On July 29, 2022, Klein Finance announced mainnet official launch based on KCC ecology. At present, users can transfer their token assets such as ERC-20, BSC and Polygen to the KCC main network through the cross-chain bridge. And participate in Klein Finance staking, add liquidity to obtain income.
Klein Finance is a DEX (Decentralized Exchange) on KCC (KuCoin Community Chain), on which tokens under KRC 20 standard can be traded. Klein Finance Aims to allow digital assets to be traded in a safe and stable on-chain environment with low slippage, good depth, and low fees, it also enables users to obtain rewards by locking digital assets. With a mixed liquidity pool trading model, Klein Finance provides a cross-market mechanism for creating stablecoins liquidity pools as well as non-stablecoin trading pairs.
About Klein Finance
Klein Finance plays an important role in the KCC ecosystem, and along with major DeFi protocols such as Uniswap on Ethereum and Curve Finance, Klein Finance provides liquidity for many large back-end platforms. It maximizes returns and gives the protocol an advantage in maintaining market share
Klein Finance is recognized as a major part of the KCC DeFi ecosystem. It allows users providing liquidity and trading with KRC20 tokens on the KCC. However, the transaction mode adopted is a mixed liquidity pool, which provides a cross-market mechanism for creating stablecoins liquidity pools without permission.
Klein Finance’s immutability allows most of the liquidity to be concentrated around the price of 1.0 (or any real price), and this is a very useful feature for creating liquidity as well as lowering impermanent losses between stablecoins.
Automated market making using dynamic peg creates liquidity for assets that are not necessarily pegged to each other in a more efficient way than m * n = λ invariant. This creates 5–10 times more liquidity than Uniswap and also provides higher profits for liquidity providers.
Conclusion
Klein Finance applies a completely different technical path from Uniswap V3 in terms of AMM. In Uniswap V3, Liquidity Providers can decide the price range they’d like to provide with, which can be risky for novice users as there is high potential impermanent losses. Klein on the contrary, can automatically adjust the liquidity aggregation range based on the internal Oracle. Thus no need for users to redeploy the liquidity range. This design is more friendly to novice investors and does not require liquidity providers to formulate complex market-making strategies.
This article has generally discussed underlying architecture, key functions as well as basic technical paths of Klein Finance. It can be observed that Klein Finance trading platform performs well in stablecoin trading, but in the field of non-stablecoin trading, AMM of dynamic peg is still in process of exploration. In later articles, we will further discuss detailed technical methods and advanced trading strategies of Klein Finance platform.
Join Klein Finance
Website: https://klein.finance/