Official KLAY Single Staking Service by Swapscanner / Introducing GCKLAY

April 30, 2023

* Greetings

Hello everyone. This is the Swapscanner team.
It's an honor to introduce some important features and directions for the ecosystem.

There's so much we want to talk about, so we're going to keep the greetings short and get right to it. 🙇🏻‍♂️

We've worked really hard to prepare.

* Overview

Klaytn is governed by the Governance Council (GC).

In order for Klaytn to grow better and be more transparent, the GCs need to provide good direction and play a role of monitoring and vigilance along with the role of major players to ensure that it is actually realized.

This role has become even more critical since the independence of the Klaytn Foundation.

Swapscanner is not only a member of the GC, the governing body of the Klaytn ecosystem, but also an operating developer of the ecosystem's representative dApp service. For Klaytn to succeed, we believe that we need to make a big move to better fulfill the aforementioned role of GC.

One of the ways to do that is to have a large number of KLAY holders participate in this GC activity.

As a first step, we are launching the KLAY staking service.

We spent a lot of time thinking and researching to make sure that the KLAY staking service we are launching is not a clone of existing services.

We will show and prove that even when launching the same KLAY staking service, it will always be different when created by Swapscanner.

Introducing GCKLAY, the official KLAY single staking service by Swapscanner.

*What is GCKLAY?

GCKLAY is an acronym for Governance Council KLAY,

1) the name of the official KLAY single staking service created by Swapscanner, and
2) the name of a staking token that provides a guaranteed 1:1 ratio or better for KLAY staking.

*Advantages of GCKLAY, the most advanced KLAY staking service

1. Next-generation staking service that finds the most efficient path for staking

Swapscanner is a company that has developed an overwhelmingly powerful Navigator (aggregator) engine that finds the optimal swap route in real-time, and has applied this Navigator engine not only to token swap but also to KLAY staking.

All existing KLAY staking services simply deposit KLAY into a smart contract. However, Swapscanner utilizes both of the following methods for staking.

  • The basic method is to deposit KLAY into a smart contract and guarantee the minting of the staking token GCKLAY at a 1:1 ratio to the amount of KLAY.
  • We analyze all possible routes from KLAY <> GCKLAY in real-time and swap GCKLAY directly on the market.

This means that KLAY stakers can get additional profits by optimizing all of their GCKLAY acquisition methods and automatically receiving GCKLAY at the highest swap rate of the moment with a SINGLE click of the staking button.

2. Solve the inconvenience of 7-day unstaking lockup

According to the Klaytn GC node operation policy, the official KLAY single staking service has a 7-day lockup period for unconditional unstaking. During the unstaking lockup period, investors are unable to respond to market conditions, which has caused great inconvenience.

For some services that previously offered instant withdrawals, they would request to continuously unstake a certain amount of funds for instant withdrawal in advance, so that all KLAY stakers would share the interest losses of the reserve amount for instant withdrawal.

Swapscanner offers two unstaking different methods without 7-day lockup.

  • Instant swaps(withdrawals) utilizing the GCKLAY pool en-2023-gcklay-unstaking For the instant swap of GCKLAY, our team has provided 1.86 million KLAY worth of liquidity directly to the GCKLAY-KLAY pool on Pangea, a centralized liquidity DEX.

    Since GCKLAY is 100% guaranteed to be exchanged 1:1 for KLAY in up to 7 days, the market price of the two tokens is not significantly different, and since the liquidity was provided using a concentrated liquidity method, the liquidity provided by Swapscanner team is enough to instantly withdraw GCKLAY for KLAY at a very low PI in most cases.

    Many liquidity providers will be attracted to GCKLAY-KLAY as they see the stable LP fee revenue, and GCKLAY's instant withdrawal capabilities will be further solidified by the addition of various pools linked to GCKLAY.

  • Unstaking GCKLAY NFTs en-2023-gcklay-unstaking Unstaking GCKLAY NFTs are NFTs that are issued to your wallet upon unstaking GCKLAY from the Swapscanner and guarantee the right to withdraw(exchange) the amount of KLAY you have staked after a 7-day lockup. (NFTs will be automatically burnt when you withdraw KLAY, and you can claim them for 7 days after the lockup is lifted.)

    Unstakers who own NFTs can sell them through the NFT market and instantly exchange them for KLAY.

    Instant withdrawals via this NFT can also be useful if you want to make large-scale instant withdrawals that are larger than GCKLAY's pool liquidity.

    Conversely, if you can purchase this NFT at a lower price than the amount of KLAY it's guaranteed to hold, you can reverse the process and generate valuable profits beyond the lockup period. (Unstaking GCKLAY NFTs have 0% Opensea trading fees.)

3. Participate in the operation of the Klaytn ecosystem through voting rights in Klaytn Governance

Currently, only GC members can participate in proposals and votes that determine the overall direction of the Klaytn ecosystem.

For a better and more decentralized Klaytn ecosystem, the voices of more KLAY holders must be reflected. Therefore, Swapscanner has created a structure that allows KLAY holders to participate in GC operations by delegating GC voting rights to KLAY holders through KLAY staking.

