Hello. This is Editor K of Team Protocon.
Weekly research resumes this week after recharging for two weeks.
Following the research on the token deposit and reward structure in the past, let's start the series again with 'Analyzing Token Staking 1 - KLAYstation'.
Today, we are going to learn about Klay, which is well known as Kakao token in South Korea, and KLAYstation, a platform for staking Klay. Before explaining KlayStation, let me briefly explain Klaytn and some related terms.
- Klaytn
Klaytn is a blockchain platform for dApps. It was developed by Ground X, a subsidiary of Kakao Co., which is well known as a mobile messenger in Korea. Klaytn first appeared in 2018 with the advantage of providing an easy development environment and an optimized environment for users to use the service without any expertise in blockchain.
Klayton's mainnet Cypress, which was released the following year, was considered to be a high technology for reducing latency and increasing scalability compared to other blockchains for block creation and verification times in just one second. In addition, features such as 4,000 transactions per second and low gas costs at the level of 1/10 Ethereum may have been an attractive feature for users. Shinhan Bank also replaced Mainnet from Ethereum to Klayton to speed up the blockchain-based loan service, ‘Doctor Loan’ and reduce the fee burden.
Image credit: Klaytn
Shinhan Bank recently announced that it will join the Klaytn Governance Council to make decisions on key business directions. Klaytn, which is building governance with the participation of a large number of large companies, has been on the rise since June when it was listed on the world's largest cryptocurrency exchange, Binance.
KLAY
The token that works in Klaytn is called KLAY With Klaytn chain's key cryptocurrency KLAY, users can use it in a variety of ways, including transaction costs, staking, collateral for secondary tokens, etc.KLAYswap(KSP)
A word that frequently comes up when discussing KLAY staking is KSP, KLAYswap. According to the KLAYswap homepage, KLAYswap protocol (KSP) token is defined as a governance token that determines an important agenda, such as distributing KSP rewards to each pool of liquidity in the KLAYswap, or changing exchange fees.
In this research, we'll focus on the definition and cover it in more detail later in our KLAYswap research.
sKLAY
sKLAY means a Rights and Liquidity token issued by smart contract for staked KLAY. In addition to providing additional flexibility in the current Klaytn ecosystem, holders of sKLAY can participate in the various revenue opportunities offered by the DeFi protocol operating on Klaytn while maintaining their staking positions.KLAYstation
KLAYstation: Dashboard
As defined in the previous research, staking refers to the act of receiving interest by depositing cryptocurrency into the network in the PoS ecosystem and contributing to the security of the blockchain. On the other hand, unstaking refers to canceling staking and making the staked cryptocurrency available for withdrawal or trade.
KLAYstation is a staking tool for the Klaytn Network. It provides key indicators related to staking, such as staking and unstaking functions, user account status and transaction history. The menu is largely composed of staking, dashboard, explorer, and information, with a simple and user-friendly UI.
Looking at the Dashboard, you can see that the total supply of Klay is 10,635,878,608.00 KLAY, 171,515,380.15 KLAYs have been staked (as of August 3). This accounts for about 1.6% of the total supply, but more Klay is supplied to the liquidity pool than staking. Let's talk about liquidity pool in more detail when dealing with KLAYswap.
Also, you can check the KLAY-sKLAY exchange rate in real time on the dashboard. sKLAY obtained by staking Klay in the KLAYstation has the same value as the corresponding Klay, but it is estimated that there is a slight difference in value due to time reasons as it takes 7 days to unstake. In addition, you can check the highest reward rate that offers the highest staking rate on KLAYstation.
KLAYstation Staking
Here's a simple schematic of the stake on a KLAYstation.
First, the KLAY holder can select the node that you want to stake. If the KLAY holder stakes the KLAY, it will be rewarded with a reward ratio of 9.46% (as of August 3), while the KLAYstation issues skLAY to the KLAY holder. Here, sKLAY serves as a kind of deed to the KLAY that was staked.
Usually, it takes seven days for unstaking at the KLAYstation to be released in a transactional state for security reasons, but the advantage of being issued with KLAY staking is that it can be traded with withdrawals immediately.
Staking rewards are accumulated in real time without a specific period of time. Interest rates are also not fixed rates, unlike the deposit interest on the bank account we are familiar with. The rate depends on the ratio of the total amount of KLAY being staked, but as the amount of staking increases, the rate gradually decreases. If 10,000 KLAY is calculated based on a 9.46% reward rate, we can get about 0.00025918 KLAY per day.
In the case of Binance, which was recently listed by Klaytn, it released different annual rate products such as 6.54%, 8.12%, and 10.37%, depending on the staking period and the amount of KLAY. Token holders can be staked according to their investment propensity, considering the duration, volume, and annual interest rate.
Today, we learned about token staking through Klayton's KLAYstation. As many projects exist, there is a wide variety of token staking methods and reward rates. Let's talk about the other tokens in the next episode and how they are staked.
That's it for Editor K!
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