farm, and iPoints, all scheduled for Klaytn integration:

  • iZiSwap : DL-AMM model with LIMIT ORDER on-chain
  • iZiSwap Pro : On-chain orderbook with in-depth liquidity
  • CL-Farm : Non-custodial solution for programmable liquidity mining
  • iPoints : Point-based system designed to reward users with additional airdrop benefits.

• Backed by VCs such as Mirana, HASHKEY, IOSG, BIXIN Ventures, etc.

Wombat Exchange was selected for its:

• Proven operation of a capital-efficient AMM DEX for over 3+ years, demonstrating real operational capability.

• Strong backing by leading names in the industry, affirming its competence and delivery capability.

• Excellent synergy with the Klaytn ecosystem, particularly with GameFi products, complemented by its single-sided AMM and gamified bribe market.

Key Highlights:

• Introduces a Crosschain Coverage Ratio AMM with a hyper-capital-efficient algorithm, enabling single-sided liquidity provision and significantly reducing impermanent loss (IL), thus simplifying the user experience for DEXes. Wombat Exchange is the only multichain and crosschain single-sided DEX in all of crypto, making it truly one of the unique DEXes in DeFi.

• Wombat’s algorithms are the invention of the Wombat team, which signals the teams dedication to push the envelope and add new technology and research to a difficult space

• Wombat is available on 7 chains and growing, will be paramount in connecting the DeFi world together in a simple-to-use DeFi experience. Chains supported currently are: BNB Chain, Optimism, Arbitrum, Ethereum, Avalance, Scroll, Base, and more coming

• Integrated with all the largest aggregators such as 1inch, ParaSwap, Kyber Network, Open Ocean, Odos, 0x, to name a few.

• During the USDT depeg, Wombat has shown extreme capital efficiency in doing >300M volume with only 40m in TVL and only on BNB Chain at the time.

  • https://twitter.com/CurveFinance/status/1634880101652504576

• Demonstrates robust trading volume management, ranking:

  • 7th on Optimism (7d)
  • 10th on BSC (7d)
  • 10th on Avalanche (7d)
  • 14th on Arbitrum (7d)
  • 13th on Optimism all-time cumulative volume
  • 11th on BNB Chain all-time cumulative volume
  • 13th on Avalanche all-time cumulative volume
  • 10th on Arbitrum all-time cumulative volume

• Achieved a Cumulative Trading Volume of over $3.3B, which is 5 times that of the biggest DEX on Klaytn.

• Set to introduce a gamified Bribe Market with a point system to Klaytn, aligning well with GameFi partners.

• Backed by industry leaders such as Animoca Brands, Jump, Wormhole, GSR, Binance Labs, and Pyth, among others.

[DragonSwap]

Thank you for selecting DragonSwap for the Dragon DeFi Initiative (D2I) Program.
We are profoundly honored and grateful for this recognition and the opportunity to be part of such a pioneering effort within the DeFi ecosystem.

We are also thrilled to acknowledge that iZUMiSwap and Wombat Exchange have been selected for the Dragon DeFi Initiative (D2I) Program. Congratulations to all of you!
This collective selection represents a significant opportunity for us to create synergies that will further energize and enhance the Klaytn ecosystem.

Best regards,
The DragonSwap Team.

[definidude]

We want to thank the team at the Dragon DeFi initiative for selecting Wombat Exchange as one of the program’s recipients. We are honored to be part of the DeFi push in the Dragon Chain ecosystem along with DragonSwap and iZUMiSwap. We are excited to make friends and support each other in growing the DragonChain DeFi ecosystem.

Wombat Exchange is here to stay, build, and help push the Dragon Chain Initiative and not only bring users into the ecosystem and community, but also connect the Dragon Chain community with the global DeFi ecosystem and bring about cross-pollination of users. Korea is undoubtedly at the forefront of crypto adoption, and now they are at the forefront of crypto innovation.

LFG, Korea!

Yours truly,
definidude and the Wombat Exchange team

[iZUMiFinance]

iZUMi Finance is thrilled to be selected as a partner for the Dragon DeFi Initiative (D2I) Program, and we want to express our sincere thanks for this opportunity.

We’re also excited to fight alongside DragonSwap and Wombat Exchange in this journey. Congratulations to them as well!

This partnership represents a significant step forward for us and highlights the strength of collaboration within the DeFi ecosystem. We’re excited to contribute to the growth of the Project Dragon community and to work together to enhance the DeFi landscape.

Looking forward to making a meaningful impact together.

Sincerely,
iZUMi Finance Team.