In other words, we provide voting rights for Klaytn governance through Swapscanner.
As the most active GC with the most direct contributions to the Klaytn ecosystem, the Swapscanner team will utilize this voting power entrusted to us by KLAY holders to ensure that Klaytn on-chain governance is well established and that the Klaytn ecosystem grows further.

In the future, GCKLAY's governance voting rights will evolve into the role of a Klaytn community DAO and community GC that can directly exercise GCKLAY governance voting rights to propose GC agendas and vote individually, rather than delegating voting rights through Swapwcanner.

The provided GCKLAY is already includes DAO Voting function.

4. The most reliable KLAY staking service in the entire ecosystem

Previously, the official KLAY stakin policy was to offer different interest rates for different nodes depending on the amount of KLAY deposited, but after the Klaytn hard-fork on April 23rd, this Gini coefficient policy was dropped and all KLAY staking services ostensibly have the same interest rate. It is now important to choose a reliable service that can operate investors' assets most safely.

Swapscanner is a platform that accounts for more than 50% to 70% of all token swaps on Klaytn, and since its launch in January 2022, about $3 billion in transactions have been carried out without any problems. It is also a key member of the GC, recognized for stably providing various functions needed by the ecosystem and investors. Based on this technical and operational know-how, we promise to provide the most stable KLAY staking service.

In addition, unlike other staking services, the smart contract of GCKLAY is non-upgradeable, completely eliminating operational risks.

Swapscanner's KLAY staking service has been audited by 'CertiK', one of the leading cryptocurrency security auditing organizations. (The report can be found in the white paper).

*Strategy for activating GCKLAY

1. Zero fees (offering the best interest rate)

As mentioned above, the KLAY staking interest rate offered to all official nodes is now the same. The difference in rates offered to KLAY stakers will depend on the operating fees that each node receives for operational expenses.

As per the official required specification, operating a Klaytn node can cost tens of thousands of dollars per month or more, so it's not possible for each GC to unconditionally accept operating fees.

However, Swapscanner has prioritized the needs of the Klaytn ecosystem.

Even though the Swapscanner team will cover the operating costs of the nodes for now, we believe that it is most important for the future of the Klaytn ecosystem to ensure that the GC-based on-chain governance is properly established and that KLAY holders are properly involved in this process.

Therefore, for the time being, Swapscanner's official KLAY staking service will operate with a "zero fee" policy. We will also offer the "highest" KLAY staking interest rate based on our team's determination to bring about healthy changes in the Klaytn ecosystem.

2. Open Commemoration, KLAY Interest Boosting Event (5/2 ~ 5/14)

In order for more KLAY holders to experience and enjoy the advantages and benefits of the official KLAY single stsaking service by Swapscanner, we have organized an additional "KLAY Interest Boosting" event.

For about two weeks, the Swapscanner team will be distributing approximately $10,000 worth of KLAY in interest from the GCKLAY volume that has been deposited and operated by Swapscanner team to every stakers in proportion to their staked amount.

3. Provide KLAY Staking API

For KLAY's price growth momentum, the circulation amount of KLAY in the market needs to decrease, which means the amount of staked(locked) KLAY needs to increase. Just as Swapscanner's current Swap, Chart, and Price APIs have been applied to various services, expanding Swapscanner's reach across the ecosystem, we intend to follow the same expansion strategy by providing our KLAY staking services as an API.

Through Swapscanner's official KLAY staking API, we plan to lead the explosive growth of the market by allowing users to stake their KLAY in numerous wallets, exchanges, and other services to safely receive interest and participate in Klaytn governance.

4. Expanding GCKLAY Pools

Once a large number of KLAY circulating in the market is transitioned to GCKLAY through the above expansion strategies, we will rapidly expand and migrate various KLAY-centric liquidity pools to GCKLAY-based pools.

GCKLAY is basically a token that is guaranteed to exchange 1:1 with KLAY, but with additional features and value beyond KLAY, such as the right to interest income and governance voting rights.

We will utilize this to create new GCKLAY-centric Money Legos across the ecosystem, expanding it and ultimately driving the growth momentum of KLAY even further.

*Closing remarks

It's been a while since we've been able to give you a detailed look at the features we've been working on.

Since the Swapscanner team first joined the Klaytn ecosystem in January of last year, we've improved all the existing conventions for liquidity provision, starting with the pre-sale.

We've also improved all existing user experience features related to trading, making it the best trading experience in the ecosystem.

Based on this, Swapscanner became Klaytn's GC, and with that tremendous responsibility and authority, we launched the KLAY single staking service.

In the future, we will spearhead innovations in on-chain governance and build GCKLAY-based Money Legos into the Klaytn ecosystem.

We've been able to keep going non-stop because we have a clear vision, direction, and momentum around what we think a true Web3 service experience is and what a healthy Web3 ecosystem looks like.

This feature launch is just one step in the overall big picture we're painting, and we hope to see a lot of support from different members of the ecosystem in the future.

The Swapscanner team will repay you with service results and the evolution of the ecosystem.

Thank you all,
Team Swapscanner 🚀

Official GCKLAY Github link

GCKLAY Token Contract

NFT Contract