[Blockchain Today Correspondent Kim So-yeon] Chain Partners (CEO Cheol-min Pyo) announced on the 25th that Donkey, the DeFi deposit/loan service provided by the company, has started supporting the Klaytn blockchain. This makes Donkey the first DeFi lending protocol to support the Klaytn Network.
DeFi, which stands for decentralized finance, is a financial service that is operated P2P on a blockchain based on virtual assets. According to market information company DeFiPulse, the deposit amount in the DeFi market has grown 173 times in one year and 10 months from 700 billion won at the beginning of last year to 121 trillion won now. Recently, how many DeFi services exist has become important enough to determine the success or failure of a blockchain.
Among the various DeFi services, the area that holds the largest deposit amount and forms the basis of everything is none other than the deposit/loan service. It is also called ‘Lending Protocol’. Currently, 4 out of 5 DeFi services with the highest deposit amount (AAVE, Maker, InstaDapp, Compound) are lending protocols.
Lending Protocol is a service that lends virtual assets to borrowers who need them by using virtual assets collected by depositors as financial resources. All transactions are done P2P by smart contracts 24/7 on the blockchain with no room for operator intervention. The collateral is also entrusted to virtual assets, and if the collateral value falls, the collateral is liquidated through P2P.
The Klaytn network can be accessed by selecting Klaytn within the Donkey service. Anyone can easily use the clip wallet, which is already installed in KakaoTalk, which is used by people across the country. In addition to the clip, Klaytn Donkey can be used using the Kaikas wallet and the Descent wallet provided by the Klaytn developer Ground X.
Donkey supports Klay (KLAY), Ethereum (KETH), Ripple (KXRP), KUSDT, and Klay Swap (KSP) as the first deposit/loan asset on Klaytn. It plans to support deposits and loans of more virtual assets developed based on Klaytn in the future.
With the support of Klaytn Network, Donkey’s deposit amount soared to more than 100 billion won, and as of the 25th, it recorded 230 billion won. Loans also increased by 50 billion won to exceed 88 billion won. With this, Donkey has risen to the top 70 DeFi service in the world (based on DeFi Pulse, a global DeFi information site) within two months since its first launch on Ethereum on September 1st.
To commemorate the opening of Klaytn, Donkey is holding an event that pays three times the rewards to depositors and borrowers for a week. In the future, we plan to continue improving our products and economic system, such as expanding new global users through the release of the English version, strengthening connection with overseas DeFi services through source code disclosure, and continuous token incineration using loan-to-deposit margins.
Cheol-min Pyo, CEO of Chain Partners, said, “Klaytn is a very promising blockchain network, and in particular, it is a blockchain that has solved the wallet problem, the biggest obstacle of the blockchain in that you can log in through KakaoTalk.” “The first lending protocol in the Klaytn ecosystem. In Donkey will actively link and cooperate with various DeFi services that will be created based on Klaytn in the future.”
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