‘Aave of Klaytn’ KLAP Protocol TVL Soars $102 Million in First Week of Launch

KLAP – a DeFi lending protocol on Klaytn Network has seen its total value locked soar above one hundred million in a week after its launch. The dApp, spun up by DeFi accelerator Krew, is now the second most popular application on the Klaytn network.

Crypto lending has proven to be one of the most robust use cases for decentralized finance, particularly during market downturns when demand for stablecoins increases. With its EVM compatibility, Klaytn has established itself as an L1 that can hold its own against Ethereum within a low-fee environment that supports on-chain trades that are intrinsic to DeFi.

KLAP TVL Exceeds $100 Million

While a lesser-known in the West, the Klaytn blockchain is quite popular in Asia, particularly in South Korea, where many of its users and developers originate. It’s used for many of the same purposes as other layer ones: for DEX trading, liquid staking, lending, yield farming, and derivatives. At present, $375M of assets are locked on the EVM-friendly blockchain, according to Defi Llama.

$68M of that total comes courtesy of KLAP, which only went live on June 24. Users of Klaytn network can deposit assets such as WETH and WBTC onto the KLAP platform and borrow stable assets such as USDC and DAI. In this respect, the KLAP protocol functions similarly to defi lenders such as Aave and Compound.

The speed with which KLAP has grown to become the second largest Klaytn dApp by TVL seems to have taken the entire community by surprise; on June 24, KLAP was celebrating $15M of user deposits within the first 15 minutes. Half an hour later and that figure had increased to $50M and was at $100M within two and a half hours.

Krew Tries to Make Defi Great Again

KLAP is a project of Krew, the DeFi accelerator, that has $4M in funding to bootstrap meritorious Klaytn projects. Formed from a handful of venture capital titans such as Adam Cader, ex-ParaFi Capital, Krew has attracted commitments from the likes of Quantstamp and ROK Capital. While KLAP is the first project to fly under the KREW banner, there are other projects in the works.

Lending protocols are seen as a cornerstone of decentralized finance since they form the basis for much of the other trading activity that occurs. The arrival of a lending platform on Klaytn, therefore, has been warmly welcomed by proponents of the high-speed L1. With recent events within the crypto industry fomenting distrust of centralized platforms, end users have flocked to reputable non-custodial alternatives.