The flourishing development of Defi on KCC Empowers the KCS Ecosystem


Recently, the development of DeFi projects on KCC has entered a flourishing stage. Torches, Klein, sKCS and other DeFi projects deeply incubated by KCC have launched and quickly started cooperation.

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On June 27, 2022, Torches Finance, a decentralized lending protocol, launched on KCC, with the advantages of a low entry barrier, highly transparent smart contracts, an innovative economic model with incentives and DAO autonomy. It aims to further reduce the impermanent loss and increase the utilization of user assets. Then on July 29, Klein Finance, low slippage and good depth DEX (decentralized exchange), also joined the KCC ecosystem and it is featured in high efficient and low-risk stablecoin trading, providing liquidity providers with extra income. Klein collaborates with MojitoSwap, the largest DEX on KCC, to provide on-chain users with a more comprehensive and stable experience on DeFi applications and also enhance the diversity of the KCC ecosystem.

The launch of sKCS.io is another milestone in the KCC project incubation process. According to official news, on August 5, sKCS.io, a liquidity staking protocol for KCS, launched on KCC and sKCS has listed on MojitoSwap. As an underlying asset protocol on KCC, sKCS.io would like to help users experience the composability of DeFi protocols in one click. It aims to build the whole ecosystem on-chain and promote the flow of asset value, the emergence of which marks the initial stage of the KCC DeFi ecosystem.

From the above projects' launching time and on-chain functions, it is not difficult to find a commonality that adds more new usage scenarios for KCS. Torches has launched the lending service for KCS, where KCS can be deposited for revenue or lent out to participate in other activities; On the other hand, sKCS.io provides an arbitrage opportunity to stake KCS and get sKCS or unstake sKCS to get KCS with a higher APR than the incentive; At the same time,  MojitoSwap provides LP liquidity mining of KCS; Although Klein has not published much information, it also has a strong binding relationship with KCS. 

For example, users can make sKCS and KCS as LP tokens with a ratio of 1:1 to enjoy an APY of 440% on MojitoSwap; Or if users stake their KCS on sKCS and after getting sKCS, they can still deposit their sKCS on Torches and borrow KCS or USDT from Torches, which allows users to earn rewards from both of the projects.

sKCS launched MojitoSwap and Torches to further realize multi-level arbitrage of KCS and on-chain project linkage. For example, users can make sKCS and KCS as LP tokens with a ratio of 1:1 to enjoy an APY of 440% on MojitoSwap; Or if users stake their KCS on sKCS and after getting sKCS, they can still deposit their sKCS on Torches and borrow KCS or USDT from Torches, which allows users to earn rewards from both of the projects.

In addition to enriching the infrastructure of the DeFi field, KCC has recently launched its Validator Election, which aims to share a 100% on-chain gas fee and high KCS value-added dividends to further increase investors' desire to hold KCS. Meanwhile, KCC encourages on-chain users to participate in the event by staking KCS and sharing the KCC validator block rewards and KCC subsidy rewards,  which further reduces the circulation of KCS in the market and increases the scarcity of KCS.

KCS, as KuCoin's native token and the fuel of the KCC ecosystem, will support and integrate the entire ecosystem, so there is a lot of evidence for a strong combination of the two. 

KCC co-release KCS Whitepaper with the KCS Management Foundation and KuCoin on 29 March 2022.  It is noted that KCC is the key to the current development of the KCS ecosystem, which helps to improve the infrastructure of the KCS ecosystem in the decentralization and enrich the integrity of the ecosystem. Since then, the relationship between KCC and KuCoin has become closer. Not only do they often appear together at major events, but KuCoin Labs and KuCoin Ventures have frequently invested in the projects on KCC, such as Torches Finance, MojitoSwap, sKCS.io, Klein Finance, BitKeep, Idle Stoneage, xHashtag, etc. Torches received a strategic investment from KuCoin Ventures and had a strategic partnership with KuCoin Wallet less than 10 days after its launch.

Meanwhile, on July 21, KuCoin, a global leading crypto exchange, announced that it had secured a 10-million US dollar strategic investment from SIG, one of the largest quantitative trading firms. They will collaborate in blockchain startup incubation and KCS & KCC ecosystem building. It is evident that from 2022, the KCS ecosystem has provided more and more sources to KCC, and KCC vigorously develops the ecological scale by incubating high-quality projects to comprehensively enhance the practical value and value-added space of KCS.

As the fifth anniversary of KuCoin is coming, KCC works together with KuCoin to provide KCS holders with one-stop services from centralization to decentralization, empowering the sustainable development of KCS and realizing the KCS’s self-circulating ecosystem.

 

About KCC  

KCC is a public chain project initiated and built by the developer community of KCS and KuCoin, aiming to solve the network latency and high gas fee of Ethereum. KCC is Ethereum-based and compatible with EVM and smart contracts to provide community users and developers with a higher-speed, more convenient, and lower-cost blockchain experience.    

Visit https://www.kcc.io/ to learn more.



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BlockChain Observer
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