Quick overview
Klayswap launched in 2020 on the Klaytn chain to bring low-fee swaps and yield farming to its ecosystem. It supports stable-coin optimized pools, single-side staking, and a native token (KSP) for governance and rewards. Great for those already in Klaytn - but it’s still on the fringe compared to larger DEXs.
How it works
Klayswap uses two AMM models - Flat pools for stables to cut slippage, and Constant-Product for all other tokens. You connect via Kaikas or MetaMask on Klaytn, deposit assets to earn swap fees plus KSP tokens, and participate in governance through staking. It also bridges assets from Ethereum and BSC via Orbit Bridge.
Liquidity and volume
Daily trading volume hovers around a few thousand dollars, mainly in stable-stable pairs. Total value locked (TVL) reaches a few million at best. Tiny swap volumes make it fine for small trades, but larger orders face slippage and unpredictable execution.
Security and audits
Contracts are audited by Certik, Haechi, Theori and others around 2020-2021. Klayswap is non-custodial and connects through wallet rather than account-based flow. No major hacks reported. But there's no SAFU fund or insurance presence. Standard smart contract risks apply.
Pros and cons
- Low-fee swaps with stable-optimized pools
- Farming rewards via KSP staking and margin yields
- Non-custodial, wallet-only approach
- Multiple audits completed, strong security pedigree
- Super low liquidity - only small trades work
- Rewards fall off once KSP incentives decline
- No external insurance or reserve proof
- Limited visibility, niche usage on Klaytn chain
Who might use Klayswap
- Yield farmers and token holders already in the Klaytn ecosystem.
- Users preferring wallet-native, low-fee AMM swaps on smaller chains.
Who should avoid it
- Traders needing high liquidity or active cross-chain access.
- Anyone looking for centralized insurance funds or large pools.
Verdict
Klayswap does well within the Klaytn ecosystem - its AMM is solid, gas cheap, and incentives real. But lack of volume and niche positioning holds it back. It suits small-scale swaps, yield seekers, and Klaytn loyalists, but not your core DeFi bucket list. For broader yield, bigger pools, or cross-chain muscle - PancakeSwap, Uniswap or Curve will deliver more.