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. They take advantage of the liquidity layers in Decentralized Exchanges and act as the amplifier for these exchanges. By integrating with farms, they trigger an inflow of liquidity to both exchanges and our protocol, leading to a higher TVL for the entire Ecosystem.

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. They 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, we 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. We will always strive to give equal chances to all participants in protocol. The first step to our fair-for-all DeFi Protocol starts in the form of a launchpad. Details will be disclosed soon!

Token Flow

Farmer

• Farmers can borrow assets from the Lending Pool to participate in Yield Farming with more assets, resulting in bigger yields.
• KLEVA helps auto-compound the Farm Yields for Farmers, increasing the total value of Farming Position.
• Farmers can expect to earn :
  1. 1.Maximized Farm Yield from Leveraged Yield Farming
  2. 2.KLEVA Reward
• Performance Fee is deducted from the Farm Yield, to be used for :
  1. 1.Reward for ibKLEVA Holders
  2. 2.Buyback and Burn of KLEVA Token
  3. 3.Maintenance and stabilization of KLEVA Protocol
• Farmers have to pay Borrowing Interest for the asset they borrowed – which is paid automatically through KLEVA Protocol.
• Should Farmer’s Debt Value to Position Value Ratio reach a certain percentage (Liquidation Threshold), Farmer’s position is automatically liquidated.

Lender

• Lenders can deposit their assets into the Lending Pool and provide assets that can be borrowed by Farmers.
• Lenders can expect to earn :
  1. 1.Lending Interest (paid by Farmers as Borrowing Interest)
  2. 2.KLEVA Rewards distributed to Lenders
  3. 3.Rewards from Farming Performance Fee

KLEVA captures the value of the protocol

From the start, they have designed KLEVA Token to capture economic incentives of KLEVA Protocol. A part of Performance Fee is rewarded to ib KLEVA Stakers and the profit generated are mostly used to Buyback & Burn KLEVA Tokens.

Since they take advantage of liquidity layers of DEXs, integrating with more DEXs will result in bigger accrued fees. This will be used to aggressively Buyback & Burn KLEVA Tokens. Below are the parameters related to incentivizing KLEVA Token holders.

• 10% of the Lending Interest will be used to Buyback & Burn KLEVA Tokens
• Performance Fee will partially be used to Buyback & Burn KLEVA Tokens
• All Liquidation Fees will be used to Buyback & Burn KLEVA Tokens